I’m Unemployed With Private Student Loans. What Can I Do?

“Dear Steve,

I attended a private school and graduated in 2009.. I literally owe 3 different loan company’s total of over $80,000 combined.. 1 i owe roughly 8000.. Another the same.. The i have another (private loan) thats just about 60,000 but the interest rate continually rises… Im on unemployment right now with a newborn..I have been doing unemployment deferment since 09 when i graduated.. I wouldn’t mind if i could start paying on the loans but i can’t pay as much a month as demanded.. I have no idea of what to do, at all.. My credit is horrible bc of these loans and we have to put almost everything in my wife name… Please help.. Thanks”

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

Unfortunately it sounds like your student loans are not government backed or subsidized but private student loans. In that situation your only options are whatever the servicer decide they want to offer to you.

I understand the need to place the loans on deferment but when you do that typically the interest continues to accrue and the balance builds. It provides you with a temporary reprieve now but creates a bigger problem later.

Private student loans are the largest plight on debtors today. The loans have almost unlimited authority and can’t be discharged in bankruptcy unless Congress decides to reverse their 2005 changes.

Below you will find some general student loan resources but unfortunately, as I said, the good options are not available for private student loans.

Please post your responses and follow-up messages to me on this in the comments section below.

Damon Day - Pro Debt Coach

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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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