Student loans..

Jewdee · July 2, 2007

Ok, let me explain better. I have already consolidated twice now and it has been in deferment ever since 1995. I just have not had the funds to pay it back.

No, I have no garnishment letters or threats or anything like that. My current lender is ACS....

I am thinking for this March 2008, I will have months left of deferrment, I believe only 5 more left, but I want to start making payments to them. I asked what my minumum payment would be on income sensitive at 49K and it is like 430.00. I CAN NOT PAY THAT, so I am going to send them 250.00 to 300.00. 15% of my disposable income is 300.00, so that is why I would try to send that.

My concerns are:

What will happen to me? What will they do? Default me anyway? I don't know what Rehab is....or if they offer it. I am just concerned they will default my flowers when I am paying everything that I possible can. I mean, they will know that I have filed bankruptcy and I am sure they won't care...does anyone know what they will do or probably do?

Jewdee · July 2, 2007

oops...I did not mean to start a new thread...I was trying to reply to the rehab thread...

follie · July 2, 2007

They can put in default if you don't pay the full amount every month. They can't put you on a longer payment plan to reduce your payments?

Jewdee · July 2, 2007

They can put in default if you don't pay the full amount every month. They can't put you on a longer payment plan to reduce your payments?

SO, if 430.00 is on 49K for 33 years repayment plan....they could change that to 66 years for me and I could pay them 200.00 something? That would work. Because then before to long my state will pay 15,000 for me and then I may inherit 15,000.00 one of these years. That would knock out a bit for me, then maybe I could pay more than the 200.00 and pay off sooner (if they readjust it....)

Thank you.

LynnInMN · July 2, 2007

Ok...you need to do some serious reading and studying on consolidated loans. You have a consolidate FFLEP loan and by simply going to your lender/servicers site, I was able to play with their consolidation loan calculator. You are going to be in deep do do and you are heading on the path to default.

For starters, you have a FFLEP loan. Max repayment period is 25 years for your loan balance You do not have a "choose your own payment plan" option. You have standard, graduated, extended and income sensitive. A 25 year repayment is about $350/month and by my calculations your income sentive payment is not much lower. Any lower payment now will result in your payments jumping big time in the next 2-5 years. Failure to make the required payment will result in default, plain and simple. Then add on an additional 18.5% in collection fees ...that is another $9000. An possiblity that may exist for any loan cancelation program will be gone. (In my readings, most loan forgiveness programs are for newer borrowers or borrowers since 1998....so you might not qualify anyways. )

Instead of reading message boards, you really need to educate yourself with google.com and start searching your lender/servicer and FFELP student loan policies.

Jewdee · July 2, 2007

Thanks for you time.... My lender is ACS, I am familiar with their website and I played with their calculator this morning as well, however I am not impressed with what they say my minimum payment will be, so I will not be able to do that. SO, if there is no hope for me then I guess my loan will default and I will have ruined credit for my entire life!!!!!!!!!!

I don't have the slightest clue as to what to research for on google.com or FFLEP student loan policies. I don't have time to do any research on their policy....all I know is I can not nor will I ever be able to pay in full the monthly minimum payment they want from me. IN all honesty it looks as if 15% of my disposable income will be my best bet after all, despite it tearing my credit up. I have no other options, I am not reconsolidating another time nor do I believe I would be eligible.

The money I will be receiving for my student loans is through my employer and I have checked into it and will be eligible, it is help retain employees because most of our employees are heading for higher payer jobs and relocating if at all --possible because we are underpaid. I am unable to relocate.

I guess my life is just simply screwed!!!!!!!!

I was young and dumb, went straight to college after High School. I was 17 years old! My mother filled out all my papers, I just went and got the check and signed for it. My mother never told me until after I graduated college that I had to repay all the money that I had received, I thought I was receiving financial aid that you did not have to pay back, which at that time was 24,000.00, after it was all said and done. It took me 3 years after graduating before I got hired on where I work now and I have deferred it ever since 1995 and reconsolidated twice. Man this sucks!!!!!!!!!!!

LynnInMN · July 2, 2007

I was young and dumb, went straight to college after High School. I was 17 years old! My mother filled out all my papers,
She may have filled out the paperwork but you had to have signed the note. Did you read it??

I just went and got the check and signed for it. How many checks did you sign for???

My mother never told me until after I graduated college that I had to repay all the money that I had received, I thought I was receiving financial aid that you did not have to pay back, which at that time was 24,000.00, after it was all said and done.

How many times did you sign promissory notes?? Right above your signature it says "this is a promisorry note..."

It took me 3 years after graduating before I got hired on where I work now and I have deferred it ever since 1995 and reconsolidated twice. Man this sucks!!!!!!!!!!!

So if you have been working all this time, why on earth did you keep deferring it??? Did you not notice that interest was accruing?? You signed additional notes upon consolidation....did you read your obligations and responsibilies???

You are in the process of filing bankruptcy. All of your other debts will be gone. Somehow you will need to work on paying more or finding additional sources of income.

Edited July 2, 2007 by LynnInMN

direred · July 2, 2007

Thanks for you time.... My lender is ACS, I am familiar with their website and I played with their calculator this morning as well, however I am not impressed with what they say my minimum payment will be, so I will not be able to do that. SO, if there is no hope for me then I guess my loan will default and I will have ruined credit for my entire life!!!!!!!!!!

Or you can stay in school until you are able to handle those payments. Half-time, you can even do it online through a community college, as long as it's an accredited school. While you're doing that, pay down what you can.

$250-$300 probably isn't enough to cover interest, though.

Jewdee · July 3, 2007

I don't mean to sound sarcastic here, but jobs don't grow on trees and I like my job and plan on retiring there, regardless of the pay. I have ten years in there.

No, I actually did not read a thing, at the school, they were Seniors issuing the checks and they just wanted our signature on the dotted line and handed over a check. My mother would tell me, "Go and get you grants Linda!!!!!" The grants and loans were all disbursed at the same location, so I knew no different.

That is all said and done....

I just got fed up today and called my lender and talked to them and told them I was in bankruptcy now. Right now my payment due will be 372.00. I told them I could not pay that, 290.00 would be the maximum I could send. They told me that would be fine because I had another year and 6 months deferrment left, to pay what I could monthly. She then told me that when deferrment ran out if I still could not pay the full amount they asked for, they would restructure my loan for me. She told me I could get hardship additonal forebearance/ deferrment years. She told me that she can not recall garnishing anyone that was paying something faithfully that they work with us every way that they can. She told me not to worry about it. She told me that should they consider garnishment, they look at our wages and situation at that time and she told me that if I was sending in my 290.00 faithfully for the remaining 15 months eff: 3/2008, that the balance will go down and then will help me. She left me full of hope....rather than dispair.

The reason I have been deferring my payments for so long is because I have not had any spare money to pay them!!! If I had spare money to pay them, I would not be filing bankruptcy right now with my other bills.

Personally, I believe student loans and the whole college ordeal is all over rated. My college education has not helped me one bit with my job. It was a complete waste of time and debt!!!!!! Half of the classes I was required to take could have been omitted as they were worthless and I could have completed my requirements in two years with out my: physcical activity classes, history classes, first aid, sex education, humanities. Those classes were a complete waste of money!!!! I think they need to change some guidelines and have more loan forgiveness programs or something.

I took the advice and researched on google.com where I found that Sallie Mae has ripped of millions of people and crippled them by charging double in interest and etc. It is awful!!!!!

direred · July 3, 2007

Personally, I believe student loans and the whole college ordeal is all over rated. My college education has not helped me one bit with my job.

The point of college isn't solely to help you make money. Some of the most traditional college programs won't, in fact. The point of humanities classes is to help you become a better person. The point of PE classes is to help your physical development (so that you're not, like me, sitting in middle age with fibromyalgia and a weight problem). The point of history classes is to help educate you about how life has been lived, in part so that you can (we hope) help keep the country from getting off track.

And if you never need first aid or sex education, well, good luck with that.

TxQuiltGirl · July 3, 2007

I don't really care what the lady at your lender told you - they'll say anything to get money from you. All I see is that your attitude is this isn't YOUR fault, it's your MOM'S fault, it's the COLLEGE'S fault, it's the GOVERNMENT'S fault. You have not one iota of responsibility for the situation you find yourself in now.

There have been plenty of people who have come here upset and worried - and plenty who have had to own up to the part they played in getting to where they were when they came here. YOU took out the loans, YOU signed the paperwork that was shoved in front of you, YOU consolidated the loans and YOU have been the one deferring them. That you didn't take the time to educate yourself is YOUR misfortune.

Lynn has been very upfront and honest with you about what your situation is - if you are disinclined to listen to her, then it is your bad fortune. But don't get an attitude with her because you made decisions that you didn't fully research ...

And before you try to tell me that I don't understand, you'd be well served to do some research ... I've BEEN in wage garnishment. I KNOW what hell awaits you down the road if you default with the cavalier attitude you've exhibited here.

As direred said, Good luck with that.

Cynic · July 3, 2007

I just got fed up today and called my lender and talked to them and told them I was in bankruptcy now. Right now my payment due will be 372.00. I told them I could not pay that, 290.00 would be the maximum I could send. They told me that would be fine because I had another year and 6 months deferrment left, to pay what I could monthly. She then told me that when deferrment ran out if I still could not pay the full amount they asked for, they would restructure my loan for me. She told me I could get hardship additonal forebearance/ deferrment years.

Hardship deferent is limited to 36 months by federal law. A lender is required to grant forbearance in cases when your monthly federal student loan payments exceed 20% of your gross monthly income, and that forbearance is limited to 36 months.

Hardship forbearance can be granted at lender discretion outside of regulations above, but they are not required to give it. ACS is a 3rd-party servicer (for Direct, FFELP, and Perkins loans), not a lender, so they will follow the policies of your loan holder in servicing your account. Very few lenders will grant more then 60 month discretionary forbearance for any reason.

She told me that she can not recall garnishing anyone that was paying something faithfully that they work with us every way that they can.

ACS doesn't collect on most of the loans they service if they default. They will offer you the assistance options that are available (extended repayment period up to 25 years, income sensitive, and graduated repayment plan) if you request help with repayment, or as part of "due diligence" to help prevent default. If your past due amount equals 8 monthly payments they will send a final demand like everyone else, and if no acceptable arrangements are made they will file a claim 30 days later like everyone else. Once the claim is paid ACS will seldom have anything to do with the account, and that's when garnishment becomes a possibility.

She told me not to worry about it. She told me that should they consider garnishment, they look at our wages and situation at that time and she told me that if I was sending in my 290.00 faithfully for the remaining 15 months eff: 3/2008, that the balance will go down and then will help me. She left me full of hope....rather than dispair.

You shouldn't be in despair. You shouldn't try to defer or forbear forever either- people that do that end up having a harder time repaying later, honestly. According to federal research most student loan borrowers highly underestimate the effect of capitalization. Not understanding capitalization, and not being able to estimate it, is the root of a lot of balance disputes and repayment problems. $50K at 6.8% is $53,400 at the end of a 12-month forbearance; after 12 more months of forbearance it's $57,031, and after 12 more months its almost 61k. It also means a monthly payment of $420 instead of $350.

While you're in deferment or forbearance pay what you can, and do whatever you can to fit the payments into your budget when you do enter repayment. You're doing the right thing by starting to think about it now when you don't have payments due until next year.

You are required to repay your student loans. There is assistance available to help you, but if you don't do your part you will eventually default. If you make an honest effort to repay it's not likely you will default, honestly. Most people do not default, and most loans are repaid.

The reason I have been deferring my payments for so long is because I have not had any spare money to pay them!!! If I had spare money to pay them, I would not be filing bankruptcy right now with my other bills.

I took the advice and researched on google.com where I found that Sallie Mae has ripped of millions of people and crippled them by charging double in interest and etc. It is awful!!!!!

Sallie Mae basically follows the rules on FFELP loans from my experience. Although I personally don't agree with everything they do, most of the complaints involve borrowers not understanding the terms of their loans (like capitalization, for instance), and /or defaulted borrowers/ collection costs/ USAF. I honestly hope that you'll take the time to educate yourself about your loans. That will help you not become one of the sad stories you hear about Sallie Mae. I wish you the best of luck.

Edited July 3, 2007 by Cynic

Jewdee · July 3, 2007

First of all, I am not coming down or jumping on anyone's case. I came here to learn and gather information. I can't help it that I was young and dumb when I went to college. Yes, I honestly thought I was receiving "grants" rather than "loans" that I would have to pay back. Like I said, my mother filled out all my paper work--signed my name--and told me when and where to pick it up. Yes, they shoved it in my face and I signed for it. Nothing was ever said until my Senior year, last semester that I would have to pay this back. I was 20 years old, living a college life and still literally young and dumb. Internet was just making a big appearence at that point of time and I was scared to death of it! I did not know how to use it, was not required to use it and wanted nothing to do with it. The college I went to had two computers in the library with internet access. I had a 3.8 grade point average and really thought I was receiving these grants for my good grades!

YES, HOW FREAKIN' IGNORANT OF ME. At that point my first payment due right after graduation of 224.00 on 24,000.00. I could not afford that. I deferred for my total 36 months. At that point I finally got hired at the end of the 36 months and my payment now was 330.00 something and I still could not afford to pay it back, so I consolidated and deferred my other 36 months. Here recently my payment due was 351.00 and I reconsolidated again and been deferring it ever since. I just can't make the payments this time...

yes, it was all MY fault. I knew it was collecting and collecting in interest...but i had no choice, but to defer. I had medical bills, we were evicted off my fathers land when he bankrupted it. This is what lead us to bankruptcy now. I have heard my friends tell me their lender knocked off half of the interest that had collected and put her on a new repayment plan. I am wanting to start paying something in March rather than defer another year, but I know damn well I won't be able to pay their 378.00 that is my minimum payment. I told her 300.00 would be the very maximum I could send in and I called to let her know that in 9 months in advance that I could not do that. My income sensitive payment is 330.00, I can't even do that! my budget allows 290.00 for the payment, so coming up with the extra 10.00 to make 300.00 will be hell!

But, the good thing is: I talked to my lender and she gave me hope rather than dispair.........she was very nice. So, since I talked to my lender-I feel better.

Jewdee · July 3, 2007

Personally, I believe student loans and the whole college ordeal is all over rated. My college education has not helped me one bit with my job.

The point of college isn't solely to help you make money. Some of the most traditional college programs won't, in fact. The point of humanities classes is to help you become a better person. The point of PE classes is to help your physical development (so that you're not, like me, sitting in middle age with fibromyalgia and a weight problem). The point of history classes is to help educate you about how life has been lived, in part so that you can (we hope) help keep the country from getting off track.

And if you never need first aid or sex education, well, good luck with that.

Actually I had health, sex education, first aid and humanities in high school..... makes it all kind of pointless to retake it in college. I probably had 15 classes that related to my major and minor, the rest was all a bunch of crap to be honest. I took 40 classes over 4 years and only 15 was beneficial. It just makes me sick thinking about it, so I guess i will stop thinking about it.

LynnInMN · July 3, 2007

Personally, I believe student loans and the whole college ordeal is all over rated. My college education has not helped me one bit with my job.

The point of college isn't solely to help you make money. Some of the most traditional college programs won't, in fact. The point of humanities classes is to help you become a better person. The point of PE classes is to help your physical development (so that you're not, like me, sitting in middle age with fibromyalgia and a weight problem). The point of history classes is to help educate you about how life has been lived, in part so that you can (we hope) help keep the country from getting off track.

And if you never need first aid or sex education, well, good luck with that.

Actually I had health, sex education, first aid and humanities in high school..... makes it all kind of pointless to retake it in college. I probably had 15 classes that related to my major and minor, the rest was all a bunch of crap to be honest. I took 40 classes over 4 years and only 15 was beneficial. It just makes me sick thinking about it, so I guess i will stop thinking about it.

Jewdee, get over it. EVERYONE who gets a degree has to take general education courses. I have two degrees and I had to take plenty of classes that did not relate to my majors. The purpose of these classes are to turn you into an educated, well rounded individual. Obviously you did not take any business law or finance accounting classes or you would have learned not to sign anything you don't understand.

You aint't going to get a pity party here!!!

Jewdee · July 3, 2007

No pity party wanted....sorry. I just came to ask if what I was being told by individuals were true or not. I still have not came to a conclusion as to whom to believe. I have individuals here telling me that they have not made minimum payment in years and people on the forum telling me that was not correct information.

I can be upset over my college education I received. I was upset 15 years ago when I was in college about taking those courses and I still gripe about it to my niece whom is in college now! I have even referred her to classes that don't require you to buy the text book for that class.

You pinned the tail on the donkey, I did not take any accounting or finance classes what so ever. I hate math and still do. I was never good in math, I guess that is why I am in credit card debt and a student loan death sentence now.

Life goes on.

I am so happy that my children are Indian and can go to college free through their tribe. They will never have to deal with student loans, because their momma will be paying on hers upon the time they graduate from college!!!!

direred · July 3, 2007

I can be upset over my college education I received.

Then I guess you're totally not going to use my suggestion earlier in the thread that could help you until you're able to pay. M'kay.

ETA: Virtually all the professions where there's a high average pay require math. The more math you take, the better chance you have of making money in the future. You may not see the value in that, but that would be ironic, wouldn't it?

Edited July 3, 2007 by direred

Jewdee · July 3, 2007

I can be upset over my college education I received.

Then I guess you're totally not going to use my suggestion earlier in the thread that could help you until you're able to pay. M'kay.

ETA: Virtually all the professions where there's a high average pay require math. The more math you take, the better chance you have of making money in the future. You may not see the value in that, but that would be ironic, wouldn't it?

But, I am not in college at this time. Yes, I am going to pay what I can during my last year deferrment, than you for your advice.

Jewdee · July 3, 2007

Ok, I have a plan.....a budget plan to start paying on my loans.

I am taking my yearly refund and / 12. and paying 200.00

plus adding 100.00 to it. making 300.00.

now, my minimum payment is 380.00, so my acct will show late until 90 days and then I will give up somethings a month and catch up to current again. I will have to do this two months and then through my job I receive longevity pay and I can use that as a freebie month.

I am a happy camper today!!!!! Thank for all your help.

direred · July 4, 2007

Ok, I have a plan.....a budget plan to start paying on my loans.

I am taking my yearly refund and / 12. and paying 200.00

Given that you're filing BK, if the BK's still open, that'll be money you'd have to give to the trustee.

Cynic · July 4, 2007

OP, if you want help, it's here.

Otherwise I have to wonder what you've been smoking.

We're all basically disinterested 3rd parties giving advice, or well-wishers hoping to save other humans from pain. No one gives a chocolate if you filed BK, and I hope you don't imagine ACS gives a flying *Admin removes vulgarity*. The longer they hold a loan before it defaults the bigger the claim is, and the more allowances they can bill. They serve their clients.

A lot of the people here have tasted default. It's not pleasant. Excuse the hell out of them for trying to save you the hardship. EDs contractors that handle defaulted loans (guarantors and CAs) can be horrible, nasty, and merciless.

It sounds like your school actually attempted to educate you. A well-rounded education is a foundation for a high quality of life for those that choose to take advantage of it. Unfortunately, no one can make you learn. No real relevance to your loan agreement.

Skipping payments on debts that eventually go away to finally start making the payments on a debt that can haunt you for the rest of your life really isn't a hardship compared to what a lot of the people in this community have been through.

QQ.

Jewdee · July 4, 2007

Ok, I have a plan.....a budget plan to start paying on my loans.

I am taking my yearly refund and / 12. and paying 200.00

Given that you're filing BK, if the BK's still open, that'll be money you'd have to give to the trustee.

No, I already spent this years income tax refund....I am referring to next year's refund and future there after refunds.

Jewdee · July 4, 2007

I hope you don't imagine ACS gives a flying *Admin removes vulgarity*.

Excuse the hell out of them for trying to save you the hardship.

Skipping payments on debts that eventually go away to finally start making the payments on a debt that can haunt you for the rest of your life really isn't a hardship compared to what a lot of the people in this community have been through.

I never did say ACS cared about if I filed BK or not. Also, I don't appreciate you using vulger language toward me. It appears your well rounded education made you into a well rounded individual whom disrespects women with your intolerable language!

How is anyone here trying to SAVE me from the hardship? Noone can SAVE me..... what are you talking about SAVE me?

My hardship, you know NOTHING about. I have not SKIPPED any bills. Deferrment is not "Skipping" bills. If I skipped bills, I would be in default now. We don't take vacations, we don't do entertainment, we don't eat out at fast food places--let alone restaurants. We don't get regular monthly haircuts, we don't buy any clothes monthly.

We were without electric for 4 weeks this winter in a total electric house, my husband was unable to work for three weeks and we got even further behind in our bills. So, don't even begin to tell me that We don't have a hardship to file BK.

What the others have been through? My best friend took her life over her debt a year ago! We had to start our life over in 2000, as we had a mobile home set up on my fathers land and he bankrupted on it. We had a 750 foot well dug, septic tank, electric and a 2000.00 fence. We never received a penny from it and were told to get our "piece of chocolate off their property"! We had no credit to up and move and had to start over. The only way we could move was our mobile home company traded our home in on a doublewide and added all the extra's in with total payment! Mind ya, the doublewide was only 140 sq feet bigger than a 16X 80 that we had already out grown. We could not get anything bigger because we could not pull 5000.00 out of our butts. Although, we had 5000.00+ dollars sitting in an open field that we did not get a penny for, the guy did not even let us take down our fence.

I am thinking ahead in the future for my student loans, because I have to start paying them eventually, as you so kindly put that it will haunt me the rest of my life! I actually have deferment time left to last me through July of 2009! I am sorry that my post offended you in some type of way, but it was not meant to please anyone either.

yea, it sucks, but it is not the end of my world!

...not yet anyway.

Edited July 4, 2007 by Jewdee

jcs0527 · July 4, 2007

Jewdee,

I just read through this thread and I want to tell you that I feel that you may be not thinking through the money situation.

As far as not knowing the money you received in college was a loan, everyone will tell you are responsible for reading what you sign. They laws have changed a lot in disclosures required for student loans now.

In big letters it says you are receiving a loan that must be repaid.

Don't beat yourself up as it can't be changed but just use it as a lesson to read what you sign going forward.

And about your current financial situation.

I am concerned that you have such loyalty to an organization that obviously underpays you for your skills.

If you have worked somewhere ten years and are not getting by there are two possible problems.

One is that you manage money poorly or Two your company truly doesn't give raises that keep up with inflation.

Now you owe it to yourself to take that ten years experience and find a better paying job.

I understand you have 10 years in there, but in my opinion that is a cop out. Dust off your resume and at least SEE what is out there. As far as relocation, some companies PAY to relocate you. So not being able to afford it, is not an issue. If you don't mind my asking, what is your field? Different fields are more likely to pay for relocation than others.

You also said you are filing bankruptcy. You will be required to take a budgeting class before discharge. Please listen and read carefully everything you come across in these classes as it can truly be a lifesaver.

It is a very good idea to pay anything you can right now on your student loans. They reason I say this because any interest you can pay now is less that will be capitalized when you loan goes into repayment. Capitalization increases the principle and increases your monthly payment. (Not trying to insult you just don't know if you realize that or not)

So if you try to keep your loan out of repayment longer (which is an option) continue to try and make payments on the loan so that the interest isn't accrued. If you can pay just the interest each month that is good, and if you can pay the interest plus even $1 you are still coming out ahead.

Good luck

pryan67 · July 4, 2007

Cynic- watch your language...

edit: besides, I thought you were leaving. Do you need directions to the door? http://creditboards.com/forums/index.php?showtopic=263292#

Edited July 4, 2007 by pryan67

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