These days in America college students are incurring massive amounts of debt so that they can pay for higher education. Most students today are finding themselves out of school and with no source of income to repay their student loans.

Private loans are becoming more of a requirement and much more common considering the fact that educational costs continue to increase regardless of the fact that federal student loan amounts have not. Because of this students must seek out private loans to pay for books, rent, and so much more.

Unfortunately, many graduates eventually find themselves in default on their private loans. Although it is fairly simple to put federal student loans in forbearance, private loan forbearance is granted at the discretion of the lender. JPMorgan Chase & Co. offers private student loan products via their Chase brand. College graduates who are out of work can not get loan forbearance through Chase until they can give proof that they can resume installment payments immediately after the six-month forbearance period. Individuals without job opportunities typically won’t be able tot make these obligations.

Not only do students have to cope with tremendous debt, additionally they have to suffer the pain of nonstop phone calls from lenders. What these graduates don’t know is that they’re guarded under federal regulation, even regarding private loans,and that they can tell the lending company to quit harassing them.

The majority of students, when applying for both federal and private loans, are told that they will be able to consolidate these loans together when they graduate. This isn’t always accurate. American Education Services will not consolidate student loans if the borrower does not have a certain credit score, even if AES already services all of the student loans. One student whose credit rating was too low could not consolidate her three AES loans because her credit score was too low, and AES would not even take into account her co-borrower’s credit rating.

An article from the FTC, “Facts for Consumers,” provides hope for borrowers “A debt collector may not call you before 8 a.m., after 9 p.m., or while you’re at work if the collector knows that your employer doesn’t approve of the calls. They must honor a written request from you to stop further contact.”

Chase as well as other loan servicers, such as American Education Services, who services loans through the TERI program, are allowed to start calling borrowers a week or two after a missed payment, and they can call 10 or more times in a single day with or without leaving a message. An AES rep told one delinquent borrower, “Thank you, I will note your account that you will make a payment in two weeks. I must inform you that we will continue to call you until that payment is made.”

Graduates who are subjected to this sort of illegal harassment can send written notice that these loan providers are to cease communication with them. This, legally, will stop the phone calls. Borrowers may decide to provide permission for certain kinds of written communication like monthly statements and offers to reduce monthly payments or forbearance.

When borrowers insist that lenders interact with them in a lawful fashion, the incessant phone calls end, borrowers feel less stressed, and they can concentrate their energies on working in the direction of a financial solution. This really is considerably more productive than wasting energy on the phone arguing with a debt collector. Most significant, this is the borrower’s right.