Federal student loans are loans given or guaranteed by the United States government. Private student loans are loans made not by the government but by other private institutions including banks, credit unions and directly by schools.
All of the repayment, discharge and forgiveness benefits available with federal student loans are generally not available with private student loans unless the lender agrees otherwise.
Holders of private student loans do not have the administrative default remedies available to the government like wage garnishment and treasury offsets. So when a private student loan borrower defaults in payment, the private student loan holder will likely sue in court to recover the debt.
In contrast, private loans are made by private organizations such banks, credit unions, and state-based or state-affiliated organizations, and have terms and conditions that are set by the lender. Private student loans are generally more expensive than federal student loans.
What Should You Hope to Get from Working with Us?
Because defaulted private student loans often end up in court, having an experienced attorney on your side is important to ensuring that your rights are being adequately represented.
If you need help settling or defending a private student loan debt collection lawsuit, contact us today to see what we can do for you. With office located in Brooklyn and Rockland County, the Law Offices of Robert J. Nahoum defends consumers in private student loan debt collection cases throughout the Tristate area including New Jersey.