Getting rid of student loans?
My husband has over $40,000 in student loans. He doesn’t make much money, so we can barely afford our regular bills, never mind loan payments. I know filing bankruptcy is not an option because it won’t clear the loans. Is there anything else we can do?
Yes, there is help for you and your husband.
No, there is no way to “get rid of” his student loans.
You will have to pay these loans – in full – but you may be able to get the lender to work with you to establish a more affordable payment plan.
Keep in mind how a “more affordable payment plan” works – it means that you’ll make smaller payments, but for a much longer period of time. In the end, this means that you’ll wind up paying considerably more. I know that doesn’t sound all that attractive, but it’s the best you’re going to be able to do in this situation.
Call your lender (or, most probably, your loan servicing agent). If your husband’s loans are not in default, he has the right to request an “alternative payment plan”. These plans include:
Graduated repayment: Payments start low and increase over time.
Extended repayment: The loan agreement is re-written to lengthen the time for repayment – sometimes for as much as 25 years.
Income contingent or income sensitive: Payments are tied to your income.
Some lenders are a little more reluctant than others to discuss alternative plans – and chances are that you and your husband will have to submit information supporting your claim that your current payment obligation creates a hardship. In the end, though, the lenders would much rather that you pay slowly than have you not pay at all. Be polite, firm and insistent, and be sure to let them know that you have researched the availability of alternative payment plans, and that you know you have a right to be considered for one.
Good luck to you – I hope this helps.
One more thing – try to avoid the appeal to consolidate. Consolidation may lower your monthly payment, but it’s probably the most expensive option that is available to you – consider it as a last resort.
