The State Laid Me Off and Now I Can’t Afford My Student Loans

Question:

Dear Steve,

I am 51. Was fired from my job of 15 years because of State budget issues. It was financially easier for the former employer to fire than to lay off. I have student loans (defaulted) (Federal & private) I have not been able to pay anything on because I have had to literally start over. I make $9.90/hr. As the cash register keeps adding fees & my loans are bought and sold like stocks, I don’t know what to do to recover from this.

I need help but don’t know if bankruptcy will help ( since I make next to nothing. Work 5 jobs and don’t retire? Give up on seeing a refund check ever again? I don’t know what to do, where to start or what to consider.

Kelly

Answer:

Dear Kelly,

On your federal student loans, those need to be consolidated into a new Direct Loan and opt for an income-driven repayment plan to get you the lowest payment possible. Might be as low as $0 per month. You can click here for more information on consolidating.

On the private student loans, read Top 10 Reasons You Should Stop Paying Your Unaffordable Private Student Loan.

Steve Rhode Debt Coach and Author

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.

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