Private Student Loan Debts: Young People & Teens Taking Out Loans

woman shrugging over laptop

Student loan debt remains a huge topic, and certainly not an uplifting one, as over 45 million borrowers are stuck with a cumulative debt of $1.71 trillion that is actually expected to be paid back at some point. As the crisis continues to grow (especially after COVID), analysts, government officials, and interested parties continue to probe the reason for such an overwhelming financial problem that currently spans the nation.

Despite rising tuition costs, younger borrowers continue to take out loans. The problem begins there as rising students are willing to accept responsibility for taking out huge loans, for what is astronomical tuition in some cases. Easier said than done, however, as private student loans may be extremely hard for the younger generations to handle paying back.

Balancing a budget can be difficult even in the best of circumstances, but for a new college graduate who has not had a lot of life experience yet, taking on a $400 a month payment to a student loan servicer may be a lot more difficult than previously imagined. The reality is that many of the borrowers taking out considerably sized loans are still teenagers. They may not have even ever held a real job before, and if the promises they were made upon choosing a college and a career path do not pan out as expected, then they could be in real trouble.

Post-COVID, many younger borrowers are really struggling. That’s especially true for those who lost their jobs—many of which were in the service sector—along with those who became ill, had to caretake for family members, or may have dropped out of school altogether with bills still due.

Few real programs have been made available for private student loan borrowers, and even the ones that are actually available may not be advertised. Borrowers are advised to ask about programs before giving up and going into default. If you are worried about defaulting on a private student loan debt, it is also highly recommended that you begin working with a private student loan debt attorney from a firm like Fitzgerald & Campbell, APLC.

In avoiding default, you can also fend off the possibility of a default judgment. Although you may not feel like you have much for any creditor to take right now, consider what type of position you might be in 20 years from now, which is how long a default judgment could feasibly be good for, allowing a creditor or debt collection agency to keep attempting to satisfy a debt, whether through wage garnishment, levying of financial accounts, or even seizure of assets.

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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