If you’re being sued for a student loan, you probably think you’ve got no choice but to pay the debt in full. That’s simply not true.
When a student loan company files a lawsuit against you, they’re claiming you owe them a specific amount of money.
If you do nothing, the court will take the collector’s claim at face value and issue a judgment against you. You’ll not only owe the full amount, but also possible legal fees and court costs. The judgment remains valid for 10 years, can be renewed indefinitely, accrues interest at the rate of 10% per year, and can be collected through wage garnishment, taking the money from your bank accounts, and forcing a sale of your automobile and other personal property.
When you defend the lawsuit, you take away the student loan collector’s ability to have the judge issue a judgment without proof. Rather than simply rubber-stamping the judgment, you now have the opportunity to force the student loan company to:
The student loan company doesn’t need to prove anything – unless you take control and fight back!