When a college student emerges from their chosen degree program, hopes are often high to find a good position using the skills and knowledge achieved during their years of study. Unfortunately, today’s economic climate does not make this an easy task. Many new grads in Florida find themselves underemployed or forced to work for far less than they expected, just to be able to retain a position within their chosen field. For man, the need for debt relief is immediate, and repaying their student loans becomes a serious financial hardship.
The first course of action is to approach one’s lenders and let them know that repayment is becoming a difficulty. Simply failing to make one’s monthly payments is not a smart decision, and can lead to serious credit damage if a loan goes into default. Federal student loan programs have repayment assistance options for those who qualify. In some cases, it may be possible to have one’s payments temporarily deferred, or have the payment amount reduced.
Other programs offer the chance to adjust one’s payment to their level of income. This can be a good fit for someone who is relatively assured of earning more in the years ahead. The payments will begin at a lower level, then increase over time as one’s earning levels rise. However, it is important to understand that the interest will simply be tacked on to the end of the loan, and the ultimate cost of repayment could far exceed what was initially expected.
For some, filing for personal bankruptcy may offer a form of debt relief. While it is very difficult to have student loans forgiven through bankruptcy, the process can lead to the discharge of many other forms of student debt, which can help individuals gain the funds to pay down their loan obligations. Florida residents who wish to learn more should research the bankruptcy process to determine if this path may offer the best fit for their needs. Every circumstance is unique, but it is possible to find a debt relief solution that works.
Source: The News Tribune, “Can’t pay student loans? Seek out finance options,” Gail Marksjarvis, June 13, 2013