How To Pay Off Student Loans When You Have No Money, No Job, And Nowhere Else To Turn

Faced with a $1 trillion student debt hole and college graduates entering the job market already $27,000 in the red, lawmakers are butting heads over the right way to give borrowers some much-needed relief.
But for anyone out there who is struggling to make payments on their loans today, chances are that help will be too little, too late.
Maybe you're out of a job, aren't earning enough, or simply don't know where to begin. What do you do if you can't pay back your loans?


If You're Not In Default Yet, But You're Struggling To Make Payments ...


First things first –– tell your lender.

As much as we love to hate them, lenders are not always the enemy. They can help you, but only if you are communicative and tell them from the get-go that you're going to have trouble meeting the terms of your loan repayment plan.
The worst thing you can do is throw your hands in the air and see what happens.
The longer you ignore student debt, the worse your life will be, plain and simple. Debt collectors have only gotten more aggressive since the recession, and on top of harassing phone calls, your credit will get dragged through the mud.
Not sure who your lender is? Search for them here: www.nslds.ed.gov


Read more: http://www.businessinsider.com/what-if-you-cant-repay-student-loans-2013-6#ixzz2YUKQOPeO

How to Manage Multiple Sources of Debt
As young adults struggle to get out from student loan debt, which averages a whopping $26,000 per student, according to The Project on Student Debt, they’re shying away from taking on other forms of debt.

A recent study released by the Federal Reserve Bank of New York found that college graduates are now less likely to take on a mortgage or even an auto loan by the age of 30—reversing a historic trend of home ownership.
But what do you do if you are already shelling out monthly student loan payments but also want to buy a house or car? Taking on multiple types of debt is a balancing act and it can be easy to get financially overwhelmed.
The first thing you should do when thinking about taking out another loan is to determine your total monthly payments for current outstanding debt and the amount you’re looking to borrow. Then, figure what percentage of your monthly income would go towards paying off that debt.
“We recommend that no more than 30% of your take-home pay go toward housing costs [like a mortgage, taxes, and insurance] and no more than 20% of your pay go toward servicing other debt [such as a car loan or credit cards],” says Gail Cunningham, vice president of membership and public relations for the non-profit National Foundation for Credit Counseling.
Exceed these percentages, and you could find yourself burdened with a crippling amount of debt. “Make sure that the additional debt is absolutely necessary,” Cunningham stresses.
Before taking out a loan, experts suggest having a repayment plan in place.
Everyone’s pay-back strategy is different, so find one that best fits your financial needs and lifestyle to make the plan sustainable.
Some borrowers find that it’s motivating to pay extra towards the smallest loan in order to quickly eliminate it. For example, if you have a car loan that has an outstanding balance of $5,000, and you also owe $27,500 for a student loan, pay extra each month on the auto loan to rid yourself of it as soon as possible.
But if paying the least amount of interest over time is the most important thing, focus on paying off the loan or credit card with the highest interest rate first while meeting the minimum obligations on the others.
If you already have an auto loan or credit cards, before taking on additional debt, you may want to consider refinancing the loan or getting a lower interest rate balance transfer credit card. For example, if you took out an auto loan when rates were higher, refinancing it at a lower rate may make sense depending on the balance and time remaining.

Read more: http://www.foxbusiness.com/personal-finance/2013/05/23/how-to-manage-multiple-sources-debt/#ixzz2YUInj9Wj

Student loan debt inhibits some from buying homes, starting families
For many 20- and 30-somethings, paying off the cost of college takes priority. Marriage, a house and family will have to wait.
    -It's the biggest problem for those whose debt load exceeds their annual salary
    -Average student loan debt has soared to $27,500

What's holding them all back: tens of thousands of dollars in student loan debt. Like countless Millennials across the country, they find themselves tethered to that debt load, stuck between the desire to become fully independent adults and not being able to afford the financial and cultural milestones traditionally associated with young adulthood.
Rising tuition costs and an anemic job market are feeding this vicious cycle, as a generation with more student loan debt than any other is struggling to find its economic footing.
This confluence of economic trends makes Congress' impending decision on student loan rates all the more critical for today's college students. New federal student loan borrowers may see their interest rates double unless lawmakers strike a deal to extend a 2007 law that cut the rates.

READ MORE:

http://www.usatoday.com/story/money/personalfinance/2013/06/30/student-loan-debt-economic-effects/2388189/

Six Ways Successful People Stretch Their Comfort Zones

Truly great entrepreneurs aren't satisfied with comfort. Pushing their own limits is how they get to greatness.

Everyone has a so-called “comfort zone.” You know what I’m talking about: that mental space you live in where there are boundaries and you feel a sense of emotional security with your work and your decision making.

What distinguishes successful people from everyone else is what they do with their comfort zone. There are those who are perfectly happy staying warm and cozy in this safe box they’ve built; and then are those who constantly push and test the limits.

You already know which person goes on to be a successful entrepreneur.

Now I’m not suggesting that the comfort zone is a bad thing. It’s there for a reason: to protect us. Otherwise we all may be jumping off cliffs and out of airplanes. It also protects us from taking on more stress and anxiety than we are equipped to deal with. But eventually the familiar routine of your comfort zone will keep you from learning, and experiencing new things that are potentially good for us. It is also likely to prevent you from building a thriving business.

 So how do you know when your comfort zone is holding you back? Here are a few things you may notice:

    Excessive stress

    Boredom

    Self-criticism

    Envy

    Anxiety about your situation

    Excuses–lots of them!

    A stagnant, or failing, business

 Any of those sound familiar? It’s time for a stretch. Try these baby steps and watch your world grow.

Read more: http://business.time.com/2013/06/26/6-ways-successful-people-stretch-their-comfort-zones/#ixzz2XRNj9g2e

Get your kids ready for school this summer!

Kids aren't getting much in the way of financial education at school, and if parents don't step up,

According to a white paper put together by the Consumer Financial Protection Bureau, just 22 states require high school students to complete an economics course before graduation, and just 13 require any kind of personal finance schooling. That's leaving a lot of kids unprepared to make basic financial decisions when they reach adulthood.

"We have not taken a position on whether [personal finances courses] should be mandatory, but we know teachers think it should be taught in schools," says Gail Hillebrand, the CFPB's director of consumer education and engagement.

But even if it became a mandatory high school class across the country, it still wouldn't be enough -- Hillebrand says that starting personal finance education in high school is too late. So with summer upon us, we suggest parents of tweens and teens take the reins and start teaching their kids about money.

READ MORE: 
they're going to get even less in the summer.

 http://www.dailyfinance.com/on/teach-kids-about-money-back-to-school-shopping/