It can be difficult to get help with your student loans when you have a problem – there are so many options to choose from. From repayment options to dealing with private lenders, you are faced with a dizzying list of tasks to complete.
Luckily, you also have many places you can use as resources. As the amount of education loan debt has skyrocketed over the past decade, there are more options than ever for getting help.
Before deciding how to tackle the problem, look at your needs and see which solution best suits your needs. Here are four ways to get help with your student loans.
do it yourself resources
When it comes to federal student loans, the web is your best starting point for information and procedures. The US Department of Education maintains a excellent web resourcesas does Consumer Financial Protection Bureau.
Other sites like finaidAnd Podcasts dealing with student loan issuesThey are useful for the depth of information they provide. Additionally, there are some excellent books that you can pick up to gain an understanding of what you are looking for.
You can also visit our student loan forum, or ask a question reddit.
These do-it-yourself resources are excellent if you’re just dealing with federal student loans and are comfortable solving your own problem. For issues related to private student loans or getting your federal loans out of default, you’ll likely need the analysis that only an experienced professional can provide.
for-profit student loan counselors
By far, the most visible resource is the for-profit company that offers to help you out of default and loan forgiveness programs. prompt: Just because they are visible doesn’t mean it’s a good thing…
These companies, often with slick websites and vaguely official names, direct borrowers into federal student loan consolidation and one of several income-dependent repayment options. They provide little information and charge unnecessary fees for completing forms that are readily available at no cost from the US Department of Education.
Recently, for-profit student loan counselors have begun telling borrowers that they can have their private loans wiped out based on vague claims of fraud and misrepresentation. Although many private loans suffer from the same lack of proper documentation and robo-signing that plagued the mortgage industry during the Great Recession, this argument is best presented in the context of a lawsuit – something a counselor cannot legally handle on your behalf.
Many of these companies have been sued by the government for defrauding borrowers. In two high profile casesThe CFPB and Florida’s Attorney General shut down student loan debt relief company College Education Services and, separately, filed suit against Student Loan Processing US for running illegal debt relief services that “exploited vulnerable student loan borrowers, made false promises about their debt relief services, and charged illegal advance fees.”
CFPB, in A Lettercautioned Google that, “Student loan relief scammers may target student loan borrowers through the company’s search products.” The government watchdog urged the search giant to “work closely with federal and state agencies to ensure that your search products are not being used by individuals and companies who seek to prey on the most vulnerable student loan borrowers by indicating affiliation with the federal government.”
for that reason, You should be very careful about hiring a private company Or you may become a victim of fraud out of your hard-earned money.
Here’s a recent example we saw on TikTok that got a lot of engagement (but no real value):
Financial planners and coaches
Over the years, many financial planners (see: CFP Board or similar accredited) have specialized in student loan debt. In fact, there is even a new certification called CSLP – Certified Student Loan Professional. If you’re going to see a financial planner, make sure they fully understand student loans and serve as a fiduciary for you.
Financial coaches are people who may or may not have any formal training to help you with your student loans, but they provide insight on budgeting and money management. Some financial coaches may also have a working knowledge of student loan matters. Robert shares a great list of student loan trainers In this Forbes article.
Although most financial coaches are not lawyers, the right one can help you solve your problem from a better money management perspective. They won’t be able to represent you in court, but the right financial coach may be able to provide valuable insight into ways to keep your student loans on track.
Some examples include student loan planners and student loan advice.
student loan lawyer
The field of student loan law is relatively new, with attorneys having knowledge of not only federal regulations but also loan collection, credit reporting, and bankruptcy issues. Although some attorneys limit their practice to just one type of student loan issue, the most skilled will be able to look at your situation from all angles to advise you in the most thorough manner possible.
There are 5 top reasons for you to work with a student loan attorney.
Complete analysis of all loans – not just federal loans. A student loan attorney can thoroughly analyze your federal and private loans to recommend the best way to reduce your payments or get out of default. With so many programs available, it can be difficult to make those decisions on your own.
Review the collector’s behavior. A student loan attorney can help determine if you have any cause to file a lawsuit against the collector for violations of federal or state debt collection laws. The rules governing debt collection are complex, and collectors who violate the law may be forced to pay you money damages as well as your attorney’s costs.
Ensure proper credit reporting. There are also federal and state laws that regulate how a debt collector or collector can operate. Report your debts to credit reporting agencies. Like debt collection laws, those who violate these laws can be forced to pay you economic damages as well as your legal fees.
Defend student loan lawsuits. The risk increases when a student loan company files a lawsuit against you, so it’s important to have specialized guidance that only a student loan attorney can provide. If you don’t defend the case – or worse, miss important legal arguments – you’ll have to deal with a judgment against you and the consequences could include wage garnishments and liens on your property.
An attorney who understands the unique world of student loans can give you the advantage you need. Issues such as relevant statutes of limitations, Proof of Chain of Ownership Loan status, and proper accounting can help increase the chances of a favorable outcome in your favor.
You are allowed to represent yourself in court, or you can hire a lawyer to do so for you. In some states, you can hire an attorney in a more limited role and have the benefit of legal advice as well as the freedom to represent yourself.
Consider whether bankruptcy is an option. Although your ability to discharge your student loans in bankruptcy is limited, it is not impossible. Even if you are not a candidate for resignation, Bankruptcy can help you Restructure your student loans, pay off other debts that hinder your ability to make payments, or just to give you some relief…
Finally, some loans that look like student loans may not be considered educational loans at all under bankruptcy laws. In those situations, getting out of your student loan obligations can be a relatively simple process.
A student loan attorney with experience in bankruptcy can help you decide if this might be a way to get some relief from financial pressure. Furthermore, only an attorney can properly advise you about your eligibility to file for bankruptcy, whether you will be able to keep your belongings, and what impact the filing will have on your life after the case is over.
Protect yourself by making the right choices
As you can see, you have a lot of options when it comes to getting help with your student loan problems. By understanding the benefits and risks associated with each, you will be able to make the best decisions so you can protect yourself and your financial situation.
Have you ever considered meeting with an attorney about your student loans? Ask your questions about it below!
