Being Sued By Your Student Loan Lender? You Can Fight It.

February 3, 2015

Once you enter into student loan default (non-payment for a period of 270 days), you risk being sued by your Federal or private loan lender.  Lawsuits (See Wage Garnishments here) are a common collection tool for private loan lenders, and are also occasionally used by the Federal government.  Continue reading to learn more about some of the common defenses to a student loan collection lawsuit and contact an experienced student loan attorney at JRQ & Associates to create a plan best suited to your circumstances.  Common defenses include:

 

Debt is Not Owed

 

  • If you do not owe the amount of debt the creditor is claiming in their lawsuit, or if you are current on loan payments, then you have a valid defense. This defense could be based on a mistake made by the creditor or a miscalculation in the loan amount.

 

Debt Being Repaid

  • If you are currently paying your loan through a valid repayment plan, then you can use this as a defense against a collections lawsuit.

 

Loan in Forbearance, Deferment or Cancelled​

 

  • If you have successfully obtained a forbearance, deferment, or cancellation, then you can use this as a defense to a lawsuit.  To learn more about student loan cancellation, continue reading here.

 

Bankruptcy

 

  • To learn when student loan debt can be discharged in bankruptcy, read more here

 

Loan is Not Enforceable

 

  • You will have a valid defense if there was forgery, mistake or fraud regarding the signing of your loan.  You may have to file certain paperwork in order to prove that you did not take out your student loan.

 

Creditor Failed to Document Debt

  • The creditor suing you must attach the original loan agreement, as well as a copy of any sale or assignment of your loan.  If the creditor does not have this paperwork, you have a valid defense to their lawsuit.

 

Private Loans – Statute of Limitations

  • For private student loans, the creditor must sue you within a certain period of time.  This varies by state, and is called a statute of limitations. Contact an experienced student loan attorney at JRQ & Associates to find out if your loan creditor has sued you after the statute of limitations has expired.

 

Other Defenses

 

  • There may be other defenses to your student loan collection lawsuit depending on your circumstances.  Defenses to student loan lawsuits are complicated and will require the help of an experienced student loan debt attorney.

 

If you are currently being sued, or are in default and fear that a lawsuit is looming, then you should know that you have options to fight the lawsuit.  Let an experienced student loan attorney at JRQ & Associates guide you through the lawsuit process and put forth the best defense against your student loan creditors.  Set up a free consultation with an experienced student loan lawyer at JRQ & Associates to learn more about your options. 

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