Student Loan Question

[SeeVee]

We are doing the best we can.

Then I commend you.

 

[SeeVee]

some people are so rude.

Yeah you are right! They lead the good life and let others pick up the tab.

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

Put downs? No one attacked her personally. Thye posted the obvious. If you owe student loans, pay them, because the rest of us dont want to...[/QUOTE]

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

WHAT? Nice way to move the goal posts. She speficially stated that she could not, dare I saw would not, pay her student loans. Yet she is planning a trip to WDW? As long as you or I or anyone can pay their bills, then they are more than deserving of taking a vacation. If that person is going to default on loans that WE have to pay for, then they dang well better not spend friviously!


.

 

[hentob]

If that person is going to default on loans that WE have to pay for, then they dang well better not spend friviously!

Sorry, but the OP has been "livin' it up" (ordering out, going on multiple w/end vacations, just got back from Busch Gardens, planning a WDW vacation, not working) and now it looks like she doesn't want to pay a FEDERAL loan back


Sorry, OP. You are NOT doing the "best you can". You really aren't

 

[MyGoofy26]

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?

And just to add to that, many loan programs rely on borrowers to pay back their debts in order to fund new borrowers. They keep covering on the news that there are fewer and fewer financing options for new students. I'm not sure I would have finished school if I didn't have loans as an option. I'm sure there are new students in similar positions. So in addition to the burden to taxpayers, all of those defaulting on their loans are almost literally taking away the option of higher education from many students.

 

[polineedyan]

If you are out of work, or work less than full time..call them. They can give you a forebearance based on your employment status. The only qualification is that you are indeed out of work (or less than 30 hours, I think) and that you have registered with a public OR PRIVATE (monster.comm...) employment agency.
I think its about 6 months. But honestly, I would just pay it. I mean, I have a 10,000 dollar student loan and my monthly is 146.00. Thats not a ton of money..

 

[aprilgail2]

Why would they garnish the husbands paycheck and not the OP's? OP are you working at all, if not perhaps its time to get out there and start bringing in some money- its all nice being a SAHM IF your family can afford that, if not get out there and work! If ther is a childcare issue you can work evenings while your husband works days which is what plenty of people I know do or he can work evenings/nights and you work days but YOU borrowed the money so you should get out there and find a way to pay it back- it was not a GIFT, it was a loan and you knew well in advance that the time was coming to start repaying this loan and you should have started working and getting ready to repay this loan!

 

[rhett972]

Hello Grumpy. I was reading your post about student loans and I see a lot of replies that contain information that simply isn't true. I imagine it doesn't help much to see such conflicting info. I was a customer service manager and a default prevention manager for a major student loan company and I am used to handling these situations so I thought I might pass some info along:

First thing to know is that, as far as the Govt is concerned, your student loan is your own - not your spouse's nor any one else's. The absolutely will not garnish his wages or take any action against him for a debt you owe. That said, however, credit reporting is something different altogether. Once you marry and share credit (house, car, etc), your reports become intertwined. It's possible that his credit score may suffer if you become delinquent on your loan. Additionally, if you file a joint tax return, any refund you have coming may be reduced by a tax offset. That's pretty much the worst of it.

Student loans are their own animal. Generally speaking, not much happens when you default. There will be a lot of empty threats but the simple fact is, lender's don't care if you default. They get paid either way (they actually make more money when you are delinquent). It's the Guarantor/State Agency that pays your loan once it defaults and they are the one's who will come after you - but this is an overstatement. In most cases, they'll simply harass you and threaten you and your family in an attempt to "shame you" into payment. It's rare that I see a garnishment order.

Tip: In a few cases, I've recommended to borrowers to actually let their loan go into default and then consolidate it using William D Ford plan which is an income contingent program that sets your payment based on your income. Not a bad strategy if things are tough and you've exhausted all of your options.

So, basically, you have your own decisions to make I'll offer you some contrarian and probably controversial advice:

If you have no choice but to become delinquent on your debt, a student loan is the one I would pick. They have the lowest risk and penalties in terms of fees and other bad things. You have 9 months before the loan actually defaults (maybe something will change in your situation between now and then?) they are the most lax when it comes to collections, and there's an undeniable quality-of-life issue here: You can't eat a student loan and it won't get you back and forth to work.

Your first priority is housing, second priority is transportation. After that, do what you can. So you default on a student loan, big deal. Just make sure you promise to yourself that you will eventually pay it back the moment you are able. Life's too short to get stressed about stuff like this. Student loans never go away so you'll always have the chance to make it right later - just make sure you do.

 

[Galahad]

lender's don't care if you default. They get paid either way (they actually make more money when you are delinquent).

This is simply not true. If a lender has a high default rate the start losing fee money, and lots of it. Further, FFELP loans are no longer profitable at all. Without the recent congressional action, Sallie Mae, nor any of the other lenders would be able to make a Stafford Loan. They were losing $$ on each loan. You don't make that up in volume. Direct lending only has about 25 to 30% of the current student loan market. And they are stretching the limits of their capacity to do that.

It may be true that the consequences to you for defaulting on a student loan are less direct and severe. But if you have a student loan and you default on it, you ARE costing all of us and taxing the system - frankly making it less likely that congress will take action in 2009 to continue to make it feasible for lenders to make FFELP loans.

 

[grumpy28]

Good grief people get off your high horse! I am so glad that there are so many perfect people on the DIS. I guess I just suck since I took our loans at 18, w/o knowing much on paying them back. And for all of you with so much time on your hands, rereading my own posts, yes I am a SAHM. And proud to be. I will give my kids the life I did not have. My hubby was military and it is nice to finally have the family together. And yes we went to BGardens. Since you don't know me, you will not know it was paid for by my mother. And yes I bought a treadmill- from Amazon, paid for with gift cards I earn doing surveys. I could go on and on and try to "justify" my spending habits to you holier than thou types, but I feel no need. I asked a question, and appreciates the answers. But there is no need to bash someone you do not know, w/o knowing their complete circumstances.

Thanks again to the kind Disers and their replies and/or PMs.

 

[aprilgail2]

, yes I am a SAHM. And proud to be. I will give my kids the life I did not have.

That is great IF you can afford it but YOU can not- perhaps your parents had to work to be responsible and pay off their debts- you need to get some type of job and get some income coming in or else perhaps your husband can pick up some type of part time job to pay off your debt for you (though I don't think that is fair as it is not his debt so why should he have to work extra to pay it off)

 

[Laura]

If you don't want to use some of that extra $500 a month you said you had, at least get a part-time job. Your bill is $200 per month for the first 2 years, then $350 for the next 8, right? While your DD is in school in the fall or on the weekends while school is out, work retail or flip some burgers or something. It doesn't take much to make $200 a month. And you'll feel better about yourself and your budget.

I see no reason why you should default on your student loans. Pay it off. If I could do it, you can.

 

[Bonnie40]

Good grief people get off your high horse! I am so glad that there are so many perfect people on the DIS. I guess I just suck since I took our loans at 18, w/o knowing much on paying them back. And for all of you with so much time on your hands, rereading my own posts, yes I am a SAHM. And proud to be. I will give my kids the life I did not have. My hubby was military and it is nice to finally have the family together. And yes we went to BGardens. Since you don't know me, you will not know it was paid for by my mother. And yes I bought a treadmill- from Amazon, paid for with gift cards I earn doing surveys. I could go on and on and try to "justify" my spending habits to you holier than thou types, but I feel no need. I asked a question, and appreciates the answers. But there is no need to bash someone you do not know, w/o knowing their complete circumstances.

Thanks again to the kind Disers and their replies and/or PMs.

Overly sensitive? What kind of responses did you think you were going to get when you post on a message board that you want to default on your student loan?

We "holier than thou types" just don't appreciate hearing about how people try and justify their spending habits when they owe $. Simple as that. Quite honestly, that's the problem in North America - people feel entitled to buy whatever they want/entitled to stay at home/entitled to vacations, when they don't have the financial resources to do it and we "holier than thou types" have to pick up your slack. Not fair!

I never said you shouldn't stay home with your kids, but you certainly could get a job in the evenings and weekends.

 

[Allison]

You asked the question, so you need to be prepared for the answers. I hope you didn't think people were going to give you cyber hugs and tell you not to worry about it so you could feel better. People here are going to tell you what they really think and they will be blunt about it.

 

[Laura]

Good grief people get off your high horse! I am so glad that there are so many perfect people on the DIS. I guess I just suck since I took our loans at 18, w/o knowing much on paying them back. And for all of you with so much time on your hands, rereading my own posts, yes I am a SAHM. And proud to be. I will give my kids the life I did not have. My hubby was military and it is nice to finally have the family together. And yes we went to BGardens. Since you don't know me, you will not know it was paid for by my mother. And yes I bought a treadmill- from Amazon, paid for with gift cards I earn doing surveys. I could go on and on and try to "justify" my spending habits to you holier than thou types, but I feel no need. I asked a question, and appreciates the answers. But there is no need to bash someone you do not know, w/o knowing their complete circumstances.

Thanks again to the kind Disers and their replies and/or PMs.

My mother was a SAHM, and it was nice. But my parents could afford it.

And if there are extenuating circumstances as to why you cannot pay your student loan, please tell us. You've gotten some great advice on this thread already. But honestly, nobody's bashing anything but your evident sense of entitlement. You don't seem to want us to know your "complete circumstances", or you'd explain them.

Lots of us had student loans, and we've paid them off or are paying them off. Mine were about $27K, and DH is still paying off his. I consider our degrees investments in our futures. They do make you understand that the money isn't free, that you'll pay for it when you graduate and get a job. And I realized that at 18, signing off on my first loan. So frankly, I don't buy that excuse.

 

[Bonnie40]

My mother was a SAHM, and it was nice. But my parents could afford it.

And if there are extenuating circumstances as to why you cannot pay your student loan, please tell us. You've gotten some great advice on this thread already. But honestly, nobody's bashing anything but your evident sense of entitlement. You don't seem to want us to know your "complete circumstances", or you'd explain them.

Lots of us had student loans, and we've paid them off or are paying them off. Mine were about $27K, and DH is still paying off his. I consider our degrees investments in our futures. They do make you understand that the money isn't free, that you'll pay for it when you graduate and get a job. And I realized that at 18, signing off on my first loan. So frankly, I don't buy that excuse.

 

[NMAmy]

yes I am a SAHM. And proud to be. I will give my kids the life I did not have.

But here's the thing. If you can't pay your bills, then you really can't afford to be a SAHM. Many of us mothers who work out of the home do so because we have bills to pay. If the amount of your student loans per month is $200--well, that could easily be paid with a part-time job. If your kid(s) are in school, you could work while they're in school and not miss any time with them.

I hope it all works out for you. But, unfortunately, I just can't tell you to default on your bills. Most people in this world have to make sacrifices to pay their bills and fulfill their responsibilities. No matter how old you were when you took out this loan, it's still your responsibility.

 

[SeeVee]

Hello Grumpy. I was reading your post about student loans and I see a lot of replies that contain information that simply isn't true. I imagine it doesn't help much to see such conflicting info. I was a customer service manager and a default prevention manager for a major student loan company and I am used to handling these situations so I thought I might pass some info along:

First thing to know is that, as far as the Govt is concerned, your student loan is your own - not your spouse's nor any one else's. The absolutely will not garnish his wages or take any action against him for a debt you owe. That said, however, credit reporting is something different altogether. Once you marry and share credit (house, car, etc), your reports become intertwined. It's possible that his credit score may suffer if you become delinquent on your loan. Additionally, if you file a joint tax return, any refund you have coming may be reduced by a tax offset. That's pretty much the worst of it.

Student loans are their own animal. Generally speaking, not much happens when you default. There will be a lot of empty threats but the simple fact is, lender's don't care if you default. They get paid either way (they actually make more money when you are delinquent). It's the Guarantor/State Agency that pays your loan once it defaults and they are the one's who will come after you - but this is an overstatement. In most cases, they'll simply harass you and threaten you and your family in an attempt to "shame you" into payment. It's rare that I see a garnishment order.

Tip: In a few cases, I've recommended to borrowers to actually let their loan go into default and then consolidate it using William D Ford plan which is an income contingent program that sets your payment based on your income. Not a bad strategy if things are tough and you've exhausted all of your options.

So, basically, you have your own decisions to make I'll offer you some contrarian and probably controversial advice:

If you have no choice but to become delinquent on your debt, a student loan is the one I would pick. They have the lowest risk and penalties in terms of fees and other bad things. You have 9 months before the loan actually defaults (maybe something will change in your situation between now and then?) they are the most lax when it comes to collections, and there's an undeniable quality-of-life issue here: You can't eat a student loan and it won't get you back and forth to work.

Your first priority is housing, second priority is transportation. After that, do what you can. So you default on a student loan, big deal. Just make sure you promise to yourself that you will eventually pay it back the moment you are able. Life's too short to get stressed about stuff like this. Student loans never go away so you'll always have the chance to make it right later - just make sure you do.

Thanks for coaching her on how to screw the rest of us (taxpayers).

 

[BeautyNBeast]

I have a federal loan (not through Sallie May). A few years ago, when my loan came into repayment, I paid a lesser amount, I told them I could afford $50/month, and I paid that for a year. I also consolidated my loans at a really low interest (I think it is like 3%). After the year of paying $50/month, I changed my loan to the graduated plan. I have $30,000 in loans, and I pay $109/month on the graduated plan instead of the $250/month. IS that by chance an option?

Also, being a SAHM would be wonderful, and next year when my DH finishes, that will be something I will probably do, but can you get a PT job? Maybe every selling Avon Products, MaryKay, Lia Sophia, Pampered Chef, or something like that? Some of the demonstrators really supplement their income with that, which might be enough for you to make your payment.

Good luck. Sometimes it is hard, and I wish you the best.

 

[hentob]

I guess I just suck since I took our loans at 18, w/o knowing much on paying them back.

Most of us take out these loans at 18 years of age At the time, most of us are oblivious about how much we really have to pay back


But guess what, we grow up and realize that come hell or high water, we have to pay them back

Get a job when your DH is at home. That way, you don't have to pay daycare.

How old are your children? What is your degree in? These are two important factors as to where you should apply for a job.

 

[SeeVee]

Good grief people get off your high horse! I am so glad that there are so many perfect people on the DIS. I guess I just suck since I took our loans at 18, w/o knowing much on paying them back. And for all of you with so much time on your hands, rereading my own posts, yes I am a SAHM. And proud to be. I will give my kids the life I did not have. My hubby was military and it is nice to finally have the family together. And yes we went to BGardens. Since you don't know me, you will not know it was paid for by my mother. And yes I bought a treadmill- from Amazon, paid for with gift cards I earn doing surveys. I could go on and on and try to "justify" my spending habits to you holier than thou types, but I feel no need. I asked a question, and appreciates the answers. But there is no need to bash someone you do not know, w/o knowing their complete circumstances.

Thanks again to the kind Disers and their replies and/or PMs.

Nice try at manipulating everyone else. I dont recall anyone here claiming to be perfect. I dont recall anyone here saying "you suck." I do know that everyone says not paying back your debt is irrespnonsible, thereby putting the burden on everyone else, and that can not be disputed.