As a private student loan borrower, if you are waiting for the same type of help that federal borrowers have received, you might as well be prepared to settle in for a very long time—with no reward at the end. Unfortunately, while the government owns 92 percent of student loans and is making some serious moves to offer relief, it is not expected that these efforts will extend to private student loans, if ever. Instead, it is most likely that all the private entities like conventional lenders, universities, investment companies, and other organizations will continue to be widely unregulated within the student loan industry—and they will not be under any mandates to offer deferments or other relief to Americans struggling under the weight of what can be massive loans.
As COVID-19 and variants continue to restrict and limit the American public, financial issues have spiraled out of control for millions, due not only to astronomical medical bills but also unexpected, extended problems like unemployment. After being turned away for a suitable deferment, many may hope to turn to the option of filing for bankruptcy, but without evidence of extreme hardship that is usually not a viable possibility.
Currently, the cumulative total owed by over 45 million US student loan borrowers rests at $1.74 trillion. And although millions are able to sleep a little better knowing that federal student loans are deferred until February of 2022, it is expected that the complexities of private student loan debts and dealing with private loan services will leave their borrowers permanently out of luck.
If you have already been notified that your private student loan borrower is suing you, speak with an experienced student loan debt attorney from Fitzgerald & Campbell, APLC as soon as possible. Acting on this type of legal issue is critical, and usually within 20 to 30 days. A private student loan servicer can pursue debts much more aggressively, and without any presence from you in court or an answer to the lawsuit this could mean that you find yourself dealing with wage garnishments (up to 25 percent of your disposable income), seizure of property, and even loss of control of your own checking account. The key is to respond to any collections lawsuit in order to avoid having a default judgment 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.