I graduated in 2004 and had no luck in finding a job. Most of the employers in my industry consider me overqualified and don't want to hire me. Unfortunately I have about 70k in student loans that need to be repaid. I worked for a few months as a car salesman but made less money than a McDonald's employee (can't get hired there either lol). Now I'm trying to start my own business selling electronics online through Amazon. I'm barely making enough money to pay my car insurance which is my only bill since I was forced to move back with my folks. I went back to school last summer to get a degree in biochmeistry but decided last month that I don't want to continue down this road. I'd rather go get an MBA in 2007 (the school that I have the best chance of admission at has a 2 year employmnet req). In the meantime I'm self employed and can't pay these loans and payments begin in Jan. Can I consolidate, stretch out the payment plan to 20 yrs, and make interest only payments? I really don't want to go into default because right now credit is all I have. I can't buy the most basic of necessities without it, and my business needs it to grow.

Contact the company that handles your student loans and ask about deferment/unemployment/hardship options. Tell them that you're currently unemployed and have been since you graduated. You aren't alone...lots of people graduate with huge loan obligations and discover that they are overeducated (for this economy) and end up being underemployed.

If you post what type of loans you have I'm sure there are people on this board who have loans with the same company and they can give you more precise info.

My wife and I have about 70K in SL and have deferred many times. For unemployment, hardship... heck they defered for a year when my son was born. Call them up and see what they will do. BTW. I would consolodate anyway. It tends to save money. I joke that we are going to die with these things (which would be fine because I don't think they get charged against your estate... I think they go away).

I have one account with the Texas Higher Education Coordinating Board worth abot 11.5K. ANother with Wells Fargo for around 37k. The remainder is to my alma mater.

Are there any downsides to ask for hardship or unemployemtn deferment. Do they report it?
Can this be done with the Govenment or only with a private consolidating company?

The only downside really is the interest accrual on unsub loans.

As long as they are government backed student loans, they have to offer the standard deferment priveleges.

They do vanish upon death, thank god. My late husband had just started grad school when he died.