Student Loan Servicing – Protecting Your Interests
This article was written to give potential students a clear overview of how to consolidate student loans. Whether you’re an existing student borrower or a new one, the consolidation process can be overwhelming at times. This is especially true if you have a mountain of student loan debt to contend with. So, what qualifies you for student loan forgiveness? The following guidelines should point you in the right direction.
How to Pay Off Student Loans – The first guideline is to check to see if you have been defrauded by any of your lending institutions. Any good data analyst knows that tales are significant, but what truly counts at the end of the day are real, objective data. That is how we came up with the following list of illegal behaviors that may be grounds for student loan forgiveness.
The first and most glaring instance of an illegal act is misrepresentation. If, for example, you work for a private company and tell them that you will be borrowing money from the federal government repayment options, most will not actually honor this. Instead they will focus on how much money you make. What if you really don’t make as much money as you said you would? Well, since the federal government does not reimburse student loans, you most likely have been defrauded.
Second, borrowers who deliberately avoid their repayment responsibilities run the risk of being found defrauded. If you deliberately decide that you want to postpone your loans from coming due, then the lenders can sue you for default. As we mentioned before, penalties for these actions are severe.
Next, illegal behavior often occurs when borrowers try to “manipulate” their loan obligations. For example, it has been found that many borrowers purposely misinform the credit agencies about their incomes in order to avoid making their loan repayments. This can be an intentional attempt to avoid loan repayments, or just a misunderstanding of how much they make. In either case, the borrowers run the risk of being found defrauded.
Finally, students who lie about their incomes on application forms run the risk of being found defrauded as well. When a lender asks questions about something like how much you make, they must get specific information from you. If you lie on an application form for student loans, you are definitely going to be found out. While the penalties for this are relatively minor, they really help to illustrate how important it is to make sure that everything on an application form is accurate.
Another important factor that can lead to illegal acts with student loans occurs when borrowers intentionally try to keep their student loans from being repaid in full. This can be a tricky business for a borrower to pull off, since most student loans are actually federally guaranteed. If the federal government finds out that you are purposefully keeping your payments low in order to keep them from being pursued, not only can you be prosecuted for defrauding the government, but you may also find yourself shut out of college entirely. If this happens, of course, you’ll have to go elsewhere to get money, which can be extremely detrimental to you and your future.
Finding a great deal of information on how to protect your interests when it comes to Great Lakes student loans is rather simple. A borrower simply needs to know what his or her options are in terms of protecting his or her loan payments. It’s important to note that the federal government will not pursue borrowers who are willfully trying to avoid their student loan servicer. That said, if a borrower does find himself or herself in such a position, there are still many things that can be done to ensure that the lender does not end up taking legal action against the borrower.