How to Manage the Cost of Cancer Treatment With Student Loans

“You have cancer.”

It’s a diagnosis no one wants to hear. Suddenly, your world is turned upside down. Your next steps can vary depending on the stage and type of cancer you have. If you have student loans, they’re probably not very important to you right now.

However, you might wonder how to balance the cost of cancer treatment and student loans. The average cost of cancer treatment can run up to $150,000 or more while the average student loan debt for the class of 2017 was $28,650. That number can be much higher for folks in certain professional fields.

And if you have Stage 4 cancer, you also might be worrying about whether your family will inherit your debt. It can be tough to manage it all, but there are some actions you can take. Read on to learn more about student loans and cancer.

The worst case scenario

The worst case scenario if you’re dealing with student loans and cancer is you don’t survive. It’s awful and difficult to think about. If your survival rate looks bleak, there’s some solace ahead regarding your federal student loans.

If you pass away and have federal student loans, your student loans are discharged. Federal student loans have a death discharge, so your surviving relatives don’t need to shoulder the debt.

Private student loans may also offer a death discharge, but since each lender is different, contact your lender to clarify its policy. If you have a cosigner on your private student loans, look into your lender’s policy on death discharge. Your cosigner might still be on the hook for your student loans after you pass.

Dealing with student loans and cancer

In July 2017, 46-year-old Rebecca Ivaschenko suffered from severe stomach cramps. After getting an MRI, she got the news that she had Stage 3-B colon cancer and required emergency surgery.

She was in the hospital for a month and was on feeding tubes for eight weeks. Needless to say, her whole life was turned upside down.

She graduated from law school in 2000 but didn’t pass the California bar exam. Her student loans were in default after ignoring her loans for a while, and her credit tanked. At the time of her diagnosis, she had more than $85,000 in student loan debt.

The wake-up call to get her debt in order was when her husband’s tax return was seized due to the default. But now during this personal health crisis, she was fielding calls from debt collectors while in the hospital.

Dealing with advanced cancer is difficult enough. Dealing with debt collectors on your back adds even more stress to the situation.

Consider deferment or forbearance

Her advice to those in a similar situation is to immediately call your loan servicer and apply for deferment or forbearance.

“I would file for forbearance or deferment,” said Rebecca. “Get it in writing so you don’t get your wages garnished or tax return intercepted. Doing it now will help save you time upfront so you don’t have to deal with it later.”

Communicating with your loan servicer or lender right away can help. If you’re burdened by the cost of chemotherapy, put your student loan payments on pause through deferment. You can also talk to the medical provider to see if they have any payment plans for your bills.

“If that’s [student loans] stressing you out, put your loans into a box where they’re not hurting you,” said Rebecca. “You need to be optimistic and have a good mindset… Student loans don’t do that…. Do what you need to do, and deal with it later.”

Take action with your student loans as soon as possible if they’re stressing you out while dealing with the pains of cancer treatment. This way, you can focus on treatment and recovery, not bills.

Next steps with your student loans

If you’re out of work for a while dealing with your illness, going on a federal income-driven repayment plan may be a good option. If you have very limited or no income, your payments could be zero dollars. Your loans will stay in good standing and won’t go into default.

Recently, a law passed giving federal student loan borrowers dealing with cancer the opportunity to defer their student loan payments. Under this new law, payments can be deferred during the course of treatment and for six months after treatment. To apply, you fill out the Cancer Treatment Deferment Request form and submit it to your loan servicer. 

Although this law was passed, however, the Department of Education is lagging and hasn’t updated loan servicers with the official application for deferment for active cancer treatment. As of now, you should still contact your loan servicer about this option, but be aware of the issues at hand currently.

If you have private student loans with a cosigner, look into cosigner release. Getting your cosigner released typically requires a specific amount of monthly payments and a steady income to show the lender you can take care of the loan on your own.

Student loans and cancer: focus on healing

If you’re facing a cancer diagnosis or are currently in treatment, spend energy focused on healing, not on your student loans. Managing student loan payments and the cost of cancer treatment can be too difficult, so take steps today to get your loans in deferment.

Doing so can help you focus without the additional worry of going into default. That way if you have non-terminal cancer, when you recover and life settles down, your credit will be intact, and you’ll be in good standing on your loans.

If your cancer is terminal, you’ll want to spend time with your family and friends, not being bombarded by debt collectors. Rest assured that your federal loans will be discharged in the event of death. You can take steps to verify the policy on any private student loans.

Whatever the case may be, you don’t want the added stress of dealing with the cost of cancer treatment and student loans. Deferring your loans can help you focus on what’s important.

More Resources

• The Samfund: Gives financial assistance and free online support and education to young adult cancer survivors. 
• Cancer for College: Provides scholarships for cancer survivors. 
• Cancer Survivors' Fund: Offers scholarships, financial help for prostheses and support for young adult cancer survivors. 
• Stupid Cancer: Provides information and support for young adults diagnosed with cancer.
• Cancer and Careers: Offers information, education and resources on navigating the workforce while undergoing cancer treatment.
• Triage Cancer: Provides education and advocacy on practical and legal issues for those diagnosed with cancer as well as their caregivers.