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Private Student Loan Borrowers: Have You Received a Deferment?


The student loan crisis has continued to build for decades, starting back in the 1980s when signs of trouble emerged during growing delinquencies on payments, and ultimately climbing defaults in the face of huge numbers. Now, over 45 million borrowers are cumulatively indebted for over $1.64 trillion.

During 2020, the coronavirus pandemic swept the world and the US, and not only did it make millions sick and kill hundreds of thousands of people, it also actually overshadowed the student loan crisis—as well as worries about making the dreaded monthly payments (and sometimes, massive ones). People were losing their jobs, entire careers just evaporating, along with their incomes, and worries about health were at the forefront.

Suddenly though, all federal student loan borrowers responsible for federal loans owned by the government were given extended deferments through the CARES Act. Private student loan borrowers, however, basically heard nothing—unless they asked, and in that case in the beginning they were perhaps given a 30-day respite. Currently, many private student loan debt servicers are offering extended deferments when pressed. While most likely this comes as a great relief, there are several critical things to keep in mind.

Make sure you get the entire agreement in writing! Throughout the pandemic, there have been misunderstandings about who had to pay, and who did not, mostly as it became apparent that not all federal student loan borrowers would be eligible for the extended deferments.

The entire debt will still be there. While there are many headlines continuing to highlight possible forgiveness on some loans, that is not the case with these types of deferments. You may have been able to skip some payments, but the balance is still due after your period of deferment is over. That means that you have received some time to get your finances together, but now the loan period will just be extended longer. Interest on unsubsidized loans is not halted, and is usually just tacked on to the loan at the end of the deferment period.

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

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