The student loan industry has turned into an undeniable mess. While so many factions rely on the money emanating from student loans (think money that comes for housing, textbooks, and all expenses related to education), the bulk of those in need from the funds are younger borrowers—and in the end, many of these young people may graduate with hefty financial responsibilities before they even attain the fancy careers they were promised in so many cases.
Previous to COVID-19 measures, student loan borrowers in the 20- to 30-year-old range were paying around $400 a month to student loan servicers on average. For those taking out private student loans, the payments could be much higher; in fact, many students (and those of all ages) cannot even begin to get by with what is offered in terms of federal loans, and must take on a mixture of whatever is available to them from the government, and then begin seeking funds from private lenders.
Getting a private student loan is nowhere as easy as it would seem either, in light of how many borrowers are currently out there! Most rising students do not have an income, have really never held a serious job (or may have never worked at all), and have little to no credit either. This means that a co-signer usually has to be brought in—bringing in yet another ‘borrower’ to the cumulative student loan nightmare.
Students may ‘over-borrow’ too, and without restraint, ‘over-spend’ on unnecessary items that they will then be busy paying back a loan servicer for over many years with a variable interest rate. Further problems ensue after graduation when younger students may not realize the serious nature of getting behind on a few payments, or worse, going completely into default. It can be extremely difficult to catch up later. If you are someone you know has fallen into a situation like this, speak to an experienced student loan debt attorney as soon as possible—especially if there is the potential for a collections lawsuit, or if a summons and complaint has already been served.
Private loan servicers can be much more aggressive in terms of lawsuits as they many fight as hard as a more conventional lender, like a mortgage company, for example, summoning defendants to court and then quickly seeing default judgments granted against them if they do not show up or win the lawsuit. This leads to further complications in terms of garnishing, levying of property, and seizing control over 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.