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Private Student Loan Borrowers Still Left Suffering in Face of Federal Deferments

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As the student loan crisis has continued to deepen over the past decade, and especially in the last few years (not to mention the amplification of COVID-19 financial stressors), the numbers have continued to rise at an alarming rate. Recently settling at a cumulative total of $1.74 trillion owed by over 45 million borrowers, the student loan debt is being slowly chipped away at by recent cancellation and forgiveness of debt for millions of federal student loan borrowers who meet the eligibility requirements. And while the headlines may get bigger and bigger, the plight of private student loan borrowers continues to take a backseat.

While it’s no secret that private student loans are often for larger sums with higher interest and lack the flexibility of federal loans, as so many Americans struggle to make ends meet during challenging times, this is an area of concern for borrowers having to prioritize paying bills—as well as facing the grim realities of ongoing delinquencies and eventual defaults.

If you are worried about student loan debt and the repercussions of defaulting on a private loan, speak with an experienced student loan debt attorney from Fitzgerald & Campbell, APLC as soon as possible to find out more about your options. You may be surprised to find out what a good defense you have in terms of outlining hardship.

Walking away from a private student loan without seeking expert legal advice first could result in devastating consequences, however. While defaulting on a federal student loan can present enormous challenge over time, there are worse problems associated with the private student loan mainly due to the lack of regulation over private student loan servicers—and their ability to take much more aggressive measures in debt collections. Similar to a mortgage company or another type of private lender, private student loan servicers have much greater power to collect once a default judgment is granted.

Have you been served with a summons and complaint via a deputy or private process server? If so, take such action seriously! This is not a time to procrastinate. With only 20 to 30 days given in most cases to write a response, it is critical to speak with an attorney as soon as possible. If you fail to act at all, you open yourself up to years of financial vulnerability until the debt is paid. This could mean loss of disposable wages up to 25 percent in California, along with loss of control over valuable property and even financial 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

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