Rising students may be on fire in terms of excellence in academia and ambitions for the future; however, figuring out a way to handle the student loan crisis was a debate that ignited years ago and only continued to escalate, along with the numbers.
Although deferments during COVID, beginning in 2020, have given many borrowers temporary relief that most likely was not expected, the cumulative total owed by over 45 million now has continued to increase from last year’s $1.64 trillion now to $1.74 trillion. These are large sums, and unfortunately mean that many individuals in the US are on the line for massive monthly payments too; in fact, younger borrowers in only the 20- to 30-year-old range could be paying as much as $400 per month on average.
While federal student loan borrowers were undeniably given much more relief than private borrowers, not all were included in The CARES Act. And private student loan borrowers were in many cases just left to fend for themselves unless private student loan servicers (acting with much less restriction) decided to offer deferments or other programs.
Now, as more jobs and options begin opening up to Americans, all creditors and debt collection agencies are back in the game. Many people may not be recovering exceedingly fast though, and trying to make up for delinquent student loan payments could still prove very difficult. If you are a private student loan borrower, you may have found that little happened in the way of relief at all, and are wondering what is available now that you are feeling the crush of creditors expecting debts to be satisfied.
One of the best solutions in terms of all debts, and especially private student loans is to ask for relief. Explain what your current situation is, why you need help, and move forward in working on a better plan for the future. If you are considering filing for bankruptcy, speak with an experienced student loan debt attorney not only regarding whether your student loans have the potential for being discharged but also to evaluate your other debt. In most cases, bankruptcy is only recommended as a final option. That is especially true in today’s financial climate where creditors and debt collection agencies are so willing to negotiate in order to see debts satisfied.
If you are already being sued, the importance of speaking to a skilled attorney becomes even more critical; after all, the last thing you want to do is make your life more difficult by ignoring impending legal action, or handling it in a way that will not be in your best interest overall.
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 email@example.com.