Your Options When You Can't Repay Your Student Loans


Struggling with debt can be an overwhelming and stressful experience. However you don’t have to simply suffer the consequences and default on your loans. In fact, when you consider the consequences of defaulting, you shouldn’t even consider that an option. Instead, there are several options you may be able to utilize to your advantage. Here are a few options you may be qualify for if you cannot repay your student loans.


A deferment is essentially putting a temporary pause on repaying your student loans. In order to qualify, you must be facing some form of economic hardship, unemployment, or you’re returning to school, all of which would make continuing to pay your loans either impossible or impractical. Depending on the type of loan you’re deferring and what type of deferment you receive, your loan may actually stop accruing interest for the period of your deferment as well.

Deferments may also be granted for those who choose certain careers after college. For example, those who leave college and then enter a branch of the military on active duty, teach or serve a needy population, perform community service, work in the healthcare field, or go into law enforcement may be able to defer their payment for the time it takes to complete added training and get to a point of financial security in which it’s feasible to begin repayment again.


Forbearances are similar to deferments, except a forbearance will always allow the loan interest to continue to accrue. Therefore, when you finish the forbearance, your loan balance will be higher than it was when you started. However, the advantage is that they are not regulated by the same laws and rules that deferments often carry, which means you may be able to qualify for one even if you cannot get a deferment.

Declaring Bankruptcy

Make no mistake, the laws have made it nearly impossible to declare bankruptcy and have your student loans discharged. However, it’s not completely impossible. In order to have your loans discharged through bankruptcy, you must be able to show the court that the burden of repaying your student loans would create an “undue hardship” on you. In other words, if you have very little to your name and make very little in your current financial situation, paying your loans would prevent you from being able to afford basic necessities such as food and housing, and therefore qualify you for a loan discharge. This is extremely difficult to obtain, however, so ask your Irving attorney whether or not it’s worth pursuing.


You may be able to lower your monthly payment by consolidating all of your student loans into one and then extending the term. Consolidating your loans into one easier payment allows you to manage your money easier and be able to create a more stable financial plan for repayment.

Find out more about your options if you’re struggling to pay your student loans! Contact J. Roland Jeter, P.C. online today!
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