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- Can a student loan be discharged or forgiven?
Yes, if certain eligibility criteria are met such as school closure, disability, unpaid refund, did not complete coursework, etc. you are eligible for a discharge and possible refund.
- How do I stop wage garnishment?
Quitting your job may be effective, but unfortunately you cannot run from the federal government forever. It is almost certain that the garnishment will be reestablished at your next place of employment. The best way to stop and prevent this is to make arrangements on your obligation.
- What can the government or other agencies do to collect on these loans?
The government as well as private agencies can garnish your wages to recoup the debt owned, however the government does not have to take you to court first to do so. Another collection tactic used by the federal government is tax refund offsets, which can be ordered in addition to a garnishment. Private loans would follow the same guidelines as regular consumer debt, except it is non-dischargeable in a bankruptcy.
- Can my defaulted student loans affect my ability to make major purchases?
Yes, student loans are reported just like any other loan on your credit report. Defaulted loan information is reported to all major credit bureaus.
- Can the Department of Education affect my professional license?
Yes, it can. However, making arrangements on your debt can protect your professional licensure from being revoked or seized.
- Can my student loan debt be discharged in a bankruptcy?
In most cases, no but only in cases where you can prove undue hardship which is extremely difficult in a court of law.
- Is consolidation always my best option?
It is not always the best option because consolidation significantly increases the outstanding balance by including penalties and collections costs.
- If I sign up with SLRO will I automatically get out of default?
No. Unfortunately, much of what we can do depends on our clients' individual situation and their ability to maintain and/or honor the arrangement(s).
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