What happens when you don't pay off your student loans
If you choose not to make payments on your student loans, your ignored debt will be labeled "delinquent" in which case you will have nine months to start making payments before it enters the "default" stage. This means that debt collectors can start hounding you, and you will be held responsible for any fees associated with the collections process. If this sounds bad enough, wait, there's more. Once you've defaulted on your loans, your tax returns are considered forfeit. The Department of Education is able to garnish your wages and re-direct your Social Security and retirement benefits to help pay off the debt.
What are your legal options?
While not everyone needs a student loan lawyer, they can be very beneficial in certain contexts. If you are filing for bankruptcy and have defaulted on your student loans, an attorney can help you navigate the process of discharging your debt. Even if your financial situation isn't that severe, an attorney will represent you when dealing with loan servicers or debt collection agencies to the extent that a coherent payment plan agreement is reached between you and these entities. You might find that other legal issues that are tangentially related to the debt will arise. Have collection agencies displayed a pattern of harassing you? Your attorney might suggest that you file a lawsuit against the offending parties.
Concerning private student loans, only a lawyer in your state will have the expertise necessary to know the legal loopholes at your disposal because these types of loans are under the purview of state rather than federal law.
If you are chafing under the yoke of student loan debt, please contact us immediately.
