Even in the face of a viral pandemic and extremely valid worries about health, the student loan conversation remains front and center—and extremely relevant. For many borrowers involved in paying back the cumulative $1.64 trillion, the news is positive as individuals with federal loans are looking forward to further deferments under the Biden administration; however, once again, large numbers of borrowers are left wondering if they are eligible— while most private student loan borrowers already know the answer: they are on their own. While private student loan servicers may offer brief respites, financial relief has been minimal.
If you are burdened with a private student loan, it is understandable that you may feel extremely worried and even helpless about your finances, as well as your future. And while in previous months and years you may have often heard that you aren’t alone in such struggles as so many others are in the same position, that certainly couldn’t be any more true than now. For federal borrowers who may be receiving respite due to deferments, the financial break is obviously much needed; however, something more concrete must be done for those indebted to private student loan servers over what could be quite massive student loan debt.
It is recommended, however, that you do everything possible to avoid defaulting. Whether you have a federal or private student loan, the repercussions can be severe—even if it takes years for you to realize the consequences. Defaulting on private student loans can be even more troublesome though as the consequences are similar to dealing with a lender on a mortgage. You could find yourself vulnerable to a collection lawsuit, which brings on a multitude of headaches in itself.
If a process server has delivered a summons and complaint to your front or door—or if they caught up with you elsewhere—the reality is that you must reply to the legal action to avoid being caught up in the further financial devastation of a default judgment. Good for ten years initially, the default judgment can be extended for another decade. During this time, the creditor may try to see their debt satisfied through a series of aggressive collection activities to include wage garnishment, seizure of property, and freezing of checking accounts.
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 firstname.lastname@example.org.