I graduated from undergrad in May 2008, and deferred my loans until this spring.
They finally caught up with me, and because I didn't make a budget and learn how to make a payment plan, I recently found myself 90 days past-due on my accounts.
The problem is that $65,000 of my debt is with a private company (AES) and only about $20,000 of it is in federal loans.
I can consolidate my federal loans to have an income-based repayment plan (I make about $38,000/year (that's about $2400/mo take home, with about $1200/mo fixed costs, not including loan payments).
I need to find a way to make my private loan payments manageable, and still be able to save money on the side. Some of the private loans have fallen into collections, and I am making an $800 payment on the 15th of the month to bring my accounts under 60 days past due.
I wish that my parents had been able to advise me not to take those loans - but never having attended college, they didn't know any better. The company has not been helpful in giving me any advice on how to consolidate these loans or make them manageable. Right now, payments are about $800 a month - on the private loans alone!
I did some research online and found that I may have to consolidate with another bank - by taking out a loan with a bank to pay off the loans and then just repay the bank. However, being a recent graduate and now having past-due payments on my credit report, I'm sure I wouldn't qualify. I don't have any family members I can ask to co-sign.
How do I get these loans manageable before it's too late? I want to rebuild my credit so that I can have a good credit score in about a year, but I feel overwhelmed and don't know what steps to take.
Any advice you have would be greatly appreciated!
Full Version: Private Loans: How to manage? Consolidate? Advice?
Private loans are just not that flexible...there is nothing requiring them to be. The only thing you can do is increase your income so you can make higher payments to get these paid off quickly. This might mean working a second job or cutting back on other expenses.
Collegegrad--I just wanted to let you know that you are NOT alone!
My husband and I have private sl through AES. When mine became due, there was no way I could afford the payment. I applied with several places in order to consolidate them. The problem was no one was consolidating due to the economy. I even applied before any deliquences were on my account. In fact, a lot of banks are not doing private sl.
I have my federal ones conslidated and are in economic hardship deferment, but I will be doing the income contingency repayment soon with those.
I am about 90 days past due on my private student loans now. I do send it what I can, but of course that does not work for them.
I have been doing alot of reading. I read not to send the money into the collection agency, but rather the orginal creditor (AES), which I am sure they still have your loan. If you are still recieving statements from them, then you are.
Is AES the one that is not offering any help or assistance? I think there are other options out there for situations like ours, but they are not freely offered. It has been suggested that I contact AES directly and try to work something out. I might send them a certified letter, so everything is in writing. (I have read and heard too many times people getting jipped when things are not in writing.)
What is your email address and I would be happy to email you more. I would make sure you do the:
name at gmail dot com (or whatever is is)
My husband and I have private sl through AES. When mine became due, there was no way I could afford the payment. I applied with several places in order to consolidate them. The problem was no one was consolidating due to the economy. I even applied before any deliquences were on my account. In fact, a lot of banks are not doing private sl.
I have my federal ones conslidated and are in economic hardship deferment, but I will be doing the income contingency repayment soon with those.
I am about 90 days past due on my private student loans now. I do send it what I can, but of course that does not work for them.
I have been doing alot of reading. I read not to send the money into the collection agency, but rather the orginal creditor (AES), which I am sure they still have your loan. If you are still recieving statements from them, then you are.
Is AES the one that is not offering any help or assistance? I think there are other options out there for situations like ours, but they are not freely offered. It has been suggested that I contact AES directly and try to work something out. I might send them a certified letter, so everything is in writing. (I have read and heard too many times people getting jipped when things are not in writing.)
What is your email address and I would be happy to email you more. I would make sure you do the:
name at gmail dot com (or whatever is is)
QUOTE (Txgirl @ Apr 2 2009, 03:51 PM) 
Collegegrad--I just wanted to let you know that you are NOT alone!
I have been doing alot of reading. I read not to send the money into the collection agency, but rather the orginal creditor (AES), which I am sure they still have your loan. If you are still recieving statements from them, then you are.
If your account is in collections, the collection agency still gets their commision, regardless of where you send it. Some lenders will forward the payment itself, causing a delay in posting.
Is AES the one that is not offering any help or assistance? I think there are other options out there for situations like ours, but they are not freely offered. It has been suggested that I contact AES directly and try to work something out. I might send them a certified letter, so everything is in writing. (I have read and heard too many times people getting jipped when things are not in writing.)
If your account is assigned to a CA, it is usually done so under contract. Thus AES will back away unless there is a violaion. Also student loans will not negotiate in writing. This is due to the prom note that is in effect. All the terms are set out there and they will put nothing in writing that contradicts it.
Private loans offer very few if any options. Some will give a 6 month forebearance, others will lower the payment for a short period of time. However, they are not obligated to do so and most cases I have read, no resolution is achieved.
What is your email address and I would be happy to email you more. I would make sure you do the:
name at gmail dot com (or whatever is is)
I have been doing alot of reading. I read not to send the money into the collection agency, but rather the orginal creditor (AES), which I am sure they still have your loan. If you are still recieving statements from them, then you are.
If your account is in collections, the collection agency still gets their commision, regardless of where you send it. Some lenders will forward the payment itself, causing a delay in posting.
Is AES the one that is not offering any help or assistance? I think there are other options out there for situations like ours, but they are not freely offered. It has been suggested that I contact AES directly and try to work something out. I might send them a certified letter, so everything is in writing. (I have read and heard too many times people getting jipped when things are not in writing.)
If your account is assigned to a CA, it is usually done so under contract. Thus AES will back away unless there is a violaion. Also student loans will not negotiate in writing. This is due to the prom note that is in effect. All the terms are set out there and they will put nothing in writing that contradicts it.
Private loans offer very few if any options. Some will give a 6 month forebearance, others will lower the payment for a short period of time. However, they are not obligated to do so and most cases I have read, no resolution is achieved.
What is your email address and I would be happy to email you more. I would make sure you do the:
name at gmail dot com (or whatever is is)
Thanks for clarifying everything!
Yes, you are correct very little, if no room for negotiations.
Yes, you are correct very little, if no room for negotiations.
txgirl - candace . lea @ gmail (dot) com
It's so frustrating. It seems like there is no alternative or way to even make these loans somewhat manageable. I'm not looking for an easy way out - just a way to live within my means while repaying my loans!!
It's so frustrating. It seems like there is no alternative or way to even make these loans somewhat manageable. I'm not looking for an easy way out - just a way to live within my means while repaying my loans!!
Imagine you open a CD in a bank and at the end of the CD term bank tells you - we can't let you withdraw all of the money, it'll take us 20 years to pay you back. Ofcourse this can't happen because deposits are FDIC insured and government would step in, take over the bank and pay you back.
But if this was a real possibility? Would you deposit money to any bank or would you be very careful where to deposit your money? Would you screen banks and would only deposit money to the bank with the strongest balance sheet?
Same with the Private Student loans, government allowed them to be very strict to entice invstors, to give an opportunity to attend college to people with no credit, with less than perfect credit and to people with no cosigners.
The root of the problem is that education is not free (actually very expensive) and government doesn't have (or doesn't allocated) enough money for subsidized government loans to cover 100% of the student loan needs. Thus it wants to supplement government loans with private loans to open education up for everyone.
There are really no alternatives, it's either allocate enough government money for 100% of the student loan needs or make it very easy for Private Student Lenders to enforce terms of their loans.
Make Private Student Loans treated like any other Unsecured Creditor and it will be the same Credit/Income requirements to get 20K student loan as to get a credit card with 20K limit.
But if this was a real possibility? Would you deposit money to any bank or would you be very careful where to deposit your money? Would you screen banks and would only deposit money to the bank with the strongest balance sheet?
Same with the Private Student loans, government allowed them to be very strict to entice invstors, to give an opportunity to attend college to people with no credit, with less than perfect credit and to people with no cosigners.
The root of the problem is that education is not free (actually very expensive) and government doesn't have (or doesn't allocated) enough money for subsidized government loans to cover 100% of the student loan needs. Thus it wants to supplement government loans with private loans to open education up for everyone.
There are really no alternatives, it's either allocate enough government money for 100% of the student loan needs or make it very easy for Private Student Lenders to enforce terms of their loans.
Make Private Student Loans treated like any other Unsecured Creditor and it will be the same Credit/Income requirements to get 20K student loan as to get a credit card with 20K limit.
@ Nononsense,
I understand. But that doesn't make the situation any easier - regardless, I wish that my financial aid office would have done a better job of exhausting all other opportunities and explaining the pros and cons of taking a private student loan before they put the papers in front of me to sign.
I understand. But that doesn't make the situation any easier - regardless, I wish that my financial aid office would have done a better job of exhausting all other opportunities and explaining the pros and cons of taking a private student loan before they put the papers in front of me to sign.
collegegrad:
I remember, there was even a scandal a few years back, when colleges were getting kick back from certain Student Loan Lenders to steer students toward their firms, even if their terms where not the best.
I don't remember if anything (any restitution) were paid out of it. Perhaps your college was one of the involved?
I remember, there was even a scandal a few years back, when colleges were getting kick back from certain Student Loan Lenders to steer students toward their firms, even if their terms where not the best.
I don't remember if anything (any restitution) were paid out of it. Perhaps your college was one of the involved?
QUOTE (nononsense @ Apr 3 2009, 11:45 AM)
collegegrad:
I remember, there was even a scandal a few years back, when colleges were getting kick back from certain Student Loan Lenders to steer students toward their firms, even if their terms where not the best.
I don't remember if anything (any restitution) were paid out of it. Perhaps your college was one of the involved?
I remember, there was even a scandal a few years back, when colleges were getting kick back from certain Student Loan Lenders to steer students toward their firms, even if their terms where not the best.
I don't remember if anything (any restitution) were paid out of it. Perhaps your college was one of the involved?
The scandal did not affect students at all....this was over federal loan originations where the rates were all the same.
This is a "lo-fi" version of our main content. To view the full version with more information, formatting and images, please click here.