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| Image source: Pixabay.com |
While not highly common, lawsuits are still a possibility when it comes to federal and private student loan collection. In fact, they are the main recourse for collection that private lenders have. Here’s quick information on lawsuits around student loan debt.
Never ignore a lawsuit – pick up certified mail as well as accept notices about court actions. Perhaps the most crucial techniques if you have been sued is to raise your defenses, explore what could happen if you lose the case and the final judgment is against you, and check for special rights if you are part of the military.
There are several common defenses used. These include having made the payment, but it did not get credited to the account or that there isn’t any debt owed and the lender is current on payments. The creditor, too, could be accused of miscalculating the amount due.
Several flaws or shortcomings can kill student loan collection lawsuits, too. The creditor cannot prove that it owns the debt or its business records aren’t admissible in court. The debt could also be beyond the statute of limitations for collection wherein private loan collectors may lose their rights to sue after certain years without payment, depending on the state ruling.
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| Image source: Pixabay.com |
It’s important to be aware of the news on current and potential regulations. Lawyers in the United States, for instance, are increasingly seeking to challenge the traditional wisdom that any kind of student loan is not dischargeable in bankruptcy. The Department of Education is also reviewing the high standard that student loan borrowers should be able to meet to have their debts discharged in bankruptcy.
Performance SLC matches thousands of student loan borrowers with federal programs offered by the Department of Education to consolidate and lower their current Federal student loans. For more information, click here.
