Levi wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

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“Dear Steve,

I am finishing school right now after taking a two year hiatus. The problem is that I already have 60k in student loan debt and I am going to be pushing 75k by the time I am done. With the current crisis in our economy noone is refinancing or taking on loan consolidations. What am I supposed to do I won’t be able to afford the payments.

Levi”

The Answer:

Dear Levi,

Sadly, and that’s the way it is.

For far too long people have assumed that going into debt for a degree was a wise investment. Yet student loan debts are rarely able to be discharged in bankruptcy if you find yourself with money troubles. Student loans are a shackle that must be repaid. If you put them in forbearance they will grow as interest accumulates and if you fall far behind and the loans wind up in collections you could see another 40% of the loan amount tacked on to what you owe.

So what are you supposed to do now that the school got paid and let you get the loans with little evaluation of your ability to repay them? You’ll have to work out a repayment plan with your student loan lender. Depending on how much you’ll earn when you finally graduate you might even qualify for the ICRP, Income Contingent Repayment Plan offered to lower income people.

I really wish I had better news for you but it is what it is.

Steve