Private Student Loans: The Crisis Deepens

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The student loan crisis certainly doesn’t seem to be getting resolved whatsoever, with COVID-19 only exacerbating the problem further, along with causing many other financial problems—not to mention the widespread health issues. Borrowers of all ages have been affected, although much younger borrowers are certainly having a difficult time making ends meet after losing what may have been their first jobs, having to deal with online classes, skipping graduation ceremonies due to COVID, and well, the list goes on and on.

For private student loan borrowers, the problems deepened, especially in terms of the sums borrowed. In many cases, private student loans are tacked on to federal loans to make up for what could be sizable balances for expensive four-year degrees and graduate school too. Many federal student loan borrowers were given deferments up until October of 2021. With private student loan borrowers left virtually in the cold, most could only hope that their private student loan servicers would offer some sort of relief. Without regulation or any formal requirements, however, they were not beholden to do so.

“I’ve seen a lot of frustration and anxiety from private loan borrowers affected by [the pandemic],” says Betsy Mayotte, president and founder of The Institute of Student Loan Advisors (TISLA).

“Some lenders automatically lowered their whole portfolio’s interest rates. I saw others that stopped doing collections on people who didn’t make their payments. Some weren’t offering any type of relief other than what they’d offer before.”

If you are worried about defaulting on a student loan, speak with an experienced student loan debt attorney as soon as possible. If you are already being sued by a private student loan servicer, it is extremely important to get good legal advice and reply to the lawsuit as soon as possible. In most cases, there is a 20 to 30-day deadline. Without a reply, a judge will almost most certainly grant a default judgment against you, resulting in the possibility of wage garnishments, levying of financial accounts, and even seizure of personal property to be sold at public auction.

Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations. 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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