Student Loan Question

[HeShootsHeScores]

I never had a ticker up. I did edit my spelling however.

Can anyone else recall if there was a ticker or not?

 

[stitchlilo]

some people are so rude...maybe they cancelled their trip...no one has given them a chance to answer with all the put downs

They did answer by removing the ticker. That says lots!!!!

...I hope no one here takes any type of trip while they have ANY kind of bills to pay..

All mine and DH's student loans are paid. We have no installment type loans (HELOC, CC, Car)

I pay ALL of my bills before I GO ON VACATION. That is how ADULTS hand finances.

 

[DisneyRoys]

Can anyone else recall if there was a ticker or not?

The OP did not have a ticker up. Other posters looked at the OP's previous posts and saw that a trip HAD BEEN considered or planned.

I think too many assumptions have been made about the OP. We don't know the circumstances. As far as people planning or considering trips while being in debt- well sometimes it is nice to daydream about escaping the bad situation that you may be in. Just a thought...

 

[Handbag Lady]

Judge not least ye be judged.

So sayeth the agnostic!

 

[livie1205]

Stick around b/c just last month there was a person who was asking how to make some quick money so she could go to Disney. Months before, she was all concerned about her house being foreclosed on. How you go from being in the midst of having your house being foreclosed on to making a quick buck to to Disney is beyond me.

I HAVE been around a while but I DO NOT go back to look at someones history just to be rude and call them out.Maybe she has not thought about taking it down then thought hey I dont want that to look bad so I will take it down......she asked a question,if you do not like the question do not answer it.

 

[tomthebarncat]

I used to work in the deadbeat department at Sallie Mae and the stories of why people could not pay thier bills was astounding. They will hound you for the rest of your life and I mean hound you!! once you officially default on your loan the taxpayers of your state get to pay it. Not really fair for them to pay YOUR way thru college. If I was you and I was, a few years ago. I would refinance them with the department of Education, here is the link: http://loanconsolidation.ed.gov/. The interest will be lower and they are more likely to work with you. I made the mistake of consilidating my loans and my exhusband medical school loans. I was not aware that I became the prinicipal loan holder. We got divorced and I got stuck!! not only paying off the 20 grand I borrowed but I also got to pay off the last 20 grand of my exs loan too. Sallie mae would not work with, no matter how hard I tried. I simply could not afford 500 a month payments on my entry level social work job. I was very close to defaulting and filed a complaint with the German authorities because they were calling me nite and day. They were so obnoxious and rude, many of the calls left me in tears and wanting to physically hurt my ex. Once I refinanced the payments went from 500 to 187. I was able to pay the entire thing off in 4 years by simply sending more money every month. As my life got better, they got more money. Most folks dont know that even 5 bucks more goes right to the principle, lower princple lower interest. I never bought a new car and did without. I can honestly say that paying off my student loans was one of my proudest moments and my education was worth every penny. I just don't understand why people think student loans are free money, maybe a basic economics class shoud be requried of all loans holders.

 

[disneymom3]

Dave Ramsey would say eat Ramen Noodles.

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

Yeah, cause the Latte Factor is that vacation that used to be in teh OPs signature.

 

[Kitty 34]

I would definitely try to pay something to your loan!! I have a son that will be graduating next spring with quite a few $$ wrapped up in Sallie Mae loans and I would tell him the same thing.

If you're not working......work.
Cut corners wherever you can. Gosh my DH and I seem to still be cutting corners whenever we can at our age!!

Good luck to you. I remember the days when I made a pound of hamburger go a LONG way!!!!

 

[RitaE]

I don't know what else to add.
The loans are not going to go away. Ever. Until they are paid. In full.

Well actually, if you get into a serious car accident and end up permanently and seriously disabled on life support in a Nursing Home, then your Caregivers will be able to apply for Forgiveness for you.

Otherwise
You have already forebeared and deferred your way to additional interest. That will continue and if you really try hard, penalties and collection fees will also be added on. The longer you wait, the bigger the bill will be.

You are apparently college educated. I think you know the answer here.

 

[Allison]

As someone who knows because of the type of work I do, let me tell you, they will come after you and they will take all steps necessary to collect the money.

You incurred the debt, you owe the money, it won't just go away if you ignore it which many people seem to think.

 

[Free4Life11]

OP, provide more details please, student loan is too vague. Is this federal or private? They are very different and your options depend on which type of loan. I work in federal loan customer service so I know all about this crap -- in fact I'm typing this in between calls. All of the following information is related to federal loans, so if it's a private loan disregard!

Is this a stafford loan, consolidation loan, or spousal consolidation? What is the interest rate? When was it disbursed? How past due are you? Has a claim been filed with the guarantor? These questions are what determine what, if any, assistance you are eligible for.

Contrary to the misinformation on this thread, deferment and repayment plan eligibility is based solely on YOU, your income . Your husband's income or job status has no effect. If you drop dead tomorrow, the loans will be written off. Your husband has NO obligation to pay one penny towards this loan! I can't stress this enough. It's not HIS loan, it's not in HIS name, and it's not under HIS social (assuming this isn't a spousal consolidation which I hope for your sake it isn't--what a NIGHTMARE!).

But really all of these options ONLY DELAY THE INVEITABLE, which is that the loan must AND WILL be repayed, even if they have to do it forcibly! I have seen people's balances double and TRIPLE because of forbearances and deferments! You say you are out of time, so in all honesty, the damage is already done. All you can do now is work out a plan to dig yourself out of this hole.

Make a payment. Put it on a credit card if you have to. Do whatever you can to keep it out default. Default is a horrible mark on you and your credit and while it's not the end of the world (you can rehabilitate the loan) it is a HUGE PITA and there are high fees that will be added on to your balance!

If you are out of options, call the Department of Education and see if you can consolidate but if you do...START MAKING PAYMENTS! Don't go back into forbearance.

On a side note, I am truly sorry your loan is at Sallie Mae! I had to do a conference call with them once and the service was awful!

 

[MyGoofy26]

Student loans don't fall under the same rules as other debts. Ethics aside, you could stop pay a credit card and in some states after as few as 3 years you may not be legally bound to pay it back. Not student loans. There is NO statute of limitations on them. They can come after you til the day you die and get a solid win in court.

If you find it difficult to see yourself affording the current payments, what do you think the payments will be when you finally have to rehab the loan?

You're going to wreck your credit. So, on top of those new higher payments you'll end up having to make, you're going to have higher interest rates on future loans, your credit cards, your car insurance, the insurance on your home, etc. The "cost" of defaulting is going to be a lot higher than just the student loan balance and monthly payments.

If you can't find $200 in your budget, you can get a part time job and knock that out in just 5-10 hours a week. Or, work more than that and pay the loans off sooner. Another option is to look at the different programs that will knock part of your loan balance off. I don't know what you went to school for, but there are a few different jobs you can take where on top of your pay you'll get a forgiveness on certain amounts.

Not to get judgmental, but you've had a significant amount of time to figure out how to get the loans paid if you've used up all the deferment and forbearance time. The first time you requested that you should have been thinking about how to turn your situation around so that you can afford the payments.

 

[phragmipedium]

OP, please do *not* default on your student loans. I used to work as a university financial aid counselor, and I frequently saw people who had done this. It's not a position you want to be in and it most certainly will affect your credit. I agree with others about trying to reconsolidate. If you are told you may not reapply for forebearance or a hardship deferral again, please ask to speak with someone higher and discuss your options further. Sometimes the telephone operators at the loan servicing center are new or less than helpful, as with any organization, but Direct Loans as a rule is are almost always willing to work with you rather than have your loans be defaulted. Ask what would happen if you were able to make a lesser payment than they require each month. I know in some cases, collections may be avoided this way, so it doesn't hurt to ask. Be sure to get any agreements you might make in writing.

Of course, as you know, deferments/forebearances/etc are only temporary. The debts will not go away; you signed entrance counseling and a promissory note that you would repay them when you borrowed them, and you must do so unless you qualify for a particular loan forgiveness program. I don't know your personal circumstances, but cut back where possible - go down to one car and sell the other and save on insurance (especially if you are not working), take a first/second/third job, eliminate cable, refrain from eating out, ask if any family can help you temporarily - do what you can to rustle up the extra $ each month, because the problem will not go away. From the Direct Loan Servicing website (dlssonline.gov):

What happens if I don't pay my loan back?
Your loans will become delinquent and will eventually go into default. Default occurs when your loans become 270 days delinquent. The consequences of default are serious and long term. They include a damaged credit rating, loss of eligibility for further federal student aid, withholding of wages and tax refunds, and legal actions (such as lawsuits and wage garnishment) being taken against you.


Have you applied for a general forbearance and/or the hardship deferment? The general forbearance does not appear to have a time limit but must be reapplied for every 12 months. Continual forbearance/deferment is really not the best answer (many of the forebearance programs last for up to three years, as is the case with many deferment programs, so this is probably not a new problem), but if you use that time to change your situation so you no longer have this problem, it's certainly better than defaulting. Best of luck.


ETA - I see your loan is Sallie Mae, not Direct (so DLSS does not service your loan). I can't imagine how your interest must be accumulating right now, given their rates. I am almost certain that the same consequences as DLSS apply (withholding of wages, etc) and suggest the same ways to improve your situation, but I'm sure the forebearance and deferment programs are different and you may really be out of luck on that front; I doubt they are as accomodating as Direct Loans.

 

[Free4Life11]

Well, Sallie Mae services both FFELP and Private student loans, so if she has a Stafford loan through Salie Mae the rates are going to be the same as Direct. But still I feel for anyone who must suffer with having loans serviced at Sallie Mae!

 

[Chicago526]

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

I saw from a previous thread that you are a stay at home mom. I also saw that in another thread you said you now have about $500 a month freed up, you were asking if you should put it in savings or pay down cc debt. Unless something has changed, you need to pay your $200 student loan payment and then use the remaining $300 towards your cc debt or savings. Or, you could also put the whole $500 towards your student loan debt and have it paid off much faster. I also saw in an old thread that your loan is $25k, so puting the full $500 towards that will get it knocked out in 5 years or so (depending on interest of course).

If something has changed and your family no longer has that extra $500 a month, then you'll need to give up being a SAHM (again, you stated in another thread that your a SAHM) and get at least a part time job. $200 a month isn't that hard to come up with, even working at minimum wage. Heck, you may be able to do it by babysitting in your own home.

I seriously HOPE this isn't the case, because I don't like to think the worst of people, but I hate to think that your plan was not to pay and because you don't work, they can't garnish your wages and thus you'll never have to pay it back.

And yeah, you may think it's "rude" or "unfair" that I went back and looked at your old posts. But you're talking about inentionally not paying back a federal student loan. If you default, the bank gets it's money from the tax payers, I couldn't afford to put myself through college so I didn't finish, I have ZERO interest in having my tax dollars pay for you or any other person that intentionally defaults. It's things like this that make voters and politians want to get rid of government back student loans and a lot of other government programs. Who wants to fund people looking for a free ride?

I really hope this is just a temporary lapse in judgement. If you need help in working on a budget that will allow you to pay your loan, if you need ideas on how to earn extra money, post away. I and others here will be happy to help. But don't expect us all not to flame you up one side of the DIS boards and down the other if you keep talking about not paying debts at the expense of the tax payer while you post in other threads that you're a SAHM thinking of a trip to disney and wondering what to do with $500 a month you just freed up.

 

[Galahad]

ETA - I see your loan is Sallie Mae, not Direct (so DLSS does not service your loan). I can't imagine how your interest must be accumulating right now, given their rates. I am almost certain that the same consequences as DLSS apply (withholding of wages, etc) and suggest the same ways to improve your situation, but I'm sure the forebearance and deferment programs are different and you may really be out of luck on that front; I doubt they are as accomodating as Direct Loans.

There is no difference in the cost to the borrower between a Sallie Mae Stafford loan and a DLSS loan. That Sallie Mae is good at collecting what it is owed is to the benefit of all taxpayers, IMO.

 

[Missy1961]

Pay back your student loan. Get a job, get a second job, get a third job, just pay back that loan.

 

[phragmipedium]

There is no difference in the cost to the borrower between a Sallie Mae Stafford loan and a DLSS loan. That Sallie Mae is good at collecting what it is owed is to the benefit of all taxpayers, IMO.

You are correct if the OP is talking about a FFELP Stafford loan serviced by Sallie Mae, but they also have private loans (Sallie Mae Signature, etc). The OP has not specified which hers is, I don't think. If it's a private loan, the costs to the borrower certainly vary. I think I assumed it was a private loan since she said "It's a Sallie Mae loan" instead of "It's a Stafford loan through Sallie Mae," but I don't really know. I agree that student loans need to be collected and repayed as agreed, federal or private.

 

[Maleficent13]

I have no dog in this fight but I will state that there was never a ticker on the OP's posts in this thread. Her sig was empty. And I read the OP before there were any responses. If you're going to accuse her of stuff, at least accuse her of accurate stuff.

OP, I am sorry you are have a stressful time with money management. Contrary to what many would have you believe, not all of us were born with financial accumen. I hope you figure out a way to solve your problem.

 

[Kitty 34]

I saw from a previous thread that you are a stay at home mom. I also saw that in another thread you said you now have about $500 a month freed up, you were asking if you should put it in savings or pay down cc debt. Unless something has changed, you need to pay your $200 student loan payment and then use the remaining $300 towards your cc debt or savings. Or, you could also put the whole $500 towards your student loan debt and have it paid off much faster. I also saw in an old thread that your loan is $25k, so puting the full $500 towards that will get it knocked out in 5 years or so (depending on interest of course).

If something has changed and your family no longer has that extra $500 a month, then you'll need to give up being a SAHM (again, you stated in another thread that your a SAHM) and get at least a part time job. $200 a month isn't that hard to come up with, even working at minimum wage. Heck, you may be able to do it by babysitting in your own home.

I seriously HOPE this isn't the case, because I don't like to think the worst of people, but I hate to think that your plan was not to pay and because you don't work, they can't garnish your wages and thus you'll never have to pay it back.

And yeah, you may think it's "rude" or "unfair" that I went back and looked at your old posts. But you're talking about inentionally not paying back a federal student loan. If you default, the bank gets it's money from the tax payers, I couldn't afford to put myself through college so I didn't finish, I have ZERO interest in having my tax dollars pay for you or any other person that intentionally defaults. It's things like this that make voters and politians want to get rid of government back student loans and a lot of other government programs. Who wants to fund people looking for a free ride?

I really hope this is just a temporary lapse in judgement. If you need help in working on a budget that will allow you to pay your loan, if you need ideas on how to earn extra money, post away. I and others here will be happy to help. But don't expect us all not to flame you up one side of the DIS boards and down the other if you keep talking about not paying debts at the expense of the tax payer while you post in other threads that you're a SAHM thinking of a trip to disney and wondering what to do with $500 a month you just freed up.

I saw that thread, too, just a couple of weeks ago. It was on the budget board that I lurk on especially in the summer. The OP claimed on her BB thread that she was also looking for ways to pay off 7 credit cards!! Wow!!

OP, you may want to talk to a financial advisor on your budget woes.