Student Loans

---

Schooling is a valuable investment in your future but the debts you accumulate can be discouraging and overwhelming. If you aren't able to pay off the costs of your education you may seek the legal help of  the Tancredo Law Firm.

There are various options to significantly reduce or even completely eliminate student loan debt. Our student loan attorney will look at all your options to make the best recommendations.

Payment Plans

There are a lot of different contingencies concerning student loan repayment plans. Our student loan attorney can help you understand which plans are available for you and which ones are not applicable for your situation.

Consolidating Federal and Private Loans

Consolidating federal student loans and private student loans can lower your monthly payments. Before you consolidate your loans, talk to our student loan attorney so you can be sure you know your rights and the government loan programs available.

Student Loan Discharge

If you have federal student loans, you can discharge or cancel them under certain circumstances. While everyone is entitled to petition for federal loan cancellation, people can only succeed in this effort if they can meet very specific requirements. Our attorney can review your situation and help you take the best steps.

Private Loan Litigation/Negotiation

If you are in forbearance or deferment of private student loans, ultimately, the principal, interests and penalties will add up and you may find yourself with student loans you cannot afford. Our student loan attorney will help negotiate your student loan debt settlement.

National Collegiate Trust

Have you had a lawsuit filed against you by National Collegiate Trust? Talk to our student loan attorney to learn your rights and let us work to resolve your student loan litigation. If you have been sued by National Collegiate Trust, this should not be ignored.

For those on the receiving end of a communication from the National Collegiate Student Loan Trust, there are a few things you need to know. The first thing is that NCT Student Loans is not affiliated with the federal government or any colleges. They are a Delaware-based business with a connection to a First Marblehead, which describes itself as, “… a leading provider of private student loan solutions for lenders, credit unions, and schools.”

They are not an official lender, but they purchase private loans and then pursue judgments on them. They then pursue judgments, even though in some cases it has been found that they do not have the necessary standing or position to prosecute the case. They have also been known to use unethical tactics and sometimes even harass debtors. But if you fail to challenge this in court and a default judgment is entered against you, it will be binding upon you.

Default judgments are binding, and you then lose the opportunity to defend against the claims or that it is improper. Bankruptcy and other similar processes will not discharge the debt.

The first thing you should do is contact our firm before the time to respond runs out. Then, our attorney will ask for a copy of your original loan documents. A number of courts such as the Ohio Supreme Court, have ruled against NCT because in case after case NCT has been unable prove that they even own the specific loan that they’re claiming. Proof, in this case, means documentation that they bought your loan in particular, and not just a tranche of amortized loans with your loan in it. In other cases, when the debtor obtains a lawyer, the NCT withdraws their case before it can reach court.

If you attempt to handle matters on your own or try to ignore them, you may put yourself in a far worse position. The situation may seem bleak, but the case is far from hopeless. The National Collegiate Trust relies on debtors being unfamiliar with unfair debt practices and the other legal requirements for successful collection. That doesn't have to be you though. Consider talking with our experienced attorney to guide you out of the mess and avoid a student loan lawsuit.

Stop Student Loan Wage Garnishment

Possibly one of the most frightening pieces of news that you can receive is a notice that your wages are about to be garnished in repayment of student loans.  If you stop paying your student loans, something we really don’t recommend, the amount you owe will continue to grow. Heavier loans go into default can have a serious effect on your credit score, and worse than that when a loan defaults the entire balance plus interest is due immediately. This would be bad enough, but collection charges can add almost 20 percent to the balance and interest that you already owe.

The first mistake you can make when receiving a garnishment notice is to think that nothing can stop it.

There are steps you can take.

1. The company that is servicing your loan is required to provide you with a Notice of Intent to Garnish 30 days before garnishing your wages.
2. The Notice of Intent to Garnish must include an advisory about your right to request copies of your student loan records, a hearing to present evidence against the garnishment, and your right to negotiate a repayment plan with the servicer.
3. Requesting a hearing will put the garnishment on hold, but you must carefully read the notice to find out what window of time you have to request this. Even if the window has passed and the garnishment has begun you may still request a hearing and the garnishment will be terminated if you prove your case.

Never request a hearing as a simple delaying tactic. You need to have concrete financial and grounds in order to stop the garnishment such as:

• Your loan has been repaid or forgiven, or you have qualified for forgiveness, cancellation, or discharge of your loan.
• You were fired from previous employment and have held your current position for less than one year.
• You are making payments under a consolidation or loan rehabilitation program.
• You have filed for bankruptcy, thus stopping all collection activity while your petition is pending.

You may receive notices from a collection agency, be reported as delinquent to credit bureaus, and the federal government can contact your employer and garnish up to 15 percent of your wages. In a community property state, they can even garnish your spouse’s wages. Even when you’re eligible for Social Security, the payments can be garnished as well in order to repay your debt. Very often this happens as you are struggling to cover your debts and your living expenses at the same time. You will absolutely want to make sound financial decisions at this critical time, whether you are filing for bankruptcy or not, our experienced attorney and staff stand ready to help you.