Student Loan Debt Relief

Student loans are a nightmare that keeps many people awake at night, so much so that it has been labeled a “crisis” among our Presidential Candidates. The possible changes that could be seen in the future, doesn’t help those of us who are struggling now. For many borrowers who have defaulted on their loans, there are ways to get out of default status and programs available to make repayment more affordable. 

Over 500 Five Star Reviews

Speak to an Attorney Today

We can reduce student loan debt

Our licensed attorneys will contact your student loan lenders and being negotiating them to help reduce the principal and interest you owe. As with most of our cases, the borrower will end up paying a fraction of the original balance. The rest of the student loan may be forgiven without having to file for bankruptcy. 

Private Student Loans

 Private loans are defined by the promissory note signed and the terms of each loan. The consequences of Private loan default are negative credit reporting, collection calls and letters, assessment of late fees and collection costs and even possible litigation in state court. Aside from being able to file for bankruptcy, private loan default is very similar to defaulting on other unsecured consumer debt. So, what options do you have if bankruptcy will not discharge the debt? One can raise disputes, defenses and counter-claims as well as negotiate settlements. Additionally, there is a Statute of Limitation period for Private Loans but “waiting it out” is a very risky option. 

Federal Student Loans

Federal loan default is defined as, “the failure of a borrower and endorses, if any, to make an installment payment when due, or to meet other terms of the promissory note, If the Secretary finds it reasonable to conclude that the borrower and endorses, if any, no longer intend to honor the obligation to repay, provided that this failure persists for 270 days”. 34 C.F.R 685.102. Federal loan consequences of default are slightly different. There is negative credit reporting, denial of new federal aid, collection fees up to 25% as well as forced administrative collections such as wage garnishment and tax refund intercepts. Yet, there are four options available for federal Loan default resolution: 

Student Loan Debt Rehabillitation

Rehabilitation is just what it sounds like, the borrower rehabilitates his/her default status by making a minimum of nine monthly payments over 10 months that are calculated based on the borrowers Adjusted Gross Income and a financial review of the individual’s income and expenses. There may also be collection costs associated with Rehabilitation but it does “delete” the default from your credit report and will end wage garnishment, if any, after 5 months. 

Student Loan Debt Consolidation

Consolidation is also a good option for borrowers in default because it reports the loans as “paid-in-full” to credit bureaus. Consolidation of the loans requires enrollment in an income-driven program and may result in a zero or low payment which can be more affordable to the borrower. 

Work with Our Dedicated and Experienced Bankruptcy Lawyers

The bankruptcy lawyers of Sadek & Cooper are dedicated to providing bankruptcy and non-bankruptcy solutions for people looking to handle their debt problems. We are proud to help hard-working people in Pennsylvania and New Jersey get out of debt and on the path to a fresh financial start. To schedule a free and confidential consultation, call us at 215-545-0008 or contact us online.

The Sadek & Cooper Difference

  • Over 4,000 Satisfied Clients
  • Super Lawyers Listed
  • No More Credit Card Debt
  • Low Flat-Rate Legal Fees
  • Free Initial Consultation
  • Convenient Locations Throughout the Philadelphia Region
  • No More Personal Loan Debt
  • Fast and Accurate Filing
  • Answering ALL your Creditor Calls
  • Save Your Home From Foreclosure
  • No More Medical Bills, Collections, and Other Debts
  • Payment Plans Available
Display Google Ratings

Find Sadek & Cooper Near You

Center City Philadelphia, PA

Philadelphia Building
1315 Walnut Street, Suite 502
Philadelphia, Pennsylvania 19107-4707
(215) 545-0008
See On Google Maps

Northeast Philadelphia, PA

2375 Woodward Street, Suite 105
Philadelphia, Pennsylvania 19115-5119
(215) 545-0009
See On Google Maps

Delaware County, PA

Victoria Mills Business Center
1489 Baltimore Pike #218
Springfield, Pennsylvania 19064-3968
(610) 432-3111
See On Google Maps

Montgomery County, PA

630 Freedom Business Center Drive, Suite 36
King of Prussia, Pennsylvania 19406-1331
(610) 951-4655
See On Google Maps

Bucks County, PA (Levittown)

1609 Woodbourne Road, Suite 203B
Levittown, Pennsylvania 19057-1538
(215) 545-1055
See On Google Maps

Bucks County, PA (Trevose)

5 Neshaminy Interplex, Suite 205
Trevose, Pennsylvania 19053-6932
(215) 468-3328
See On Google Maps

Mount Laurel, NJ

3000 Atrium Way, #218
Mount Laurel, New Jersey 08054-3924
(856) 343-4068
See On Google Maps

Moorestown, NJ

302 North Washington Avenue, Suite 101 West
Moorestown, New Jersey 08057-2448
(856) 343-4068
See On Google Maps

Cherry Hill, NJ

One Mall Drive, Suite 415
Cherry Hill, New Jersey 08002-2101
(856) 890-9003
See On Google Maps