Dealing with student loan debt

When an individual attends a college or technical school, they hope that the education they receive will allow them to find a well-paying job in their chosen fields. Many schools often make promises that entice prospective students to enroll in costly programs, and these individuals take out loans to help pay for their education. Once they graduate, they soon discover that there are very few opportunities for employment.

Once the student either graduates or leaves the program, they will have to begin paying back their student loans. Depending upon the amount of loans that they have, this can be a very substantial payment that they are required to make each month. If they fall behind, the lenders will impose additional penalties that the borrowers will be forced to repay, and collection agencies will aggressively pursue these past-due amounts.

Those who are under- or unemployed may have serious problems meeting these obligations. Missed payments will often have a negative impact on the individual's credit rating, making it difficult to obtain other loans.

When considering their options on how to deal with this debt, many are surprised that bankruptcy is generally not an option, in most cases. This debt is not discharged by the bankruptcy process, meaning that they will still have to find a way to repay what is owed.

For some borrowers, this means developing a budget that will allow them to make their student loan payments. Some are working multiple jobs in an effort to make ends meet, or paying down the balance whenever they have any excess funds available. Consolidation of the loans may help bring down the balance, but will increase the length of time that the individuals will have to make these payments.

Unfortunately, these solutions often only lead to more problems. Those individuals who try to stay current on their student loan payments have trouble keeping up in the long-term. Bankruptcy may allow an opportunity to organize dischargeable debts so that these individuals will be able to begin repairing their financial future.

If you are struggling to repay your student loans or are having problems with your lender, speak to an experienced bankruptcy attorney to understand your potential options. Student loan debt is very complicated, and you need to work with someone who can develop a creative solution to the problems that you are experiencing.

An attorney will be able to offer you advice on what might be best for your situation, and if necessary, negotiate on your behalf with your lenders. This could potentially help you avoid some of the financial hardships that can arise if you fall behind on your payments. Do not try to resolve these matters on your own, as this may only make the problems worse, and result in additional penalties.