Stopping Collection Calls On Student Loan Debt

After years of working hard through school to complete an education, students are left to face staggering student loans after graduation. The payments on these loans can be crippling, particularly for graduates who are struggling to find jobs with enough money to pay the loan and support their needs.

At Hamilton, Burgess, Young & Pollard, P.L.L.C., we provide guidance to these individuals, customized to their exact loan situation. Our attorneys will help you understand all options available to you, putting together a strategy for facing these loans.

If you are saddled with student debt and don't know where to turn, call our Fayetteville firm today at 304-574-2727 or 888-279-7919 to schedule a consultation and take control of the situation.

Student Loan Debt, Collections And Your Options — Attorneys On Your Side

You are considered delinquent on your loan the first day after you miss a scheduled payment. Failing to pay the loan for nine consecutive months results in default on the loan. If you fail to pay your federal student loans, there are harsh consequences, including:

  • Your wages could be garnished up to 15 percent
  • The IRS may collect funds from your tax returns
  • The government may draw from your benefits, such as Social Security
  • Your professional license could be revoked
  • You could be sued

Private student loans are eligible to go to collection agencies, meaning you could become the target of creditor calls, notices and harassment.

Our attorneys help individuals throughout West Virginia understand their student loan situation and devise a strategy for repaying the debt. We provide a detailed explanation of the specific types of loans you have and what they obligate you to do, as well as your options for repayment.

Student Loans And Bankruptcy

Federal student loans are rarely eligible for discharge in either Chapter 7 bankruptcy or Chapter 13 bankruptcy. Private student loans (particularly for education at a for-profit trade school) may be slightly easier to get discharged in a bankruptcy, but this is also very rare.

There are two exceptions:

You can prove undue hardship because of the loan. You must show that the payments cause you to live an impoverished lifestyle, that your earning potential will not improve and that you have made an effort in good faith to repay the loan.

You have experienced a debilitating disability. Disabled individuals may be eligible for a Total and Permanent Disability Discharge (TPD Discharge) to get rid of student loan debt. This requires a detailed application, medical documentation and final approval.

If you are experiencing either of these circumstances, our lawyers may be able to help. We will advise you of all available options and advocate on your behalf to the appropriate agencies and courts, seeking to discharge the loans.

If you are not able to discharge the loans in bankruptcy, you will still be responsible to pay them in full. Chapter 13 may allow you to lump the loans into your repayment plan, paying a lesser amount each month through the bankruptcy, but you will still be responsible for the full amount.