Today over 45 million borrowers are being held accountable for a cumulative total of $1.74 trillion in student loan debt. While this was already being hailed as a ‘crisis’ prior to the arrival of a worldwide pandemic (long, long before, in fact), after tens of millions of Americans watched their health and finances plummet, there is a long road to recovery ahead.
Many federal student loan borrowers were given considerable relief through deferments via the CARES Act. In the beginning, private student loan borrowers were almost completely left out in the cold. And while eventually private student servicers began to come around and offer limited programs for relief, for most there was nothing like the year-long respite offered to federal borrowers who loans were actually owned by the government (and if not, in those cases, many did not qualify for the long-term deferments during COVID either).
As time went on from not only the already ensuing crisis, but also the mess that was known as 2020, the pressure was on the initial student loan borrowers, but don’t forget about all those co-owners too! Creditors and debt collectors may have been on a hiatus for an extended amount of time as encouraged by the government; however, now they are back with a vengeance. For primary borrowers who cannot pay up, co-signers are the next in the line of fire in terms of fielding aggressive collection activity.
Whether you are a primary student loan borrower or a co-signer, speak to an experienced student loan debt attorney as soon as possible if you have been served a summons and complaint notifying you of a collection lawsuit. While you may be stressed out and sorely tempted to procrastinate in dealing with such legal action, that is the worst thing you could possibly do.
No one likes opening their door to the surprise of a private process server or a deputy. Process of service, however, is an age-old part of the court system meant to protect the defendant so they understand that legal action is being taken against them, and consequently, can begin writing a reply (usually due in 20 to 30 days) as well as launching a defense.
Without any such action, the repercussions can be severe, and much of this may come as a surprise to a co-signer who in the beginning just wanted to help out a close family member or friend. Such difficulties may come as a surprise to anyone, but the key is to begin working with a lawyer as soon as possible to fend off the loss of up to 25 percent of disposable income each paycheck, seizure of property, and loss of control over financial 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.