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Private Student Loans? You May Feel Like There is No End in Sight

private student loans
  • Mar 26 2019

If you are struggling with private student loans, you are not alone; in fact, you have joined over 44 million other borrowers, with many either in delinquency or default. It’s no secret that the state of student loan debt in the United States has reached a crisis state, but the burning question in the mind of borrowers, rising students, government analysts, and financial experts is how to fix the problem. There has already been enough finger-pointing to realize that rising tuition, lack of entrance and exit counseling, lax underwriting, and many other details factor into the growing, cumulative student loan debt of $1.5 trillion today.

Household debt continues to rise as well, and while mortgages top the list for monthly payments with the average home being nearly $136,000 in debt, student loans are not far behind. In fact, the figures have risen to almost $47,000 owed per household. Younger borrowers especially may not yet be equipped to deal with handling a more complex budget or know where to turn when the going gets rough just to pay the essential bills like rent, utilities, healthcare, and groceries. Trying to put a student loan payment first often leaves them mired in stress and disorganization. It may get to the point where their only recourse for their other unsecured debt is filing for bankruptcy.

Repayment is even more difficult for borrowers who have not been able to find a good job. Even those who have attained a master’s degree are competing in a fierce market and receiving pay far below what they expected. Borrowers who were not able to achieve degrees may be in an even worse situation as they are forced to take lower-paying positions.

Federal student loans are still expected to be paid back, but borrowers may find that they are able to enroll in a variety of different programs, including deferment, forbearance, forgiveness, and, in some cases, cancellation of debt altogether. Private student loans lack the flexibility of government loans, unfortunately, and in some cases could result in collections activity so severe that borrowers are sued and even have default judgments granted against them.

Have you experienced problems with your loan service provider or student loan program? 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, such as student loan issues, bankruptcy, and other debt management processes. We are here to help! Call us today for a free consultation at (855) 709-5788 or email us at info@debtorprotectors.com.

 

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Posted in: Student Loan Debt