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Student Loan Debt: Parents Are Unsure of Educational Finances in Current Economic Climate

parents
  • Jul 8 2020

Student loan debt continues to stand out as one of the most prominent financial issues for over 45 million borrowers in the US. Even as serious health issues like the COVID-19 pandemic and unemployment for millions pose nationwide threat, the student loan crisis is not going away. Programs may help some federal borrowers, with the CARES Act, for instance—but not everyone, and private student loan servicers may be left even further out in the cold.

The cumulative debt for student loans currently hovers at around $1.64 trillion, with recent statistics on delinquencies, defaults, and other information not released since the coronavirus pandemic began wreaking havoc on the economy and the health of so many. Tuition recently has been refunded for some students who were not able to attend schools due to nationwide shutdowns, and as a threat of a ‘second wave’ of the pandemic looms, much is still in question; however, even in light of so much distress lately, recent news shows that the majority of parents in the US still see getting an education and dealing with the finances as a worthy cause. The majority though also have concerns about taking on expenses such as student loans.

“Families are looking beyond the current challenges presented by COVID-19 and understand the long-term value of higher education,” said Manny Chagas, vice president of Discover Student Loans, in a recent interview. “Given the uncertain circumstances, it’s important for families to be prepared when the time comes to make a decision by discussing all of their options for higher education and available financing alternatives.”

Counseling for younger borrowers is critical too—and especially if they are advancing beyond federal student loans and taking on private student loans also. Private student loan servicers usually offer variable interest rates which may end up costing more later, and their programs are usually substantially lacking in flexibility should borrowers have trouble paying later. If you are currently delinquent on a private student loan, it is recommended that you do everything possible to avoid defaulting as this could lead to collections lawsuits, default judgments, and even more negative consequences like wage garnishments, property seizure, and freezing of checking accounts.

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 info@debtorprotectors.com.

Posted in: Student Loan Debt