Private Student Loans: Many Reasons Today Point to Why They Are Not Getting Paid Back
As millions of US citizens have been diagnosed with coronavirus, and millions more face extremely unfortunate and sudden unemployment, the financial future is uncertain for many. Even worse, these issues fall on top of an already stressful student loan debt crisis that has been plaguing borrowers for years—now affecting over 45 million borrowers who owe over $1.6 trillion.
More students than ever are expecting to and are attending universities despite rising tuition costs and resulting increases in student loans. Rising freshman from lower-income areas are attending more than ever before too and may ultimately be the first in their families to attend or graduate from a college or university in the US. A wide range of factors may figure in as to why student loans become unwieldy later, causing borrowers of all ages to default; however, the bottom line usually points to one issue: lack of income later.
Students may not understand the ramification of what they are taking on, and as many analysts have pointed out, a lack of counseling points to many problems for borrowers. It can be extremely hard to understand what paying back $400 a month might feel like later if you have never had to handle such responsibility before—and that is around the average payment today for borrowers in the 20- to 30-year-old range mired in student loans.
Parents are responsible for helping to pay back may student loans and may have also acted as co-signers. In normal times this may be a burden, and when younger borrowers are not able to handle the finances they signed on for, parents and even other relatives may chip in to help ensure a better future for the younger generations. Today, however, parents and others who agreed to co-sign under better circumstances may not have the means to help—and they may no longer be a viable option for creditors or debt collections agencies to sue either.
For federal student loans, many (but not all) are being helped immensely with deferments through the CARES Act. And while far too many are being left behind even with such government assistance, private student loan borrowers may find themselves in even worse shape. Similar to mortgage lenders in many cases, private student loan servicers may be unpredictable in terms of flexibility. In light of unemployment for so many now, however, this may be your best time to negotiate. Work with a skilled debt protection attorney to streamline all your debts and avoid collections lawsuits and default judgments.
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.
Posted in: Student Loan Debt