To make a long story short, I have not paid on my student loans ever and it is has been 13 years now since I graduated school. It has been a long 13 years build up of uncontrollable circumstances that led me to file for bankruptcy in 2007, which we were discharged in 12/2007. My original balance was 24,000 and now is 49,000.
Ok, that leaves me now with student loans to START paying on. I am going to be financially able to pay 300.00 per month. I am all for paying it too. However, I have a problem. I have NO more forebearance time or default time left after March of this year. The minimum payment expected will be 380.00. I am 80.00 short of making the minimum payment required.
I have nothing left out of my income for emergencys with paying the 300.00, so I have no other sources of coming up with the 80.00 extra dollars.
My question is: What can I do to keep this from going into default, or will it go into default if I am sending 300.00 monthly and minimum is 380? I called my lender which is ACS and they just told me to send in what I could and was really nice about it.
Is there away I could talk to someone to get the amount lowered to 300.00?
Should I let it go from my lender to a collection agency and work out a payment plan with them to pay the 300.00?
My bankruptcy attorney told me they may intercept my tax refunds, but he highly doubt they would if I was paying 300.00 monthly to them on a regular basis. He also said that if I was paying the 300.00 monthly that they would not garnish my wages either.
I told him that if they took my taxes, there goes part of their 300.00 month payment, because I am using that for monthly payments and adding the remaining of my check to make the combined total of 300.00.
Any advice will be helpful.
Oh, and should worse come to worse...do they just start garnishing your wages? Or do they give you a chance to prove undue hardship?
Full Version: Desperate for SL information.
QUOTE(Jewdee @ Jan 24 2008, 11:36 AM) 
To make a long story short, I have not paid on my student loans ever and it is has been 13 years now since I graduated school. It has been a long 13 years build up of uncontrollable circumstances that led me to file for bankruptcy in 2007, which we were discharged in 12/2007. My original balance was 24,000 and now is 49,000.
Ok, that leaves me now with student loans to START paying on. I am going to be financially able to pay 300.00 per month. I am all for paying it too. However, I have a problem. I have NO more forebearance time or default time left after March of this year. The minimum payment expected will be 380.00. I am 80.00 short of making the minimum payment required.
$380 is the minimum payment?? Is this the income sensitive payment?? If so, by paying $300 per month you will be past due and you will default in 270 days. Is this loan already consolidated??
I have nothing left out of my income for emergencys with paying the 300.00, so I have no other sources of coming up with the 80.00 extra dollars.
My question is: What can I do to keep this from going into default, or will it go into default if I am sending 300.00 monthly and minimum is 380? I called my lender which is ACS and they just told me to send in what I could and was really nice about it.
Most the CSR's are. However ACS could really care less what you pay. The entire balance is guaranteed by the government so they get their money whether you pay it or not.
Is there away I could talk to someone to get the amount lowered to 300.00?
By my calculations and the approximate dates you borrowed and historical interest rates, your interest is about $300/month. You will make little to no headway.
Should I let it go from my lender to a collection agency and work out a payment plan with them to pay the 300.00?
You let it default, they will add $10k in collection fees. A $300 payment may or may not be reasonable on a $60k debt.
My bankruptcy attorney told me they may intercept my tax refunds, but he highly doubt they would if I was paying 300.00 monthly to them on a regular basis. He also said that if I was paying the 300.00 monthly that they would not garnish my wages either.
I told him that if they took my taxes, there goes part of their 300.00 month payment, because I am using that for monthly payments and adding the remaining of my check to make the combined total of 300.00.
And if they take your taxes, how will you pay monthly? [/color
Any advice will be helpful.
Oh, and should worse come to worse...do they just start garnishing your wages? Or do they give you a chance to prove undue hardship?
[color="#FF0000"]They will still expect you to pay even under hardship. Once they hit the garnishment phase, they will be looking for 15% of your net pay, especially will a balance the size you are carrying,.
Ok, that leaves me now with student loans to START paying on. I am going to be financially able to pay 300.00 per month. I am all for paying it too. However, I have a problem. I have NO more forebearance time or default time left after March of this year. The minimum payment expected will be 380.00. I am 80.00 short of making the minimum payment required.
$380 is the minimum payment?? Is this the income sensitive payment?? If so, by paying $300 per month you will be past due and you will default in 270 days. Is this loan already consolidated??
I have nothing left out of my income for emergencys with paying the 300.00, so I have no other sources of coming up with the 80.00 extra dollars.
My question is: What can I do to keep this from going into default, or will it go into default if I am sending 300.00 monthly and minimum is 380? I called my lender which is ACS and they just told me to send in what I could and was really nice about it.
Most the CSR's are. However ACS could really care less what you pay. The entire balance is guaranteed by the government so they get their money whether you pay it or not.
Is there away I could talk to someone to get the amount lowered to 300.00?
By my calculations and the approximate dates you borrowed and historical interest rates, your interest is about $300/month. You will make little to no headway.
Should I let it go from my lender to a collection agency and work out a payment plan with them to pay the 300.00?
You let it default, they will add $10k in collection fees. A $300 payment may or may not be reasonable on a $60k debt.
My bankruptcy attorney told me they may intercept my tax refunds, but he highly doubt they would if I was paying 300.00 monthly to them on a regular basis. He also said that if I was paying the 300.00 monthly that they would not garnish my wages either.
I told him that if they took my taxes, there goes part of their 300.00 month payment, because I am using that for monthly payments and adding the remaining of my check to make the combined total of 300.00.
And if they take your taxes, how will you pay monthly? [/color
Any advice will be helpful.
Oh, and should worse come to worse...do they just start garnishing your wages? Or do they give you a chance to prove undue hardship?
[color="#FF0000"]They will still expect you to pay even under hardship. Once they hit the garnishment phase, they will be looking for 15% of your net pay, especially will a balance the size you are carrying,.
Didnt we go over all of this in August??
Have you looked into the possibility of consolidating with Direct Loans? If that's an option, take a look at their calculators and see if your payments would be lower. They offer more flexible repayment plans than ACS does.
She has already consolidated twice. http://creditboards.com/forums/index.php?s...=267818&hl=
QUOTE(LynnInMN @ Jan 24 2008, 01:33 PM)
She has already consolidated twice. http://creditboards.com/forums/index.php?s...=267818&hl=
Yikes...
It is nice to see that you are up todate on this forum and can research all my previous posts, it saves me the time in having to do so. I keep coming back to this forum because the bankruptcy forum was awesome in helping me get through it! I am through with our bankruptcy and I am focusing on my SL's now.
In reading the material you so kindly found, I read somewhere in that mess, that "if I was making an honest effort to pay, then I would not default." Does this not contradict what your telling me then?
How does a person make their minimum payment, when there is no money to make the full payment with? I can't get a second job, I have to small children. I receive daycare assistance for crying out loud as it is. I would have to get a night time job and there are no daycares open during the night.
Your telling me that they will garnish my wages when I am making a 300.00 a month payment?? So my children will suffer, because they won't accept the 300.00 a month as payment? What is wrong with the government today, they are not here to help the people..they are here to legally rob us blind!
You asked me how much I would be able to pay if they intercept my tax refund. I will be able to pay 150.00 monthly if they intercept my 2000.00 tax refund. I received a IM from someone that says that if they intercept my tax refund, that my wages won't be garnished unless it was over 100K. Is this true?
In reading the material you so kindly found, I read somewhere in that mess, that "if I was making an honest effort to pay, then I would not default." Does this not contradict what your telling me then?
How does a person make their minimum payment, when there is no money to make the full payment with? I can't get a second job, I have to small children. I receive daycare assistance for crying out loud as it is. I would have to get a night time job and there are no daycares open during the night.
Your telling me that they will garnish my wages when I am making a 300.00 a month payment?? So my children will suffer, because they won't accept the 300.00 a month as payment? What is wrong with the government today, they are not here to help the people..they are here to legally rob us blind!
You asked me how much I would be able to pay if they intercept my tax refund. I will be able to pay 150.00 monthly if they intercept my 2000.00 tax refund. I received a IM from someone that says that if they intercept my tax refund, that my wages won't be garnished unless it was over 100K. Is this true?
QUOTE(Jewdee @ Jan 24 2008, 05:04 PM)
It is nice to see that you are up todate on this forum and can research all my previous posts, it saves me the time in having to do so. I keep coming back to this forum because the bankruptcy forum was awesome in helping me get through it! I am through with our bankruptcy and I am focusing on my SL's now.
In reading the material you so kindly found, I read somewhere in that mess, that "if I was making an honest effort to pay, then I would not default." Does this not contradict what your telling me then?
An honest attempt at paying will not prevent you from defaulting. If you dont make the required payment, you WILL default.
How does a person make their minimum payment, when there is no money to make the full payment with? I can't get a second job, I have to small children. I receive daycare assistance for crying out loud as it is. I would have to get a night time job and there are no daycares open during the night.
Well if you had started paying on this 13 years ago before having kids, you probably wouldnt be in this mess.
Your telling me that they will garnish my wages when I am making a 300.00 a month payment?? So my children will suffer, because they won't accept the 300.00 a month as payment? What is wrong with the government today, they are not here to help the people..they are here to legally rob us blind!
You borrowed money and deferred repayment for 13 years while the interest was accruing!! I am sorry, but you have to start taking some responsiblity for your actions.
You asked me how much I would be able to pay if they intercept my tax refund. I will be able to pay 150.00 monthly if they intercept my 2000.00 tax refund. I received a IM from someone that says that if they intercept my tax refund, that my wages won't be garnished unless it was over 100K. Is this true?
Nope it is very false. Tax intercept is garnishment, an involuntary payment. When you are in default, they do not have to give you your taxes back period....legally they are entitled to keep them. Guarantors decided years ago if people were in voluntary repayment, they would remove the lien.
In reading the material you so kindly found, I read somewhere in that mess, that "if I was making an honest effort to pay, then I would not default." Does this not contradict what your telling me then?
An honest attempt at paying will not prevent you from defaulting. If you dont make the required payment, you WILL default.
How does a person make their minimum payment, when there is no money to make the full payment with? I can't get a second job, I have to small children. I receive daycare assistance for crying out loud as it is. I would have to get a night time job and there are no daycares open during the night.
Well if you had started paying on this 13 years ago before having kids, you probably wouldnt be in this mess.
Your telling me that they will garnish my wages when I am making a 300.00 a month payment?? So my children will suffer, because they won't accept the 300.00 a month as payment? What is wrong with the government today, they are not here to help the people..they are here to legally rob us blind!
You borrowed money and deferred repayment for 13 years while the interest was accruing!! I am sorry, but you have to start taking some responsiblity for your actions.
You asked me how much I would be able to pay if they intercept my tax refund. I will be able to pay 150.00 monthly if they intercept my 2000.00 tax refund. I received a IM from someone that says that if they intercept my tax refund, that my wages won't be garnished unless it was over 100K. Is this true?
Nope it is very false. Tax intercept is garnishment, an involuntary payment. When you are in default, they do not have to give you your taxes back period....legally they are entitled to keep them. Guarantors decided years ago if people were in voluntary repayment, they would remove the lien.
I am sorry to hear about your tough situation. The key to solving this situation from turning into a complete mess is taking action immediately.
A few suggestions:
- When you were going through the BK proceedings was there discussion on the impact on the SLs? Perhaps a hardship consideration. Although they tend to be extremely rare, they may be granted if you go in front of a sympathetic judge.
- Career: You did not mention your occupation, however I would recommend looking into careers in Education, Health to be able to get some of those loans forgiven through state/government programs.
- This is something you can definitely do: Sign up for uPromise a brilliant program that will help you pay down your SL balance as you shop for everyday items. Moderators: I hope that this is not seen as advertising as I am not affiliated with uPromise and my intention is to help this member.
- Start a business: Something like an ebay business, amazon.com etc. You can also do consulting work if your job is professional. By setting up a p/t business or becoming a consultant, you will be set your own hours while taking care of your kids.
I hope that you can try at least one of the suggestions that I have mentioned. If you don't pay down the loan principal, the interest will keep accruing. It's like a snowball that gets bigger and bigger. With your kids in consideration, please take action now!
A few suggestions:
- When you were going through the BK proceedings was there discussion on the impact on the SLs? Perhaps a hardship consideration. Although they tend to be extremely rare, they may be granted if you go in front of a sympathetic judge.
- Career: You did not mention your occupation, however I would recommend looking into careers in Education, Health to be able to get some of those loans forgiven through state/government programs.
- This is something you can definitely do: Sign up for uPromise a brilliant program that will help you pay down your SL balance as you shop for everyday items. Moderators: I hope that this is not seen as advertising as I am not affiliated with uPromise and my intention is to help this member.
- Start a business: Something like an ebay business, amazon.com etc. You can also do consulting work if your job is professional. By setting up a p/t business or becoming a consultant, you will be set your own hours while taking care of your kids.
I hope that you can try at least one of the suggestions that I have mentioned. If you don't pay down the loan principal, the interest will keep accruing. It's like a snowball that gets bigger and bigger. With your kids in consideration, please take action now!
QUOTE(New Englander @ Jan 24 2008, 07:37 PM)
I am sorry to hear about your tough situation. The key to solving this situation from turning into a complete mess is taking action immediately.
A few suggestions:
- When you were going through the BK proceedings was there discussion on the impact on the SLs? Perhaps a hardship consideration. Although they tend to be extremely rare, they may be granted if you go in front of a sympathetic judge.
OP didnt meet the Brunner test requirement of attempting to make good faith payments over the past five years. Also supporting minor children cannot be used as a defense for not paying the loan in the future.
- Career: You did not mention your occupation, however I would recommend looking into careers in Education, Health to be able to get some of those loans forgiven through state/government programs.
OP doesnt want to change jobs. However maybe she could work a part time job in the evenings/weekends. Or even hubby could work a part time job.
- This is something you can definitely do: Sign up for uPromise a brilliant program that will help you pay down your SL balance as you shop for everyday items. Moderators: I hope that this is not seen as advertising as I am not affiliated with uPromise and my intention is to help this member.
A few suggestions:
- When you were going through the BK proceedings was there discussion on the impact on the SLs? Perhaps a hardship consideration. Although they tend to be extremely rare, they may be granted if you go in front of a sympathetic judge.
OP didnt meet the Brunner test requirement of attempting to make good faith payments over the past five years. Also supporting minor children cannot be used as a defense for not paying the loan in the future.
- Career: You did not mention your occupation, however I would recommend looking into careers in Education, Health to be able to get some of those loans forgiven through state/government programs.
OP doesnt want to change jobs. However maybe she could work a part time job in the evenings/weekends. Or even hubby could work a part time job.
- This is something you can definitely do: Sign up for uPromise a brilliant program that will help you pay down your SL balance as you shop for everyday items. Moderators: I hope that this is not seen as advertising as I am not affiliated with uPromise and my intention is to help this member.
Talked to ACS again last night and here is what THEY suggested I do:
They told me that they adjusted their guidelines and I am now eligible for a Economic Hardship of 36 months. They are back dating it for me a year, so it will knock off most of the interest it has accured. I am sending in 300.00 monthly payments eff: 3/15/2008 while in my deferrment period. Then when that runs out, I have some other options before my resources are exhausted.
The Rep also told me that should I default on my loan, my income tax would probably be garnished, and If I was still paying something regularly to them, that they would more than likely not garnish my wages. Very rarely do they do both. He told me to just keep paying the most that I could.
Thank you and have a good day.
PS...be sure to keep this post handy for when I come back in 7 months or so to ask another question!!!!!
They told me that they adjusted their guidelines and I am now eligible for a Economic Hardship of 36 months. They are back dating it for me a year, so it will knock off most of the interest it has accured. I am sending in 300.00 monthly payments eff: 3/15/2008 while in my deferrment period. Then when that runs out, I have some other options before my resources are exhausted.
The Rep also told me that should I default on my loan, my income tax would probably be garnished, and If I was still paying something regularly to them, that they would more than likely not garnish my wages. Very rarely do they do both. He told me to just keep paying the most that I could.
Thank you and have a good day.
PS...be sure to keep this post handy for when I come back in 7 months or so to ask another question!!!!!
I can file for bankrupcty again in 7 years....perhaps by then, I can include my SL's...what is remaining of them!!
I would like to learn more about the upromise program.
AND any good online jobs. I have even tried to get hired through Pearson Education, grading papers.
AND any good online jobs. I have even tried to get hired through Pearson Education, grading papers.
QUOTE(Jewdee @ Jan 25 2008, 10:54 AM)
Talked to ACS again last night and here is what THEY suggested I do:
They told me that they adjusted their guidelines and I am now eligible for a Economic Hardship of 36 months. They are back dating it for me a year, so it will knock off most of the interest it has accured. I am sending in 300.00 monthly payments eff: 3/15/2008 while in my deferrment period. Then when that runs out, I have some other options before my resources are exhausted.
Economic hardship deferment, if you have it available as you can only get 3 years max, will only stop interest accruals on sub loans. Any unsub will continue to accrue. And judging by the amount of interest you have accrued, my hunch is most of your loans are unsub.
The Rep also told me that should I default on my loan, my income tax would probably be garnished, and If I was still paying something regularly to them, that they would more than likely not garnish my wages. Very rarely do they do both. He told me to just keep paying the most that I could.
Again WRONG information. When you default, ACS is paid off and out of the picture. You payments would go to your guarantor, not your lender/servicer ACS. ACS NEVER garnishes and as such the know squat about it!! Whether your taxes are taken or your wages are garnished is completely up to your guarantor, not ACS. Reps at lender/servicers know very little as to what happens to your loan once it leaves their doors.
Thank you and have a good day.
PS...be sure to keep this post handy for when I come back in 7 months or so to ask another question!!!!!
They told me that they adjusted their guidelines and I am now eligible for a Economic Hardship of 36 months. They are back dating it for me a year, so it will knock off most of the interest it has accured. I am sending in 300.00 monthly payments eff: 3/15/2008 while in my deferrment period. Then when that runs out, I have some other options before my resources are exhausted.
Economic hardship deferment, if you have it available as you can only get 3 years max, will only stop interest accruals on sub loans. Any unsub will continue to accrue. And judging by the amount of interest you have accrued, my hunch is most of your loans are unsub.
The Rep also told me that should I default on my loan, my income tax would probably be garnished, and If I was still paying something regularly to them, that they would more than likely not garnish my wages. Very rarely do they do both. He told me to just keep paying the most that I could.
Again WRONG information. When you default, ACS is paid off and out of the picture. You payments would go to your guarantor, not your lender/servicer ACS. ACS NEVER garnishes and as such the know squat about it!! Whether your taxes are taken or your wages are garnished is completely up to your guarantor, not ACS. Reps at lender/servicers know very little as to what happens to your loan once it leaves their doors.
Thank you and have a good day.
PS...be sure to keep this post handy for when I come back in 7 months or so to ask another question!!!!!
QUOTE
I can file for bankrupcty again in 7 years....perhaps by then, I can include my SL's...what is remaining of them!!
You still will have difficulty meeting part of the Brunner test. Your kids will be older and no daycare expenses, moving out and supporting themselves which means more disposable income for you.
Can you adjust your W-4 so you won't get a huge tax refund and get more in your paycheck? I did that and I'd rather pay $100.00 to the IRS than letting them keep my money for free without paying me interest.
QUOTE(Jewdee @ Jan 25 2008, 10:58 AM)
I would like to learn more about the upromise program.
AND any good online jobs. I have even tried to get hired through Pearson Education, grading papers.
AND any good online jobs. I have even tried to get hired through Pearson Education, grading papers.
You can sign up on http://www.upromise.com
As for online jobs, that is something I am not too familiar with. I would suggest doing google searches or talking with a local emplyment and training skills office.
Being in the finance field, I know that many tax firms were hiring and training p/t associates in Winter 07.
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