As over 45 million borrowers continue to be held responsible for over $1.64 trillion in student loan debt, many federal borrowers are lucky enough to have their loans deferred through September 2021. The elephant in the room has remained present throughout all the ‘good news’ for these federal borrowers though as private student loan borrowers were ignored—aside from some small concessions at first, like 30-day deferments.
Federal student loans may be more limited, but borrowers, in the end, do have more flexible repayment options in the face of diminished income, and this has been especially true as the viral pandemic has swept the nation, not only making millions sick but also causing vast unemployment and huge concerns for the future. The problem with private student loans is that a default could bring much worse repercussions. If you are late on numerous payments or considering just defaulting altogether, be aware that the consequences could be severe.
Like any other conventional lender, private student loan servicers could cause further financial complications, especially if a default judgment is granted, leading to wage garnishments (up to 25 percent of your disposable income in California), levying of personal property to be sold at public auction, and freezing of financial accounts. If you are concerned about your student loan debt and not sure how to handle the burden, speak with an experienced attorney as soon as possible.
You have options if payments are becoming an issue, or even if you are in default. And while there may be a wider range of choices for federal borrowers, as a private student loan borrower refinancing is certainly one of the prime options if you are eligible. If not, there is the option of asking a close relative or another individual to co-sign. Private loan servicers in some cases may be willing to negotiate new payment systems, and especially in light of the financial devastation caused by COVID-19. Many may be willing to offer deferments too, and for much longer periods of time than borrowers were being offered just months ago.
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.