Samantha wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.
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“Dear Steve,
I am virtually debt-free, except for a HUGE pile of student loans (around $55K in bhoth public and private) that I can’t seem to make a dent in. I’ve consolidated the public loans but the private loans make my debt-to-income ratio seem out of control.
I’d love to get tips on how to better manage the student loans – are there any ways to reduce the amounts due, or control the interest rate? As I mentioned above, I’ve consolidated the federal loans, but the private lender seems unwilling to work with me.
Thanks SO much!
Samantha”
The Answer:
Dear Samantha,
I would absolutely love to tell you that there is some magic solution to your private student loan issue, but there isn’t.
Your only real option would be to find a private student loan lender that would consolidate them for you. See I’m Drowning in Private Student Loans. – Kathy for a list of some that do/did.
Private student loans can really be sucker debts. They pretend to be “good debt” but can’t be discharged in bankruptcy and can pursue you till you die. My best advice to anyone considering taking out private student loans for college, be careful.
