NASFAA Mention: Millennial Money: You Lost Your Job. Now What?

"It doesn’t matter if you were fired or laid off, whether you saw it coming or were completely blindsided: Losing your job is disorienting," NerdWallet reports. "You’ll feel like you’re in a fog. And yet, in that fog you still need to answer some important questions: How will you pay rent? Put gas in your car? What about your student loans?"

"The average length of unemployment is almost 22 weeks, according to the Bureau of Labor Statistics, so it’s important to quickly adapt your finances to your temporary new normal. Working through these tasks in the first seven days can help you find your financial footing as you figure out the next step in your career.

...

DAY 5: DON’T NEGLECT YOUR STUDENT LOANS

Most student loans have built-in protections to help with this exact situation.

You may be able to temporarily suspend your loan payments through deferment or forbearance, or change your repayment plan to lower the amount due each month. Call your loan servicer to figure out the best option based on your loans.

If you’ve already missed a payment, you may have some wiggle room. Federal student loans aren’t considered in 'default' until they’re 270 days past due. Avoid getting to that point, says Dana Kelly with the National Association of Student Financial Aid Administrators.

'Little dings are gonna happen, but you don’t want anything major. Especially when truly there is no need for it to happen,' Kelly says. 'You can simply make a phone call and get yourself on better footing while you’re finding that next job.'"

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

 

Publication Date: 11/13/2019


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