Although some job markets are beginning to come back to life and projections for the US economy are good, many citizens are still under both financial and physical duress due to COVID-19. As 2021 welcomed in a host of problems for the world, millions became sick, and millions lost their jobs too. It’s not easy to spring back from such devastation, and especially not with the enormous medical bills so many people are now contending with.
With all of the changes and headaches that occurred—not to mention incredible tragedy as hundreds of thousands of people died in the US—student loans certainly became an even heavier burden. Already the topic of discussion in the news and politics, the big question has continued to be why the student loan crisis occurred, and how to get out of it. As 2020 marched on, however, the main focus turned to finding ways for holding off student loan debt, with many federal loans in deferment through September of 2021. Private student loan borrowers were not covered under the CARES Act though, and for the most part, were just left at the mercy of servicers.
For the most part, sympathy has run low for private student loan borrowers simply because they can set their own rules for the most part and are not forced to offer deferments. As time has passed though, and it has become clear that many borrowers are in severe distress, some servicers have begun to offer more extended deferments and other programs. The problem for so many private student loan borrowers though is that they tend to take out much larger sums than federal loans usually due to expenses for more expensive colleges and universities, as well as graduate school. Private student loan borrowers often take out a combination of loans too, leaving them beholden not only to private lenders but also the federal government.
The financial struggle can become even more challenging after a total default on private student loan debt. Initially some of the reasons that working with private student loan borrowers may become the problem later as they are less regulated and can offer greater amounts of money in loans. The problem for borrowers who run into financial problems later is that private student loan servicers have the ability to take much more aggressive measures in collections. This could include lawsuits ending in wage garnishments, and levying of property and 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.