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Private Student Loans Present Biggest Challenge After COVID-19

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As COVID-19 became a serious threat to the US in 2020, US citizens began to fear for their health, as well as the health of family and loved ones. Soon though, it became apparent that finances were going to be a predominant worry too. It was hard to escape the reality as tens of millions of workers lost their jobs or had hours significantly cut. With storefronts, restaurants, gyms, offices, and nearly everything closing suddenly, everybody began to wonder about the future.

Still though, in the midst of so many other worries, student loans were at the forefront—mainly because over 45 million borrowers in the US are responsible for a cumulative total of what is now over $1.74 trillion. Almost immediately, the federal government stepped in to offer deferments for federal student loan borrowers; in fact, they were given deferments through September of 2021. While that neatly took care of millions of federal student loan borrowers (not all though as this was only pertinent to loans actually owned by the government) for at least a year and a half, there was little mention of private student loan borrowers—or any noticeable concern that as a whole, their monthly loan payments are usually considerably more.

As time went on, some private student loan servicers did begin to offer programs. Many of these programs were very quietly available though, only mentioned when desperate borrowers inquired specifically. If you became delinquent on payments or are worried about defaulting, speak with an experienced student loan debt attorney as soon as possible to find out what your options are.

Defaulting is usually not recommended, although if that is the case and you are being sued, attorneys from Fitzgerald & Campbell, APLC are skilled at handling these cases successfully. The problem with private student loan servicers is that they have much more leeway in terms of aggressively seeking satisfaction of debts. This could, in fact, lead to much more uncomfortable repercussions like wage garnishments (up to 25 percent of your disposable income in California), seizure of property to be sold at public auction, and levying of personal 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 issuesbankruptcy, and other debt management processes. We are here to help! Click here to schedule a free 30-minute consultation, call us at (844) 431-3851, or email us at info@debtorprotectors.com.

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