Some Student Loan Borrowers May Be Burdened to Pay a Larger Portion of Income
Managing finances can be challenging at any age, and especially now as the COVID-19 pandemic has forced so many Americans out of their jobs and businesses. Health issues are at the forefront not only in the US, but for the entire world, with illness and fatalities only expected to increase. Battling sickness, the loss of loved ones, and left without income, many Americans are left to deal with the realities of a population and an economy threatened by coronavirus.
The student loan debt crisis has remained in the headlines though as the government took measures to fend off defaults by deferring payments for many federal borrowers through the end of the year via the CARES Act. With two fierce presidential campaigns under way also, a number of solutions have been touted to win over voters.
Still, however, private student loan borrowers have been offered little respite, and federal borrowers enjoying deferments will be under the gun again to resume their payments. Over 45 million borrowers must pay back a $1.6 trillion debt, with a mixture of that being federal and private—as well as a mixture of those who are not having trouble paying, and those who are (more so, ethnicities, the elderly, and individuals from low-income backgrounds).
Recent news shows that while the average student borrower pays around 3.8% of their income, some may be paying as high as 10%. While this was obviously difficult for many during pre-COVID times, in today’s climate much greater numbers of borrowers are expected to have substantial trouble paying—especially as so many individuals are struggling just to pay for the basics right now.
Contact Fitzgerald & Campbell, APLC now. Let us review your case and discuss what would work best for you. We are here to help! Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include collection lawsuits, default judgments, and more. Click here to schedule a free 30-minute consultation, or call us at (855) 709-5788, or email us at firstname.lastname@example.org.
Posted in: Student Loan Debt