What Happens If You Cannot Pay Your Massage School Loan?

Do you wish to become a massage therapist? You can only do so if you enroll in a massage school and graduate with a degree. However, the fees can be a problem for some students. You need to spend a few thousand dollars to complete massage school.

For students who don’t have solid financial backing, this could be a big challenge. They would either have to find a job and study along with it or borrow money. Both options come with a considerable amount of headaches and the need to put in a lot of effort. The pay-off however at the end of it all is well worth all the trouble.

You can also look for various other government initiatives through which you can borrow money to attend massage school. Often, you might find interest-free student loans to attend massage school. Not having to pay interest is a great help but, you have to repay the principal nonetheless.

You can read our comprehensive article on financial aid here.

So what do you if you want to attend massage therapy school but don’t have the money to do so? Outside of free financial aid, there is a solid option available to almost all: massage student loans. You can contact the school you are considering enrolling and ask about your loan options.

You can use our free database of massage schools near you and request information 100% for free.

To repay the loan, you can make installments on the loan amount while you are studying and working part time. Since you are going to be in school for at least a couple of years, you could be able to pay back the loan funds in 24 installments or more. This is considerably easier than parting with a few thousand dollars all at once.

If you don’t have access to a Government loan, you will have to get in touch with private third-party lenders. You can contact a bank or any private lending institution about obtaining a student loan. The terms would be stricter than those offered by the government. Moreover, you will also have to pay interest, which could add up to be substantial over the life of the loan.

The Student Loan Conundrum

The burden of debt you owe at the end of your massage school depends on the cost of the school you attend. You could spend a couple of thousand dollars to even tens of thousands. It all comes down to the massage school you enroll in and the additional fees they charge. Regardless, you could end up with a substantial debt that you would have to pay off once you start working.

You can request tuition information from massage schools near you 100% for free by using our database here.

It would be ideal for you if you can get a job as soon as you graduate from massage school. However, not everyone can be that lucky all the time. Though there are plenty of opportunities, the jobs in the industry can be limited for novices in certain cities.

That said, massage therapy is a booming profession, with the number of jobs on the rise as well as the starting salaries. Chances are you will be just fine after you graduate from massage school.

You can get an idea for the number and types of massage jobs in your area by using our free jobs database here.

You cannot just take it for granted that you will find a job as soon as you have a degree in hand. Even if you land a job, there is no way to predict whether or not you might encounter some financial setbacks along the way. In that case, even if you are working, you may not have sufficient money to pay off the loan. This is the worst-case scenario, but, it is a possibility nonetheless.

Our goal is to prepare you as much as we can by shedding adequate light on all things good and bad. It is very important to consider the worst case scenario in any initiative so that you are aware of the realities involved.

Seeking Temporary Relief

If you end up facing the worst case scenario, unfortunately there is nothing much you can do in such a situation apart from seeking some sort of temporary relief. While temporary help is available, understand that you will still have to pay back the entire amount you borrowed later on at some point, and it is unlikely that you will be allowed to transfer the responsibility of the debt to anyone else.

Let’s look at a few of these options you can explore:

Deferring Student Loan Payments

You can opt for a deferment program which means that your loan payments would be postponed for a period of time. Till then, you don’t have to repay any amount. You are more likely to find such incentives on federal loans as opposed to the ones obtained from private institutions.

For instance, if you are in a financial crunch due to any reason, you can opt to defer your loan payments. You might also receive forbearance in case the monthly amount you have to pay exceeds 15% of your income.

Declaring Bankruptcy

It is now more difficult than ever to file for bankruptcy since the recession caused a surge in the number of people filing for it. The law has been changed so that you will have to put in some time and effort to show yourself as eligible for being declared bankrupt.

In any case, you are unlikely to be allowed to file for bankruptcy if you fail to repay a student loan. Only people with outstanding home or business loans are generally allowed to declare bankruptcy and in all likelihood, you will have to pay back the student loan. It is best if you consult with a lawyer if you are considering the bankruptcy option.

Canceling the Loan

This is perhaps the most difficult option you can choose if you cannot pay your massage school loan. Only in exceptional and extenuating circumstances is a person allowed to cancel a loan.

You may be allowed to do this only if you have served the country in some exceptional way or involved in a debilitating accident. Though people are rarely granted the right to cancel their loans, if you do succeed, you might even be repaid the money you have already paid.

Consolidating the Loan

This is an option you can explore if you have borrowed money from multiple sources. Consolidate them so you only have to make one payment a month – hopefully at a lower overall interest rate.

Often times, your blended (overall) interest rate for all loans consolidated or combined may be much lower than you would have paid otherwise, effectively reducing your overall payments (money out of your pocket).

Cancellation of Loan Upon Death

This is an extreme scenario. If a person who took out a student loan dies before repaying it, the loan is cancelled automatically. However, it is unlikely that the money already paid would be given back to the estate.

The bottom-line is that student loans can be a heavy burden. On top of that, if you fail to pay your massage school loan back, it could ruin your credit history. You would find it difficult to get credit in the future, and even if you do, it might be at a rate much higher than the going market rate.

Therefore it is best if you avoid obtaining a massage school loan as much as possible (if possible). But, if there is no other option, you should try and find a lender that offers flexible terms and charges low interest. Start with your own bank or credit union. Also ask the massage schools you are interested in to make some recommendations.

Neal Lyons is a founding member and volunteer contributor at the MTSI Institute, an information based portal dedicated to guiding and assisting aspiring massage therapists establish a successful career in massage. Neal is a published author and has collaborated on several mobile applications that serve the massage profession. You can view his published work on Amazon, iTunes, Barnes & Noble, Sony and Kobo. You can connect with him on Facebook, Twitter and on Google+

Posted in Financial Aid

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