Student Loan Debt: Payments on Hold for Many Until December 31
Student loan debt has been an unfortunate burden, continuing to grow into a $1.64 trillion ‘crisis’ that isn’t going away. Federal student loan payments may be going away for many though, again, temporarily. Recent news shows that President Trump issued a memorandum, ‘Continued Student Loan Payment Relief During the COVID-19 Pandemic,’ stating that the CARES Act should be extended to offer respite on payment of federal student loans until December 31, 2020:
“Currently, many Americans remain unemployed due to the COVID-19 pandemic, and many more have accepted lower wages and reduced hours while States and localities continue to impose social distancing measures,” Trump wrote in the memorandum. “It is therefore appropriate to extend this policy until such time that the economy has stabilized, schools have re-opened, and the crisis brought on by the COVID-19 pandemic has subsided.”
While in the spring, the CARES Act offered many benefits, but notably that of federal student loan payments going into forbearance until September 30—borrowers were able to breathe a sigh of relief; however, as September looms near, many who have continued to struggle financially or lost their jobs altogether can rest easy on that front through the rest of the year. Unfortunately, this does not cover borrowers with private student loans—which often tend to be larger debts. Collections activities may be more aggressive on the part of private student loan servicers too.
While dealing with the government can be tricky if you are delinquent or have defaulted on federal student loans, private student loan servicers may act more like a mortgage company would—suing you and then attempting to collect on default judgments if the matter was not settled in court. Consult with an experienced student debt attorney as soon as possible if you are concerned about default on your private student loan, or if you have already been served with a collections lawsuit. Enlist expert legal advice to take care of the issue immediately, rather than risking a default judgment and terribly negative ensuing repercussions such as garnishment of your wages (up to 25 percent of your disposable income in California), or levying of property and bank accounts.
Although the CARES Act has helped many student loan borrowers at the federal level, if you have a private student loan, work with your attorney from Fitzgerald & Campbell, APLC to negotiate deferments on payments, better interest rates, or perhaps consider refinancing too. Contact our offices 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.
Posted in: Student Loan Debt