Houston Student Loan Debt Lawyers Provide Clients with Sound Bankruptcy Advice

Are you behind on your student loans?

Student loan debt often lasts for decades after graduates have received their degrees. Even those who manage to find good-paying jobs are likely to struggle to make required payments, leaving some to default on their loan obligation. Student loan defaults are notoriously difficult to deal with, since these debts generally cannot be discharged in bankruptcy. But at the Law Office of David A. Fernandez, P.C., in Houston, we work tirelessly to help clients manage and reduce their student loan debt burdens. We are dedicated to getting you back on your feet.

Knowledgeable advocates understand the true costs of college

We know that college tuition costs have increased at a far greater rate than wages, so it’s not a surprise that Americans collectively owe more than $1.6 trillion in student loan debt. About 65 percent of the college class of 2018 graduated with debt averaging $29,200. Those who go into professional degree programs are even worse off. The average debt for medical school graduates was $196,520; for dental school graduates, it was $285,184; and for pharmacy school graduates, it was $166,528. Entering the workforce with so much debt puts young people at financial risk just as their careers are beginning. Fortunately, our firm can help them find relief.

Proven attorneys defend student loan borrowers facing lawsuits

Student loans made by banks and other commercial lending institutions are known as private loans, but most banks who originate these loans sell them to the National Collegiate Funding LLC, which transfers them to the National Collegiate Student Loan Trusts (NCT), the nation’s largest holder of private student loan debt. The NCT then sells bonds to investors, who receive distributions from the trusts based on how much money comes in from student borrowers. To satisfy its investors, the NCT and its debt collector aggressively file lawsuits against borrowers in default. In 2017, however, the NCT and its debt collector were sanctioned by the Consumer Financial Protection Bureau for suing people for debts the NCT couldn’t even prove it owed.

Our Houston law firm has defended 74 clients sued by the National Collegiate Student Loan Trusts, and 73 of those clients did not have to pay a penny. We’ve saved them more than $1.8 million by defeating these lawsuits. We’ve also been able to negotiate with private lenders to reduce loan burdens. If you are being sued for defaulting on student loan debt or seek to modify a loan’s terms, we are ready to fight on your behalf.

Skilled lawyers seek relief for clients with federal student loan debt

Federal student loans account for 92 percent of all student loan debt. For borrowers who’ve fallen behind in payments, it’s possible to  apply for an income-driven repayment plan that’s more affordable or seek a deferment or forbearance, although interest will still accrue while payments are stopped or reduced.

While it is very difficult to discharge either federal or private student loans through bankruptcy, it’s not impossible. Under Texas law, borrowers can claim undue hardship through the Brunner/Gerhardt test. For clients to meet this standard, however, they must prove these elements:

• They can’t maintain a minimal standard of living for themselves and their dependents if forced to repay the loan.
• Their current financial situation is likely to continue for all or most of the repayment period.
• They have made a good faith effort to repay the loan.

You can rely on our efforts to assert your rights in whatever method works best for relief.

Contact our Houston law firm for help with student loan debt

The Law Office of David A. Fernandez, P.C. in Houston represents Texans seeking relief from overwhelming student loan debt payments, even when bankruptcy is not an option in their particular situation. Our experienced attorneys will work to relieve your burden so you can get a fresh start. Schedule a free consultation by calling 713-893-8509 or contacting us online.