Destination Student Loan
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It's payback time... no where to run!
Student loans are the destination for just about every college student out there. Maybe you graduated, maybe you didn’t. But if you filled out the loan paperwork, you are probably working to pay off your student loans… for a long time.
Yes, there might be some who are lucky enough to have their college paid in full, without ever having to take out a loan. Those fortunate souls are far and few between. The other ones who don’t have student loans are probably the ones who didn’t attend college at all. The remainder of the people with a student loan, will have to pay them off, starting 6 months after graduation.
The irony of a student loan is it is needed to pay for college; college is needed to get a high paying job; yet, with a high paying job, you are stuck paying a loan for a minimum of 10 years (unless you get a forbearance, which will extend the time you pay on it.)
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No Where to Run
The student loan is also something you can not run away from. Because the student loan is federally funded, you will find it difficult to file bankruptcy on the loan and have it dismissed. According to Student Loan Brorrower Assitance, " to discharge in bankruptcy... you must show that payment of the debt will impose an undue hardship on you and your dependents.” If you can prove this hardship, your student loans may be completely discharged, however, it will depend on the judge overseeing your case. Not all judges will be as leniant to discharging student loans.
If discharging student loans is not an available option for you due to financial problems, filing for a forbearance is always an option. However, the loan will eventually need to be paid back. A forebearance will allow extra time before the student loan has to be paid back. However, if your loan has been approved for a forebearance, you will still be charged interest on the loan. A forebearance is not the same as a loan deferment, as in the interest on subsidized loans will not be accrued while the loan has been deferred.
Financial instituations are usually more than willing to work with you to help pay off student loans. After all, defaulting on a loan isn't beneficial for either party. If you are not able to defer or obtain a forebearance on the student loan, you may also request a change of repayment plan to make your loans more affordable. Just remember, if you default on the loan, you will also be ineligible for future student loans.
There are other consequences to not paying back your student loans. If you choose to not pay back your loans, this may also adversly effect your credit and credit score. That being said, trying to get anything else on credit may prove to be difficult or nearly impossible. In addition, you may also lose any tax refunds in the future to pay back your student loans and your job wages could be garnished, according to Student Loan Default in the United States, on Wikipedia.
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How to Get a Student Loan Without a Cosigner - If you want to head to school, this is the lowdown on federal aid that can be obtained without a cosigner.
Help Paying off Student Loans - Tips and Tricks - If you have already completed your school and have the daunting debt hanging over your head, here is some tips and tricks to help get those loans paid off.
Is the Student Loans Worth It?
Is the student loan worth it? This maybe questionable to some as they feel they can get by without college or they just don't feel like being financially responsible for the money due to lender. However, what it comes down to... is in the economic crisis, it having a student loan to get you through college worth the money you will have to pay back in the future?
Absolutely! In order to secure yourself a good job were you can advance in today’s society you need an education. With unemployment rates at an all time high, having a degree is almost a necessity to secure yourself any job. However, if you don't pay back your loans and your not one of the lucky ones to go to college and have it paid off immediately, repercussions to not being responsible could haunt you for the rest of your life!
While your taking courses, it is also a wise idea to go ahead and take a finance course as one of your electives. It will definitely give you a step up on controlling your finances well into your adult life. But, if you don’t plan on paying your loans back, then you might as well skip the college life. While student loans may initially help you out, they can hurt you if you decide to not do the right thing and pay them back.
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Good hub! Student loans are a favorite topic of mine (as I have one!!)
BBG - Oh my goodness! I had to get student loans! My family could not afford to pay for my college and I knew that so I didn't even ask. I worked and saved and then took one college class at a time for a few years - then I doubled down so I could finish! I thought it would take forever. There was no way I could have afforded it without a loan....and after I graduated I wasn't making a ton of money yet because you have to put time in usually:) lol I paid them back while I stretched dollars to put groceries on the table sometimes but it was a glorious day when I made that last payment! I wanted to frame my pay off statement:)
You are so right though - you almost have to get a degree these days to get a job at McDonalds now days! It really sucked while I was trudging along paying it off but it really did pay off in the long run.
@Poetic Fool - My student loans are about $25,000. That is a whole lot of money being that I was only in school for about a year and a half. My other schooling was paid for with no student loans...thankfully otherwise I can't imagine the debt I would have incurred. The nice thing is...they are usually pretty good about working with you to help you pay them back - the bad thing is they almost never go away if you aren't good about paying them. Thanks for stopping by and I hope your children enjoy their college time! :)
@Poetic Fool - My student loans are about $25,000. That is a whole lot of money being that I was only in school for about a year and a half. My other schooling was paid for with no student loans...thankfully otherwise I can't imagine the debt I would have incurred. The nice thing is...they are usually pretty good about working with you to help you pay them back - the bad thing is they almost never go away if you aren't good about paying them. Thanks for stopping by and I hope your children enjoy their college time! :)
@Audrey - I have the ones form Cosmetology School and Massage School. Luckily my other schooling was pretty much done with cash (it's good to be a veteran with school benefits!) I also have another one that I took out for cost of living expenses. I am hoping to have that paid off soon. And then this doesnt' have to be a favorite topic of mine anymore! LOL
I still have mine from law school--and we are almost done putting our second child through college--it is a chunk of change--
@Real - Paying off your student loan can be such an overwhelming feeling. Mine have been in deferment. I still feel overwhelmed... maybe more so because I haven't been paying on them and they are just getting bigger and bigger and bigger. I am about to file my taxes this year and if possible... one of my student loans will be paid off with the refund. Although I will admit... it is no fun trying to be responsible iwth your refund!
@Audrey - Yikes - We have 3 kids but luckily because my husband and I are both veterans with a high enough disability their colleges will be paid for if they choose to use it. I am glad we definately have that to our advantage! :)
Here's hoping your student loans are paid off soon! :)
We are working on it!
Stacy...
I have been haunted and hunted by the Federal Student Loan Commission since 180 days following the (beautiful) gradation ceremony.
I would rather flee Nazis on Llamas with ill-intent than dodge those guys.
Thanks.
(I am now depressed...there are never Nazis on Llamas when you need them...)
Thomas
Great information. I have four months until I have to start paying mine back. It is nerve racking! What is bad is when you get the degree, no one wants to hire you because you don't have experience in your new field, but you become overqualified for other fields. Your article is very helpful.
Great hub. I have 29,000.00 at 8% and can only work part time because I have a child with autism. No one, I repeat, no one will help me. I did get a deferment for a while, but at 8%, the $$$ I owed after the deferement was more than before as the interest capitalized. I pay more per month than most people pay for a new car payment. I want to pay, but more than 3/4 of my payment goes to interest. People ask, 'why did you get the loans if you don't want to pay them back?' I do want to pay them back, but I didn't plan on a disability in my future and if I I could reduce my interest rate to 3% or 4%, it would be much easier to pay. Great hub again.
@Audrey - That's good to hear!
@Thomas - Nazis on llamas... I bet they would go after those hunting Federal Loan officers that you speak so ill of... now if only they existed. Wait - they might - follow me!....
@TammySwallow - I have seen so many people go through that... they get a degree but without experience it doesn't matter that they have the degree. I know my mom went to school and got her degree only to not work in anything related. It is kind of sad because if you don't have the ability to do a free internship... how are you suppossed to succeed. Luckily for me I got a liscense based off of my schooling. I didn't have to worry so much about not getting a job. Now next year I plan on going back to school. I regret that I was only 6 credits away from graduation and I never finished! Ahhhh.... back to school again. :)
@Shea - Wow... that is incredibly high. I know this is something very difficult... and obviously if you are paying on it right now you are probably pretty straight with the rest of your finances... but if you can prove that this is a hardship for you and your dependents then your student loans can be dropped. Unfortunately, this also means you are going to have to file bankruptcy. It is extremely difficult and it will depend on the judge that looks at the case. I know I was on the phone yesterday for a couple hours talking to people about my student loans. In the process of moving I lost the paperwork so my loan ended up going default because I didn't call immediately for another deferment. I got it situated but it still stinks. And I can't imagine if the student loan was as high as a car payment.
As for having a child with Autism... is there any support groups that you belong to. Maybe they would be able to lend a helping hand. I know my friends child has Autism and they have recieved several different tools and what not for their son. It won't help pay back the student loans... but maybe there are grants out there that only a support system for Parents with Autistic kids would be able to point you in the right direction.
Good luck... I wonder now if there is a way to lower your interest rates on school loans. It doesn't seem fair that they won't work with you, but unfortunately they usually don't care because they are so hard to dismiss.
You have information regarding Nazis on Llamas? I am following...
Oh...speaking of not like musicals...could these Nazis on Llamas kill that family that keeps singing, like dumb asses, in a war zone, on The Sound of Music? I would like that.
No no...I'm still following...kind of thinking out loud...
Thomas
Thanks. I've tried everything re: my loans and interest rate. thanks for your interest in my $$$ lol
8-)
@Thomas - Now that I got your attention (quickly grabs the Dew from the hand and takes a big swallow!)... I don't really know if they exist but I believe there is a musical about it... ha ha... oh wait... no the Vontraps will keep singing... it is just what they do! LOL
@Shea - Sorry to hear that nothing has worked. When that happens I become the squeaky wheel... eventually they give in because they rather do so than continue to listen to me ;)
maybe you're just magic!
@Shea - or just irritating... lol... but I like magic better! :)
Poetic Fool Level 7 Commenter 4 months ago
Stacy, you done your research and provided a wealth of useful info here. I have 2 in college now and a third will start in the fall. Even with their excellent grades, student loans will be a part of the financial aid package. College is just too expensive these days.
It is interesting to note that the total student loan debt has now surpassed all the credit card debt here in the US. It's a sad state of affairs. Thanks for sharing this great hub.