What Happens if I Can’t Pay My Massage School Loans?

I Can’t Pay My Massage School Loans

What Happens if I Can’t Pay My Massage School Loans?

Massage student loans are a viable payment option for those hoping to start a new and exciting career, but that doesn’t meant they don’t come with their own drawbacks. Because massage school costs range anywhere from a few thousand to tens of thousands of dollars, it’s not uncommon for students to rack up quite a bit of student loan debt either from the government or a third-party lender.

Paying back these loans can be a challenge, especially if you don’t land a job right away or if you undergo any other financial setbacks. While you will most likely be responsible for paying back all of your student loans no matter what, there are a few temporary relief options you can turn to.

  • Postponing Your Payments: This can typically be done either through a deferment program. These programs exist through most federal institutions, and can be used in instances like going back to school, unemployment, undergoing financial hardship, and major life changes. A forbearance may also be granted if your monthly loan payment is greater than 15 percent of your salary.
  • Loan Consolidation: Oftentimes, the biggest challenge with repaying student loans is managing several different payments from several different providers. When you consolidate your loans, you lump them all together (usually at a lower interest rate) so that you have just one monthly payment to manage.
  • Declaring Bankruptcy: Recent bankruptcy laws in the United States make it more difficult to declare bankruptcy than in years past, and federal student loans are almost always excluded from these proceedings (which means you’ll still have to pay them back). This is a last-ditch effort only to be undertaken under extreme financial duress and under the guidance of a lawyer.
  • Canceling Your Student Loans: Canceling your loans is even rarer than eliminating them through bankruptcy, and is typically only granted due to full disability, service to the United States, and other extenuating circumstances. In these situations, you may even be eligible to receive a financial return on payments already made.
  • Death: If a loved one dies with student loans still owing, they may be canceled by the executor to the estate.

Defaulting on a Student Loan

Regardless of whether you have a federal, state, or private loan, defaulting (failing to pay) on a student loan will have an impact on your financial future. These include:

  • Lowered credit rating (this will typically stay in effect for 7 years, preventing you from purchasing a home, car, or other big-ticket item)
  • Higher pay-back costs, as late charges and higher interest rate will be added to the amount you owe
  • Non-negotiable deductions from your income (and your spouse’s income)

If you are having any problems making regular payments, be sure and contact your loan provider as soon as possible. Contrary to popular belief, most organizations are happy to work with you to come up with a long-term financial solution.

For more information on financial support for massage students, visit www.fsahelp.ed.gov.

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