Federal Student Loans V. Private Student Loans
These are two basic sources of student loan debt facing most recent American graduates. Both enjoy extreme forms of government privilege and protection, making their issuance, collection and repayment different from all types of other debt.
Private Student Loans: were provided by various lending institutions and guaranteed by the Department of Education.
Federal Student Loans: The loans are provide3d by the U. S. Department of Education, usually known as Stafford loan, PLUS loans and Perkins loans.
All forms of student loan debt has different qualifications, enforceability and rules for collection.
To learn more about the difference between the types of student loans, contact the knowledgeable attorneys at the Law Offices of Neil Crane at 203-230-2233, or toll free at 1-888-249-3027 for a free consultation.
Collection Of Private Student Loans And Federal Student Loans
The collection rules and tactics for student loan debt are in many ways different from the collection regulations for regular non-student loan private debt obligations.
Government Student Loan Collection: Direct education loans collection is determined by separate regulations that allow for a number of specialized remedies:
- Direct collection from tax refunds;
- Offsets from Social Security payments;
- Wage garnishment without Court Order
These government collection remedies are restricted by administrative rules and regulations that can be used to protect your refunds, Social Security or wages.
Private Student Loan Collection: Defaulted private loans are generally forwarded to collection agencies that are required to comply with the basic requirements of the Fair Debt Collection Practices Act or FDCPA.
Student Loan Debt Relief Attorney
While student loan debt can become overwhelming and seem impossible to fix, there are options and help available.
At the Law Offices of Neil Crane, we've been helping Connecticut individuals and families in the throes of overwhelming debt since 1983. Call us for a free comprehensive analysis of your financial difficulties, and put our experience to work for you. Call 203-230-2233 or toll free at 1-888-249-3027 for a free consultation today.