Robe, Robe, and Debt: How to Help You Manage Student Loans

According to a recent report released by Edvisors.com, students in the graduating class of 2015 will have to pay an average of $ 35,000 in student loan debt. While $ 2,000 more than the average debt last year, these figures no longer surprise a nation used to seeing total student loan debt in the US exceed $ 1.3 trillion.

Not only is this amount of debt bad news for graduates who will likely only find entry-level jobs, it also makes many high school students wonder if college is really worth the financial struggle. For those who have already graduated, the debt burden is real and a great strain.

Debt can hinder the progress of things in life that many people dream of, such as; buy a home, save for retirement, send your own kids to college, and much more. Debt can even prevent a person from marrying and even choosing to have children; Often times these things are “written off” for a later time in life when the debt is not that high … but how do you work to eliminate that? debt for a “later time”?

The other downside to a large amount of student loan debt is the great emotional distress that comes with paying more money than you can make each month or dealing with debt collectors who are less understanding, to put it mildly. Is there an end to the burden that college and student loan debt place on new graduates?

Between a rock and a hard place … Together!

If you are facing student loan debt, you are not alone. In the United States, 40 million Americans have some type of student loan debt. This type of debt is higher than credit card debt and car loan debt combined, second only to mortgage debt. With relatively new laws exempting student loans from bankruptcy, it can seem like there’s no way out. This debt can, in fact, be suffocating.

The good news is … there are ways to deal with student loan debt, no matter how much you owe or how long you’ve owed that amount. The best way to find a strategy to get you out of student loan debt is to speak with a qualified attorney who works with students who are struggling to pay off their debts. It may be impossible to negotiate with student loan companies (both private and federal) on your own, as these companies often have the upper hand. But help is available and getting out of debt is possible!

Facing collections?

It’s easy to default on a student loan. If you miss a payment, or simply forget to pay, your loan will be in default. Once that happens, the loan can be passed from the collection agency to the collection agency, resulting in endless phone calls. Some agencies will even go as far as contacting family members with the excuse that they are trying to reach you, largely a psychological game. However, you should know that you still have rights, even when it comes to a delinquent loan.

Some of the things to know about collection agencies trying to collect on student loan debt include:

  • It is illegal for a business to leave details about your loan on a public answering machine.
  • A company cannot discuss its loans with anyone other than a co-signer.
  • Companies cannot garnish your wages without a court order.
  • In most states, there is a statute of limitation on the life of a loan.

Remember, collection agencies must still follow the federal Fair Debt Collection Practices Act (FDCPA). Every state is different and every loan is unique, but help is available.

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