Private student loan borrowers have certainly not had an easy time of it over the last year Although the cumulative loan debt now looms around $1.74 trillion for over 45 million borrowers, student loan debt in the US was already well at crisis level before COVID-19 struck the US. While hundreds of thousands of Americans died and millions were sick and may still suffer from long-term problems, the financial issues which came along with the viral pandemic were enormous for many.
Student loan debt became one of the first financial concerns to be addressed in the US as soon as lockdowns, shutdowns, and restrictions began. Unfortunately, however, the focus was on federal student loans almost exclusively—and only those actually owned by the government, meaning that a significant number of borrowers were cut out of much-needed deferments—and there was practically nothing available for private student loan borrowers.
While eventually private student loan servicers like Navient slowly began to offer deferments and others got on board too, this group of borrowers for the most part has received nothing much in comparison to the relief of their counterparts attempting to pay back the government.
It’s no secret that defaulting on a federal student loan debt can be an extremely unpleasant experience; however, the situation is even more serious when a private student loan servicer is involved. If you are delinquent on student loans or have already defaulted, speak with a skilled student loan debt attorney as soon as possible to avoid further problems.
If you have been served with a summons and complaint, do not delay in acting. The first step is to seek legal expertise in answering any lawsuit. Without an answer, and without any presence in court, most likely a default judgment will be granted against you almost automatically. A court action that could haunt you for up to 20 years, the default judgment gives the plaintiff much greater power to use in attempting to see their debt satisfied.
Usually beginning with wage garnishments, a default judgment may order your employer to hold back up to 25 percent of your disposable income to be sent to the creditor. Other action may be taken also, from seizing personal property and selling it at public auction to freezing your checking account unpredictably.
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.