When you do not pay your student loans, your account goes into default. Collection companies start calling at all hours of the day and letters requesting and demanding money are in the mailbox each afternoon.
Unfortunately, that incredibly rewarding money-making job you were promised after college never really panned out and you are struggling to pay your water bill, let alone the hundreds of dollars of student loan payments due every month.
Since student loans are not dischargeable under any bankruptcy options and your wages and tax refunds can be taken before they even reach you, what will happen when it comes to retirement if you remain in default?
Retirement In The Land Of Student Loans
Defaulted student loans can affect your job search and will affect your credit score, ability to buy a house and a vehicle, and co-sign loans for to help your children begin their lives.
Even though this seems like a Generation X and Millennial problem, the student loan bubble began many years ago. There are many individuals of retirement age still trying to pay for their student debt or at least attempting to evade the process.
Social Security is a concern for millions of aging Americans who need the money to survive the next chapter of their lives. Social Security payments make up 33% of the usual retiree's income and it can be garnished due to defaulted federal student loans. Almost $171, 000,000 was collected from social security garnishments in 2015.
Also, if you are younger and currently saving for retirement with defaulted student loans hanging over your shoulder, this becomes difficult, if not impossible, when that money goes missing from your paycheck.
What Do I Do?
An aggressive and talented lawyer is necessary to ensure that your rights are being upheld and that the loan office is abiding by California law. We are talking about your future.
The Law Offices Of James C. Shields has a team of practiced and effectual bankruptcy lawyers in Torrance and the South Bay areas to protect you, your assets, and your families from undue hardship. The team can help you come up with a plan of action when it comes to your student loans to decrease the stress they place on your everyday lives.
Contact us to speak with a lawyer from our firm and we'll get started working towards the most favorable outcome possible. Everyone suffers from different hardships and stressors. Allow us to help you with yours.