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Student Loan Debt: Try to Pay Down Private Loans First

woman stressed holding face over laptop

Upon hearing that a group of private student loan borrowers have gone on strike, your only question might be to wonder what took them so long. Previous to COVID-19 taking the country (and the world) hostage with very valid fears about sickness and death, the student loan crisis was already a huge problem, and one just continuing to escalate. Unfortunately, even with deferments and measures by the government, the problem has not slowed down. The cumulative debt of over 45 million student loan borrowers now sits at $1.74 trillion, and while students continue to apply for loans, the federal government and private student loan servicers continue to lend.

Although the economy overall may be on the mend, for the millions who became ill or lost their jobs—or both—the recovery process could take a very long time; in fact for some, it could be several years or more before they see the light at the end of the tunnel in terms of money problems. From medical debt to auto debt to credit card debt, you may be wondering how you will ever catch up.

If you are trying to deal with private student loans too, making a strategy is key, and recent news clarifies that sitting around hoping that forgiveness will occur is probably not a great idea.

“From a financial planning perspective, the proposals of student loan forgiveness leave borrowers in a tough spot,” said Brad Griffith, a financial planner at Buckingham Advisors. “It’s still unclear how realistic it is that any forgiveness package makes it through Congress, so borrowers are left waiting on if the loans will be forgiven and how long they have to wait.”

Like many others, you might have taken out combination loans of both federal and private student loans, and have been offered some relief through The CARES Act from the government through September of 2021; however, most likely it is in your best interest either to refinance student loans or focus on paying them down first. If you are concerned that you are in threat of defaulting, speak to a private student loan debt attorney from a firm like Fitzgerald & Campbell, APLC as soon as possible to learn more about your options. This is important because private student loan servicers can be even more difficult to deal with.

There should be an even greater sense of urgency if you have received a summons and complaint and are being sued. Private student loan servicers are often much more aggressive about attempting to see debts satisfied simply because they can be. With less regulation than federal student loans, they can sue. If there is no action on your part and a default judgment is granted, then you may quickly find yourself dealing with wage garnishments, levying of property, and checking accounts too.

Have you experienced problems with your loan service provider or student loan program, or are you in danger of defaulting on your student loan? Contact Fitzgerald & Campbell, APLC now so one of our experienced student loan debt attorneys can review your case and discuss all the available options with you. Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include student loan issuesbankruptcy, 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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