The Private Student Loan – Have You Tried All Other Financial Resources?
In the end, some graduates—and non-graduates alike—may exit college feeling like it was more expensive than it was worth, and especially if they are being held back from progressing due to strained financial resources and large student loan debt payments. And while not all academic programs are created equally, neither are student loan resources. To begin with, many students may not receive the counseling they need before entering college or signing on the dotted line to take out loans which can be substantial in many cases, resulting in monthly payments over $350 on the average. Even worse, many of these loans to be paid back by both graduates and non-graduates are for borrowers in the 20-year-old to 30-year-old range.
Students who receive proper counseling often also have better access to scholarships and grants simply due to the knowledge they exist. With the proper help, rising freshman can be made aware of who is offering scholarships, how to get them, and how to apply—and receive—multiple scholarships—all of which do not have to be paid back. Many of these programs are available regardless of grades or standing, too, which is a surprising fact to many. Unfortunately, it is important to note that many of these free resources are missed out on by rising freshman and other students simply because they are not aware of the accessibility. Not only is that a shame financially, but it means that they must go on to take out federal loans or private student loans—or both.
For students with little counseling, there is an escalation of factors that may contribute, from lack of money management skills for younger borrowers to a lack of foresight regarding how burdensome a large payment maybe later—for those of any age. Because of this, it is critical to try every other route before taking on private loans that may have some benefit but end up costing much more in the end.
And while no one wants to plan for a default, one of the most worrisome things about private student loans is the lack of flexibility if something happens later due to diminished income. Private loan servicers can be just as difficult to deal with as conventional lenders are when times are tight. They may bring on extremely aggressive collections activity, lawsuits, and even sue co-signers if the original borrowers do not seem to be able to satisfy the student loan debt.
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 (855) 709-5788, or email us at firstname.lastname@example.org.
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