Private Student Loan Debt Now Rises to $1.6 Trillion

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Students in the US are generally expected to pay a lot of money to go to school, and student loan debt rises continually. Tuition costs just continue to rise, and many students barely out of high school are forced to take on loans which might seem excessive in any other scenario, especially for that age group. And while four years of undergraduate studies may be expensive, many students in the US also expect to go on to graduate school to earn master’s degrees or PhDs. In such cases, the private student loan tally just continues to rise on an individual basis, leaving many graduates—and dropouts too—struggling later, to the point of filing for bankruptcy and severe emotional stress even as they try to make their way into the world and manage the new responsibilities of a household budget.

Now, student loan debt in the US has risen to a staggering $1.6 trillion. While government administrators and financial analysts continue to point fingers regarding the crisis and find cures, the numbers just continue to rise, and more and more borrowers find them self in serious distress, unable to pay even the most basic bills at times—especially if they have made the student loan the priority. While graduates in the 20- to 30-year-old range may have difficulty bringing in enough income to pay an average monthly payment of over $350 a month, non-graduates are usually much more stressed. They may have left school and missed out on the education, but they are not relieved of the responsibility they signed on to pay back student loan servicers.

Although going into default on a student loan is highly discouraged, and attorneys from Fitzgerald & Campbell, APLC recommend that you do anything possible to avoid it, sometimes that is not an option. Private student loan servicers can be very difficult to deal with though upon a default (on the equivalent of mortgage and vehicle lenders, although they have nothing tangible to take back), and may be quick to sue you too. If you find yourself being served a summons and complaint, seek legal help as soon as possible so that you can avoid further repercussions such as a default judgment.

Have you experienced problems with your loan service provider or student loan program, or are you in danger of defaulting on your student loan?

Speak with an attorney from Fitzgerald & Campbell, APLC as soon as possible to examine your options. Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include student loan issues, bankruptcy, and other debt management processes. We are here to help! Click here to schedule a free 30-minute consultation, call us at (844) 431-3851, or email us at info@debtorprotectors.com.

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