I Lost My Job, What Can I Do About My Student Loan Debt?

I Lost My Job, What Can I Do About My Student Loan Debt?

student loans after losing jobHaving student loan debt is relatively normal and expected today. The goal is to get through school with a great major, get a job in your field, and then use the good salary from that job to pay off your student loans. It doesn’t sound like that big of a deal, but the reality of it is that many students are in massive debt when they graduate. Then graduates have trouble getting a job in their field, and have to settle for something that pays far less than they expect.

When that happens, you may not be able pay your student loans, and that can hurt your credit. If you’re moving toward this situation, you may have options to help avoid long-term financial damage.

Can You Work Toward Consolidation?

One way to make your student loan debts easier to manage is through consolidation. Many states, including Ohio, offer options for consolidation through companies and lenders who either focus on consolidation of student loans or offer it as part of their lending package.

These private loans may be the right option to reduce the amount you need to pay every month and to lower the interest rate. It can also be easier to make just one payment, instead of having payments on a number of different loans that can be due at different times and for different amounts all throughout the month.

What About Putting Your Loans in Deference?

Another option for your Ohio student loans is to put them in deference. If you can show that you’re struggling with economic hardship, you’re unemployed, you are going back to school, or you have a unique situation that is making it very difficult for you to make payments on your loans, you may be able to have them deferred for a period of time.

This won’t last forever, but can often be done for long enough to allow you to get on your feet and have a more reliable, larger income. Some loans are easier to defer than others, so research your options to make the right choice for your financial future.

Will Bankruptcy Help You?

Most people believe that they can’t have their student loan debt wiped away in bankruptcy, but that’s not always the case. Federal student loans generally cannot be discharged, but there are some bankruptcy options for private student loans.

Current law makes it extremely difficult for anyone to meet the qualifications of having their student loans discharged in bankruptcy. However, that doesn’t mean the requirements can never be met. If you have extreme circumstances, such as a permanent, substantial disability, you may have an opportunity to remove your student loans through bankruptcy. You should contact an experienced bankruptcy attorney to get more information.

Are There Other Choices?

Forbearance, cancellation, forgiveness, and military or AmeriCorps benefits are other ways you may be able to reduce or eliminate your student loan debt. While not everyone will qualify for these options and some people do seem to fall through the cracks even though they need assistance, trying to get your student loan debt placed on hold or forgiven in some way can be well worth the effort if you truly have a difficult situation that is not going to resolve itself anytime soon.

When you need help with your student loan debt and you aren’t sure where to turn, contact the Chris Wesner Law Office, LLC. We counsel people with student loan debt frequently, and can work with you to find an option that may help you move forward toward a life with less debt and more financial possibilities.