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I Can’t Afford My Student Loans for Recreation and Equine Studies

Written by Steve Rhode

Question:

Dear Steve,

I graduated in May 2015 with a degree in Recreation and Equine Studies, Bachelor of Arts. I now have a lovely debt around 84,000 hanging over my shoulders. I am only 24 and this is overwhelming.

I am living with my parents because I tried living on my own and I could not do it. I cannot pay for anything other than my loans’ interest and that is on a income sensitive payment to.

Meanwhile for the next 10 years I am building up interest. To add to this, I want to move to Canada on a six month work Visa where I would live with my boyfriend, but I don’t want to drag my debt along with me because it would be very difficult to transfer payments over.

I understand that my debts ‘won’t follow me’ if I move to canada but if I come back to the states they will be there. It is my desire to file for bankruptcy but I am afraid nothing will be dismissed and my credit will just end up in ruins for nothing. I don’t want to live like this .

Can you please help refer me to the right bankruptcy advisors or lawyers for my specific situation? How can I prove undue hardship?

RJ

Answer:

Dear RJ,

What is the job market for someone with a BA in Recreation and Equine Studies? Did you research openings and expect salaries before taking on this debt?

So there are a number of issues here. The most important is while your debt won’t follow you to Canada, it won’t go away either. When you move and then default your balance will rise significantly, you will be charged late fees, and you could be sued over the amount due.

You didn’t mention if these were federal or private student loans. Please let me know in the comments below. It makes a huge difference. Also, do your loans have a cosigner on them?

There are certainly some arguments that might be attempted in a consumer bankruptcy. The most likely is that these are private loans and we not for a protected purpose. You’d need to interview local bankruptcy attorneys and find one that is knowledgeable on dealing with student loans.

You might want to read How to Find a Great Bankruptcy Attorney.

Sincerly,
Steve

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.





About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

2 Comments

  • Hello
    Its been awhile since i wrote my question but i wanted to reply. Many of the loans i have are private. I have talked to all of the lenders for some relief in deferment and the best they can do is lower the payment per month for awhile or give me a forbearance for two months at a time. One lender does not offer forbearance at all.
    I spoke to several lawyers and as you know they pretty all much say it is impossible to declare any kind of bankruptcy on student loans.

    When i went into college i did not really receive good financial counciling. The idea was just borrow now pay later. I know its not an excuse, just stating a fact. There are job opportunities for my majors but they are pretty much all low income positions and seasonal type work. It is more ministry work than anything.

    Also i have a cosigner but i will be able to release them soon. I have no late payments, my credit is good but i need some type of relief in order to start saving money and there doesnt seem to be many good options after speaking with lenders. What happens to private loans if i file unemployment for a time? (because of moving and finding different work).

    Thank you
    RJ

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