Blogs > The Law Blogger

The Law Blogger is a law-related blog that informs and discusses current matters of legal interest to readers of The Oakland Press and to consumers of legal services in the community. We hope readers will  find it entertaining but also informative. The Law Blogger does not, however, impart legal advice, as only attorneys are licensed to provide legal counsel.
For more information email: tflynn@clarkstonlegal.com

Saturday, August 25, 2012

Debt Relief: Student Loans

Ever since the Great Recession put the strangle hold on the U.S. economy back in 2008, the default rate on student loans has skyrocketed.  This in turn has increased the debt collection case-load among the various United States Attorneys.

Michigan, hit particularly hard in the recession, is ranked 11th among the states in overall student debt load.  A full ten percent of the loans to Michigan students are defaulted.  The problem has become so acute, the U.S. Attorney's Detroit office hired a private law firm to aggressively pursue claims against students that defaulted on federal government loans.

Due to the number of public and private educational institutions located within the jurisdiction of the United States District Court for the Eastern District, and considering the drastic tuition increases to which these institutions have resorted, the USDC - EDMich has one of the most robust civil collection dockets in the nation.

It is crucial for college grads, law students, and other graduate students to avoid getting enmeshed in this collection docket.  Unfortunately, bankruptcy is not an option for educational loans.

The crux of the problem is that the ever-increasing student loan burden is met at graduation with a continuously shrinking job market. A veritable disaster waiting to happen; a disaster that is happening.

What is a graduate to do?  First, do not ignore the problem.  These loans will not go away, regardless of the nievete or hard luck of the student borrower.  Ignoring the debt will only remove any repayment options such as forbearance or rehabilitation periods.

Second, student debtors should thoroughly educate themselves on the student loan statutes and regulations prior to commencing negotiations with the federal lender or collection entity.  The Internet is an excellent source of information that will lead the borrower to primary resources.

Third, consider hiring legal counsel to assist you with negotiations with the lender; definately hire legal counsel if you have been sued.

Fourth, if you are a current student, scour the Internet for as many grant and scholarship opportunities as you can find prior to executing additional loans.  There is "free" money out their for students; you just have to find it.

Finally, be realistic when establishing your educational goals.  Avoid paying out-of-state tuition if at all possible.  Michigan has many great institutions of higher learning that fit the bill.

Good luck out there getting educated.  Take it seriously as you are mortgaging your future to obtain your degree.

www.clarkstonlegal.com
info@clarkstonlegal.com



Labels: , , , , , ,

9 Comments:

Blogger Nelly said...

It is shocking to see the sad plight of the students. Most of the students are graduating with debts. The high unemployment rate in the country has made the condition of the students terrible. They are not getting jobs. They don’t have money to run their own lives. So, it goes beyond saying that students are unable to come up with money for repaying their debts.

I agree with the point that students should not ignore the problem. They have their whole life ahead. So, they should focus all their energies on finding ways to build career and get rid of debt.

August 31, 2012 at 7:04 AM 
Blogger Liz said...

How could I prevent my self from getting defaulted or either getting a bad debt if ever I do fail to repay the student loan on time? Any solutions would be much appreciated.

September 11, 2012 at 12:05 PM 
Blogger Giana Forzareli said...

Nelly, you are completely right. I thought that if I put in the time to graduate with a double major, I would be a shoe-in for a job right out of college. I even spent my time volunteering for a myriad of causes, was involved with student government, and was accepted into the international honor society. None of these experiences bettered my chances to receive a job. Now that I am in debt, I am searching for ways to pull my self out of this hole. I can only assume how long it will take for me to seek out tax debt relief . I read that I would be able to ease my stress if I filed for bankruptcy, but I will have to read more into this because I see bankruptcy as a iffy choice. Thank you for sharing the importance of this issue. It is getting really tough out there.

September 13, 2012 at 12:33 PM 
Anonymous Debt Consolidation Loans said...

Really lovely post.

September 25, 2012 at 3:00 AM 
Anonymous Jessie Eady said...

This kind of case is not easy to solve because the money and your properties are involve here. You must find the best lawyer on this kind of case in billbuster.

Chicago Bankruptcy Attorney

October 14, 2012 at 10:12 PM 
Anonymous Gabriel Cross said...

It is really true that students need to be knowledgeable about the totality of these financial backups. It's just as important to weigh down such options before deciding to get a student loan.

April 16, 2013 at 10:20 PM 
Anonymous Quick Unsecured Loan Provider said...

Your expertise on quick 90 day loans is highly appreciated. Thanks for providing readers with tips on what they need to know about this.

May 7, 2013 at 9:49 PM 
Blogger stgeorgeutahattorneys said...

Wonderful and very interesting blog.Thank you!

structured settlement in utah

October 16, 2013 at 6:15 AM 
Blogger historypak said...

I have recently started a blog, the info you provide on this site has helped me greatly. Thanks for all of your time & work.
Debt Settlement Help

June 16, 2015 at 5:43 AM 

Post a Comment

Subscribe to Post Comments [Atom]

<< Home