Despite recent government efforts to lighten the burden of student loan debt, it remains a top-of-mind financial concern for millions of today’s students, as well as recent (and not so recent) graduates.
The facts are compelling, if not a little overwhelming: recent reports have shown that more than 42 million Americans have outstanding student loan debt. And 10 million borrowers are already behind on payments according to the Government Accountability Office. And soon, even more borrowers may find themselves falling behind due to the unfreezing of payments since the pandemic, which can lead to late fees and could eventually damage their credit scores. With payments due dates potentially in force again, many borrowers worry about how they will start to pay back their loans.
The government's approach to forgiving student loans remains uncertain, and relying on it as a guaranteed solution may not be the best strategy. Instead of depending solely on government actions, rely on your ARAG legal plan for experienced legal and financial resources to help you manage the debt and minimize your financial strain.
Student Loan Debt Collection
Your ARAG legal plan may offer coverage to help defend against debt collectors if you are not able to make payments on your student loans. Network attorneys can write letters on your behalf and review documents. If you end up in court, your attorney can advise you of your legal rights and options, as well as represent you, if needed.
Financial Planning Education
Receiving assistance from accredited financial counselors to answer your personal money management questions may also be included in your legal plan. Financial counselors can help with federal student loans by reviewing your loans, evaluating repayment options, addressing defaults and considering consolidation. Plus, whether you’ve completed your education or not, a counselor can help work out a thorough budget analysis of your income, expenses and debt – and provide recommendations and next steps based on your financial situation.
Your plan may also include free access to expertly crafted financial education and resources to assist with your personal financial matters from a financial counselor who can provide confidential, no-cost financial counseling services to help you create a sensible budget and manage spending and debt.
Bank/Lending Institution Disputes
If you find you are being sued for a nonpayment on a loan, a network attorney can assist you in defense of an action a bank or lending institution is taking against you. They will listen to your circumstances and determine the best course of action to take and whether you can or should fight the lawsuit.
How ARAG Can Help
When you have a legal matter to address, log in to your member account to start a case. You can also contact a Customer Care specialist who will explain your coverage options and offer next steps for help with navigating your student loan debt – along with a wide variety of other legal matters.
This article is for education purposes only and is not a confirmation of coverage. Plan coverage may be unavailable, vary or be limited to a specific number of hours. For matters that aren’t covered and are not excluded, members may be able to receive 25% off network attorney fees. To understand the coverage available to you under your plan visit ARAGlegal.com/member/plan-details or contact ARAG Customer Care to view your plan-specific coverage details.
Limitations and exclusions apply. Depending upon a state’s regulations, ARAG’s legal insurance plan may be considered an insurance product or a service product. Insurance products are underwritten by ARAG Insurance Company of Des Moines, Iowa. Service products are provided by ARAG Services, LLC. This material is for illustrative purposes only and is not a contract. For terms, benefits or exclusions, contact us.
