If you’ve been struggling with your student loans, there’s some potentially good news: The Biden Administration last year announced that it would try to change the way the Department of Education handles requests to discharge student loans, and those changes have resulted in student loans being eliminated for many borrowers.
Most recently, a borrower discharged $78,000 in student loans in bankruptcy after trying (and failing) to pay off $18,955 in loans she took out in 1988. The balance had grown from that $18,000 because the borrower had for many years been unable to make timely payments or pay in full, so late fees and interest accumulated.
The borrower filed a bankruptcy petition and used the new procedures available to help get rid of her loans through the bankruptcy process.
As good as that story sounds, bankruptcy should be considered a final option for dealing with student loans. LawtonCates has helped students get rid of hundreds of thousands of dollars in student debt without filing bankruptcy, and in some instances was able to force the debt collectors and lenders handling the loan to pay damages to the borrowers for misconduct. Federal and state laws provide many protections for student borrowers (as well as cosigners, including parents), and violations of those laws can result in the loans being forgiven, money being paid to the borrowers, and in almost all cases our clients pay nothing out-of-pocket.
If you are struggling with your student loans, call LawtonCates to set up a free consultation with our consumer protection attorneys today.