Student Loan Debt

[Cincychic]

I have a lot of student loan debt, somewhere around 60k. I was working on my Master's degree and stopped because of my student loans and it and I was still unemployed. I have not worked since 2009, and have been unable to find a job where I live. The only jobs around here are fast food and factory jobs, which do not pay enough for me to even pay a daycare. Also, my degree has never even helped me find a job.

What I am wondering is if anyone knows if there is a way to get some kind of help from the student loan debt? I have had my student loans in deferment for several years now because we can not afford to pay them. My husband works, but we have three children. If I tried to pay them with just his income we would be in big trouble. I am really starting to worry because I know I can not keep them in deferment forever, and the interest is just accruing.

I do not know what to do if I do not find a job when it is time for my student loans to be paid. Can they go after my husbands paychecks or try to take our possessions? That is what I am afraid of. I have even thought about leaving my husband so it would not affect him and moving to a different city. I would hate for him and my children to have to lose everything because of my problems.

Sorry, this has just really been stressing me out lately about not being able to find a job and worrying about this student loan debt. Any advice would be appreciated!

 

[Marionnette]

I have a lot of student loan debt, somewhere around 60k. I was working on my Master's degree and stopped because of my student loans and it and I was still unemployed. I have not worked since 2009, and have been unable to find a job where I live. The only jobs around here are fast food and factory jobs, which do not pay enough for me to even pay a daycare. Also, my degree has never even helped me find a job.

What I am wondering is if anyone knows if there is a way to get some kind of help from the student loan debt? I have had my student loans in deferment for several years now because we can not afford to pay them. My husband works, but we have three children. If I tried to pay them with just his income we would be in big trouble. I am really starting to worry because I know I can not keep them in deferment forever, and the interest is just accruing.

I do not know what to do if I do not find a job when it is time for my student loans to be paid. Can they go after my husbands paychecks or try to take our possessions? That is what I am afraid of. I have even thought about leaving my husband so it would not affect him and moving to a different city. I would hate for him and my children to have to lose everything because of my problems.

Sorry, this has just really been stressing me out lately about not being able to find a job and worrying about this student loan debt. Any advice would be appreciated!

Take a deep breath and exhale slowly.

First of all, realize that your student loan debt is YOUR debt. It's not your husband's debt and they cannot garnish his wages or take your home. However, they can garnish your wages. They can garnish your income tax refund, even if you file jointly. They can garnish your social security checks if you are still in default when you get that old. The only way out of paying your student loans is to die, which is not an option that I recommend.

Your best option is to find employment that will offer student loan forgiveness after a certain period of service. It will mean taking a low-paying job in the public sector and paying on those student loans during the required time period (usually about 3 years). It will mean 3 years of sacrificing but in the end, you may find that public service means a lot to you, you will have added to your resume and you will wipe out the debt completely. You might want to read up on it here:
http://www.finaid.org/loans/publicservice.phtml

 

[mrsklamc]

What is your degree in? There may be work at home possibilities.

Can you work opposite shifts of your husband if the available jobs won't cover daycare? Not ideal but certainly preferable to moving to another city.

60k is a lot but not insurmountable.

 

[rigs32]

Three years? That program is a ten year plan. I pay mine under it. I pay 15% of my net income and the promise is that after 120 payments any remaining debt will be forgiven.

You would have to file your taxes separately to qualify or your husbands income would be counted, too.

 

[mrsklamc]

And whatever you do, please don't abandon your family over this. I'm sure they would much rather you stay. We tend to overblow problems when we let them simmer inside our heads. This is so not worth losing your family over.

 

[Cincychic]

As for finding a low paying job in the public sector, I would do that, but there are not many people that want to hire someone that has not worked for almost 5 yrs and does not have a lot of experience.

I thought about working another shift, but I have 3 children, ages 3-8, and two of them are special needs and my youngest son has quite a few problems. I really need to be there as much as I can on the evenings. Also, my husband is not home a lot over night and I would not have anyone there with the kids. Oh, and my degree is in Criminal Justice, but I was working ion my Masters in management. I also have a license in cosmetology, but I have not worked in a salon since 2004.

 

[mrsklamc]

See if your state provides respite hours for moms of special needs kids who want to work.

If you moved to another town who would care for your kids?

 

[CAFarmerGirl]

Have you considered working in a public school as a paraprofessional for special needs children? You would likely do well given your personal experience.

 

[girli565]

Have you looked into the income based payment option? The payment would be based on your household income (just your husband's since he's the only one working), they take into account the amount of dependents you have, your employment situation, and give you a reasonable payment amount you can make. I know a friend in your type of situation and pays something like $100 a month on $40k worth of debt. It's a drop in the bucket but at least you're making payments towards it.

 

[keri125]

As for finding a low paying job in the public sector, I would do that, but there are not many people that want to hire someone that has not worked for almost 5 yrs and does not have a lot of experience.

I thought about working another shift, but I have 3 children, ages 3-8, and two of them are special needs and my youngest son has quite a few problems. I really need to be there as much as I can on the evenings. Also, my husband is not home a lot over night and I would not have anyone there with the kids. Oh, and my degree is in Criminal Justice, but I was working ion my Masters in management. I also have a license in cosmetology, but I have not worked in a salon since 2004.

Don't discount your experience. You have a lot of experience, you just have to learn how to phrase it so an employer wants to hear more. I am a case manager for a work search program, and you would be amazed at the amount of customers I have that come in with a similiar situation - just convinced that they cannot work because their lack of experience and break in employment. We actually offer a class that addresses this specifically, and I had a customer tell me last week that she wishes she had taken this class months ago as she learned so much in regards to what she has to offer an employer. Have you looked into classes at your local Department of Labor or a local work search program? They are free and will assist you in putting together a fabulous resume that incorporates all your work as a mother to special needs children and your schooling. Do you qualify for your state's subsidized childcare program? Many times if you qualify for state assistance (which I'm assuming you may as you are a family of five with one salary, and by the nature of your original post, sounds like you are struggling quite a bit money-wise) then state subsidized childcare can be included, which would give you the freedom to leave the house during the day for job searching. Do your children qualify for in-home mental health or OT services? What were you planning on doing for childcare during the day when you had finished your Master's and were working? Generally if you can pool your resources, whatever plans you had for after graduation can be accomplished now... just may have to explore your local resources a little more. Good luck OP!

 

[jenniy122]

Have you called your loan servicer about income based repayment options? Now I am unmarried and childless, so my situation is different than yours, but I can tell you how it worked for me. Based on the website I didn't qualify for anything, but once I made a call and explained my situation (mentally ill but not disabled, unemployed for 3 years but looking for work in the coming months as my stability increased) the nice lady said I qualified for income based repayment, and since my income was zero my payment would be zero. It still counts as a payment. I'm not accruing more interest like one would in deferment, every month my nada payment goes to my 25 years of paying forgiveness program. It's good for a year at a time, every year you have to reapply. If I make any type of payment, even $10 a month, it lowers my interest rate even further because it shows I'm trying to work with them, so my parents are helping out with that little bit until I get some income.

 

[tasha99]

I too use the income based repayment plan. It's been a lifesaver, as I have about 100K in student loan debt (graduate school was soooo expensive, but a requirement for my job).

 

[scrapquitler]

I have a lot of student loan debt, somewhere around 60k. I was working on my Master's degree and stopped because of my student loans and it and I was still unemployed. I have not worked since 2009, and have been unable to find a job where I live. The only jobs around here are fast food and factory jobs, which do not pay enough for me to even pay a daycare. Also, my degree has never even helped me find a job.

What I am wondering is if anyone knows if there is a way to get some kind of help from the student loan debt? I have had my student loans in deferment for several years now because we can not afford to pay them. My husband works, but we have three children. If I tried to pay them with just his income we would be in big trouble. I am really starting to worry because I know I can not keep them in deferment forever, and the interest is just accruing.

I do not know what to do if I do not find a job when it is time for my student loans to be paid. Can they go after my husbands paychecks or try to take our possessions? That is what I am afraid of. I have even thought about leaving my husband so it would not affect him and moving to a different city. I would hate for him and my children to have to lose everything because of my problems.

Sorry, this has just really been stressing me out lately about not being able to find a job and worrying about this student loan debt. Any advice would be appreciated!

A fast food or factory job might not be enough to pay for daycare, but if you could find a fast food or factory job with a weekend shift, you wouldn't need daycare because the kids could be with your husband. Even at minimum wage, you'd have several hundred dollars of income each month to throw at the student loan balances. Sure, it wouldn't be ideal. The job might suck, the hours might not be convenient, it might be disruptive to family life, but it wouldn't be forever, and if you did it for a couple years you could at least stay current on your payments and hopefully find a good job in your field at some point. It's certainly a better option than four more years of unemployment. Sometimes you just have to suck it up and deal with the crap for a while as you wait for the rewards that will come down the road.

 

[JanaDee]

Take a deep breath and exhale slowly.

First of all, realize that your student loan debt is YOUR debt. It's not your husband's debt and they cannot garnish his wages or take your home. However, they can garnish your wages. They can garnish your income tax refund, even if you file jointly. They can garnish your social security checks if you are still in default when you get that old. The only way out of paying your student loans is to die, which is not an option that I recommend.

Your best option is to find employment that will offer student loan forgiveness after a certain period of service. It will mean taking a low-paying job in the public sector and paying on those student loans during the required time period (usually about 3 years). It will mean 3 years of sacrificing but in the end, you may find that public service means a lot to you, you will have added to your resume and you will wipe out the debt completely. You might want to read up on it here:
http://www.finaid.org/loans/publicservice.phtml

You must have 10 years of full time employment or have made 120 payments to be eligible.

 

[amcnj]

If you do opt for the publc service/debt reduction option make sure the employer qualifies for this option. I had seen a list of school districts at one point, and many but not all, in my area were included in the program.

 

[yoopermom]

The only way out of paying your student loans is to die, which is not an option that I recommend.

This is not completely true, from the government website:
http://www.direct.ed.gov/cancellation.html

"Disability, bankruptcy, or death.

•Your loan may be discharged if you are determined to be totally and permanently disabled and you meet certain requirements during a 3-year conditional discharge period. To apply for this discharge, you must provide a physician's statement that you became totally and permanently disabled after the loan was made. See your copy of the Borrower's Rights and Responsibilities Statement for more information on the procedures and conditions for this discharge.
•Your loan may be cancelled if it is discharged in bankruptcy. This is not an automatic process—you must prove to the bankruptcy court that repaying the loan would cause undue hardship.
•For a student who dies, the loan will be cancelled if a family member or other representative provides acceptable documentation to the student's servicer."

Terri

 

[sunshinehighway]

Maybe you could find some advice on a site like creditboards. You are not the only person feeling overwhelmed by student loans and there are boards that can provide great advice for people in your situation. Plus, sometimes it helps to see you are not alone and other people have gotten a handle on similar situations.
Good luck.

 

[lost*in*cyberspace]

I feel for you, but this debt is not going to go away. Would it be possible to finish your degree? This would be your first option, then look for a job in your field. At the very least, you need to get a job and start making payments.

 

[supersnoop]

•Your loan may be cancelled if it is discharged in bankruptcy. This is not an automatic process—you must prove to the bankruptcy court that repaying the loan would cause undue hardship.

This is very, VERY uncommon. I've only heard of one case where student loans were discharged in bankruptcy, while I've seen hundreds where they remained a debt.

 

[Minnesota!]

A fast food or factory job might not be enough to pay for daycare, but if you could find a fast food or factory job with a weekend shift, you wouldn't need daycare because the kids could be with your husband. Even at minimum wage, you'd have several hundred dollars of income each month to throw at the student loan balances. Sure, it wouldn't be ideal. The job might suck, the hours might not be convenient, it might be disruptive to family life, but it wouldn't be forever, and if you did it for a couple years you could at least stay current on your payments and hopefully find a good job in your field at some point. It's certainly a better option than four more years of unemployment. Sometimes you just have to suck it up and deal with the crap for a while as you wait for the rewards that will come down the road.

Could not agree more. We have a lot of student loan debt...and while it sucks to have to work so much just to keep it current...it was our choice to go to school, our choice to have kids and a mortgage when we did. The only responsible thing is to pay for it.