Overcoming College Debt Challenges: Top Strategies for Financial Freedom

George Simons | June 29, 2023

Edited by Hannah Locklear

The United States granted a three-year federal student loan moratorium in March 2020. It paused loan repayment as a temporary relief in response to the COVID-19 pandemic. Three years later, interest on the loan will resume on September 1, 2023, and payments will start in October. This means cancellation of 0% interest and administrative forbearance.

Student loans are an integral part of the US education system. They facilitate access to higher education, equalize opportunity, and are considered an investment in one’s future. Despite the benefits of student loans, the crushing weight is overwhelming for many individuals. High debt amounts and interest affect the borrower’s financial stability and repayment.

In this article, we will discuss financial tips for college students, bits of advice on how to overcome financial problems, and how to fix student loan debt.

Sued for student loan debt? Settle the debt for good with the help of SoloSettle.

Debt has a big impact on college students

Higher education is costly, and there is no arguing with that fact. The upfront cost of books, tuition, fees, and other educational expenses strain learners without sponsors and scholarships. As well-meaning as the initiative is, college debt impacts students in various aspects.

Mounting debt can affect students in the following ways:

• Financial stress.
• Delayed financial milestone.
• Career choice pressure.
• Deterred post-graduate education.
• Mental health impact.
• Impacts credit scores and creditworthiness.

Undergraduates who are in debt try to budget and manage their expenses while worrying about repayment. It prevents them from saving for emergencies, buying a home, or even starting a family. In addition, they feel pressured to prioritize higher-paying jobs over pursuing their passion. The situation deters students from pursuing post-graduate studies and contributes to anxiety, depression, and other mental issues.

Luckily, there are ways to overcome college debt and find financial freedom again.

Develop financial literacy and seek professional advice

Education is power, and this applies to college debts. The first step to freedom is to develop financial literacy and seek professional advice.

Information improves a student’s financial understanding and provides empowerment. Moreover, it promotes effective debt management and aids resource maximization. While it is true that student loans make you feel powerless, there are laws governing how student loan debt collectors recoup loans. Take a look at some examples below:

• The Higher Education Act spells out ways to get out of default and back into good standing.
• The Fair Debt Collection Practices curbs abusive collection practices.
• The Fair Credit Reporting legislation regulates how collectors report information to credit reporting agencies.
• The Telephone Consumer Protection Act restricts creditors from contacting you by text, cell phone calls, and messages.
• The Service Members Civil Relief law applies to active U.S. Military members. People covered by it have interest rates reduced and payments postponed until they return from active duty.
• The U.S. Bankruptcy Code resolves and frees an individual from continued collection activities.

Student loans are dynamic, and so are the rules guiding them, like how long it takes to default on a loan and when the loan is sent to a creditor, debt collector limits, what to do when they call, and how to fight against illegal collection tactics.

We recommend learning as much as you can about finances through books, online resources, and webinars to improve your knowledge. Apart from this, seek advice from a certified financial planner or credit counseling agency to make informed decisions.

Many undergraduates take part-time work to make money and ease their financial situation. But looming essay assignment deadlines and coursework affect their productivity. Students that want to achieve balance can get assignment done online by delegating tasks to a professional writer or reputable online service.

Sued for student loans—Here’s what to do

Whether you get sued for a student loan or not depends on whether the loan is federal or state. The federal government does not sue since it has many options to force repayment. For example, wage garnishments and tax refund withholds.

A missed loan is considered delinquent but won’t enter default for 270 days. At this point, the entire loan balance is due, and you may start noticing deductions from your paycheck. We recommend you talk to your loan servicer immediately to explore possible options if you miss a payment. After all, no one wants to take the situation to litigation.

If you miss the first payment, a private lender can take you to court over a defaulted loan. This often marks the beginning of financial issues for college students. Follow these simple student loans solutions to handle the situation:

• Mark the Summons date and time and ask for debt verification.
• If you are unable to afford a settlement, file an Answer to the lawsuit.
• Try to settle with your lender before the lawsuit moves forward.

SoloSuit can help with all of these steps and more.

SoloSettle, powered by SoloSuit, is a tech-based approach to debt settlement. Our software can help you send and receive settlement offers until you reach an agreement with your lender. Then, we help manage the documentation of your agreement and transfer your payment to the lender, keeping your financial information private and secure.

To learn more about how debt settlement can help you manage student loans, check out the following video:

Tips to achieve financial freedom as a student

It is not easy to achieve financial freedom in college. But with careful planning and disciplined habits, you’ll live a comfortable life. Pay attention to the following money management tips for students and professionals:

• Create a budget to track your income and expenses and set financial goals. Allocate your income to different expense categories and stick to them. Meanwhile, prioritize essential costs and put a portion towards debt repayment and savings.


• Differentiate between needs and wants, and reduce non-essential expenses. Consider cooking at home, public transportation, and student discounts to save money.


• Reduce borrowing and explore other funding sources. Common examples include scholarships, grants, and work-study programs. Focus on high-interest rates first and use the debt snowball or avalanche method to accelerate your progress. Most importantly, pay debts on time to avoid a private student loan lawsuit.


• Take on part-time work to support your expenses or leverage your skills to earn extra income. Think about online tutoring, freelancing, or selling items you don’t need. Invest in yourself by prioritizing your studies and making the most of the opportunity. In the meantime, pay an essay writer help to complete assignments online so your academics do not suffer.


• Seek financial counseling and attend events that teach budgeting and debt management.

Conclusion

Debt opens the door to different financial challenges for students. However, it does not give anyone the right to bully you. Ultimately, it comes down to financial literacy and college money management. Various law aspects protect you from illegal debt collection, harassment, and litigation. But you must play your part by not defaulting on loans. Start by taking control and living a responsible financial life. Cut excesses and use a budget to track your expenses. Pay debts on time and explore free funding options like grants and scholarships. Furthermore, maximize your income by working part-time online or remotely and using credit wisely.

If you’ve been sued for a debt you should request debt validation, settle the debt before your court date, or file an Answer into the case. SoloSuit can help you do all this and more.

What is SoloSuit?

SoloSuit makes it easy to fight debt collectors.

You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.

SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

How to answer a summons for debt collection in your state

Here's a list of guides for other states.

All 50 states.

• Alabama
• Alaska
• Arizona
• Arkansas
• California
• Colorado
• Connecticut
• Delaware
• Florida
• Georgia
• Hawaii
• Idaho
• Illinois
• Indiana
• Iowa
• Kansas
• Kentucky
• Louisiana
• Maine
• Maryland
• Massachusetts
• Michigan
• Minnesota
• Mississippi
• Missouri
• Montana
• Nebraska
• Nevada
• New Hampshire
• New Jersey
• New Mexico
• New York
• North Carolina
• North Dakota
• Ohio
• Oklahoma
• Oregon
• Pennsylvania
• Rhode Island
• South Carolina
• South Dakota
• Tennessee
• Texas
• Utah
• Vermont
• Virginia
• Washington
• West Virginia
• Wisconsin
• Wyoming

Guides on how to beat every debt collector

Being sued by a different debt collector? Were making guides on how to beat each one.

• Absolute Resolutions Investments LLC
• Accredited Collection Services
• Alliance One
• Amcol Clmbia
• American Recovery Service
• Asset Acceptance LLC
• Asset Recovery Solutions
• Associated Credit Services
• Autovest LLC
• Cach LLC
• Cavalry SPV I LLC
• Cerastes LLC
• Colinfobur
• Covington Credit
• Crown Asset Management
• CTC Debt Collector
• Cypress Financial Recoveries
• Delanor Kemper & Associates
• Eagle Loan of Ohio
• Educap
• Estate Information Services
• FIA Card Services
• Forster & Garbus
• Freshview Solutions
• Fulton Friedman & Gullace LLP
• Harvest Credit Management
• Howard Lee Schiff
• Hudson & Keyse LLC
• Integras Capital Recovery LLC
• Javitch Block
• Jefferson Capital Systems LLC
• LVNV Funding
• Mannbracken
• Mariner Finance
• Medicredit
• Michael J Adams PC
• Michael J Scott
• Midland Funding LLC
• Mullooly, Jeffrey, Rooney & Flynn
• Mountain Land Collections
• MRS Associates
• National Collegiate Trust
• Nationstar Foreclosure
• Northstar Capital Acquisition
• NCEP LLC
• NRC Collection Agency
• OneMain Financial
• Palisades Collection LLC
• Pallida LLC
• Paragon Revenue Group
• Pinnacle Collections Agency
• PMAB LLC
• Portfolio Recovery Associates
• Provest Law
• PYOD LLC
• Reunion Student Loan Finance Corporation
• Revenue Group
• Regents and Associates
• RSIEH
• Salander Enterprises LLC
• Second Round Sub LLC
• Security Credit Services
• Sherman Financial Group
• Suttell and Hammer
• T-Mobile
• Transworld Systems
• Tulsa Teachers Credit Union
• UCB Collection
• Velo Law Office
• Velocity Investments
• Waypoint Resource Group
• Weinberg and Associates
• Wolpoff & Abramson

Win against credit card companies

Is your credit card company suing you? Learn how you can beat each one.

• Bank of America
• Capital One
• Chase
• Credit One Bank
• PayPal Synchrony Card
• SYNCB/PPEXTR
• Synchrony Bank
• Target National Bank
• Wells Fargo

Going to Court for Credit Card Debt — Key Tips

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Learn More With These Additional Resources:

Need help managing your finances? Check out these resources.

How to Make a Debt Validation Letter - The Ultimate Guide

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