Why is it so difficult to find attorneys to help negotiate defaulted student loans or help make sure being treated fairly

In large part, it's because the laws regarding student loan debt are unfair and put borrowers in a terrible bargaining position. In general, student loans cannot be discharged, even in bankruptcy, except under the most severe circumstances, such as when a borrower has become permanently disabled and has virtually no chance of being able to repay the loan in the future. The rules for collecting are also easier on student loan lenders. As a result, student loan lenders and collectors know they have the upper hand, which makes lenders unwilling to negotiate and leads to the kind of treatment you describe. Until the laws are changed to make student loans more like other unsecured loans, lawyers have their hands somewhat tied. I'm including a link below to an article I wrote on the topic. Take a look, and if you agree, contact your representatives to ask for more fair treatment for student loan borrowers. Still, there are laws against deceptive collection activities that apply to student loan collectors, and they should be held accountable for such wrongdoing. I would suggest contacting lawyers who deal with Fair Debt Collection Practices Act claims. (Try contacting your local bar association to find local attorneys.) You may have to talk to several to find someone you think can really help you. I'm also including a link to two articles discussing a case in which student loan collectors have been penalized for their misconduct (so it does happen).

You inquired, "Why is it so difficult to find attorneys to help negotiate defaulted student loans...?" There is little or nothing to negotiate: an atty is not likely to be able to make a difference.

Apparently you are well aware that student loans are next to impossible to discharge in bankruptcy. I am providing a link below to a guide I authored indicating the law behind this reality. You might consider a chapter 7 bankruptcy. If you qualify, then discharging your other debts may free up enough cash flow to allow you to address the defaulted student loans. You might try a state or county bar association referral service or a legal services office in order to consult with a debtor's rights attorney. If you qualify you can sometimes get a referral to a low-fee/no-fee attorney. Here is some general advice on chapter 7 bankruptcy: CLICK HERE for "Should I File Bankruptcy, What do I Consider While Thinking About It" http://www.attorney-myers.com/legal/2011/06/should-i-file-bankruptcy-what-do-i-consider-while-thinking-about-it/ My office represents consumer debtors in chapter 7 and chapter 13 bankruptcies in Massachusetts and New Hampshire. Law Offices of Andrew D. Myers North Andover, MA - Derry - NH

It can be difficult to negotiate settlements with student loan lenders, particularly the loans made by private lenders. However, if you are dealing with a third-party collection company, they are probably subject to the federal Fair Debt Collection Practices Act (FDCPA). This provides remedies for certain unfair, oppressive or abusive collection actions. Notably, if there is a FDCPA violation, it can make the collector liable for statutory damages as well your attorney fees, which is very important if you are in financial trouble. While that alone doesn't solve the underlying debt problem, it may provide an opportunity to discuss a reasonable settlement of the entire debt. Also, even if you have private loans, it's important to review the loan documents to determine what settlement options may be available. Look into any options for "income-contingent" repayment options. Other clients of mine, particularly if they have other non-student loan debt problems, choose to file Chapter 13 bankruptcy, which may not result in a discharge of the debt, but can at least offer a 3-5 year respite from collection actions by the student loan collector. This can allow a client a chance to get back on their feet, and be prepared to resolve the debt when the Chapter 13 is complete. Finally, I have resources on my website that may be helpful to you at http://jthomasblack.com/sk_links-php-2/student-loans-how-to-deal-with-them .

Unfortunately, there are just not that many attorneys who understand student loans thoroughly. As others have noted, you have rights under the FDCPA that might be available to assist you. Even beginning to understand what your rights are starts with understanding whether these are private loans or government insured loans. Whether the loans can be discharged in bankruptcy depends on a number of factors, and a discharge may not be as difficult as made out by other comments. But, it is a challenge. And, if your total debt is $2,500, it is hard to see why you would pay an attorney thousands of dollars to assist with negotiating it. I imagine, though, that the debt is much higher now due to the accrual of interest, so perhaps it is worth it. If you go to the NACA.net web site, you may be able to find a local attorney experienced in student loan matters.