The reinstatement of student loan repayments, so important to many borrowers in Will County, hangs in limbo. For two years, borrowers did not have to pay back these loans, but this deferment is set to end under one of two circumstances.
In February, the Supreme Court is will hear two challenges to the current administration’s student loan forgiveness plan. Meanwhile, the Biden administration has stated student loan payments will resume this August.
What this means is that borrowers will have to resume paying back their student loans either when the Supreme Court issues its decision or the current deferrment period sunsets in August, whichever happens first.
Student loan repayment can spell trouble
Student loan repayment is impossible for many who were in default prior to the current administration’s deferment of payments and will remain in default once payments resume.
Student loan repayment only adds to your financial stress, especially if you are dealing with inflation, low wages and other unpaid debts such as medical debt and credit card debt.
The situation is only made worse if you start receiving threatening calls from debt collectors regarding your unpaid student loans. What can you do if this happens?
Student loan debt collections
If you are contacted by a student loan debt collection agency on behalf of a private lender, your options are limited. You can try to negotiate a payment plan. Otherwise, you may be stuck paying what is due.
If you are contacted by a federal student loan collector, you have more options than you have with private loan debt collectors. These options include rehabilitation, repayment and consolidation.
Remember, though, under the Fair Debt Collection Practices Act (FDCPA), private and federal student loan debt collectors cannot call you at unusual times, call you at work, harass you or threaten you.
The debt collector must stop contacting you if they know you have an attorney. All communication must be with your attorney.
You can ask the debt collector to stop contacting you. This must be done in writing. Once done, the debt collector must stop contacting you, although they can still pursue collections in other legal manners.
It is stressful to be in default on your student loans, and harassment at the hands of debt collectors should not be tolerated. If you are behind on your student loan payments and a debt collector is harassing you, you can take steps to protect your right against mistreatment.