I Can't Pay My Loans…Can They Be Canceled? | 05.15.09

Posted in Consolidation, FAFSA, Graduate Loans By Student Loan Network Staff

One word for you. NO! You’ve got to love the financial aid forum where people post questions freely and ask me for my coveted advice regarding their financial aid and their student loans. I recently received an intriguing post that I thought should be shared with the general student population:

To Whom It May Concern
I have a question about paying student loans. I attend graduate medical school and now in debt of $200000. But I want to drop out since I dont feel it’s the right field for me. I wonder if I drop out and come back for school for accounting degree. How can I pay off the loan? Do they have income sensitive payment? If I cannot pay the loan can it be cancelled? Thank you.

I did not make this post up. And believe it or not, this poster is not the only one who is in this situation. I just don’t understand why it would take you $200,000 to realize that it is not the right field for you. $200,000 is a A LOT of money. It results in a student loan payment of $2300 per month. This is a classic example of someone who borrowed money with no concern about how it would be paid off. Blind borrowing I like to call it. It’s not smart and it hurts no one but yourself. This person (unless they win the lottery or inherit some serious dough) will probably default on the loans…because $2300 is a lot to have to pay per month. Heck, if he/she consolidates the loans the monthly payment would still be $1500 a month. Now I made some mistakes of my own (don’t we all??) and I am paying for them now. But my mistakes are manageable…200k is just way too much debt to take on if you aren’t 110% sure of the profession you are borrowing it for.

So for anyone else who has this problem…PLEASE know that you are responsible for paying that loan back even if you can’t afford to pay it. You can put the loan payments on hold for 3 years give or take but all in all you will need to pay that loan back. The results of not paying it will leave you financially paralyzed. You will not be able to buy a house, lease a car, or in some cases get a government job. Your tax returns will be seized and your paycheck can be garnished. This is not something you can sweep under the rug.

Is anyone else in this situation? Are you regretting the decisions you made? Please share your story and leave a comment….you might be able to save someone else from going down that same road.

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One Response to “I Can't Pay My Loans…Can They Be Canceled?”

  1. Kita says on June 10, 2009 at 8:01 pm:

    i don’t understand way you can’t cancel some loans. I went to a Trade school and when i graduated i couldn’t do much with the certificate. I am paying more for the student loan than i made in 2yrs after graduating. People can walk away from credit cards, cell phones, and even houses an there credit isn’t as bad as mine. Im regretting the decision to go to a Trade School.

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