Hello,

I currently have 3 student loans and am looking for ways to lower or eliminate the payments. I completed my schooling and became legally disabled a few years afterwards. For the past 2 years my adjusted gross income has been $0 because I am only receiving income from Social Security Disability checks.

I owe about $45k total on the loans. They are all in repayment but one is about 150 days delinquent. Two of the loans are Private and one is a subsidized stafford.

I believe that I qualify for one of the new programs that reduces my payments down to $0 based on my income. When I login to the different loan servicers websites I am flooded by information on consolidating loans and its very confusing to me.

Could anyone offer some assistance on helping me determine what is the best course of action for me to lower my payments?


Thank you!


Sallie Mae
150 days delinquent in the amount of $1400~
Monthly Payment: $250~
Total Amount Outstanding: $24,000~
Status: Repayment
Interest Rate: 9.75%
Tuition Answer-UNSUB/SLM Education Credit Finance Cor

AES
Monthly Payment: $150~
Status: Repayment
Interest Rate: 5.510%
Total Amount Outstanding: $21,000~
Loan Program: ALPLN
Subsidy: NON SUB

Citibank Student Loans
Status: Repayment
Interest Rate: 2.23%
Total Amount Outstanding: $1800~
Federal Subsidized Stafford

You're thinking of the new Income Based Repayment plan. Lenders are only required to offer IBR for federal loans which, in your case, is only the small Stafford. Based on what you describe, you most likely could reduce the payments on that one to $0. Unfortunately, since your two larger loans are private, you're pretty much at the mercy of the lender. I'd recommend calling them to see if you can work something out.

That 1800 stafford can EASIILY turn into 5000 in just a couple of years. And they can, and WILL, garnish your social security if it goes long enough without repayment (15%). SSI is 100% considered a garnishable source of income.

Sorry, Leigh, but SSI is only subject to garnishment in the case of an SSI overpayment. Otherwise, it can't be touched. Even for a student loan. Perhaps you meant to say SSDI, but the devil's in the details It's really a moot point anyway, since the OP can most likely qualify for a $0 IBR payment on the Stafford, which is really the least of his worries when you consider the amounts he owes on the different loans.

Thanks for the replies. My income is Social Security Disability, not Supplemental Security Income. One main difference is that SSD is not garnish-able except for child/alimony obligations or IRS dues. I guess the point is that no private lender can touch it.

Since I have 3 loans, one being a Stafford, can I consolidate all 3 into one that qualifies for Income Based Repayment?

In that case, they could garnish for the Stafford, but not for the private loans AFAIK.



No, you can't combine federal and private loans like that. Even you you found a lender willing to do it, you'd then have just one big private loan and still couldn't qualify for IBR.