Debt collection of student loans is on the rise, as the number of student loans in default continues to rise.
The good news is that debt collectors collecting on student loans are governed by the FDCPA, which protects consumers against abusive and unfair collection practices. The bad news is that collection of student loans is a booming business.
If you are being contacted by a debt collector about your student loans, here are some things you need to know.
Debt collectors cannot collect debts that have been discharged in bankruptcy. In fact, once a bankruptcy petition is filed, all debt collection must stop.
As noted in this recent New York Times article, however, a number of creditors and debt buyers are allegedly attempting to collect on discharged debts.
For many consumers, student loan debt is a giant, and seemingly never-ending burden. Most consumers have federal student loans, which provide a variety of statutory rights that do not apply to private student loans.
One of the most important rights is called rehabilitation: the right to make nine reasonable and affordable payments to restore federal loans into good standing.
As of July 1, 2014, there are new rules for student loan rehabilitation, and the changes are consumer-friendly. Here are some of the most important changes.
Student loan debt is different from other types of consumer debt because of the high balances involved.
And many student loans require a co-signer in order for the loan to be approved, which means if something happens to the primary borrower, the co-signer may suddenly be pursued for the student loan by a debt collector.
Getting a co-signer released from a student loan can be tricky, but in many situations there is a way out.
Debt collectors are regulated in how they can collect debts from consumers. Collection calls to a cellphone are regulated under the Telephone Consumer Protection Act (TCPA).
If you are receiving calls from a debt collector on your cellphone, here is what you need to know.
[Read more…] about Autodialed Debt Collector Calls to Your Cellphone
Student loan debt is skyrocketing—the latest figures put student loan debt at $1.2 trillion dollars. As the cost of education continues to rise, more and more consumers are dealing with higher amounts of student loan debt.
The good news is that there are options for dealing with student loans. Even if a student loan is in default (and with a debt collector), borrowers with federal student loans can rehabilitate the loan.
[Read more…] about Student Loan Options, Default, and Dealing with Debt Collectors