Question: I'm attached however i want to be free. I have $80,000 in education loan debt. I work 60 hours a week in 12 hour shifts just to make ends meet. I live check for check because I am the sole breadwinner between my hubby and me. We have no children. It seems the only way to get me not in debt is to buy a second full-time job during the day. What must i do?
To respond: There's without doubt that it's frustrating to operate as hard while you do and barely make ends meet. The good news: there may be ways to ease your debt load. If you've private student education loans, ask your lender when they would alter the term of the loan that will help you pay the payments, says Andrew Pentis, student debt and better education expert at Student Loan Hero. “Reducing your monthly obligations in this manner will give you some space and give you time for you to set up a longer-term approach,” says Pentis. And if the rates of interest in your private student education loans are high, you might want to consider refinancing (see the lowest rates you can qualify for here) in a lower rate, which could lower payments.
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If you have federal student loans, think hard before refinancing, as this will strip you of federal protections for example income-based repayment plans and loan forgiveness. Instead, “enrolling in an income-driven repayment schedule might be your best option. It ties your payment add up to a portion of your income and extends the period over which you pay off debt. This is the greatest choice for getting a less expensive payment, however it could lead to paying more interest with time,” says Anna Helhoski, student loan expert at NerdWallet. Under an income-based repayment schedule, if your income is extremely low, your payment could even be $0 but still count as a payment. And income-driven repayment plans cancel remaining debt after 20 to 25 years, with respect to the specific plan. “Be certain to recertify your earnings amount every year or whenever it changes,” says Helhoski. This will make sure that you simply pay some money every month that is within your budget.
loan forgiveness
You may also be able to get loan forgiveness if you have federal loans. The Public Service Loan Forgiveness (PSLF) is available to a lot of full-time workers who are employed by government or non-profit organizations, who meet these qualifications. For those who are eligible, their remaining education loan balance will be forgiven after making approximately 10 years of monthly obligations under one of the eligible repayment plans.
Employer help for student loans
Some employers offer assistance to those who are burdened with student loans, repaying their employees' student loans by offering things like cash or payment matching programs.
Process your payments
No matter what type of loan you've, the most important thing you can do at this time is keep on track by making monthly payments to avoid defaulting on your loans, which can hurt your credit and result in other consequences for example wage garnishment.
You should also look at your expenses and income, the pros. “You can only budget and cut costs up to a point, so lots of your attention should be centered on methods to increase your revenue,” says Pentis. Need help with these things? Certified Financial Planner Lisa Weil says, “A wonderful book for reviewing and realigning your financial priorities and helping you get back on the road is your money or your life by Vicki Robin and Joe Dominguez.
Something else to consider: can your husband find a job to help bring more cash in to the household? In fact, getting him to locate a job, if he is able to, would be the to begin with to start, says certified financial planner Cait Howerton. “I suggest that he make an application for unemployment to temporarily bring money to the household if it's temporary unemployment,” he states. If your husband is permanently disabled and you'll be the main breadwinner, Howerton advises getting him to apply for federal disability income.
“You may also have to consider bankruptcy if those loan repayments are totally unmanageable,” Howerton says. Just note that it is difficult to obtain student loan discharge in the event of bankruptcy.