For a short while, concerns over coronavirus stole the spotlight from the student loan crisis. And although it may seem unbelievable to some that educational debt takes such priority over everything else, if you have a private student loan to deal with on your own then you probably have a very clear understanding of why it is such a big deal. As over 45 million borrowers continue to be responsible for over $1.7 trillion, many are speaking out about a broken system that requires students to sacrifice so much to get an education, and then to give up their lives afterward just to pay it back.
Recent data shows that the average student loan borrower owes $39,351. These figures rise up to an average of $42,600 for students in the 35-year-old range, and also show that most borrowers at the end, have a balance that is triple what they started with. The ultimate issue leading to delinquencies and subsequent defaults (not surprisingly) is that the set monthly payments are just too high—and especially for monthly borrowers. Private student loan borrowers tend to have larger payments, generally, because their tuition is higher, leading them to use both federal and private student loans to get through school—with graduate school often playing a part too.
One of the biggest questions brought forward regarding borrowers (and how their own responsibility plays a part in financial downfall) is to ask why they would take out such enormous loans, knowing they would have to pay back such large sums. Most of the blame again falls to the schools and the servicers, who are not providing and who are not respectively requiring comprehensive counseling; after all, what does an 18-year-old freshman know about balancing a household budget? Looking toward the future and a monthly payment of $400 may not seem so challenging when they have been sold a bill of goods about getting right out of school and making a lucrative income.
For those with numerous delinquencies and a pending default on a private student loan, life—and finances—could take a more dire turn. Dealing with defaults on a federal loan are bad enough, but if you are being sued by a private student loan servicer, speak with a skilled attorney from Fitzgerald & Campbell, APLC as soon as possible to examine your options—and avoid having a default judgment granted against you at all costs. This is critical because a default judgment could follow you for as long as two decades, leading to wage garnishments, seizure of property, levying of bank accounts, and more.
While you may feel very alone during challenging times related to COVID illness or restrictions, you certainly are not. Not only are millions of others going through trying financial issues, the skilled attorneys at Fitzgerald & Campbell, APLC are there to help you examine all your options and find your way back to good financial health.
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.