I graduated from law school last year funded primarily through private (through Citibank) and federal student loans. While I have been looking for employment, I have not found it in my field. Consequently, I deferred both my federal and private loans. The private loans have been deferred for a maximum of two 6-month periods. The last of these periods ends on Nov. 6th, 2005 (my birthday).

As of now, I will not be able to make the $660.00 monthly payment due Nov. 6. I am told that I can speak with Citibank on Nov. 7 and request a reduction in the monthly fee. If granted, the reduction will place the monthly payment at about $350.00/month. Given my current situation and debt load, I will not be able to meet this $350.00 monthly payment. I'm told that $350.00 is the lowest they will most likely go. They do not accept credit card payments. And, given my current financial and employment situations, it is highly unlikely that my bank will grant me a personal loan to "tide me over".

To complicate matters, I am 8 months pregnant. This makes finding a job very difficult until after the baby is born in December. While I've registered with temp agencies, they are reluctant to send out a pregnant woman. On a good note, I have passed the IL bar and look forward to a successful career...if I can make it through the next 5 months without declaring bankruptcy.

I need a temporary solution/deferrment until early next year. I don't have one. Please advise.

Thanks for any and all help,
Titian

dear Titan


request forbearance for your federally backed loans.

You might want to ask for private loans for forbearance but
if they do not have that option, you should ask why not.

You should also ask help and advice from the department of education

First, congrats on passing the bar. I have a friend who graduated law school pregnant and she didn't take the bar right away. Her baby is now 7 and she still hasn't sat for the bar.

I don't have specific info to give you but I would think that Citibank should be able to give you some sort of temporary hardship due to your physical condition. Do they know that the reason you're unemployed is b/c you're pregnant? You're right, no one will hire you for a F/T position pregnant and agencies won't send you out for any work (even though they will deny that your pregnancy influences them in any way).

Congratulations on both the baby and passing the bar!

Have you tried calling Citi ... I mean, who told you that you could ask for a reduction in payments? Was that Citi? It's not clear based on your comment "I've been told" ...

You can request a forbearance on your fed loans based on your pregnancy/staying home with new baby, etc. At least in forbearance, your subsidized portion of your fed loans will have the interest stop accruing on them. Talk to your guarrantor asap.

The friendliest alt loan lender I know of is Student Loan Express(SLX) who offers consolidation of private student loans. Give them a call and see if in your situation, you could consolidate your alternative/private loans with them and then go into a hardship/maternity forbearance.

Citi may have been kind for a while, but it sounds like you are running out of options with them.

Oh, hey, congrats on passing the bar

Thanks for all your help, advice and well wishes. I’ve appreciated all of it.

First, some clarifications:
1. My federal loans are in forbearance. (Thank God.)
2. I spoke with a representative from Citibank regarding the reduction in payments. The Citibank representative seemed to think it was my only option with them because I had used up my 2 allowed 6-month deferments.
3. My understanding is that I can not get forbearance on my Citibank private student loans.
4. I did not tell Citibank that I was 8-months pregnant or request forbearance due to physical condition.
5. When I spoke with the Citibank representative, she told me that the only way to put off payments was if I was back in school. Not an option at this point. She did not mention another option but I’ll call back and ask about a health/physical hardship option.

I’ve thought about the “taking my business elsewhere” tactic as a last resort in my negotiations with Citibank but I wasn’t sure where to turn. What has your experience been with Student Loan Express, snowpuppy? When you say “friendliest” what do you mean?

Any other options, suggestions or ideas? Should I wait until Nov. 6 deadline/due date passes or contact Citibank beforehand and reiterate my inability to meet the payment?

Thank you again for your help,
Titian

Did you ask Citibank why they do not offer forbearance?


If private student loans want the protection of non dischargability, then
why didn't Congress set the same capped interest rates and forbearance options.

Something is not right here.

Veritas...do some more homework or reading before you comment. Citibank is a "for profit" private loan lender. They do not have the same protection.

Titan, I have a good friend who is in exec mgmt of SLX and I trust him completely. He left a large sl company last year after many years and went with them. I am confident if he made that kind of move, SLX has to be a solid reputable company although they are fairly new to sl lending.

SLX does offer consolidation of private/alternative loans with interest based on credit. They are the only lender I know of who will purchase alt loans and consolidate them. I know you can find them with a web search, I don't have their phone number for students off hand.