I know i'm not alone, but feels sometimes like I am

[bnwebm]

I've been reading through these forums, with some hope that I can turn my life around. I'm in my mid 40's, got my master's degree later in life and have what I believe is a daunting amount of loans, none private. The amount is $95k or so and that is with paying out of pocket for my first two years of undergrad. I have a severe learning disability that prevented me from being accepted for a master's program at public institutions so I was forced to go with the one private one that did accept me. I graduated, but have struggled to make a liveable wage, until now. Lucky me, I now make the most I ever have, at $45k, which would be absolutely liveable if I didn't have student loans that I hadn't addressed because I was making as little as $16k and only as much as $30k for several years. I am no slacker but see my debt as incredibly overwhelming but want to change my credit score around. I see people on here stating that the rehab amount would be 1% of the loan, but for my loan, that would amount to nearly $1k a month, leaving little for anything else. I drive a crap car that regularly needs repair and I can't get a car loan because of my student loans, so I keep paying for expensive repairs on a small Chevy (in case anyone thought I was living large,lol). I don't really have a choice but to rehab, but wonder if anyone has experience where the rehab amount is more reasonable? At the end of the month, and this is with my currently low rent which will rise when i'm forced to move out of a temporary living situation, I have little left for anything. I don't go to movies, no vacations and don't buy much of anything. My clothes are from thrift stores and the only new clothing I buy is underwear. Any thoughts or suggestions are greatly appreciated.

[LynnInMN]

Are these all federal loans????

[bnwebm]

Yes, they are.

[RedHairedLady]

Have you looked into an income based repayment plan for your loans?

Edited November 4, 2013 by RedHairedLady

[bnwebm]

Have you looked into an income based repayment plan for your loans?

That's what I plan to do. My main problem right now is rehab and the amount i'll needs to get current. I have no savings and no disposable income to even do that.

[hodap2001]

Did I miss something? Are your student loans defaulted? Your post didn't indicate that you were defaulted, can you please clarify your current student loan status?

[amandanicolem87]

Can I ask what your degree is in? Is there any way for you to get a job in public works? Then most of your student loans would be forgiven.... Just a thought. If that were me, I'd do it even if that meant having to move a good distance.

[bnwebm]

Did I miss something? Are your student loans defaulted? Your post didn't indicate that you were defaulted, can you please clarify your current student loan status?

Yep, defaulted, didn't have any money to pay them after bills, then my job was eliminated and I was unemployed for 3 years. I expended my forebearances and deferments when I was making a slight income prior to that (was at $19k a year).

[bnwebm]

Can I ask what your degree is in? Is there any way for you to get a job in public works? Then most of your student loans would be forgiven.... Just a thought. If that were me, I'd do it even if that meant having to move a good distance.

Counseling and yes, that is my plan, to bring the loans current and have them (hopefully) forgiven after 10 years. My main problem is getting them current.

[hodap2001]

What I would recommend is that you contact the collection agency and request reasonable and affordable monthly payments to tackle this debt and request Rehabilitation. You need to be prepared and therefore recommending that you make a complete itemized list of monthly income and expenses (you can find a itemized expense sheet by searching in Google). You must be honest and forthright in how much money you are bringing in monthly and your expenses - Do not over exaggerate your expenses (i.e. I need to spend $300.00 a month on shopping and eating out -- that is not a qualified expense, neither is cable, cut it and other useless expenses!). You should review your financial records for the past six months and do an average mean of your expenses - Gas, you average $40.00 a week for fill-up. Present this itemized expense sheet a long with proof of income and tell them this is the available money I have towards my student loan debt and I have nothing else available. They will review your records and try to come up with a reasonable and affordable payment. Talk to them before they perform Administrative Wage Garnishment which will most likely hurt you financially more than this route and tax offset.

 

If you are prepared for the consequences of negative remarks on your credit profile and you DO NOT like the reasonable and affordable option through Rehabilitation, then Consolidate your student loans out of Default with Direct Consolidation Loan (Federally Backed program for Federal Student Loans ONLY) and apply for an income driven repayment plan (i.e. ICR, IBR, Pay as You Earn, Etc) and your monthly payments will be based upon your yearly Adjusted Gross Income that you report on your annual tax return! Your monthly payment could be as little as $0.00 dollars a month! Yes, you read that correctly a $0.00 monthly payment as long as you qualify!

 

Now, it is up to you to decide what you will do with this guidance I have provided to you. The choice is yours to make.... Good Luck!!

Edited November 5, 2013 by hodap2001

[bnwebm]

What I would recommend is that you contact the collection agency and request reasonable and affordable monthly payments to tackle this debt and request Rehabilitation. You need to be prepared and therefore recommending that you make a complete itemized list of monthly income and expenses (you can find a itemized expense sheet by searching in Google). You must be honest and forthright in how much money you are bringing in monthly and your expenses - Do not over exaggerate your expenses (i.e. I need to spend $300.00 a month on shopping and eating out -- that is not a qualified expense, neither is cable, cut it and other useless expenses!). You should review your financial records for the past six months and do an average mean of your expenses - Gas, you average $40.00 a week for fill-up. Present this itemized expense sheet a long with proof of income and tell them this is the available money I have towards my student loan debt and I have nothing else available. They will review your records and try to come up with a reasonable and affordable payment. Talk to them before they perform Administrative Wage Garnishment which will most likely hurt you financially more than this route and tax offset.

 

If you are prepared for the consequences of negative remarks on your credit profile and you DO NOT like the reasonable and affordable option through Rehabilitation, then Consolidate your student loans out of Default with Direct Consolidation Loan (Federally Backed program for Federal Student Loans ONLY) and apply for an income driven repayment plan (i.e. ICR, IBR, Pay as You Earn, Etc) and your monthly payments will be based upon your yearly Adjusted Gross Income that you report on your annual tax return! Your monthly payment could be as little as $0.00 dollars a month! Yes, you read that correctly a $0.00 monthly payment as long as you qualify!

 

Now, it is up to you to decide what you will do with this guidance I have provided to you. The choice is yours to make.... Good Luck!!

Contact the CA or the govt?

[hodap2001]

CA as they work on behalf of the U.S. Department of Education.