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Graduate Students Feeling the Burn with Private Student Loans

graduation cap and diploma

COVID brought a wide range of problems for everyone. To begin with, there was the potential for extensive health problems, not to mention the possibility of death. And even for those who did survive COVID-19, the long-term effects can be challenging and are still largely unknown. Money problems rode fast on the heels of shutdowns, restrictions, hospitalizations, and so many repercussions. Businesses were forced to close—many temporarily but some permanently too.

The immediate question was how to deal with all the bills, bills, bills. This was especially true as tens of millions of workers were suddenly unemployed or left with their hours significantly cut. With a large percentage of Americans living paycheck to paycheck and lacking even a modest amount of fluid cash to cover an emergency, the priority for most was just keeping food on the table and the lights on.

Not surprisingly, student loans were at the forefront of national concern. For federal student loan borrowers, the financial load was taken off almost immediately with deferments continuing through 2022 (at the time of writing). For private student loan borrowers though, there was virtually no help. Eventually, while some loan servicers came forward offering less than generous programs, most private student loan borrowers were left to find for themselves. And for student loan borrowers who took out loans for graduate school, this could mean hefty monthly payments were still due—and still are.

Due to a lack of regulation regarding private student loan borrowers, they simply did not have to offer deferments. Recent news sheds more light on the issue:

“Many of them offered some sort of relief, but none of them were very generous. Most of the private student loan companies offered maybe a three-month or six-month forbearance or allowed you to skip two months of payment interest-free,” says Robert Farrington, CEO of The College Investor, a site offering advice to student borrowers. “But none of it compared to what we saw with federal student loans.”

If you are worried about being sued over a private student loan, seek legal expertise from an experience student loan debt attorney as soon as possible to avoid further consequences like a default judgment. Have a summons and complaint already been served on you? If the answer is yes, seek representation to help you reply to the lawsuit, along with launching a defense. Without any attention to the matter, a judge could grant a default judgment almost immediately—leading to wage garnishments, and levying of personal property and even 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? Contact Fitzgerald & Campbell, APLC now so one of our experienced student loan debt attorneys can review your case and discuss all the available options with you. Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include student loan issuesbankruptcy, 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 info@debtorprotectors.com.

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