Just how screwed am I? - Page 2

[Sailor]

I have no advice ... but, I wanted to tell you this: you won't be screwed forever if you default. I know defaulting is scary to a lot of people. I defaulted on my student loans - for 4 years!

I finished paying the last student loan right when I turned 26 (so around 10 months ago).

Now, it's obviously still on my credit. But, almost right after I paid everything off, I got a credit card offer in the mail. I'm using this one credit card to help rebuild my score. Also, although I did default, my record shows that I have paid them back in full.

With the right amount for a down payment, I could purchase a house 5 to 10 years from now. Although ... for me, owning a house is not a dream, so it's not really something I plan to do. However, it is a possibility.

I'm not saying - go default! In fact, definitely avoid this possibility if you can. Being hounded by creditors and collectors is not fun. However, I'm just trying to ease your worries a bit. Defaulting is not the end of the world. If it happens to you, there is life afterwards and you won't be screwed for life.

[BetsyS]

My dad didn't pay his student loans (in the 80s). They DID garnish his wages. I remember some really tight months when they got most of his check.

So, whatever you choose to do, don't be like my dad and just ignore the student loans and hope they go away. They won't.

[mommy2maya]

I would definitely look into IBR for the student loans, though I think it only applies to federal student loans, which if you only have an associates probably won't much of a dent in that 76k figure, since the limits you can borrow for the first two years is probably under 10k total if you do subs and unsubs

[RoadWorkAhead]

Double check with Child Support Enforcement. There is no fee for ESS consumers since they are supposed to be required to apply in most states. Its a 25$ fee here but only for those who are not on any public assistance

[maisiedotes]

Definitely go after your child's father for that child support!! I was doing some research on wage garnishment this morning as we are facing foreclosure, and (at least in our state) they can't garnish your wages if you are head of household. Have you considered consumer credit counseling? They may be able to give you some advice on re-working your student loans to a more affordable payment.

I know how stressful it is, believe me! Hang in there! I am sure there are options for you out there- there must be new programs coming out now that the economy is so tough.

[Pariah]

Originally Posted by 1growingsprout

Not to add salt to your wounds but how on earth did you get 76k in loans for an associates level degree? Is that all loans or do you have interest tacked on that has racked up the total?? Also child support department should not be charging you to set up services.

There are some living expenses in there along with tuition, but basically I fell for the promises from Full Sail in Florida, and like nearly everyone else I know who went there, I really regret it. Google "Full Sail scam" and you'll find lots of info.

My boyfriend does live with me and is self employed and contributes to bills. His work load has taken a hit with the economy, but he still has some, and he picked up a new project recently.

[PlayaMama]

income based repayment plan!!!

seriously, for student loans it's the best if you are low-income. right now, i don't have to pay anything because my income is so low and it still is reported to the credit agencies as an on-time payment.

if you have not paid it off after 25 years the remaining balance is forgiven (though you may have to pay income tax) and if you do get a high paying job, you have to make higher payments, no biggie.

try here: http://www.ed.gov/offices/OSFAP/DirectLoan/index.html

and consolidate and then do the ibr.

[Pariah]

Thanks for the replies!

I managed to make some progress today. I called the company dealing with my federal loans, and they let me send in an unemployment deferment application, which got my loans up to date. I will call back and ask about the income based repayment plan...I couldn't remember it on the phone because I was so nervous, but the woman I talked to was really nice and I'm going to call her back tomorrow on my lunch break and ask about that.

Here's the next problem...is it possible to get an income based repayment plan on PRIVATE student loans? That's what's really screwing me, the Sallie Mae loans. I found out today that I have officially defaulted, and I tried calling a few times but the wait was too long to sit there on the phone at work. I know consolidation, credit counseling, and other things that are options for federal loans are not with these Sallie Mae loans. I am terrified to call, but...it must be done.