Stuck With Unaffordable Student Loans: Now What?


You know that attending college is crucial for a successful future. The question is – how are you going to afford it? If you are like most people, you'll end up with a mountain of student loans. According to, America's outstanding student loan debt is $1.3 trillion dollars and there are 38 million Americans that currently have student loan debt. Fortunately, if you have student loans that you currently cannot afford, there are options out there for you.

L Is for Lender Communication

Believe it or not, student loan lenders are not always your enemy. They really are there to help you, but they can't do so unless you reach out to them and let them know what is going on. Contact the lender and let them know that you are having troubles making your loan payments. This should be done as soon as possible, because the longer you put it off, the worst things will probably get. You will have lenders constantly calling you and your credit is likely to suffer.

O Is for Opt for Repayment Plan

The good news, if you have a student loan, is that there are several repayment plan options available to you. The standard plan provides you with a certain amount to pay each month for a period of 10 years. The extended plan provides you with a lower payment each month, but instead of paying it off in the standard 10-year period, it gets extended to 25 years. The graduated plan provides you low monthly payments to start out and then gradually increases every two years, for the standard 10-year period.

A Is for Apply for Deferment or Forbearance

Deferment and forbearance are two options that will allow you to temporarily put your student loan payments on hold. A deferment will let you suspend your loan payments for several years, due to circumstances such as economic hardship, enrolled in school or serving in the military. A forbearance will also let you suspend your loan payments, but only for up to 12 months, due to circumstances like financial hardship or illness. You should request a deferment first because the government pays the interest on the loan, whereas with a forbearance, the interest will continue to add up.

N Is for Not Going to Collections

You want to try and do everything you can to prevent your loan from going to a collection agency. Normally, loans are sent to a collection agency after a period of non-payment, typically nine months or more. Once a collection agency has your loan, it is considered to be in default and the entire loan balance will become due at once.

The options above will help you as long as your student loan isn't in default. In the event that your loan is in default, the only options you have are loan consolidation and loan rehabilitation. If you can't afford your student loans, there are options out there for you. The worst thing you can do is to ignore your loans, because they aren't just going to go away on their own. For more information, contact a company like D Derk Demaree Attorney at Law.


2 August 2016

The Important Role of the General Attorney

Like many other people, I admire the important tasks lawyers take on every day. I’m amazed at how knowledgeable general attorneys are about a variety of subjects. These professionals can accomplish many complicated jobs seamlessly, such as representing a client in a civil lawsuit, assisting a business with a merger, and acting on a client’s behalf in a medical malpractice lawsuit. Besides creating detailed legal briefs, they must argue their clients’ cases in court in front of a judge, jurors, and others. On this blog, I hope you will discover how crucial general attorneys are to this country’s legal system.