Defaulted student loans can wreak havoc with your credit score and cause other problems with your life. The U.S. Department of Education has had a default rehabilitation program for decades that can have the default removed from your credit, thus causing your score to jump up.
The problem is, many people had to turn to private student loans to bridge the gap between the cost of attendance at their school and the amount they were able to get from the federal government. Defaults on those loans could not be removed, even if the borrower entered into an acceptable and affordable repayment plan!
That was until now.
Removing Default from Your HESAA Loans!
On May 24, 2018, the "Economic Growth, Regulatory Relief, and Consumer Protection Act" became law, and permitted private student loan lenders to delete defaults from a borrower's credit report if the borrower demonstrates a willingness to repay the loan.
Then, on April 25, 2019, New Jersey Governor Murphy signed into law legislation that defines a "willingness to repay" a defaulted New Jersey CLASS loan as making 9 on-time monthly payments over the course of 10 consecutive months pursuant to a settlement agreement.
This, combined with HESAA's willingness to enter into a settlement agreement based on your financial situation and income, can finally get CLASS loan borrowers the relief that they need and allow hem to get on with their lives.
Stop Suffering in Default!
Having loan defaults on your credit hurts, as I said. They lower your credit score to the point where getting new credit is next to impossible, and even if it is, the interest rate is sky high! A lower score can also keep you from getting a better job or a security clearance.
Then it can get worse! Holders of those defaulted debts then send them out to debt collectors who hound you and law firms that sue you, garnish your wages, and levy on your bank accounts!
Isn't it time to make things better?
So What Do I Do?
If you live in New Jersey, have defaulted on your CLASS loans from HESAA, have the ability to pay something towards the loans, and are ready to take action, then call my office immediately at 856-432-4113 to schedule an appointment to review your situation. I have been successful for many clients in helping them into affordable repayment plans for their loans!
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