As the cumulative student loan debt in the US reaches a staggering total of $1.74 trillion, Americans continue to be burdened. These days, private student loan borrowers are more affected than anyone else. Although federal student loan borrowers have received continued deferments, private student loan borrowers and the financial stress they are carrying seem to be of little notice. Although many are carrying combination loans which means they do receive some of the benefits involved with federal deferments, millions have been left to fend off private student loan servicers on their own since the onset of the viral pandemic.
Clearly, the student loan crisis was reaching a head prior to COVID. Noted as a serious economic issue, federal student loans were one of the first financial issues dealt with, much to the relief of millions; however, this has continued to leave private borrowers with hefty payments to be made, in many cases, each month. Private student loan servicers have offered some minor deferment programs, but nothing in comparison to what is being offered through The Cares Act.
If you are currently having trouble keeping up with your private student loan, speak with an experienced student loan debt attorney as soon as possible to explore your options—and especially to find out more about how delinquencies and even default could affect you in the future. If you have already been served with a summons and complaint due to a student loan debt lawsuit, do not delay in seeking expert legal advice.
While defaulting on a federal student loan comes with a host of problems, private student loan servicers have the ability to make your life extremely difficult. Not unlike a mortgage company or another traditional type of lender, they are able to sue you and if they win, there is the possibility that the judge could grant a default judgment against you. This means the possibility of increased financial headaches like wage garnishing (up to 25 percent of your disposable income), seizure of your property by local law enforcement for sale at public auction, and even the levying of personal checking accounts—making it impossible for you to get access to your own funds until the debt is satisfied.
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 email@example.com.