Student loans are a growing concern for many residents of New Jersey. With the cost of higher education rising each year, more students and families turn to federal and private loans to finance their education. Unfortunately, this often leads to overwhelming debt, missed payments, and legal complications that can follow borrowers for years. If you’re struggling with student loan debt in New Jersey, it’s important to know that legal help is available and that you have rights and options under both state and federal law.
Understanding the Types of Student Loans
Before seeking legal assistance, it’s important to understand the type of loan you have. There are two main categories:
- Federal student loans, including Direct Subsidized Loans, Direct Unsubsidized Loans, PLUS Loans, and Perkins Loans, are provided by the government and come with protections such as income-driven repayment plans and forgiveness programs.
- Private student loans are issued by banks, credit unions, or other lenders and typically lack the same borrower protections and repayment flexibility.
Each type of loan comes with different legal rights and responsibilities. An attorney can help you determine which laws apply to your situation.
Common Legal Issues Related to Student Loans
Many borrowers face legal challenges involving their student loans. Some of the most common issues in New Jersey include:
- Default and wage garnishment: If you default on a federal loan, the government can garnish your wages or seize your tax refund without going to court.
- Debt collection practices: Collection agencies must follow specific rules under the Fair Debt Collection Practices Act (FDCPA). If they harass you or use deceptive tactics, you may have legal recourse.
- Loan servicing errors: Mistakes made by loan servicers—such as misapplied payments or inaccurate balance calculations—can be challenged with the help of an attorney.
- Co-signer liability: Many private loans require co-signers, who can be held legally responsible if the primary borrower defaults.
Legal Options for Borrowers in NJ
Borrowers in New Jersey have several legal options depending on their circumstances:
- Dispute resolution: A student loan lawyer can help resolve errors in billing, payment application, or loan terms by contacting the servicer on your behalf.
- Loan rehabilitation or consolidation: If your loan is in default, an attorney can advise you on programs to bring it current and stop collection actions.
- Bankruptcy: While student loans are difficult—but not impossible—to discharge in bankruptcy, New Jersey attorneys can help you evaluate if you qualify under the undue hardship standard.
- Negotiation and settlement: For private loans, lawyers may be able to negotiate a reduced payoff amount or more manageable repayment terms.
When to Contact a Student Loan Attorney
If you’re receiving collection calls, facing a lawsuit over unpaid loans, or struggling to understand your rights, contacting a student loan attorney can provide clarity. Legal professionals in New Jersey can assess your case, represent you in court if necessary, and help you explore every option for relief.
Free and Low-Cost Resources in New Jersey
Several organizations offer free or reduced-cost legal help to New Jersey borrowers, including:
- Legal Services of New Jersey (LSNJ)
- Rutgers Law School Clinics
- New Jersey Citizen Action Education Fund
These organizations can help with debt counseling, legal advice, and representation for those who qualify.
Conclusion
Navigating student loan issues can be overwhelming, but you don’t have to do it alone. Legal assistance is available in New Jersey for those who are struggling with debt, facing collection actions, or dealing with servicer errors. By understanding your rights and seeking qualified legal help, you can take control of your financial future and protect yourself from unfair practices.