Student loans have long been a problem as educational debt continues to pile up in the US. Previous to COVID-19 there were already ongoing debates raging from how to get rid of student loan debt to who to point fingers at. Many of these topics were put to bed temporarily as soon as the coronavirus became an enormous threat. With restrictions, shutdowns, lockdowns, and so much more taking over, the issue of how to handle student loans centered almost completely around offering deferments to federal student loan borrowers through The Cares Act.
Private student loan borrowers have been consistently left out in the cold, including in the most recent round of deferments, staving off payments for millions of federal borrowers until January of 2022. While there is plenty of discussion about the 6.1 million federal student loan borrowers who are left out of deferments also due to technicalities over who actually owns their loans, still private student loan borrowers are mainly hearing crickets when it comes to any sort of help.
Recent news shows that clearly, millions of federal student loan borrowers are not expected to pay a penny while there is little recourse for private student loan borrowers—aside from minimal deferments via some servicers, should they decide to help.
“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 Farmington, CEO of the College Investor. “But none of it compared to what we saw with federal student loans.”
If you are currently in default for private student loan debt and being sued, speak with a student loan debt attorney from Fitzgerald & Campbell, APLC to explore your options, as well as avoid legal action like a default judgment being granted against you.
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 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.