Student Loan Question

[grumpy28]

Hey all.

I am due to start repaying a loan this month, but money is tight and I am not sure what would happen if I didn't start. I really don't see a time anytime soon when we will be able too, either. I have already used up the forebearance/deferrment time, so when I called they said I have no choice but to pay starting this month.

My question is, "what if I don't?". Could they garnish my husbands wages? Or come after us in some way, or would it just look bad on my or our credit report? Its a Sallie Mae loan, if that makes any difference. TIA

 

[liamsaunt]

Yes, they can garnish wages for a student loan. You have to pay off student loans. You can't charge them off like other types of debt. Also, if you are due for any tax refunds, and you are in arrears for a student loan, they'll take it before you even see the money. Why don't you call back and see if you can arrange to pay a lower amount for a little while?

 

[Pixie Dust for Me!]

Hey all.

I am due to start repaying a loan this month, but money is tight and I am not sure what would happen if I didn't start. I have already used up the forebearance/deferrment time, so when I called they said I have no choice but to pay starting this month.

My question is, "what if I don't?". Could they garnish my husbands wages? No, debt is not his...but they could take your income tax refunds. Or come after us in some way (Yes, legal judgement), or would it just look bad on my or our credit report (again yes)? Its a Sallie Mae loan, if that makes any difference (No, it doesn't). TIA

Call them again, ask to speak with a supervisor. Explain your situation and ask if there isn't a financial hardship forebearance or some other situational type of deferment for which you may qualify. If you default on a student loan, it's a federal debt. Don't know too many more details than that.

 

[Maleficent13]

Deferment and forebearance are two different things. They have different requirements. Have you exhausted both?

 

[grumpy28]

Yes, they can garnish wages for a student loan. You have to pay off student loans. You can't charge them off like other types of debt. Also, if you are due for any tax refunds, and you are in arrears for a student loan, they'll take it before you even see the money. Why don't you call back and see if you can arrange to pay a lower amount for a little while?

So they will garnish hubby's wages, even though it is MY loan? His name is not on the loan at all.

I did call to see if I could lower it, but they were no help. Even their "lower" option is just too much for the foreseeable future.

 

[SeeVee]

Hey all.

I am due to start repaying a loan this month, but money is tight and I am not sure what would happen if I didn't start. I really don't see a time anytime soon when we will be able too, either. I have already used up the forebearance/deferrment time, so when I called they said I have no choice but to pay starting this month.

My question is, "what if I don't?". Could they garnish my husbands wages? Or come after us in some way, or would it just look bad on my or our credit report? Its a Sallie Mae loan, if that makes any difference. TIA

Credit report should be your last worry.

Shift your thinking. You dont owe it to yourself to pay it. You owe it to everyone else who has to pay for it and pay higher rates to pay those who dont.

You promised to pay it back. Fulfill your promise be it late or slow.

 

[grumpy28]

Call them again, ask to speak with a supervisor. Explain your situation and ask if there isn't a financial hardship forebearance or some other situational type of deferment for which you may qualify. If you default on a student loan, it's a federal debt. Don't know too many more details than that.

Thanks for the info.

Deferment and forebearance are two different things. They have different requirements. Have you exhausted both?

Yes. Unfortunately.

 

[grumpy28]

Credit report should be your last worry.

Shift your thinking. You dont owe it to yourself to pay it. You owe it to everyone else who has to pay for it and pay higher rates to pay those who dont.

You promised to pay it back. Fulfill your promise be it late or slow.

We are doing the best we can.

 

[DisneyRoys]

I don't believe they can garner your husband's wages unless you have consolidated your loans with his. They will take your tax refund. Could you consolidate all your loans for a lower interest rate? The lower rate may help.

I don't know what your situation is but maybe you could go back to school. They will postpone payment while you are seeking another degree.

 

[liamsaunt]

I don't think they can garnish your husband's wages for your loan. (I am not 100% certain on that though!) But, they can and will take your tax refund if you are due for one, since both your names would be on it.

Try speaking with a supervisor, continue to try and negotiate. It's in their interest that you pay them, even if you can't make the full payment right now. Keep trying until you find someone willing to work with you. Good luck.

 

[DevilDuckie]

Hey all.

I am due to start repaying a loan this month, but money is tight and I am not sure what would happen if I didn't start. I really don't see a time anytime soon when we will be able too, either. I have already used up the forebearance/deferrment time, so when I called they said I have no choice but to pay starting this month.

My question is, "what if I don't?". Could they garnish my husbands wages? Or come after us in some way, or would it just look bad on my or our credit report? Its a Sallie Mae loan, if that makes any difference. TIA

Yes, they can absolutely garnish his wages. You owe the debt together now. Your tax refunds can be seized, your credit score can be damaged and you can lose eligibility for future loans through the lender- both for you and for the ability to co-sign for your kids.

Pay what you can. Find something in your budget that is not necessary (even if you really want it) and make a sacrifice to honor at least part of the obligation. Aside from the "you owe it and it's right" factor, being able to say, "I couldn't make my $100 payment but I can prove I sent $50 every month and extra when I got a tax refund/raise/lottery winnings" is better than nothing.

 

[Sandy V.]

We are doing the best we can.

OP, I see that you and your family are planning a WDW vacation this fall. Somebody has to say it - if you can afford a vacation, you can afford to pay SOMETHING on your loans.

 

[trip]

Suzi Orman would say "get a part time job".

Good luck

 

[Cindy's Mom]

OP, I see that you and your family are planning a WDW vacation this fall. Somebody has to say it - if you can afford a vacation, you can afford to pay SOMETHING on your loans.

its probably free dining though. How could you NOT go?

 

[Piecey]

My question is, "what if I don't?". Could they garnish my husbands wages? Or come after us in some way, or would it just look bad on my or our credit report? Its a Sallie Mae loan, if that makes any difference. TIA

My question is, why are you worried about your husbands wages? Do you not have any of your own that you are concerned about them taking?

If not, is there a reason why you aren't working?

A friend put me down as a reference on some app at some point 4 years ago. Now, he's in debt collections and I still get calls for him 1-2 times a week asking if I know where he is. He's in student loan collections, they took his income tax and took his stimulus package but he still owes thousands more. He breaks down into tears 1-2 times a week because its all so overwhelming to him. He's joining the national guard now to try to alleviate some of the debt.

 

[wvjules]

Do NOT default on a student loan. I would miss a car payment before I defaulted on my loan. Cut back what you can, get another job, sell stuff. Defaulting on a SL will seriously hurt your credit and chances for another loan with ANY lender.

 

[Sandy V.]

its probably free dining though. How could you NOT go?

Drives me nuts. Galling to think that someone wants their loans just "go away" with no repercussions because paying them back means they have to tighten their belt.

And, by the way, I have been in that position and I've used PENNIES to buy groceries when times were tight and DH and I still paid off his student loans. Every dime.

 

[MagicalMom]

Suzi Orman would say "get a part time job".

Good luck

Dave Ramsey would say eat Ramen Noodles.

What would David Bach say? He'd blame it on the latte factor!

 

[Rock'n Robin]

You need to find a way to send some money. Even if you have to get a second job (I am assuming you have a first job--if not, why did you go to college?). If you can't make a loan payment you should not be going on a vacation.
Robin M.

 

[Cindy's Mom]

Drives me nuts. Galling to think that someone wants their loans just "go away" with no repercussions because paying them back means they have to tighten their belt.

And, by the way, I have been in that position and I've used PENNIES to buy groceries when times were tight and DH and I still paid off his student loans. Every dime.

A couple weeks ago we were at the YC, and there was a conference there called 100 Black Men. While waiting in at Beaches and Creme, I overheard a dad, more than likely from this convention telling his son (who's probably heard the story a million times ) when he graduated college, being from the projects, he felt that his education was owed to him and he WASN'T going to pay off his loans....then he said he thought about and said, that yes he will pay off his loans.

He went on to say that paying off that loan was one of his greatest accomplishments. Looking at this man, I could tell that he had accomplished a lot in his life. He actually brought a tear to my eye.