Many Florida students use student loans to put themselves through school. With the rising cost of a college education, this debt can seem insurmountable when it comes time to repay the loans. Graduates may be able to use a debt relief option, offered by many student loan holders, to keep their payments manageable.
This is especially important because it is nearly impossible to discharge student loans in a bankruptcy except in rare cases. Forbearance and deferment will put off payment of student loans for a certain amount of time, but the loans will continue to accrue interest in most cases. For this reason, it is important for graduates to educate themselves on the repayment options that are available.
The first thing to determine is what kind of a payment a person can handle, and this may change as one’s financial situation changes. Luckily, there are no penalties for changing repayment options as finances fluctuate over the years. Some repayment options such as income-based payments will require an annual review and submission of financial information in order to adjust the payment. Missing this deadline can cause the payment to revert to the standard payment which is often much more than a person’s budget can handle, so it’s important to stay on top of these payments as the years go by.
Some people in Florida that are in repayment still struggle even when using a student loan debt relief option. Filing for bankruptcy may be the answer. True, the student loans most likely won’t be discharged, but eliminating other debts could free up the discretionary income needed to continue to make timely payments.
Source: Forbes, 5 Things You Need To Do With Your Student Loans Right Now, Maggie McGrath, Sept. 30, 2013