Q: I Have a School Loan for Me and My Daughter from 1994. I Have Paid Interest Only and Currently the Balance is $68,000+. My Monthly Payment is $375. I Have Deferred Payments at Least Twice the Past 4 Years. What Options Do I Have Other Than Walking Away From the Loan?
A: Unfortunately, student loans aren’t like mortgage debt. You can’t simply “walk away” from student loans — at least not without very, very severe consequences, and not without those loans haunting you, literally, for the rest of your life. You see, student loans have no “statute of limitations.” So your lenders (whether private lenders or the federal government) can come after you and/or your daughter forever to try to collect. Read this article on how to pay student loans fast, and the links on these posts on student loans too, for some ideas about how to eliminate that student loan debt.