Student loan payback

[Essie]

Ok, so I am looking over my form to defer for yet the third (and final) year for my student loans. My payment are est. at $119 per month. I called them and they say it doesn't matter how much you are making if you get a job, you STILL are obligated to start repaying.

Well, I'm asking b/c I am being considered for a pt job (doesn't pay much) and I am wondering how long I have to tell them if I get the job.

What has been your experience if any? Are they like the IRS ? can they find out about my measly income if they want? Ugh. It sucks, I have these loans and I didn't even get into the program I applied for so it's been a waste of loans!

TIA for any advice/help

[1growingsprout]

Yes they can find out if you are working... Student loan co's have full access to employment records, just like the IRS, child support, any credit agency...

Can i ask what you total loan amt is for?

[wednesday]

DH was in deferment off and on for several years but it wasn't based on whether or not he was employed. Well, he was self-employed so maybe it was a moot point, but the deferments were always for a specified time period (like six months) at which point he was either to resume making payments, or call and make new arrangements.

The weird thing was, DH would be a couple months behind, so he'd call and get that cleared up and get a few extra months ahead as well...I would call and always get someone completely mean who would be like "no, you have to pay now." :

[baileyandmikey]

you can get a forebearance in situations like yours... or they may lower the payment based on your income.

[Essie]

Originally Posted by baileyandmikey

you can get a forebearance in situations like yours... or they may lower the payment based on your income.

REally? b/c I specifically asked about that the other day and said "doesn't it make a difference between someone who works as a doctor to someone who works as a teacher? I mean, the salaries should have something to do with it?" they said no and didn't give any other way around it.

BTW, I owe around 17k ouch...

[34me]

you can get income sensitive payments but they go up every year because they assume you will get some type of raise (at least dh's did). If you get a job and don't tell them they can, and will, take any IRS refund you may be due.

[KariM]

Depending upon the type of student loan, you might have several options. Stafford Loans allow you to choose a repayment plan based upon your income and also provide forbearance and deferrment options for emergency situations.

To learn more about these loans and repayment, visit:

http://www.ed.gov/offices/OSFAP/DirectLoan/calc.html

Perkins loans, however, have fewer options. You generally have to pay the loan back within 10 years.

[Equuskia]

You can ask them to lower your payment to $50 a month. That is the lowest payment they can offer you for loan repayment. If you can swing $50 a month, I would take that option as opposed to deferring again. Who's your loan with? I would call back until you find someone willing to help you. Sometimes you end up with real jackasses, and other times with real nice people who are willing to help.

[goodygumdrops]

Originally Posted by Equuskia

You can ask them to lower your payment to $50 a month. That is the lowest payment they can offer you for loan repayment. If you can swing $50 a month, I would take that option as opposed to deferring again. Who's your loan with? I would call back until you find someone willing to help you. Sometimes you end up with real jackasses, and other times with real nice people who are willing to help.

huh....I'm curious to know more about this. I am also paying back my student loans..I have MAJOR loans. I think their almost double the original posters loans. Anyway, we're paying around 250+ a month to pay them back and I'm a WAHM. I'm sitting only three days a week for other families and I don't even get paid full time. I would LOVE to lower my payments on these loans but like the op, I got the impression that it had nothing to do with your income.

TIA.

[Equuskia]

I'm not sure why people are getting told that they have to pay a whole lot when they can't. When my loan went into default, it went to collections. At the time I was on food stamps. I said I was only able to pay $40. They told me the lowest they could accept was $50. I paid that for a year, then the account was sold to Nelnet, which is a student loan company. There I pay $59 a month. From their website:

8. How can I change my repayment plan?
1. Standard Repayment - requires you to pay a set amount monthly (with a minimum of at least $50) for up to a maximum of 10 years. However, this set amount may be changed depending on your interest rate, number of payments and total principal balance. Don't let the $50 minimum lull you into believing that would be your payment. If you borrowed $10,000.00 for 10 years at 6.8% interest, your monthly payments would be $115.08.

2. Income Sensitive - is adjusted yearly according to your annual income and the amount of your loan. If this plan requires more than 10 years to complete your repayment, your lender can put your loan in forbearance to lengthen your repayment time up to five additional years.

3. Graduated Repayment - begins with smaller monthly payments, and then enlarges the payments over 10 years. The amount of your loan determines how often and by how much your payments increase.

4. Extended Repayment – allows for the repayment period to be extended for up to 25 years. You must be a new borrower on or after 10/7/98 with FFELP loans totaling more than $30,000. You may choose to make standard or graduated payments under this plan.

Check your loaner's website and see if you find something similar. And like I said, call, call, call until you find someone that will help you. Also see if you qualify for loan forgiveness:
http://www.finaid.org/loans/forgiveness.phtml
http://www.staffordloan.com/repaymen...orgiveness.php

If you have a ton of student loans (at least $20k), consider consolidating:
http://www.staffordloan.com/repaymen...solidation.php

Scour your loaner's webpage for more details (or pm me and I'll help ya )

[Kealli]

there are a lot of varying responses because the rules per lender vary so much. what type of loan? is it government subsidized or private? i never qualified for government subsidized loans and had to go private, the rules are way more harsh, the monthly amounts and interest rates are higher.

i had about 40k in private loans that my husband and i ended up paying off with our home equity line of credit because the interest rate was so much better. ugh.