What Is a Student Loan Lawyer? And 6 Reasons You Need One

What Is a Student Loan Lawyer? And 6 Reasons You Need One

Many of us carry student loan debt. Unfortunately, although, not everybody can simply make on-time funds to repay that debt. That’s when issues start to come up. Perhaps you’ve gone into delinquency or default, and the loan firm has determined to sue you.

If you’re having issues with student loan reimbursement, whether or not you’re at fault or not, a student loan lawyer might be able to assist.

What is a student loan lawyer?

A student loan lawyer is an legal professional who makes a speciality of serving to debtors navigate the sophisticated net of student loans.

Daniel Gamez, an legal professional, and head of Gamez Law Firm focuses completely on serving to people in debt. He explains, “As part of my practice, I developed this niche of helping borrowers with their student loan debt when they could not pay them back.

A large majority of this focus is on private student loans (those not backed by the Department of Education). My goal is to negotiate settlements with the lenders where my client’s total debt amount is lowered, and that reduction is paid out over an extended amount of time, with no additional interest accruing.”

Gamez determined to specialize on this area about six years in the past when he first discovered that personal student loans had been eligible for settlements. A possible consumer got here to his workplace with unsolicited gives to settle her defaulted student loan debt.

“She had never been able to make payments, and the lender referred her accounts out to a collection agency, much like what you see happen with defaulted credit card debt,” recollects Gamez. They had been providing to settle $42,000 in loans for $9,000, payable in a lump sum.

It was at this level that Gamez realized personal student loans had been in play for settlement functions. “I found that a need existed to help people who aren’t able to pay back their private student loans. That includes helping them by negotiating settlements and also defending them if they get sued on their private student loans.”

6 explanation why you want a student loan lawyer

1) Aggressive assortment letters and telephone calls

“This is usually the trigger point for someone to contact me,” says Gamez. “Most of the people who contact me are scared and overwhelmed with collection activity and the possibility of getting sued.”

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2) Served with a lawsuit for defaulted personal student loans

“If the lender is successful in getting a judgment against the borrower, they have the option to garnish their wages, levy on bank accounts, or place a lien on their property. These options vary from state to state. It’s common for people to tell me they want my help to avoid a wage garnishment or bank levy,” says Gamez.

3) Help with federal reimbursement applications

“Federal Student Loans are a different beast, but they offer so many repayment options if you cannot afford the regular payment. The programs are free to sign up for, and you can do them without legal representation. However, I have found that some people are scared that they will mess things up if they try to do apply for these programs on their own. I always counsel potential clients on this fact, that they can do it alone. Some still request that I help them with it.”

4) Get loans out of default by means of a Loan Rehabilitation

“There are many articles and warnings out on the internet and issued by different entities advising people not to pay for this type of service. Yes, it is true that you can do it without paying someone else, but I have found there is a population of people that would rather pay someone to do that for them.

I think of it as being similar to filing your taxes versus hiring a tax professional to do it for you. I make it clear in my fee agreements that the client acknowledges that they could do this on their own, but they have decided to retain me as their attorney to do so for them. Then I try to make the process as transparent as possible because I have a duty to advise my client of this fact.

5) Disputing the amount you owe on your account

Loan servicers manage millions of accounts, so errors are to be expected from time to time. However, before you dispute the amount you owe on your student loan balance, note there are several legitimate reasons why your balance may be higher than you expect. For instance, unpaid interest may have capitalized at the end of a period of forbearance, or you may have incurred collection fees because if you defaulted on your loan. Once you’re confident there has been an error, your lawyer (or you) can write a letter with evidence that supports your claim. You don’t need a student loan lawyer to do this but it will speed things up and increase your chances of success if you hire one.

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6) Disputing that the entity trying to collect has the legal right to do so

Student loans are often sold to big banks and other institutions. These loans are then bundled and sold to a depositor, such as National Collegiate Student Loan Trust. Sometimes paperwork gets lost. If your loan servicer cannot prove the chain of title (or ownership) of a student loan, a judge can dismiss the debt.

In September of 2017, the Consumer Financial Protection Bureau filed complaints against the National Collegiate Student Loan Trust and Transworld Systems, Inc. saying it had filed over 2,000 lawsuits for debts that it couldn’t prove it owned.

Additionally, the CFPB alleged that false and misleading affidavits were filed in many of the collection lawsuits. Further, over 486 collection lawsuits were filed after the statute of limitations on the debt had expired. The proposed judgment requires that all 800,000 of the trust’s student loans be independently audited.

Further, the company will not be allowed to collect, sue, or negatively report on any loan shown invalid or unverified in the audit. Read more about what may be the largest clerical error in history.

Real life examples

Gamez says one of his clients had a student loan in default with Navient, a spin-off company of Sallie Mae. Once your loan goes into repayment with Sallie Mae loans, they switch over to Navient for repayment and collections if you default, explains Gamez.

This client owed Navient $156,866.47 for five private student loans that she could not afford to pay. They went into collections and eventually wound up with an out-of-state collection law firm.

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“My client was fortunate enough to have relatives who would provide her with the funds to settle the debt. We were able to settle her private student loans for $50,019.73, payable in two payments. She needed that time to secure the funds from her relatives. We saved her $106,846.74. That is the largest reduction I have received from a client on a private student loan,” says Gamez.

Gamez says he’s labored with different purchasers who had related outcomes. “We have been able to achieve settlements that reduce the loan balances by 50-60% of the total due, with those payments spread out for extended amounts of time. I would say anywhere from 24 to 84 months, and those settlements all come interest-free.”

The price to rent a student loan lawyer

As with all authorized prices, the quantity can range an awesome deal relying on a quantity components together with the stability on the accounts, whether or not or not the account is in litigation, and the variety of accounts a lawyer might be working with.

Gamez often costs a flat payment and says that he can not make ensures to his purchasers. He provides,”But I’ve discovered these lenders to persistently settle usually for a lot lower than is claimed due. I don’t recall having any purchasers who’ve balked at my charges. Most are more than pleased to take their student loan issues and dump them on my lap.”

Other choices for student loan reimbursement

Hopefully, your student loans haven’t gone so flawed that it’s good to search assist from a lawyer. If you’re not in critical delinquency or default and aren’t apprehensive about being sued, think about loan consolidation or refinancing as a substitute.

Review student loan refinancing lenders and evaluate charges side-by-side to seek out your best choice.