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Private Student Loan Borrowers: Few Relief Options


The challenges of 2020 have given everyone a lot to think about, from the value of human life, and true priorities, to the realities of how difficult it is to make it in a world of unemployment and uncertainly—not to mention mounting debt and intimidation from creditors and debt collection agencies who are very much back in action post-COVID.

Right away, student loans were at the forefront of the news. Not surprising, considering that 2020 opened with over 45 million borrowers owing a cumulative total of $1.64 trillion overall. Private student loan borrowers have continued to be at the losing end, however, with ongoing deferments offered to many federal student loan borrowers (not all, though—only those whose loans are actually owned by the federal government). As some federal loans are now given extended relief until 2022, private student loan borrowers continue to flail financially.

It’s no secret that private student loan borrowers often owe larger sums due to tuition expenses like graduate school, as well as combination loans that also include the maximum amounts they could receive in terms of federal funds. This means that while millions of federal student loan borrowers can once again breathe a sigh of relief, private student loan borrowers are left scrambling—or are already falling into delinquency and default.

While some servicers may offer limited programs for private student loan borrowers, the best bet for many borrowers is to refinance. Not a possibility for borrowers whose credit has fallen into disrepair or for lack of funds to pay expenses like closing costs, refinancing can be challenging; however, interest rates are extremely low post-COVID, and borrowers could be looking forward to substantially lower monthly payments, their choice of fixed or variable interest rates, and terms that suit them better for the future.

If you are concerned about defaulting on a private student loan, speak with an experienced student loan debt attorney from Fitzgerald & Campbell, APLC as soon as possible to find out what your best options are. If you are already being sued by a private student loan service, time is of the essence in terms of replying to the lawsuit. In most cases, 20 to 30 days are given for a response. After that, without any action or presence in court, you could find yourself bearing the brunt of aggressive collection activity.

In working with an experienced private student loan debt attorney, not only can you outline a defense but you can also discuss options like negotiating or reorganizing your payments.

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

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