Student Loan Borrowers Already Crippled With Debt May Also Struggle
With Unfair Loan Servicing
DALLAS–(BUSINESS WIRE)–The student loan crisis has hit a nationwide high wherein the current
balance of all federal loans amounts to $902 billion, with around
another $140 billion in private student loans. In all, around 41 million
student loan borrowers are being crippled with a $1.2 trillion debt that
keeps on rising thanks in part to rising interest and fees.
According to a Department of Education survey of 2007-8 graduates,
around two-thirds of recipients of bachelor’s degrees borrow money from
the government or from private lenders in order to attend college. The
federal government has contracts with 11 student loan servicing
companies. Before 2010, federal student loans were primarily made by
private lenders. That ended with the termination of the Federal Family
Education Loan Program (FFELP) in 2010. Unfortunately, a recent report
by the Consumer Financial Protection Bureau has found that federal
student loans that are made by private lenders may have a higher rate of
financially distressed borrowers. In fact, while one in four student
loan borrowers are in default or delinquent nationwide, the report found
that nearly one-third of FFELP borrowers are in default or delinquent in
repaying their loans.1
“The fact is that many consumers who took out private student loans
during the financial crisis graduated from college into an extremely
challenging labor market. As a result, many borrowers are struggling to
repay the student loan money they borrowed during this period. However,
during these times of distress, borrowers report that many private
student loan lenders and servicers do not transparently communicate
consistent information on how to avoid default or provide viable options
to resolve delinquencies,” says Baron & Budd shareholder Dan Alberstone.
“That’s an indication that the cost of getting an education has not only
sky-rocketed, but that there may be other deceptive or wrongful
practices at play.”
If one or more of your student loan servicers has failed to inform you
of all of your repayment options or if you are struggling in repaying
your student loan and have received no help from your student loan
lender or servicer, you may be able to file a student loan lawsuit.
Contact a lawyer at 1.866.844.4556 to learn more.
About Baron & Budd, P.C.
With offices in Los Angeles, Dallas, Austin, New Orleans and Baton
Rouge, Baron & Budd, P.C., is a nationally recognized law firm with
almost 40 years of national experience “Protecting What’s Right” for
people, communities, businesses and other entities hurt by negligence.
Baron & Budd’s large size, resources and national presence allow the
firm to take on large and complicated cases. The firm represents a
number of pressing legal matters involving the consumer, from dangerous
pharmaceuticals and medical devices to environmental contamination,
trucking accidents, vehicle defects, the Gulf oil spill, financial
fraud, overtime violations, deceptive advertising, nursing home abuse
Baron & Budd, P.C.
Bradley Bowen, 214-523-6633