Student Loan Debt: The Entire Household May Have to Learn to Cope with Budget Restrictions
The realities of paying for an education today are harsh. And unless you are lucky enough to be so affluent that such expenses do not affect you, chances are many sacrifices are going to have to be made. It may not make much difference to realize that you are not alone in a sea of over 45 million borrowers beholden to pay back nearly $1.6 trillion, but the truth is that student loan debt can cause dire pressure to individuals and entire households—so much so that borrowers may have to file for bankruptcy, fend off collections lawsuits, default judgments, and other stressful challenges.
You may be paying for your own student loan debt as well as taking on that of rising college freshman in your family. While the college experience is exciting, it is for most, a time of financial stress as well. If you are doubled down on debt, but dedicated to seeing your kids get education and helping them, this may be a time where you need to make cut backs, transform your household budget, and have a family meeting about exactly what is going on. Obviously, the worst thing you can do is to make the rising student feel guilty or force the others to resent them—or if the budgetary cuts are regarding your own loan you don’t want to be the bad guy—but, setting a budget can be a very clear process.
Have an open discussion with the family about what is going on, explain the expenses of education clearly, and point out what changes will need to be made—making it obvious that lines of communication will be kept open. Don’t be afraid to mention to other family members either, that your child needs financial help for school rather than new gadgets or a trip. Gifting money for school is one of the most valuable items a family member (or anyone!) can offer.
Ultimately though, keep yourself in mind too. Most likely, your adult child may be capable of paying for much of their education on their own through student loans or through taking on a job. Do not sacrifice your retirement or financial stability to put your kids through college.
Have you experienced problems with your loan service provider or student loan program, or are you in danger of defaulting on your student loan? Contact Fitzgerald & Campbell, APLC now so one of our experienced student loan debt attorneys can review your case and discuss all the available options with you. Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include student loan issues, bankruptcy, and other debt management processes. We are here to help! Click here to schedule a free 30-minute consultation, call us at (855) 709-5788, or email us at email@example.com.
Posted in: Student Loan Debt