Debt borrowed for education, governed by different rules depending on the lender.
A student loan is money borrowed to pay for education. The critical distinction is who lent it: federal loans are made under a statutory programme and carry income-driven repayment, deferment, forbearance, and cancellation options set by law. Private loans are ordinary consumer contracts and carry only what the promissory note gives you.
“This is a Federal Direct Unsubsidized Loan made under the William D. Ford Federal Direct Loan Program.”
Main AI reads the notice or agreement and explains where a term like this affects what you owe — and what your options are.
Analyze my document free →Federal student loans can be collected without a lawsuit. The government can offset tax refunds and, subject to statutory notice and hearing rights, garnish wages administratively — no court judgment required. Private lenders have no such power and must sue first. Federal loans also have no statute of limitations, while private loans do. Both are difficult but not impossible to discharge in bankruptcy, requiring a separate showing of undue hardship.
See this in your own document: run a free analysis — findings quote the exact language.
“The holder may assign this loan. Borrower waives presentment, demand, and notice of dishonor.”
The first question on any student-loan notice is which kind of loan it concerns, because the options diverge from that point onward. A federal loan in default can usually be rehabilitated or consolidated back into good standing; a private loan in default is a contract negotiation. The servicer’s name on the letter is not the answer — servicers handle both.