Need advice on student loan payments

[DeeH]

I am soon to have a consolidated student loan come due for payments. I have used up all of my deferment time and can't get another forebearance, these were used up due to health problems. I am now working very part time and I am looking for either higher paying work or fulltime......I am limited to what I can and can't do workwise, but I don't qualify for disablility. It's difficult to find a good job in the area I live in...small rural area.

 

My problem is that I can't afford to make the set payment amount, although I can make a payment of at least half that amount. Nelnet won't work with me on setting up smaller payments....I can't reconsolidate a loan a lower interest rate to lower the payments....

 

Would it be best to make a monthly attempt to make some sort of payment, even though it is not the full amount? What can happen if I do this?

[Cynic]

I am soon to have a consolidated student loan come due for payments. I have used up all of my deferment time and can't get another forebearance, these were used up due to health problems. I am now working very part time and I am looking for either higher paying work or fulltime......

 

Did you already use your unemployment deferment time? If you work less than 30 hours per week and are seeking ft employment & registered with an employment agency you would qualify for that deferment, assuming you haven't already used the federal max alotted

I am limited to what I can and can't do workwise, but I don't qualify for disablility. It's difficult to find a good job in the area I live in...small rural area.

 

My problem is that I can't afford to make the set payment amount, although I can make a payment of at least half that amount. Nelnet won't work with me on setting up smaller payments.... They are required to offer you "income sensitive repayment"; the monthly amount cannot be less than your monthly interest accruel I can't reconsolidate a loan a lower interest rate to lower the payments....

 

Would it be best to make a monthly attempt to make some sort of payment, even though it is not the full amount? What can happen if I do this?

 

Eventually it can default. If your monthly payments are more than 20% of your gross monthly income you qualify for a mandatory forbearance due to "excessive student debt burden". Mandatory forbearance is seperate from the 60-72 months of regular forbearance.

 

If Nelnet sends a DAAR to the guarantor you would be eligible to consolidate with Direct Loans and get "income contingent repayment" (monthly payments at 15% of your disposable income, can be less than interest accruel)

[DeeH]

I am soon to have a consolidated student loan come due for payments. I have used up all of my deferment time and can't get another forebearance, these were used up due to health problems. I am now working very part time and I am looking for either higher paying work or fulltime......

 

Did you already use your unemployment deferment time? If you work less than 30 hours per week and are seeking ft employment & registered with an employment agency you would qualify for that deferment, assuming you haven't already used the federal max alotted

I am limited to what I can and can't do workwise, but I don't qualify for disablility. It's difficult to find a good job in the area I live in...small rural area.

 

My problem is that I can't afford to make the set payment amount, although I can make a payment of at least half that amount. Nelnet won't work with me on setting up smaller payments.... They are required to offer you "income sensitive repayment"; the monthly amount cannot be less than your monthly interest accruel I can't reconsolidate a loan a lower interest rate to lower the payments....

 

Would it be best to make a monthly attempt to make some sort of payment, even though it is not the full amount? What can happen if I do this?

 

Eventually it can default. If your monthly payments are more than 20% of your gross monthly income you qualify for a mandatory forbearance due to "excessive student debt burden". Mandatory forbearance is seperate from the 60-72 months of regular forbearance.

 

If Nelnet sends a DAAR to the guarantor you would be eligible to consolidate with Direct Loans and get "income contingent repayment" (monthly payments at 15% of your disposable income, can be less than interest accruel)

 

 

 

Thank you for your reply.

 

I have talked with Nelnet and was told that I was eligible for a Economic Hardship Deferment....sent in the form and received a letter stating that I DON'T qualify for it because my SL was consolidated June 5, 1993....before the cut off date of July 1, 1993.

 

Talked to Nelnet again, told that I am eligble for an Excessive Student Debt Forebearance.....still waiting to find out the results of that one. This waiting is making me sick. Is this difficult to get approved?

I am now 6 days past due on a loan payment that is entirely impossible to make. I wish I had never gone to school!

 

One last question......on the "income contingent repayment", does this require that I include my husband's income? He won't all that.....not a good situation here when it comes to my SLs. Nelnet told me not to include my husband's income on my application for forebearance since it was his debt.

 

Also, what do they consider "disposable" income?

 

Thanks for any help or advice you can give.

[srjjames]

I am soon to have a consolidated student loan come due for payments. I have used up all of my deferment time and can't get another forebearance, these were used up due to health problems. I am now working very part time and I am looking for either higher paying work or fulltime......

 

Did you already use your unemployment deferment time? If you work less than 30 hours per week and are seeking ft employment & registered with an employment agency you would qualify for that deferment, assuming you haven't already used the federal max alotted

I am limited to what I can and can't do workwise, but I don't qualify for disablility. It's difficult to find a good job in the area I live in...small rural area.

 

My problem is that I can't afford to make the set payment amount, although I can make a payment of at least half that amount. Nelnet won't work with me on setting up smaller payments.... They are required to offer you "income sensitive repayment"; the monthly amount cannot be less than your monthly interest accruel I can't reconsolidate a loan a lower interest rate to lower the payments....

OK, I'm with AES and I'm having the same problem. I've used up all of my foreberrance and deferments. Does everybody offer the excessive student debt burden? I'm considering transfering my loans to Nelnet. My loans are private loans. Does everyone offer mandatory forberance? Who's direct loans? Do they consolidate private loans?

 

 

 

 

 

 

 

 

 

 

 

Would it be best to make a monthly attempt to make some sort of payment, even though it is not the full amount? What can happen if I do this?

 

Eventually it can default. If your monthly payments are more than 20% of your gross monthly income you qualify for a mandatory forbearance due to "excessive student debt burden". Mandatory forbearance is seperate from the 60-72 months of regular forbearance.

 

If Nelnet sends a DAAR to the guarantor you would be eligible to consolidate with Direct Loans and get "income contingent repayment" (monthly payments at 15% of your disposable income, can be less than interest accruel)

 

 

 

Thank you for your reply.

 

I have talked with Nelnet and was told that I was eligible for a Economic Hardship Deferment....sent in the form and received a letter stating that I DON'T qualify for it because my SL was consolidated June 5, 1993....before the cut off date of July 1, 1993.

 

Talked to Nelnet again, told that I am eligble for an Excessive Student Debt Forebearance.....still waiting to find out the results of that one. This waiting is making me sick. Is this difficult to get approved?

I am now 6 days past due on a loan payment that is entirely impossible to make. I wish I had never gone to school!

 

One last question......on the "income contingent repayment", does this require that I include my husband's income? He won't all that.....not a good situation here when it comes to my SLs. Nelnet told me not to include my husband's income on my application for forebearance since it was his debt.

 

Also, what do they consider "disposable" income?

 

Thanks for any help or advice you can give.

[srjjames]

[b]OK, I'm with AES and I'm having the same problem. I've used up all of my foreberrance and deferments. Does everybody offer the excessive student debt burden? I'm considering transfering my loans to Nelnet. My loans are private loans. Does everyone offer mandatory forberance? Who's direct loans? Do they consolidate private loans?[/b]

Edited February 7, 2007 by srjjames

[LynnInMN]

[b]OK, I'm with AES and I'm having the same problem. I've used up all of my foreberrance and deferments. Does everybody offer the excessive student debt burden? I'm considering transfering my loans to Nelnet. My loans are private loans. Does everyone offer mandatory forberance? Who's direct loans? Do they consolidate private loans?[/b]

 

 

 

Privatge loans generally offer very limited deferments and/or forebearances. They are under no obligation to offer any lower payment plans and the term excessive student loan burden does not apply to them.

 

Direct Loans is only for federally insured loans ....they do not handle private loans. There are some companies who do consolidate private loans, but most of them do charge origination fees so you will will need to do some research.

[Cynic]

Thank you for your reply.

 

I have talked with Nelnet and was told that I was eligible for a Economic Hardship Deferment....sent in the form and received a letter stating that I DON'T qualify for it because my SL was consolidated June 5, 1993....before the cut off date of July 1, 1993.

 

They are correct. You do not qualify for economic hardship deferment if you still have outstanding loans 1st disbursed before July 1st 1993. The person who talked to you, told you that you qualify, and told you to apply should have checked your disb dates, and NSLDS, before telling you about economic hardship deferment. Also, it was your responsibility to read the form that you signed and sent in- eligibility is covered on the form itself. The unemployment deferment is available irregardless of when your loans were 1st disbursed, but you must be registered with an employment agency, working less then 30 hours per week, and have not used 24 months of that deferment type in the past.

 

Talked to Nelnet again, told that I am eligble for an Excessive Student Debt Forebearance.....still waiting to find out the results of that one. This waiting is making me sick. Is this difficult to get approved?

 

It's not difficult if you meet the requirements, complete your paperwork properly, and provide documentation. By federal law you do not qualify for economic hardship deferment based solely on the disbursement dates of your loan. Getting approved for "mandatory" forbearance for excessive student loan debt is contingent on you proving that your monthly student loan payments are 20% or more of your gross monthly income.

 

I am now 6 days past due on a loan payment that is entirely impossible to make. I wish I had never gone to school!

 

One last question......on the "income contingent repayment", does this require that I include my husband's income? He won't all that.....not a good situation here when it comes to my SLs. Nelnet told me not to include my husband's income on my application for forebearance since it was his debt.

 

Nelnet services FFELP loans. FFELP borrowers are qualified for income sensitive repayment, "mandatory" forbearance, etc. based on the borrowers gross income. Unless your husband is a co-borrower on your Nelnet loans, his income is not considered.

 

Income Contingent Repayment is not the same as Income Sensitive Repayment. Income Contingent Repayment is only offered by Direct Loans, and if you are married your spouse's income is considered, and your spouse must consent to the IRS releasing information about their income to the DE.

Also, what do they consider "disposable" income?

 

Thanks for any help or advice you can give.