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After the Diploma: Student Loan Borrowers May Have Trouble Budgeting

  • Jun 10 2019

As financial analysts and government experts around the US find themselves in continued debate over who is at fault for astronomical student loan debt, and how to prevent it, the cause is pretty evident. Large amounts of money for paying exorbitant amounts of tuition (that just keeps rising) are being handed to very young borrowers, who may have never even paid a light bill on their own before; in fact, some students may graduate—still with absolutely no financial experience—and be expected to pay monthly payments of over $350 a month. That’s a lot for anyone to handle, no matter their age.

Student loan borrowers may be in their early 20s, and fresh out of college, living off campus for the first time, or having just moved out of their parents’ homes, suddenly learning how to deal with buying the most important items like food, paying for rent, the car and gas and maintenance, and managing a pretty challenging budget. Student loans may become impossible to pay, but a default should be avoided at all cost, and especially for young borrowers who have barely made a mark in the world yet.

Federal student loans may offer a wide range of alternate repayment programs, especially if you are eligible for deferment or forbearance, or even a forgiveness or cancellation program. They may also have been offered at a low, fixed interest rate. For the young student loan borrower who is under financial duress and dealing with private loan servicers, interest rates may be higher, but the greatest difficulty is in suffering the lack of flexibility in these types of agreements.

Private student loan servicers may surprise borrowers as they employ conventional—and aggressive—debt collection activities. There is also the potential for being served with a collection lawsuit, and suffering all the negative repercussions that follow if you do not respond promptly (usually defendants are allowed 20 to 30 days) and either have your attorney defend you in court or perhaps consider negotiating with the creditor at the last hour. This is well worth it if you are able to avoid having a default judgment granted against you.

If you are dealing with such challenges, contact a student loan debt attorney as soon as possible. Skilled legal expertise is exactly what you need to navigate through negotiating with a private student loan debt collections agency, and perhaps even finding a way to reduce or negotiate down other debts that may have piled up too, such as credit cards.

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! 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