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What happens if you default on Federal Student Loans? - Page 2

post #21 of 30

Yes, a lawyer for the disability payments.My friend was denied for years.Finally hired a lawyer and got all her back money.Yes,the lawyer got some,but without them she would be getting nothing.And she has COPD,lupus,and who knows what else.She is dying,but they said she could still work as a nurse aide.

 

I have read student loans will not disappear. If they wre covered under bankruptcy I bet a lot of people would get out of them that way.I am still paying mine,and it has been 12 years since I finished college!

post #22 of 30

I saw on the news the other day where they were saying student loans are going to be the next "mortgage crisis" since no one can pay them back!

post #23 of 30
Quote:
Originally Posted by frugalmama View Post

>


 

Yes I have - if you don't make enough income to file taxes you don't qualify. I was told that I'd have to make at least $600 a year to qualify.

 

There should be a provision for those in the same boat - I can't be the only one.


I haven't read all the responses, so this might have already been covered... but the bolded part is absolutely NOT TRUE!!! I applied, and was approved, for the IBR plan with both Direct Loans and Citibank, and I filed no tax returns last year. I will tell you that Citibank was a PITA and kept telling me that I didn't file the necessary paperwork, and that they didn't have my tax return (didn't file one!) and giving me the run around for a few months, but it did finally get approved, with me telling them that I had ZERO income (at the time). I got an approval from Direct Loans in just a couple weeks with no hassle.

eta: Both places had something like an "alternative income" form that I had to fill out since I didn't have 2009 tax records. But there's a box on the form to mark if you have no income.
post #24 of 30
Quote:
Originally Posted by changingseasons View Post

Quote:
Originally Posted by frugalmama View Post

>


 

Yes I have - if you don't make enough income to file taxes you don't qualify. I was told that I'd have to make at least $600 a year to qualify.

 

There should be a provision for those in the same boat - I can't be the only one.


I haven't read all the responses, so this might have already been covered... but the bolded part is absolutely NOT TRUE!!! I applied, and was approved, for the IBR plan with both Direct Loans and Citibank, and I filed no tax returns last year. I will tell you that Citibank was a PITA and kept telling me that I didn't file the necessary paperwork, and that they didn't have my tax return (didn't file one!) and giving me the run around for a few months, but it did finally get approved, with me telling them that I had ZERO income (at the time). I got an approval from Direct Loans in just a couple weeks with no hassle.

eta: Both places had something like an "alternative income" form that I had to fill out since I didn't have 2009 tax records. But there's a box on the form to mark if you have no income.

thanks for clarifying, it seemed like a really awful rule!
post #25 of 30


I really see this happening.  Funding for higher education needs to change.  I also think parents needs to be more proactive -- it isn't a matter of just saving but there are so many things parents have to do.  I am learning it. 

Quote:
Originally Posted by GirlBoyGirl View Post

I saw on the news the other day where they were saying student loans are going to be the next "mortgage crisis" since no one can pay them back!

post #26 of 30

I've defaulted on both my federal and private student loans. I feel like I'll never pay them off...we so badly want to buy a house too, but I'm afraid it will never happen. It is extremely depressing.

post #27 of 30

You can file for a unemployment deferment.  Contact your lenders that can help you, or even a economic hardship.

post #28 of 30

If you have a disability that prevents you from working then you have a chance at getting your loans forgiven - it is one of the few circumstances that qualifies for forgiveness.  And yes, they will deduct what you owe from social security, sadly.

post #29 of 30
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Edited by kristandthekids - 1/16/13 at 6:34pm
post #30 of 30

You guys mean SSD not SSI. Disability versus Insurance. SSI is easy to get once you have the other. I've been on SSD for almost 10 years and student loans say it's not good enough for them to excuse a loan. It's illegal for them to garnish SSD or SSI. I own nothing but they love to call and threaten me and put an already stressfull situation on someone who is extremely anxiety ridden as it is. I just gave up.. they can come get my car but they're not allowed to. I think you're allowed one car and one house? Some lady calls me three times a week desperately wanting me to sign something ike a consolidation but that will forfeit my SSD qualification for forgiveness. But then again a year long process with 10 docs saying I can't work isn't evidence enough for them to forgive the loan. I don't know what else I can do. I would love to get married and have a home and stuff in my name (huge fear of being homeless and I will be if anything every happened to DP) but I guess they won't allow me to. I don't want them coming after him too.

 

There's a story that goes they filed for SSD student loan forgiveness for a lady that had been in a coma for 5 years and they denied her because she MIGHT be able to work one day. Student loans are evil. I will never advise anyone to ever take one out for any reason.Total scam imo.

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