How to Pay Off Student Loan Debt With No Money

Student loan debtis one of the main obstacles new graduates have. That is one reason to keep track of how much you are borrowing when you are going to school. For example if you graduate owing $19,000 in student loans (the average student-loan debt among graduating seniors) at 6.8%. If you want to repay the loans in ten years it would require a monthly payment of about $220. If you allow 10% of your salary to student loan repayment, you would need a salary of $26,400 to cover this.Most student loansstart coming due within 6 months after you graduate. This was probably assumed to be an adequate amount of time to secure a job. With the current economic condition it is taking longer to find a job and to find one that pays enough to cover your education costs and other expenses. Some graduates are having to accept jobs out of their field and for lower pay just to get a job.It is nearly impossible to pay off debtif you are not making any money. If you can prove you are experiencing a hardship, you can apply for deferment. But this only postpones the problem. You can usually defer the loans up to one year, but the interest keeps increasing and is added to the amount you owe when you start making payments again. Eventually, you will need to find a way to make payments on the amount you owe. In most cases, student loan debt is not discharged when filing for bankruptcy.

If you do not make any payments on your loan in 270 days it will go into default. Once a loan goes into default it will go to a collection agency and they can garnish your wages and your credit score with drop significantly.

So even though a college education is probably necessary in a lot cases, keep an eye on how much you are borrowing and what it will cost you to repay it. Some students take out more in loans than they need considering it free or found money, but you will eventually need to repay it plus interest.

When considering how much your monthly student loan payments will be you also need to take into consideration the other payments you are going to have each month. Those separate payments can add up quickly and may be more than you will be earning.