Student Loans: Forgiveness is Enticing, But Not an Option with Private Servicers
Student loan debt continues to grow—and alarm everyone with one headline after another; in fact, from millions to billions to trillions, the amounts of money students are beholden to pay back is almost fascinating it is so terrifying in its burden, leaving us with many of those ‘just can’t look away’ moments regarding the train wreck that is bringing financial harm to so many.
Recent news shows that the average cost of tuition for a four-year college today is $25,000 to $35,000, depending on whether they are in-state, out-of-state, or at a public or private college. Female borrowers, and mostly black females experience the most difficulty in paying back student loans; in fact, women hold over $900 billion in student loan debt overall. Such overwhelming disparity in paying back loans in comparison to male borrowers is attributed to the gender pay gap.
Federal student loans are easy for most new students to come by, but they are limited and for most do not offer enough financial means to get through those first four years of college. Along with grants and scholarships that do not have to be paid back, federal loans are attractive in many ways—especially due to the interest rate which is usually lower. And whether younger borrowers realize it at the time, one of the greatest advantages of all with federal loans is the range of alternative repayment options for later. Along with income-based repayment methods, there may also be deferment and forbearance available, and even forgiveness.
These options are not available from private student loan servicers in most cases though and accompanied by the fact that these loans may be exponentially larger, serious trouble can loom for borrowers who may not have the income they expected or any wiggle room with payments. While they may have a mixture of loans—in fact, one of each—the private student loans are usually the largest and the most difficult to deal with later in times of distress. And although the government can certainly be menacing to deal with if there is non-payment or no response from a borrower in delinquency and then default, private loan servicers may go as far as filing lawsuits against borrowers and seeing enormous court judgments granted in some cases.
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 email@example.com.
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