School Loan over $56K - What Now?

[Optimizer]

Hello everyone,

 

My wife went to college 10 years ago and never got to finish because of two children and hard financial times. Currently with interest her outstanding school loans are $56,000, she only had one year left to graduate when she had to quit! What should be done about this? Should we ignore it? Will it EVER go away? Should she start paying on it? Any options to lower it or get rid of it? What are the options? Can they keep charging her interest and keep it on her report forever?

 

I have perfect credit myself, a great job, money saved, etc. Currently I purchase anything we need, bought the house, cars, etc all in my name (I have no current debt except my house payment).

 

Anyway, what are my options? If it never goes away and we need to start paying on it is there anyway to get around the 10 years of interest? $56,000 is a LOT of money.

Edited October 3, 2008 by Optimizer

[Optimizer]

Anyone?

[hegemony]

what is the status of the loan? do a search for "rehab"

[LynnInMN]

Hello everyone,

 

My wife went to college 10 years ago and never got to finish because of two children and hard financial times. Currently with interest her outstanding school loans are $56,000, she only had one year left to graduate when she had to quit! What should be done about this? Should we ignore it? Will it EVER go away? Should she start paying on it? Any options to lower it or get rid of it? What are the options? Can they keep charging her interest and keep it on her report forever?

 

I have perfect credit myself, a great job, money saved, etc. Currently I purchase anything we need, bought the house, cars, etc all in my name (I have no current debt except my house payment).

 

Anyway, what are my options? If it never goes away and we need to start paying on it is there anyway to get around the 10 years of interest? $56,000 is a LOT of money.

 

Federal student loans have no SOL. Have they been kept in deferment or are they in default? If they are defaulted, you can expect another 20% in collection fees to be added in on top. Her interest is accuring daily and will continue to accrue until the last penny is paid.

Other consequences of default are wage garnishment without a court order...student loans can also garnish social security income and offset tax returns. Also FEMA benifits would be denied for the entire family.