In a Hole with No Way Out

So, how about if you borrowed tons of money for school, graduate and find that you can't handle a student loan payment? Well, that is a question with no hard-and-fast answer as it greatly depends on the person who is asking it. Logic dictates that you must

(1) earn more money to make the payment;
(2) spend less so that you will have more money to make the payment;
(3) request a forbearance or deferrment;
(4) return to school in order to have previous loans deferred;
(5) skip out on the payments and ignore the collectors.

I remember finding myself in this situation 15 years ago. I was already licking the pavement financially, so option (2) was out of the question since I couldn't spend less. For about a year, I searched in earnest for an engineering job that would allow me to pay my loans but was unsuccessful. Although my loans were in unemployment deferrment while I was looking for work (3), I couldn't put them off forever! Most people feel responsible for their debts, as do I, so I didn't consider (5). So I opted for (4) and returned to school. I also felt that if I had a recognizable advanced degree, I would be more employable. But there was one problem: I really didn't want to return to school. My heart just wasn't in it. And I am not alone. There are many returning students who borrow more to avoid the payments to the ghosts of student loans past. It can become a vicious cycle leading into more and more debt.

Could I have found another way? Probably. I didn't think it out as thoroughly as I should have. Also, I was young and really had no life experience backing my decisions. If you find yourself in the same situation, it is time to think what the best thing for you to do.

Next: Exploring the 5 methods of dealing with student loan payments you can't currently afford