Strategies When You Can't Pay Student Loans
You've been repaying your student loans faithfully for five years but, all of sudden, things have taken a financial turn for the worse. You've been laid off from your job, your car needs repairs, and you suddenly find yourself with unexpected medical bills. In short, you are facing a serious cash flow shortage.
Some borrowers run into financial difficulties at one time or another in the course of repaying their student loans. If you find yourself in this position, don't despair. Nearly all lenders offer certain options to help you through temporary cash flow jams.
The primary way to temporarily postpone the repayment of your student loan is to request either a deferment or forbearance from your lender. If this is not possible, you can try to have your student loan permanently canceled. If this too is unsuccessful and you can't otherwise negotiate with your lender for a reprieve in your payments, you will be in default on your student loans. Each of these subjects is discussed below.