Although 20 million private student loan borrowers have had a respite from making payments all the way through September of 2021, the same has not been true for private student loan borrowers. To make matters worse, many private student loan borrowers have larger loans due to combinations of federal and private student loans, as well as graduate school loans.
Stimulus efforts did bring relief to many during 2020-21, but student loans have been an enormous concern. And while some private student loan servicers did offer minimal relief also, it certainly was nothing in comparison to over a year of relief so far for a wide range of federal borrowers.
Recent news states that 8 percent of student loan borrowers are working with private servicers, and according to Betsy Mayotte, president and founder of The Institute of Student Loan Advisors, there is not an unusual number of borrowers asking for help; however, in terms of numerous 90-day deferments offered by private loan servicers, many simply were not taken advantage of by borrowers. For borrowers asking for forbearance, nearly all requests were granted.
Issues like private student default were already growing previous to COVID, and the danger now is that for individuals having a hard time recovering, as delinquencies accrue and lawsuits may increase too. The problem is that with private student loan servicers, collection activity may be significantly more aggressive, including the possibility of collection lawsuits which could result in significant default judgments. The added financial danger there is that if one is granted against a borrower, they then face the potential of wage garnishments (up to 25 percent of disposable income), seizure of personal property by local law enforcement, and freezing of checking accounts.
While you may feel very alone during these challenging times, you certainly are not. Not only are millions of others going through trying financial issues, the skilled attorneys at Fitzgerald & Campbell, APLC are
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.