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DeVry University Told Me to Get Private Student Loans. I Can’t Pay. – Javier

“Dear Steve,

My name is Javier and I have about 105K in school loans. Half of it is interest.

DeVry University told me that I had to take private school loans so I did. The interest is very high.

At that time I went through a divorce at graduating in 2009.

I since got remarried and I have two step daughters which I take care off and two children of my own with my current wife.

My with stays at home and takes care of our children and I work. I make ok money to survive but it really does not leave us for much of anything outside of tight living.

We would like to settle our family and buy a home. This is our dream to have a home of our own.

I contemplated bankruptcy but I hear it is impossible to discharge school loans. Please help me… I do not have any other debt really besides these school loans that part have been charged off. I have like 10K money in a 401K. What can I do to be able to get into a home?

Can I bankrupt private school loans?

How can I get back on track and avoid the heavy interest charges?

How can I buy a home at this point?

HOW can I get to a point to have good credit again?

Thank you in advance for your help.

Best Regards,

Javier”

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The Answer

DeVry University Told Me to Get Private Student Loans. I Cant Pay.   Javier

Dear Javier,

Basically, you’re screwed.

Any concessions on private student loans are available on from the private student loan lender. They typically have few. Even a deferment is a trap. The period when you don’t make payments will cause your loan balance to explode.

It is possible to discharge student loans in bankruptcy but you have to find a bankruptcy attorney that will be willing to go ten extra miles for you in a bankruptcy proceeding.

The research found that consumers that were able to successfully discharge their student loans in bankruptcy under the undue hardship standard had these three characteristics.

  1. Less likely to be employed.
  2. More likely to have a medical hardship.
  3. More likely to have lower annual incomes the year before they filed for bankruptcy.

For more information on this, see How to Really Discharge Your Student Loans in Bankruptcy. Many Can. But Never Try.

Until the legislators take action to make private student loan lenders offer concessions or allow the loans to be dischargeable again, there is no good news I’m afraid.

Bonus Video Answer

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

DeVry University Told Me to Get Private Student Loans. I Cant Pay.   Javier
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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • http://www.facebook.com/blen.butterson Blen Butterson

    Hi Steve, wanted to make a comment that DeVry university is a for-profit university with very questionable business practices.

    http://seekingalpha.com/article/650591-devry-university-receives-a-failing-grade-for-investment-value

    This isn’t really in your realm of the debt world, but it’s also not totally out of it, since these for-profit colleges are responsible for 50% of all defaults, though their students make up only 10% of all college students.

    To the poster – asking you to take out private loans is a key tactic of these schools. I suggest you leave DeVry and enroll in a community college close to you.

    • http://www.facebook.com/blen.butterson Blen Butterson

      For private student loans, there is a network of nonprofit credit unions that do private student loan consolidation. Never used them, but they could be an option to check out. You need decent credit and monthly income over $2000 though. The website is http://www.CUStudentloans.org. Wouldn’t mind seeing a review on them as well from Steve.

      • http://GetOutOfDebt.org Steve Rhode

        Just make sure you don’t bank at that credit union or have any other loans with them. The cross-collateralization trap is nasty business with credit unions.

        I took a quick look and what jumped out was the request for co-signers. Yikes. Welcome to generational debt.

        I’ll put it on my list to do a review.

  • Javier

    Steve my school loans are through Direct loans and salie may…I wonder if I was correct in stating private school loans which I believe it is or was called a signature loan. Please let me know if this makes a difference. Thank you for your help!!
    Javier

    • http://GetOutOfDebt.org Steve Rhode

      Contact your student loan servicer and directly ask them if they are federal loans or private loans.

      • http://www.facebook.com/blen.butterson Blen Butterson

        http://www.NSLDS.ed.gov will also show only your federal loans, which is another good way to find out.

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