Student Loan Debt: Basic Financial Realities Plague Consumers Amidst COVID-19 Worries
Over 45 million student loan borrowers could be responsible for a substantial hit to the economy if the cumulative $1.64 trillion debt continues to rise, with defaults escalating too. While fingers can also be pointed at lenders and different lending institutions—whether in regards to rising tuition or predatory marketing—the bottom line is that an enormous sum on of money has been spent for students to go to school, and both government and private loan servicers expect it to be paid back.
The COVID-19 virus has certainly complicated the situation further as over 200,000 US citizens have died, and millions have been impacted. Finances are tighter than ever; in fact, depending on the age group of consumers, this may be the worst economic slump they have ever seen. With concern about student loan balances rising immediately to the surface in the spring of 2020 as restrictions began and tens of millions lost their jobs, the government took action to offer forbearance through the end of the year via the CARES Act. Many federal student loan borrowers were given relief, but not all, and private student loan borrowers were left completely in the cold unless their servicer decided to offer relief (such as Navient, offering 30-day deferments).
Aside from worrying about contracting a potentially deadly virus and trying to figure out how to make ends meet, borrowers must still face all the basic expenses and financial realities of life. If you have become ill or lost your job, you may be growing increasingly worried about how to pay debts. If you have private student loan debt with payments due each month but no income now to satisfy the loan servicer, speak with an experienced student loan debt attorney about your options. Acting quickly is especially critical if you are in danger of being sued by a private loan servicer.
While there are a host of negative repercussions associated with defaulting on a federal loan, private loan servicers may engage in aggressive collections activity like lawsuits. This could open you up to further—and much greater—financial distress if you are not able to reply properly and find a default judgment granted against you. While you may not be too worried about further losses right now, ten or even twenty years down the road you may be as the judgment is good for ten years in California and can be extended for another ten after that.
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.
Posted in: Student Loan Debt