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Why Private Student Loan Borrowers Have Been Left to Suffer


Previous to the outbreak of a worldwide pandemic—with COVID-19 unleashing horrific complications worldwide in terms of health, finances, and social restriction—the student loan crisis was already well in swing and the topic of news headlines, government reports and financial analysis, and even a major part of political campaigns running into 2020.

Fingers have commonly been pointed at a number of different problems when it comes to why borrowers are having such a hard time paying back loans to a variety of different servicers, and most of that begins with rising tuition. That’s easy to understand if you have checked out how much it costs to go to college these days. Without grants or student loans, it would be virtually impossible for most—leading most students to take out either a federal or student loan, or both, and often a mixture of grants and scholarships too.

Almost immediately upon the onset of COVID-19, the student loan crisis was in question. Huge question marks loomed in terms of how over 45 million borrowers would handle paying back over $1.6 trillion in student loan debts. The government stepped in quickly to defer federal student loans, and while there was a sigh of relief, this caused confusion across the board as so many borrowers expected they could just stop paying—on all loans. Quickly it was made clear that not even all federal student loan borrowers would be given the relief accompanying deferment, but rather only individuals paying back loans on those owned by the government.

For student loan borrowers, the relief was minimal at best. This is because there is little regulation among private student borrowers—and they simply did not have to do any more (or any less) than desired. More on par with a mortgage company in terms of being a private lender, a private student loan servicer can make up many of the rules in terms of finances. Companies like Navient began offering 30 to 90 day deferments quickly, but obviously, in comparison to what federal student loan borrowers were getting, that was still next to nothing, and especially concerning in light of the fact that most private student loans are for considerably larger sums.

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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