My first post here, it's a great site!
I'm reaching the end of my 3-year unemployment deferments on Federal loans (Parent PLUS) for my 2 children that I began borrowing in 2004 and ended in 2009 when I was laid off. I'm still unemployed and in my mid 50's. I'm married and the loans are in my name only.
I'm assuming that the following will happen if I don't find work and resume payments:
1) the loans will be declared in default
2) I'll get a lot of phone calls and letters about my debt
3) my wife, kids, relatives, and friends will get phone calls regarding me
4) I'll get sued for payment
5) I'll get a judgment against me
6) my bank accounts will be levied
7) if I do get hired, my paycheck will be garnished.
8) any future Federal and state tax refunds will be taken
9) the government will put a lien on my (underwater) house
10) when I retire, my SS check will be garnished.
Can any of you think of other things that may happen to me that I haven't mentioned?
Thanks in advance!
Crystal ball anyone?
Started by
keepinitreal
, Jan 20 2012 11:47 AM
4 replies to this topic
#1
Posted 20 January 2012 - 11:47 AM
#2
hoapres
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Posted 20 January 2012 - 06:17 PM
The scenario you present is pretty much accurate. You have a bigger problem which can not be addressed in the student loan forum of finding gainful employment when you are in your mid 50s and having been out of work for 3 years. Small comfort but you are hardly unique with the problem of finding a job.
#3
Posted 22 January 2012 - 12:33 AM
They do not need to sue you to garnish wages or federal payments, tax offsets. This is all authorized by congress.
#4
Posted 22 January 2012 - 08:54 AM
Thanks hoapres and lynninmn!
#5
Posted 22 January 2012 - 07:22 PM
Another question about this pending student loan default of mine.
If my wife and I were to get behind on our mortgage payment and then file Chapter 13 (before my student loan defaulted), would the student loan not default until after the Chapter 13 was finished 3-5 years later? I realize the interest would still accumulate.
The reason I ask is that I will be able to pay off the student loan in 2015 when I will receive a lump sum from my ex-employer for stock in the company.
So, I don't want to owe up to 50% more because of a default on the student loan if I can find a way to avoid defaulting until 2015.
If my wife and I were to get behind on our mortgage payment and then file Chapter 13 (before my student loan defaulted), would the student loan not default until after the Chapter 13 was finished 3-5 years later? I realize the interest would still accumulate.
The reason I ask is that I will be able to pay off the student loan in 2015 when I will receive a lump sum from my ex-employer for stock in the company.
So, I don't want to owe up to 50% more because of a default on the student loan if I can find a way to avoid defaulting until 2015.
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