Student Loans and Unfair Debt Collections

Student Loans

Student loans are often the largest debts a person has. They often create the most heartache too. This is because student loans are generally not dischargeable in bankruptcy. The fresh start that is the goal of bankruptcy doesn’t apply to student loans. Instead, your other debts can be discharged, but your student loans and their collectors never go away. Collectors even have special powers in collecting student loans. It’s ironic how easy it is to get student loans, but how hard it is to pay them off and make them go away.

Once you start paying on your student loan, you enter a status known as “in repayment.” You are in repayment until the loan is paid back in full, or you are in default. If you are in default, there are various means to try to rehabilitate your loan to take it out of default. There are also formulas to try and schedule a payment you can afford. Unless there is a way to cancel your loan, such as if the school defrauded you, it is best to try and work out a way to stay out of default. Otherwise, your credit rating will be ruined and even simple things like getting a credit card will be difficult.

We deal with student loans and unfair debt collection practices in the same page because students who have trouble repaying their loans are universally subjected to collection activities. Some of those activities are illegal and can be stopped.

Debt Collection

Most debt collectors are subject to extensive federal and state regulation of their activities. Debt collectors who violate these laws can be required to pay damages. Debt collectors are subject to lawsuits for damages and to stop the improper practices.

Here are some examples of improper debt collection practices:

  • Threatening or implying that non-payment of a debt can result in arrest or imprisonment.
  • Calling at work after you have notified the collector that you are not permitted to accept collection calls at work.
  • Discussing the fact that you owe a debt with a third party without your permission.
  • Mischaracterizing the amount or nature of the debt.
  • Making any misleading or fraudulent statement.
  • Continuing to contact you about a debt after you have given them contact information for your attorney.
  • Threatening to take your house, garnish your wages, sue you, or take any other action that is not intended.

We assist both with student loans and unfair debt collection practices associated with them. If you have been subjected to the practices listed above, give us a call, and we’ll see if we can help.

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