Despite a viral pandemic, despite a huge student loan crisis, and despite the outcry over the expenses and the complications with educational debt today, lenders continue to give out loans (encouraging students to get them while interest rates are good) and rising undergraduate students, as well as graduate students, continue to take out surprisingly large loans in a financial climate that has been questionable, and a pandemic-based climate prohibiting face-to-face learning in so many schools.
Before COVID-19, the alarm bell was already sounding loud and clear over the $1.64 trillion debt owed by over 45 million borrowers. Many private student loan borrowers were getting by with a combination of the typically limited federal loans, sustained with larger loans taken out with private lenders at higher sums and usually with variable interest rates. Now, recent numbers cited in the news show that the cumulative student loan debt owed by US student loan borrowers has increased further to $1.7 trillion.
The problem worsens in the face of unemployment, questions about how schools and workplaces will function in the future, and more. Graduating seniors and older students continue to be optimistic about education and being able to pay off loans in the future, further indebting themselves. If you are currently working on paying off a private student loan and are worried about multiple delinquencies and the possibility of an impending default, speak with an experienced student loan debt attorney as soon as possible about what to do.
If you have already received a summons and complaint, act quickly not only to respond to the lawsuit but also to speak with your attorney about a defense based on the hardship you have endured in trying to pay back student loans. Without any action, chances are a judge will quickly grant a default judgment against you. This could leave you open for years (depending on how long it takes for you to satisfy the debt) in terms of wage garnishments, seizure of your personal property by law enforcement to be sold at public auction, and even the freezing of your personal checking account.
Have you experienced problems with your loan service provider or student loan program, or are you in danger of defaulting on your student loan? Speak with an attorney from Fitzgerald & Campbell, APLC as soon as possible to examine your options. 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 (844) 431-3851, or email us at info@debtorprotectors.com.