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Obama Student Loan Forgiveness Program

“Dear Steve,

I have a high student loan debt at 8%. Part of it is unsubsidized.

I have heard talk of a new plan by the Obama administration to forgive student loan debt. How will this new plan be implemented? Who will be able to take advantage of it?

Alex”

.

Dear Alex,

I am afraid that at this point it is still a whisper in the wind. I am not aware of any mass program that would forgive student loan debt. If there was such a program I would suggest it to everyone.

There are some programs to forgive student loan debt but they appear to be somewhat unrealistic. For example, you could work full-time for ten years in a disadvantaged part of the country and then ask for loan forgiveness. How many can do that? Or if you are a teacher, you might qualify for a teacher loan forgiveness program.

There are also some good opportunities out to consolidate government backed student loans at low rates or apply for a special Income Based Repayment (IBR) program. It won’t forgive your debt but it can lower your payments. You can use the IBR online calculator to see if you are eligible.

Monthly payments in the IBR program will be capped at 15 percent of monthly discretionary income. After 25 years of consistent payments, any remaining debt is forgiven. Hey, it’s only 25 years.

UPDATE: President Obama will propose a plan to cut the student loan payments of millions of Americans during his State of the Union address, the White House announced Monday. The president’s plan would cap payments on federal loans at 10% of a borrower’s income above a set minimum, defined as 150% of the poverty level for the borrower’s family, and allow loans to be forgiven after 20 years instead of 25.

Student Loan Resources

You can use the following student loan resources to help reorganize, discharge or forgive your student loan payments.

The Overall Guide to Dealing With Student Loan Debt

Get Help For Your Student Loan Problem

Discharge Your Student Loans in Bankruptcy

Getting Sued Over a Student Loan

Student Loan Forgiveness and Discharge Information

Watch Out for Student Loan Assistance Programs

Student Loan Consolidation Information

Specific Federal Student Loan Repayment Program Information

Maybe College Isn’t the Answer

Update 10-26-2011

Help Americans Manage Student Loan Debt by Capping Monthly Payments to What They Can Afford
  • Allow borrowers to cap their student loan payments at 10% of discretionary income. In the 2010 State of the Union, the President proposed – and Congress quickly enacted – an improved income-based repayment (IBR) plan, which allows student loan borrowers to cap their monthly payments at 15% of their discretionary income. Beginning July 1, 2014, the IBR plan is scheduled to reduce that limit from 15% to 10% of discretionary income.
  • The President announced that his Administration is putting forth a new “Pay As You Earn” proposal to make sure these same important benefits are made available to some borrowers as soon as 2012. The Administration estimates that this cap will reduce monthly payments for more than 1.6 million student borrowers.

For example:

  • A nurse who is earning $45,000 and has $60,000 in federal student loans. Under the standard repayment plan, this borrower’s monthly repayment amount is $690. The currently available IBR plan would reduce this borrower’s payment by $332 to $358. President Obama’s improved ‘Pay As You Earn’ plan will reduce her payment by an additional $119 to a more manageable $239 — a total reduction of $451 a month.
  • A teacher who is earning $30,000 a year and has $25,000 in Federal student loans. Under the standard repayment plan, this borrower’s monthly repayment amount is $287 . The currently available IBR plan would reduce this borrower’s payment by $116, to $171. Under the improved ‘Pay As You Earn’ plan, his monthly payment amount would be even more manageable at only $114. And, if this borrower remained a teacher or was employed in another public service occupation, he would be eligible for forgiveness under the Public Service Loan Forgiveness Program after 10 years of payments .
  • Continues to provide help for those already in the workforce. Recent graduates and others in the workforce who are still struggling to pay off their student loans can immediately take advantage of the current income-based repayment plan that caps payments at 15% of the borrower’s discretionary income to help them manage their debt. Currently, more than 36 million Americans have federal student loan debt, but fewer than 450,000 Americans participate in income-based repayment. Millions more may be eligible to reduce their monthly payments to an amount affordable based on income and family size. The Administration is taking steps to make it easier to participate in IBR and continues to reach out to borrowers to let them know about the program .

The CFPB also released the Student Debt Repayment Assistant, an online tool that provides borrowers, many of whom may be struggling with repayment, with information on income-based repayment, deferments, alternative payment programs, and much more. The Student Debt Repayment Assistant is available online.

Improve Ease of Making Payments and Reduce Default Risk by Consolidating Loans

Provide a discount on consolidation loans. While all new federal student loans are now Direct Loans thanks to the historic reforms in the Health Care and Education Reconciliation Act, there are still $400 billion outstanding in old Federal Family Education Loans. These loans offer fewer repayment options and are unnecessarily expensive for taxpayers. In addition, about 6 million borrowers have at least one Direct Loan and at least one FFEL loan, which requires them to submit two separate monthly payments, a complexity that puts them at greater risk of default.

To ensure borrowers are not adversely impacted by this transition and to facilitate loan repayment while reducing taxpayer costs, the Department of Education is encouraging borrowers with split loans to consolidate their guaranteed FFEL loans into the Direct Loan program. Borrowers do not need to take any action at this time. Beginning in January 2012, the Department will reach out to qualified borrowers early next year to alert them of the opportunity.

This special consolidation initiative would keep the terms and conditions of the loans the same, and most importantly, beginning in January 2012, allow borrowers to make only one monthly payment, as opposed to two or more payments, greatly simplifying the repayment process. Borrowers who take advantage of this special, limited-time consolidation option would also receive up to a 0.5 percent reduction to their interest rate on some of their loans, which means lower monthly payments and saving hundreds in interest. Borrowers would receive a 0.25 percent interest rate reduction on their consolidated FFEL loans and an additional 0.25 percent interest rate reduction on the entire consolidated FFEL and DL balance.

For example:

  • A borrower about to enter repayment with two $4,500 FFEL Stafford loans (at 6.0%) and a $5,500 Direct Stafford loan (at 4.5%). Under Standard Repayment, the borrower can expect to pay a total of $4,330 in interest until the loans are paid in full. If this borrower consolidates their FFEL loans under this initiative they would save $376 in interest payments, and make only one payment per month, instead of two.
  • A borrower in repayment with a $32,000 FFEL Consolidation loan (at 6.25%) and a $5,500 Direct Unsubsidized Stafford loan (at 6.8%). Under Standard Repayment, the borrower can expect to pay a total of $13,211 in interest until the loans are paid in full. If this borrower consolidates the FFEL loan under this initiative they would save $964 in interest payments, and make only one payment per month instead of two.

Update 1-24-2012

President Obama has refocused attention again on student loan issues and the cost of education in his state of the union speech.

When kids do graduate, the most daunting challenge can be the cost of college. At a time when Americans owe more in tuition debt than credit card debt, this Congress needs to stop the interest rates on student loans from doubling in July. Extend the tuition tax credit we started that saves middle-class families thousands of dollars. And give more young people the chance to earn their way through college by doubling the number of work-study jobs in the next five years.

Of course, it’s not enough for us to increase student aid. We can’t just keep subsidizing skyrocketing tuition; we’ll run out of money. States also need to do their part, by making higher education a higher priority in their budgets. And colleges and universities have to do their part by working to keep costs down. Recently, I spoke with a group of college presidents who’ve done just that. Some schools re-design courses to help students finish more quickly. Some use better technology. The point is, it’s possible. So let me put colleges and universities on notice: If you can’t stop tuition from going up, the funding you get from taxpayers will go down. Higher education can’t be a luxury – it’s an economic imperative that every family in America should be able to afford. – Source

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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.
  • Proudmotherof4

    Hey Steve, My daughter also has a student loan. she has gone blind over the past 10years. She is disabled and her only benefits are Social security. She was employed briefly last year by the state with a small internship. She is looking for a job with no luck. She pays $100.00 per month and loaned just under $10,000.00. She is 31yrs old. Is there anyone she should contact about her loan? Thanks

  • Zepher47

    Can you qualify for IBR if you are receiving Social Security benifits?

  • Chelsi

    i am a 28 year old mom of two and have been stuggling to pay my 8,000 in student loans and my monthy expenses. i do not want to go back to school. is there any volunteer programs that i can do to help me pay for my student loans?

  • Miguel Martinez

    Can parents who took out parent plus loans benefit from this new program?

  • Evelyn

    I ha
    ve a student loan since 1984 and have not paid in full owe 14.000.00 I have had many defferments due to financial hardships and multiple layoff from work.  They are transferring the loan to a debt collector.  is there any hope for me?

  • Tyler Dunson

    I am n the same boat as everyone here.. Sallie mae ruins lives. I started with 60 grand in loans and now up to 90 grand. I just cant afford to pay. I think everyone should just stop paying. If they have no money coming in, they would go under. I know there are a ton of petitions going around but i think there are other ways to get our message across. Email me for more information… [email protected]

  • http://ameriloansearch.com/ no credit check loans

    The Federal Government should be out of the way for the total control of The Student Loan Industry, the problem is in the high tuition that universities charge for credits, if the Feds really wants to help, that is the field to work, but NO, No, No that area is untouchable for the federal Government , majority of universities are centers for liberal indoctrination and our liberals friends from the White House and Senate and some Liberals Republicans don’t want fix the problem, it is like in the medical field if they don’t produce legislation limiting the medical malpractice demands, insurance are going to continue high and medical cost too, but the majority of our politician are lawyers and that is one of the reasons for ignoring one of the primary causes of the problem.

  • Al

    From what I just read a student loan could be discharged after 25 years now. It has been 30 years since zi got my loans. How to I apply for discharge?

  • Derik103

    Remember people there are only 545 people who run this country and make the laws vs. 300,000,000 people. The power to change things our in our court. WE OUR THE PEOPLE to change this system . I hear all about this student loan debt. Trust me I am up there with over $100 K in debt. It scares the living crap out of me. I am tired of seeing everyone of these big corporations getting bailed out and we our the ones getting screwed everyday. We do have a voice , we may not have the money but we do have a voice. We just need to use our voice and tell them what’s up. Thing’s will change and get better as long as we challenge the system and think on OUR OWN!!!

  • Derik103

    545 people vs 300,000,000 and we still let them do what they do!!!545 vs. 300,000,000 People-By Charlie ReesePoliticians are the only people in the world who create problems and then campaign against them.Have you ever wondered, if both the Democrats and the Republicans are against deficits, WHY do we have deficits?Have you ever wondered, if all the politicians are against inflation and high taxes, WHY do we have inflation and high taxes?You and I don’t propose a federal budget. The President does.You and I don’t have the Constitutional authority to vote on appropriations. The House of Representatives does.You and I don’t write the tax code, Congress does.You and I don’t set fiscal policy, Congress does.You and I don’t control monetary policy, the Federal Reserve Bank does.One hundred senators, 435 congressmen, one President, and nine Supreme Court justices equates to 545 human beings out of the 300 million are directly, legally, morally, and individually responsible for the domestic problems that plague this country.I excluded the members of the Federal Reserve Board because that problem was created by the Congress. In 1913, Congress delegated its Constitutional duty to provide a sound currency to a federally chartered, but private, central bank.I excluded all the special interests and lobbyists for a sound reason. They have no legal authority. They have no ability to coerce a senator, a congressman, or a President to do one cotton-picking thing. I don’t care if they offer a politician $1 million dollars in cash. The politician has the power to accept or reject it. No matter what the lobbyist promises, it is the legislator’s responsibility to determine how he votes.Those 545 human beings spend much of their energy convincing you that what they did is not their fault. They cooperate in this common con regardless of party.What separates a politician from a normal human being is an excessive amount of gall. No normal human being would have the gall of a Speaker, who stood up and criticized the President for creating deficits. The President can only propose a budget. He cannot force the Congress to accept it.The Constitution, which is the supreme law of the land, gives sole responsibility to the House of Representatives for originating and approving appropriations and taxes. Who is the speaker of the House? John Boehner. He is the leader of the majority party. He and fellow House members, not the President, can approve any budget they want. If the President vetoes it, they can pass it over his veto if they agree to.It seems inconceivable to me that a nation of 300 million cannot replace 545 people who stand convicted — by present facts — of incompetence and irresponsibility. I can’t think of a single domestic problem that is not traceable directly to those 545 people. When you fully grasp the plain truth that 545 people exercise the power of the federal government, then it must follow that what exists is what they want to exist.If the tax code is unfair, it’s because they want it unfair.If the budget is in the red, it’s because they want it in the red.If the Army & Marines are in Iraq and Afghanistan it’s because they want them in Iraq and Afghanistan …If they do not receive social security but are on an elite retirement plan not available to the people, it’s because they want it that way.There are no insoluble government problems.Do not let these 545 people shift the blame to bureaucrats, whom they hire and whose jobs they can abolish; to lobbyists, whose gifts and advice they can reject; to regulators, to whom they give the power to regulate and from whom they can take this power. Above all, do not let them con you into the belief that there exists disembodied mystical forces like “the economy,” “inflation,” or “politics” that prevent them from doing what they take an oath to do.Those 545 people, and they alone, are responsible.They, and they alone, have the power.They, and they alone, should be held accountable by the people who are their bosses.Provided the voters have the gumption to manage their own employees…We should vote all of them out of office and clean up their mess!Charlie Reese is a former columnist of the Orlando Sentinel Newspaper.What you do with this article now that you have read it… is up to you.This might be funny if it weren’t so true.Be sure to read all the way to the end:Tax his land,Tax his bed,Tax the table,At which he’s fed.Tax his tractor,Tax his mule,Teach him taxesAre the rule.Tax his work,Tax his pay,He works forpeanuts anyway!Tax his cow,Tax his goat,Tax his pants,Tax his coat.Tax his ties,Tax his shirt,Tax his work,Tax his dirt.Tax his tobacco,Tax his drink,Tax him if heTries to think.Tax his cigars,Tax his beers,If he criesTax his tears.Tax his car,Tax his gas,Find other waysTo tax his ass.Tax all he hasThen let him knowThat you won’t be doneTill he has no dough.When he screams and hollers;Then tax him some more,Tax him tillHe’s good and sore.Then tax his coffin,Tax his grave,Tax the sod inWhich he’s laid…Put these wordsUpon his tomb,’Taxes drove meto my doom…’When he’s gone,Do not relax,Its time to applyThe inheritance tax.Accounts Receivable TaxBuilding Permit TaxCDL license TaxCigarette TaxCorporate Income TaxDog License TaxExcise TaxesFederal Income TaxFederal Unemployment Tax (FUTA)Fishing License TaxFood License TaxFuel Permit TaxGasoline Tax (currently 44.75 cents per gallon)Gross Receipts TaxHunting License TaxInheritance TaxInventory TaxIRS Interest Charges IRS Penalties (tax on top of tax)Liquor TaxLuxury TaxesMarriage License TaxMedicare TaxPersonal Property TaxProperty TaxReal Estate TaxService Charge TaxSocial Security TaxRoad Usage TaxRecreational Vehicle TaxSales TaxSchool TaxState Income TaxState Unemployment Tax (SUTA)Telephone Federal Excise TaxTelephone Federal Universal Service Fee TaxTelephone Federal, State and Local Surcharge TaxesTelephone Minimum Usage Surcharge TaxTelephone Recurring and Nonrecurring Charges TaxTelephone State and Local TaxTelephone Usage Charge TaxUtility TaxesVehicle License Registration TaxVehicle Sales TaxWatercraft Registration TaxWell Permit TaxWorkers Compensation TaxSTILL THINK THIS IS FUNNY?Not one of these taxes existed 100 years ago, & our nation was the most prosperous in the world.We had absolutely no national debt, had the largest middle class in the world, and Mom stayed home to raise the kids.What in the heck happened? Can you spell ‘politicians?’I hope this goes around THE USA at least 545 times!!! YOU can help it get there!!!GO AHEAD. . . BE AN AMERICAN!!!Live your life in such a way that when your feet hit the floor in the morning, Satan shudders & says… “Oh no….she’s awake!!!””What we do in life ECHOS in eternity”

  • Baker Casey98

    Dear steve, i am casey i got a student loan back when i was 18 or 19 to go to a school in fl, called decker collage. I feel i was done wronge because im haveing my taxes taken every year over this loan, the reason i feel this way is cause yes i did go to school, but i got injured the school them selves put me on a bus back home to texas, took all my grant money and never sent me my online package to finish school, then i got a letter sayn the school filed for bank rupt, i dont think its right i have to pay this loan i never got to even use,,, do u know anyone i can talk to to get this delt with cause everytime i call ed fund people they dont care and just give me the run around and wont help. Me or tell me how to fight it

    • http://GetOutOfDebt.org Steve Rhode

      How long after you left did the school close?

      • BuckJohnson

        Hey Steve I have 109,000 dollars in student loans (got my masters) and I was able to get a job that pays 45,000 a year.  Most of the loans are with Sallie Mae except one, that one is with ACS for about 10,900.  I got a IBR plan for ACS and I pay 39 dollars a month.  I’m trying to get an IBR from Sallie Mae for the 98,000 dollars worth, and they are somewhat putting my payments over 300 dollars (like 350).  This was just me telling them on the phone how much I made and I was paying on another loan (they never asked for the amount of that loan). 

        I was wondering what type of internal calculation do they do besides the fact of the IBR calculator.  Do they take into account your expenses (rent, food,  and other bills), they say discretionary but how do they know what is discretionary without you telling them where so much of your money is going.  Also are they taking into account the amount of loan you have with said organization, because  with ACS they also knew of the loan amount of the Sallie Mae Loans and my payment was low but with Sallie Mae they are higher, I don’t mind paying it but I need a payment that is lower than what they are telling me.

      • http://GetOutOfDebt.org Steve Rhode

        For private students loans there is no official IBR program. It’s whatever the lender wants to do. I think you’ll be interested in this private student loan petition. https://www.change.org/petitions/the-us-senate-pass-the-fairness-for-struggling-students-act-of-2011

      • BuckJohnson

        For the Private student loan which was bought from Sallie Mae and in ACS’s hands, I don’t mind the payment they are making me pay via the IBR that they have set up.  What concern me is the fact that the Sallie Mae govt. ones IBR for the amount of the loan and how much I make still is too high for a payment compared to my other bills.  Is there a way to lower that or for them to take into account other bills I may have?

      • http://GetOutOfDebt.org Steve Rhode

        If they are subsidized student loans then go to the Department of Education site and look at the Direct Loan consolidation program. You can consolidate them and then put them in an IBR for the lowest payment.

  • Anthony Dedam

    Anthony

    I guess I went to college too late (age 38) and in 1986 I graduated and still have an outstanding balance of about $15,000.00 on my student loans.  I tried to lower my interest rate (8%) to a much lower rate but I was told that I signed a Promissory Note and the 8% is locked in until the entire loan is paid off. Unfortunately, I didn’t get the kind of a job that paid a good salary and I fell behind on my payments.  I eventually consolided them and am paid up to 2013, however, I’m retired and only receive my social security benefits.  After paying rent, medical expenses and other monthly essentials, I’m left with very little funds to survive.  I hope that Obama’s Program will forgive my 26 yr loan.

  • Anthony Dedam

    Anthony

    I guess I went to college too late (age 38) and in 1986 I graduated and still have an outstanding balance of about $15,000.00 on my student loans.  I tried to lower my interest rate (8%) to a much lower rate but I was told that I signed a Promissory Note and the 8% is locked in until the entire loan is paid off. Unfortunately, I didn’t get the kind of a job that paid a good salary and I fell behind on my payments.  I eventually consolided them and am paid up to 2013, however, I’m retired and only receive my social security benefits.  After paying rent, medical expenses and other monthly essentials, I’m left with very little funds to survive.  I hope that Obama’s Program will forgive my 26 yr loan.

  • Es7129

    Hi Steve,
    Unfortunately I believe I’m SOL, but please correct me if I’m wrong. I have about $65,000 in private student loans and I’m drowning in it. These loans were taken out for my aeronautical degree back in ’07 in my quest to become an Air Traffic Control Specialist with the FAA. As expected I passed everything and was on my way with the FAA when I was involved in an motor vehicle accident and lost my medical clearance as a result of the injuries sustained to my head and vision. I was terminated in 2010 from the FAA and have been unemployed since. I’ve exhausted all def. and forbearance options according to my private lenders, even though I’ve recently started an MBA program full time.  Do you know if all private loan lenders cap your in-school deferment options at 5 years from disbursement date?
    Thanks,
    E

    • http://GetOutOfDebt.org Steve Rhode

      As a private pilot I wish I had a wand to wave to make the private loans be manageable. Unfortunately, unless you servicer offers some program or you find another lender to consolidate your loans, I have not found any other solution.

      I’m not sure if “all” do. But even government loans for graduate school no longer allow for a deferment.

  • PharmD 2 Be

    I very interested in the Obama student loan program. I will be graduating in June. When I graduate my total student loan debt will be $220,000. Once I start work I will make a healthy salary. But, the student loan payment as is will still be very difficult for me. Will the Obama loan program help people who make over $100K a year?

    • http://GetOutOfDebt.org Steve Rhode

      Do you have private student loans or government backed loans?

  • Toddmdawson

    Steve, My checks are garnished all year, my income tax is 100% garnished every year. i was placed in jail facing life in prison for a crime I did not commit and without ever standing before a judge I was released a month later on dropped charges. during that month I lost everything I own except my job. I now live under a bridge and my checks are still being garnished. i feel hopeless and will probably give up completely in the very near future. I cant afford anything anymore. I am going out of my mind. what advice do you have to make me feel I should stay alive?

    • http://GetOutOfDebt.org Steve Rhode

      Are these government backed loans or private stunt loans?

  • Melanie

    The Pres spent a considerable amount of time touting the merits of higher education and encouraging Americans to go out and get student loans so they can get all the “high-paying jobs”. However, he did not even mention the millions of Americans who got themselves into DEBT with student loans and now have no way of paying them back because the “high-paying jobs” simply do not exist. Schools love pushing those student loans, but what they do NOT tell you is that once you sign those papers, you are in debt to the US Government for the REST OF YOUR LIFE, and if you find yourself unemployed, or for some other reason you can’t pay them back, TOO BAD! Those debts CANNOT be discharged through bankruptcy. Sure, you can get a forbearance, but the interest continues to accrue, so when your forbearance period ends, you wind up owing EVEN MORE. How do I know all this? Because I am one of the millions of Americans in STUDENT LOAN HELL right now, and I have no idea how I am ever going to get out. I started out with around $15,000 in student loan debt when I graduated with my Bachelor’s degree in Business in 2000. I tried consolidation. My monthly payments ended up being more than my mortgage! I became unemployed in 2005, and was not able to find a permanent job. I worked temporary jobs for 3 years making between $10 and $14 per hour. I tried the income-sensitive repayment plan, but it really doesn’t help when you have little or NO INCOME. I finally got a permanent job in November, 2009 making $14 per hour, only to be laid off 8 months later in July, 2010. I haven’t been able to find ANY work since then, not even temporary. My unemployment benefits were exhausted last May.  In the meantime, my husband retired from the Navy in 2008, after 22 years of service to our country. The only job he was able to get at the time paid $10 per hour. He was lucky to find work at all. He did get a couple of raises since then and now he makes a whopping $12 per hour. We filed Chapter 13 bankruptcy in 2009 only to find out that my student loan debt was EXEMPT from bankruptcy protection. We were offered a forbearance, but were told that the interest would continue to accrue, and accrue it has. Now, that $15,000 of loan debt has snowballed into close to $70,000 of debt and growing by the day. We just filed a motion to convert our Chapter 13 to a Chapter 7. We are surrendering our house to the bank because we have been turned down TWICE for a loan modification, despite never being late on a payment. Our home value dropped $39,000 in ONE YEAR. We lost every bit of our equity and then some. There is no way we could sell it for even close to what we owe, and the bank will not approve a short sale. I got a little off the subject there, but that is where we are. I am so frustrated right now. When the smoke clears, we will be left with no home and no assets. Of course, we will be virtually debt-free, EXCEPT for student loan debt, which apparently will continue to haunt me FOREVER.

  • Theotherkathymartens

    Steve,
    We were led to believe when we took out a Parent Plus loan for our daughter’s college tuition, that once she finished school, she would be able to consolidate the parent loans with her regular student loans and take over the debt. We now find that this was total hogwash and are looking at monthly payments of nearly $700 at 8%! Even under the income sensitive repayment plan, the payment is $400/mo. (that’s not including her regular stafford loan pmt) which much more than she can afford.

    We aren’t looking for the debt to be forgiven, just a reasonable repayment plan at an interest rate more in keeping with student loans! My husband’s Sallie Mae loans are at 5%. Are there any other options out there? Is there any recourse for the misleading lending practices?

    • http://GetOutOfDebt.org Steve Rhode

      Who do you feel misled you?

  • Sandiegophd

    I tried the IRB calculator and it tells me that, based on my and my husbands combined income, I don’t qualify for the program. Is there a “cap” on how much my payment wil be in this situation? I’m not sure what to do because after grad school our student debt is in the low six-figures.

    • http://GetOutOfDebt.org Steve Rhode

      If you have federal student loans the next logical path is to examine consolidating all of them for a lower payment. Over time you will pay more in total but it will help to make ends meet when the payments begin.

      Depending on your occupations, you may be eligible for student loan forgiveness. What are you going to school for?

    • http://GetOutOfDebt.org Steve Rhode

      If you have federal student loans the next logical path is to examine consolidating all of them for a lower payment. Over time you will pay more in total but it will help to make ends meet when the payments begin.

      Depending on your occupations, you may be eligible for student loan forgiveness. What are you going to school for?

  • http://www.facebook.com/people/Jerry-Bennett/100002060309188 Jerry Bennett

    Foregive your loan?  What a moocher.

  • Abc

    Just take a minute to think about the government sponsored
    Direct PLUS Loans for Graduate and Professional Degree Students, the interest
    rate is 7.9%.  US government gives loans to bankers at interest <1%,
    but keep charging student at 7.9%.  Please wake up, they will not forgive
    your student loan easily.  That is government's income.    
       

  • Idealism04

    Hi Steve, 

    I’m a teacher at a public school in California. My current loan payment has extended for 25 years so that the amount of my payments are more manageable. However, I am very interested in what you said about teachers having their loans forgiven after 10 years. How do I go about finding more information about this program? 

    Thanks!
    Trisha

  • Finley_nancy

    I graduated with a BA in 2007 and became ill and unable to work, I am now 67 years of age and can not find a job.  I have a student loan balance of 45,000. and have no idea of how I will repay this loan.  My SSI is only 1029. monthly, any ideas?

    • Anonymous

      I’m in the same boat. They don’t care about us. We’re too old. We should die and decrease the surplus population in their view. I see no student loan forgiveness for us.

  • Calven McVetty

    I went to college in the late 80s, early 90s, i had lots of student loans out, about 4 years after i graduated i became disabled, now the student loan gov office is threatening to take my soc.security. Doesn’t the law that allows them to take from disabled people’s social security apply to only those who took loans AFTER the law was enacted and those who took loans AFTER they became disabled?

    • Dirk den Hartog

      I escaped the USA in 1989 to work overseas.  I have never been back to live since and wouldn’t move back to the USA for a million bucks  (seriously).

      I am Vietnam Veteran who is a naturalized citizen with my country of birth being the Netherlands where I live NOW, living the American Dream debt free and 4 pensions in  modern up to date country.

      I woke up LONG AGO about the big LIE of USA freedom (after coming back from Vietnam).

      I see the lies of the govt and their media daily all over the internet on sites like Huffington Post  which has become like Fox News of the Internet.

      My social security is being garnished for a 4000 student loan from1980.  

      I don’t care because my Dutch, German and Luxembourg SS payments are twice as much .   (I worked in all those countries and paid into their systems).

      To anyone who says the USA is the greatest country in the world, I have to laugh.

      Not by a LONG shot.

    • Dirk den Hartog

      I escaped the USA in 1989 to work overseas.  I have never been back to live since and wouldn’t move back to the USA for a million bucks  (seriously).

      I am Vietnam Veteran who is a naturalized citizen with my country of birth being the Netherlands where I live NOW, living the American Dream debt free and 4 pensions in  modern up to date country.

      I woke up LONG AGO about the big LIE of USA freedom (after coming back from Vietnam).

      I see the lies of the govt and their media daily all over the internet on sites like Huffington Post  which has become like Fox News of the Internet.

      My social security is being garnished for a 4000 student loan from1980.  

      I don’t care because my Dutch, German and Luxembourg SS payments are twice as much .   (I worked in all those countries and paid into their systems).

      To anyone who says the USA is the greatest country in the world, I have to laugh.

      Not by a LONG shot.

  • Calven McVetty

    I went to college in the late 80s, early 90s, i had lots of student loans out, about 4 years after i graduated i became disabled, now the student loan gov office is threatening to take my soc.security. Doesn’t the law that allows them to take from disabled people’s social security apply to only those who took loans AFTER the law was enacted and those who took loans AFTER they became disabled?

  • Mark

    I am sick of our government bailing out corporations instead of
    the people. Education is the only way the USA will grow and compete. 

     

    Everyone must have the chance to go to college. The government can
    easily do it. Just let students borrow at a fixed 3-4% interest rate for the
    entire cost of the education. Then, when the student gets a job take out the
    amount of the loan automatically from their paychecks, at no more than 10% of
    gross pay. This very, very simple solution is guaranteed to increase enrollment
    in higher education and keep students out of a financial nightmare when they
    graduate. The government will still make money on this and everyone, regardless
    of their economic status, can go to college. 

     

    In addition, public colleges need to keep down tuition and justify
    tuition increases. If they cannot do this, they will not be allowed to accept
    government. funded tuition.

     

    I believe in the free market and I am conservative in many of my
    views. However, higher education cannot be considered a luxury for the rich.
    Many gifted students are not going to college because of the cost and this is
    killing America.
    If anything needs government intervention, it is this issue.

  • Mark

    I am sick of our government bailing out corporations instead of
    the people. Education is the only way the USA will grow and compete. 

     

    Everyone must have the chance to go to college. The government can
    easily do it. Just let students borrow at a fixed 3-4% interest rate for the
    entire cost of the education. Then, when the student gets a job take out the
    amount of the loan automatically from their paychecks, at no more than 10% of
    gross pay. This very, very simple solution is guaranteed to increase enrollment
    in higher education and keep students out of a financial nightmare when they
    graduate. The government will still make money on this and everyone, regardless
    of their economic status, can go to college. 

     

    In addition, public colleges need to keep down tuition and justify
    tuition increases. If they cannot do this, they will not be allowed to accept
    government. funded tuition.

     

    I believe in the free market and I am conservative in many of my
    views. However, higher education cannot be considered a luxury for the rich.
    Many gifted students are not going to college because of the cost and this is
    killing America.
    If anything needs government intervention, it is this issue.

  • Luicastano

    disclaimer: I’m tired, so please excuse my typos/grammar.
    If you read all the horror stories on this site you will leave feeling like student loans and college = the devil. Here’s the truth:

    Many people entering college are still KIDS who have never had more than a couple thousand dollars pass through their hands and some of them don’t even know how to write a check. High school seniors don’t do their financial aid homework and don’t even understand the difference between Sallie Mae, FAFSA, Stafford loans, subsidized vs. unsubsidized loans, PLUS loans, etc. They fail to learn how to take advantage of the options they have. Some just have their parents do all the work for them. Some just blindly sign their name away without realizing they are getting into debt with REAL money, not Monopoly money.

    And worst of all, aside from being financially uneducated, many have that “I want that, and I want it now” American mentality. They don’t “shop” for tuition, or for the school that offers “the best bang for the buck” they just go wherever they want. Why? Because they can. They make unsound decisions based on appeal, wants, impulse, and don’t even know they are doing it. They have no true concept of long term consequences. They are young, hopeful, and still fit well into that a short-term, instant results type of society.

    I say all this to say, if you’re college aged:
    -Learn about PSAT scholarship opportunities in 10th grade or whatever.
    -Take AP classes. They will save you money.

    -Apply yourself in high school(academics AND extra-curricular/community service). You could get scholarships from the colleges you apply to and save money. Also, extra curricular activities/ summer internships + jobs will help you decide what you want to do in life much earlier. This will save you money, because you won’t take more electives than what you need to “figure out what you want in life”.
    -Try to start studying another language, and continue with that in college through electives
    -Take CLEP tests right after high school or during college, they will also save you money.
    -Once you’re in college, don’t take your one academic adviser’s words as Gospel. MAKE INFORMED DECISIONS ABOUT YOUR EDUCATION. Be resourceful. Look at degree audit sheets. Check out the Job Outlook Handbook put out by the government. Look into grad school requirements early.Google things.Don’t take classes you don’t need.
    -If you don’t get good scholarships, definitely stay in state, maybe even try doing your first 2 years at a community college.
    -Look into fellowships and programs (which are different than scholarships) for your
    field or things that interest you. GOOGLE GOOGLE GOOGLE. Don’t just rely on your school to give you
    updated info. Fellowships and programs are often tied to free stipends, experiences, free trips, scholarships, mentoring, and a network that you’ll be a part of forever.
    -Only take out government issued loans (Stafford) NOT private loans that will give you no options. KNOW the difference between the two.
    -Pick the same lender every time when your school gives you the option i.e:Great Lakes (then all your loans will be in the same place when you graduate).
    -Take advantage of grants and Perkins loans first. Know what they are.
    -Take advantage of subsidized Stafford loans first. Then unsubsidized. Know the difference between subsidized and unsubsidized.
    -Work at least part time through college,put some of that money toward your loans because it will go straight to your principal. This will also give you work experience that will make you a better candidate for jobs after graduation.
    -Do internships, diversify your internships and community work.
    -DON’T spend money you don’t have with lines of credit, Hollister credit cards, etc. Spend ONLY what you can afford.
    -Figure out what grad program you want early. Try to get a full ride to grad school. If you plan ahead, it is totally possible. 3.0  or higher plus tons of community/leadership/research work. Nice tests scores. YOU CAN DO IT NO MATTER WHAT AWFUL BACKGROUND YOU COME FROM.

    Learn about the Public Service Loan Forgiveness Program NOW (then, if it applied to you, once you graduate, consolidate your stafford loans into Direct Loans when you start working for a 501c3, school, government, or any qualifying employer).

    I am not a loan lender, I am not an expert, I am not a 4.0 student, and yes I had a life in high school/college. I am just a first generation student who had to climb the ropes ALONE and learned a lot on the way. I’m only 23. If you need help, shoot me an email luicastano at gmail dot com

    To everyone else with the horror stories, I made some mistakes too. It’s still not too late. if you still don’t understand your loans or who you owe money, please don’t ignore them. Research online to learn the difference. Be resourceful. They will not magically disappear. They will snowball.

  • Thomas Mcgrath

    Hi Steve,
    My wife had cosigned my son’s student loan which is $57,000.  He has moved to Maryland and has just landed a job.  We have been paying the loan monthly but would like him to help us and he just puts us off saying he will send us some money but never does.  Is there anyway we can make him start paying on this loan or are we doomed to pay?  Is there any forgiveness coming our way to help us?
    Tom

    • http://GetOutOfDebt.org Steve Rhode

      Tom,

      I’m sorry to say the co-signer is fully liable for the loan if the borrower does not pay. But all hope is not lost. I’d check to see if this is a government backed loan or a private student loan. If it is a government loan there may be options.

      Steve

      • Andrew

        Hi Steve,

        Wanted to also ask about private loans. I have private loans and federal for law school totaling about 150k combined. The payments now are at $850.00 a month which is 25% of my monthly income. Way too much!

        Any hope for the future with Obama’s new plan?? I had the income based for a while, and it went up as I am in my second year of repayment. Any help would be appreciated, didnt think Id still be in this predicament at this age!

  • Leon Gray

    Mr. Rhodes,

    I have about 44,000 in fred students loans. I also took out two grants for teaching… My first repayment is sheduled for 12/15 of this year. I am a teacher at a title on school. I forgot to verify my employment for the TSA and Georgia Hope teachers scholarship… I have taled with reprentives about the departments have to right a letter that I am doing my service as agreed hoperfully there wont be any problems with that. My question is that I have two dependents, Not sure what would be the best option for me to make interested in the IBR program and consolidation all loans are Fed. Also with new Obama consolidation not sure of what route would be best. I do planning on doing my Service Agreement not sure If I plan on teaching the next 10 yrs though. NEED HELP On a good program to pay back loans any suggestions?
    Thaks

  • Jsavak

    I wanted to do my nome tax return from 2009 because i found out I could get 3000 to 4000 dolllars back.  I have been unemployed for 4 years currently.  I wanted to use the money to pay for a CELTA certificate so that I can teach ESL .  

    My question is — if I now do my tax return and I apply for the program put in place by PresidentObama where only 10% of discretionary income can be deducted , WOULD discretionary income mean my tax return for 3000 dollars ? Or can the student loan take the whole amount from my 3000 dollar return ?  I am pained t admit thatI am still unemployed and need that money for living expenses and to get training to find a new career in teaching ….

    I use to do office work ate major NYC university but lost my job. Was hoping it would turn into a union job but out of my control

    Jamie

  • Jamie

    I wanted to do my nome tax return from 2009 because i found out I could get 3000 to 4000 dolllars back.  I have been unemployed for 4 years currently.  I wanted to use the money to pay for a CELTA certificate so that I can teach ESL .  

    My question is — if I now do my tax return and I apply for the racial program put in place by PresidentObama where only 10% of discretionary income can be deducted , WOULD discretionary income mean my tax return for 3000 dollars ? Or can the student loan take the whole amount from my 3000 dollar return ?  I am pained t admit thatI am still unemployed and need that money for living expenses and to get training to find a new career in teaching ….

    I use to do office work ate major NYC university but lost my job. Was hoping it would turn into a union job but out of my control

    Jamie

  • Dianne_boone

    Why not help people who truly are struggling? You didn’t tell the RICH people to pay their
    student loans when so many filed Bankrupt. But as always the poor have to suffer that the
    rich get richer. That’s partly blame for country in the state it’s in. It’s nothing to do with Obama
    being Black. Mrs. Right Opinion

  • Iantcook

    Are people who have a loan in Federal Default eligible for this pay as you earn program?

    The loan servicer says no you must pay their minimum for 9 months then you maybe eligible for that? 

    • http://GetOutOfDebt.org Steve Rhode

      It is my understanding that your loan must be considered current or not in default before you would be eligible.

  • Pasha

    Hello Steve, my question is regarding the new Obama Special Consolidation Plan.
    My Parents Plus Loan is $60,000 and it just got consolidated THIS WEEK under a Traditional Consolidation Plan (30 years). I JUST found out about the new Obama plan, and it looks like i won’t be able to get on it because i already consolidated… is that right? Shouldn’t there be some way for people who already consolidated to take advantage of the new benefits of the Obama Plan?

    PS: I also have nearly $30,000 of Federal Loans of my own. I haven’t consolidated them yet as i have found out about Obama Plan. I would like to consolidate both my Parents Plus and my Federal Loan into one, with Obama benefits.

    PSS: Does anyone have Obama’s phone number? lol

  • Gmaggiano

    I think that is great that you are giving free advice and pointing people in the right direction! Thank you for being a positive influence and inspiration. ;0)

  • Lynn

    Steve,
    My son has student loans in his name totalling almost $20,000.  I have loans in my name for his education totalling approximately $90,000 which he is paying.  This was the only way we could afford to send him to college–if he paid the loans when he graduated.  He is having difficulty finding work in his chosen career of law enforcement.  Will any of these new laws apply to him and his debt in his name and mine?

    • http://GetOutOfDebt.org Steve Rhode

      It’s too early to know for sure. We are going to have to wait till the final details are released in 2012. Hopefully!

  • Guest1

    Will Obama’s plan reduce payments for those of us already utilizing the current IBR plan?  I’m hoping it will.  Right now I’m paying 15% of my discretionary income and my loans will be forgiven in 25 years.  10% of D-income and 20 years is a much better deal.  I hope I won’t be punished for doing my research and consolidating immediately.  Will I be able to take advantage of the proposed new plan?

    • http://GetOutOfDebt.org Steve Rhode

      Details are not out yet but based on what I’ve read and heard it seems plausible their may be a conversion path.

  • Twerner

    my situation is that i just was approved for ssi in which the state themselves decided to apply for me. not even my idea. i will start the process of getting the loans i have discharged but i am wondering if they are going to take the back pay away from me and will my lawyers get paid or will i have another problem. i don’t have anything to sell. i can’t go into public without an attendant(panic disorder so bad that i faint in public so i can’t even drive. so i don’t own a car.)  my order was by a judge. i have several emotional issues that go way back but i don’t know how to prove it or where to start. my lawyer sent me a form(discharge application: total and personal disability but with the turnover where i get treatment i don’t know if i can get my doctor to sign it. she said that should do it and it would be over. my loans would be discharged. it also says on the top OMB 1845-0065 form approved exp. date 12/31 2011. is this true and this is all i need to do or do i neeed help and from whom?

  • Ashrallstolls

    Good keep on going

  • Arnoldbowers1
  • Bonnie Rinehart

    I have a student loan of more than 53,000.00. I am a senior citizen now and my income is very low.  I now am dependent on social security.  I did qualify for IBR financing where my payment is zero.  But the interest continues to be added on to my loan.  Unfortunately I will go to my grave owing this loan.  Years ago I ask my lender when I only owed 15,000.00 why I couldn’t pay off my student loan like a car payment.  I figured I could have this paid off in 3 to 4 years.  They told me that would be impossible because of the way the interest was added in on my loan.  So here we go.  Do you have any solution for me.  I would volunteer buy I’m to old for that now.

  • Sarapeak

    Those of us with student loans have a legal (and ethical) responsibility to make good on the promise we made when we borrowed the funds.  What kind of society are we living in when a student can borrow $100,000 for a private education, never pay a dime of principal or interest, and expect the debt to be magically wiped away with a magical congressional wand?
     
    A post-high school education in this country is a luxury, not a necessity.  It is a choice, and it is a privilege.  It is a blessing in our country that any one who really wants to receive a college education (or post-graduate education for that matter) has the opportunity and resources available to do that.   That doesn’t mean one will receive their education for free, be able to attend any college one desires, or graduate without any ill financial consequences or debt.  It just means the opportunity is there, although some will inevitably have to sacrifice for it more than others.
     
    By taking out student loans, you are investing in your future, believing that the education you receive will provide you with enough income to later in life make good on your loans.  That’s how loans work.  Someone lends you money today, in exchange for the return of the money (and interest) at a later date.  Loans are contracts.  Loans are promises to pay.  Loans shouldn’t be forgivable.

    I wrote more about it…. http://stayathomeworker.com/2011/10/20/new-stimulus-idea-forgive-student-loan-debt-no-way/

  • Pelt5802

    Why is my defaulted student loan not on my credit report? After 20 years have they given up after all the collection agencies it went through? I got all 3 free credit reports and nothing about a student loan or tax lien.

  • Spencerwaggoner

    I am not looking to forgive my student loans totally, but I am wanting the default label to be removed so I can complete my PhD.

  • Cyn

    I am a middle aged woman that is disabled, and have been trying to get a degree as an RN. My illness have stopped me several times, and I am using up almost all of my undergrad FASFA financial aid — are there programs for people with disabilities or cost waive programs so that I may finish my degree and support myself? I don’t know how I will complete this without some additional help.

  • Lela

    Firstly, this is not a new program!  This has been in effect for all Professionals for as long as I’ve known about it (20 plus years).   I would suggest talking to your Department of Education!  Seems like NOW, they are trying to keep this thing secret for some reason or make it seem like Obama came up with it……Do your research people

  • John

    Steve,
    I have been in an out of work since graduating in 2002. My loans have been in deferment most of that time. Because of interest and other fees my student loans are now over $100,000. I am looking at 86 by the time they are payed off. I only make $12.30 an hour working for the State. I have defaulted on my loan because of all my bills and the high student loan payment. What can I do?

  • Was going to college worth it?

    California spends 300 million annual for executions .. go figure

  • Was going to college worth it?

    Did you ever consider attending a trade school versus college? Just wondering ..

  • Was going to college worth it?

    I appreciate you expressing this direct truth .. I needed to read this .. Thank you Joe!

  • Was going to college worth it?

    Lmj100 – So far your message is the most distressing I have read on this site. Im stunned.

  • Was going to college worth it?

    I think for a long time people where made to feel as though college was a pass that afforded a better quality of life. Yes, we need doctors and lawyers and engineers, etc .. We do need highly skilled individuals inorder for society to function properly. But my question is this .. do you idolize athletes? Maybe thats why the education system is so screwed up. More attention, more money, more admiration, more money, more investment, more money, is paid to THOSE folks then to the ones who are REALLY NEEDED in society. The government isnt totally at fault.

  • Was going to college worth it?

    Wow .. all those words really prove you paid attention in college. Its a shame the reward is intense debt that you have to die to get rid of. I wonder .. will you encourage your KIDS to go to college to continue THIS legacy? I wonder.

  • yamal elmazry

    i have a student loan for about $6000,1 offered to pay $50.00  a month to pioneer credit recovery so they don’t garnish my wages and they refuse .they requesting about $82.00.can they refuse the amount of money i am paying and still garnish my check?

  • yamal elmazry

     i have a student loan for about $6000,1 offered to pay $50.00  a month to pioneer credit recovery so they don’t garnish my wages and they refuse .they requesting about $82.00.can they refuse the amount of money i am paying and still garnish my check?

  • Trippler16123

    you are right on the money my friend, and the key word is bondage bondage [ˈbɒndɪdʒ]
    n1. slavery or serfdom; servitude. SLAVERY!!! we are slaves in the most sophisticated sense that we aren’t even aware of it, we need real change and we need it now, and it is only when we all individually look within ourselves and re assess the value of a human life and stand up for real beliefs that we can be set free.

  • Wkryan

    My wife and I consolidated our student loans several years ago.  We both teach at title campuses and qualify for federal loan forgiveness.  I received 17K in federal forgiveness a couple of years ago, which is currently the same amount my wife is qualified to receive through the federal government loan forgiveness program.  The problem is that the loan company is saying that they will deny any federal money in my wife’s name since I have already received forgiveness.  Not sure how this is justifiable?  We would still have a balance on the loans greater than 7K if we were to receive my wife’s loan forgiveness, so the loan company will still be earning interest on the remaining balance. We are both hard working teachers in inner city, low income schools that are considered title campuses by federal standards, yet the loan company is trying to deny any further loan forgiveness from the government.  Are there any options here?  Can we re-consolidate with another loan company and submit the application for loan forgiveness with the new company?  How else can this be resolved?  We both feel exploited by the loan company.  Any advice is greatly appreciated.

  • Wkryan

    My wife and I consolidated our student loans several years ago.  We both teach at title campuses and qualify for federal loan forgiveness.  I received 17K in federal forgiveness a couple of years ago, which is currently the same amount my wife is qualified to receive through the federal government loan forgiveness program.  The problem is that the loan company is saying that they will deny any federal money in my wife’s name since I have already received forgiveness.  Not sure how this is justifiable?  We would still have a balance on the loans greater than 7K if we were to receive my wife’s loan forgiveness, so the loan company will still be earning interest on the remaining balance. We are both hard working teachers in inner city, low income schools that are considered title campuses by federal standards, yet the loan company is trying to deny any further loan forgiveness from the government.  Are there any options here?  Can we re-consolidate with another loan company and submit the application for loan forgiveness with the new company?  How else can this be resolved?  We both feel exploited by the loan company.  Any advice is greatly appreciated.   

  • Eddy

    They can use a payment if you can show them the actual payment. You have to match up every loan on your Credit Report and then match it with a printout from your Loan Company showing the actual payment.

  • Eddy

    Ignorance at it’s best. People were promised and lied to during these times, it was not their fault.

  • Eddy

    Honestly No. I have about the exact same situation as you. Unless you get a better paying job your kinda screwed. You can do IBR which is 15% of your gross income or you can do some sorta graduated payment but it gets big or possibly extending those loans to a 25 year deal which is pretty much life :)

  • Eddy

    Hello. I’ve read through about a 100 stories. I want to say upfront I am sorry and feel very bad for those of you that are struggling to survive while your loans are ballooned to outrageous amounts because of default. I don’t think the loans are the problem its the fee’s and interest that the govt needs to step in and end. I owe about 78k plus 30k in interest and I just graded 2 years ago. My monthly payment is 1100 a month. Currently I am paying 5k a month on top of the 1100 minmum payment but I was lucky to find a job that paid well. If not for this job all of my loans would be in default. Plus I still have a 900 month mortgage and insurance and home warranty.

    I really hope the Govt Steps in and stops all this non sense. In the mean time, please all hang in there, times will get better!

  • Eddy

    Hello. I’ve read through about a 100 stories. I want to say upfront I am sorry and feel very bad for those of you that are struggling to survive while your loans are ballooned to outrageous amounts because of default. I don’t think the loans are the problem its the fee’s and interest that the govt needs to step in and end. I owe about 78k plus 30k in interest and I just graded 2 years ago. My monthly payment is 1100 a month. Currently I am paying 5k a month on top of the 1100 minmum payment but I was lucky to find a job that paid well. If not for this job all of my loans would be in default. Plus I still have a 900 month mortgage and insurance and home warranty.

    I really hope the Govt Steps in and stops all this non sense. In the mean time, please all hang in there, times will get better!

  • Eddy

    Damn you got a good deal. I owe 111k, and my minimum monthly is 1100…I’ll have the whole loan paid off in 1 year but only because I have a solid job. I don’t know how anybody can afford to pay that amount and actually live. I wish the Govt would step in these Default / Interest Fee’s are absolutely tearing apart any dream young kids have today.

  • Make More Than YOU

    Ignorant. Don’t hire people because they have a degree. I make what you make Mr. Fancy pants and I have a degree. People with a degree show they can at least commit to something, getting through 4 years of College is extremely tough. Go pound sand loser!

  • Pedersonk

    I am wondering can you get teacher forgiviness if you are a substitute in title 1 school? I have been a sub for 7 years.

  • Pedersonk

    I am wondering can you get teacher forgiviness if you are a substitute in title 1 school? I have been a sub for 7 years.

  • Responsibility

    The “smart” people who now have a $100k+ degree shouldn’t be bailed out by “dumb” taxpayers who didn’t make such choices. I wish I had the arrogance to get loans for a house I can’t afford, loans for a car I can’t afford, loans for a degree I can’t afford, and then say, “Poor me!” as I ask other people to pay for it.

  • Dclemens

    I am a reading teacher. I have taught for 12 years in a socio-economically disadvantaged school. I wanted to apply for the loan forgiveness program, but my loans were too old! Is there a loan forgiveness program for me?
    Debbie

  • Dclemens

    I am a reading teacher. I have taught for 12 years in a socio-economically disadvantaged school. I wanted to apply for the loan forgiveness program, but my loans were too old! Is there a loan forgiveness program for me?
    Debbie

  • Dee

    I am on the IBR payment plan and I went to apply for a USDA home loan and the said that they would have to hold 1% of the amount of the balance of the student loan in my income to debt ratio which is much higher than the payment that I had before. Does anyone know if they can use your new payment or do they have to use the 1%?. It doesn’t make sense that they use 1% when they should use the payment amount that you have now. If anyone knows the answer to this I would greatly appreciate any info.

  • Dee

    I am on the IBR payment plan and I went to apply for a USDA home loan and the said that they would have to hold 1% of the amount of the balance of the student loan in my income to debt ratio which is much higher than the payment that I had before. Does anyone know if they can use your new payment or do they have to use the 1%?. It doesn’t make sense that they use 1% when they should use the payment amount that you have now. If anyone knows the answer to this I would greatly appreciate any info.

  • Tornado

    Sallie Mae is the worse place to get student loans from. You can’t transfer or consolidate your private loans from them at all. say if your monthly payment was 50.00 a month and lets say you couldnt afford to pay it. They actually charge you 50.00 a month to put your student loans on hold plus interest of course. If you think someone that didnt have 50.00 to begin with why the hell would we put our loans on hold and give them a free 50.00 a month for?

    They don’t work well with the consumers at all. I actually had them harrassing me all of the time and threating me over the phone if I didnt pay money I didnt have my loans would go into default. The people at Sallie Mae just don’t give a damn. They are greedy selfish company that would bleed you dry. Education is over rated with expensive cost anyways there is no need for education to be that expensive. It’s all a game inside the world of bankking and investments. Anyways good luck with your adventure with Sallie Mae they are a tough company to do business with. However you can transfer only your Federal Loans to another bank but the private loans stay with Sallie Mae until you pay it off.

  • Lizry1030

    I have 100,000 in school loans..40000 in federal but 60000 in private…the private loans are running me so much money that i can barely afford the payments every month…is their any way to lower the payments, do some kind of consolidation, or use some kind of a loan forgiveness??? please help!

  • Lizry1030

    I have 100,000 in school loans..40000 in federal but 60000 in private…the private loans are running me so much money that i can barely afford the payments every month…is their any way to lower the payments, do some kind of consolidation, or use some kind of a loan forgiveness??? please help!

  • Russell Prsctt

    How?

  • Florsloveandpeaceforever

    the government has enough of are tax dollars to forgive this dept .

  • Florsloveandpeaceforever

    the government has enough of are tax dollars to forgive this dept .

  • Derik103

    Here is a Petition that everyone on this sight needs to sign. Power in numbers. This is unreal. I am in the same boat with a lot of you guys and SOMETHING needs to be done!!!! A lot of these company’s received a lot of bail out money and that money came from us. http://projectonstudentdebt.or… It is a very good sight. Just copy and paste.

  • Derik103

    Here is a Petition that everyone on this sight needs to sign. Power in numbers. This is unreal. I am in the same boat with a lot of you guys and SOMETHING needs to be done!!!! A lot of these company’s received a lot of bail out money and that money came from us. http://projectonstudentdebt.org/letter_view.php?idx=24. It is a very good sight. Just copy and paste.

  • Steve Rhode

    For the record, the military today view bankruptcy as a legal method of satisfying problem debt situations. See this link.

  • Terry

    I can’t believe they didn’t.. My husband joined the AF and he has $130,000 in debt. I know what you mean about private tho. Federals willing to do military forbearance but private wants $700 a month just for “interest only” payments and we can only do those for two years then the payment goes up.. Thay want half what he makes and we have two kids. They’ve told us they don’t car about the size of our family and before my husband joined we were on food stamps. They wont listen at all. I did come across something today about “Private Student Loan Bankruptcy Fairness Act of 2010″ that says since it’s loaned by banks and stuff they’re now counting it when declaring bankruptcy. I’m going to look into that more but a lot of people get kicked out of the military for declaring bankruptcy. Sallie mae is horrible and I tell everyone I know to find other ways and I’ll help them. good luck to everyone.

  • Dan020350

    Looking at the comments starting from ’09 – ’11 students deserved to be bailed out. Let all the money that was bailed out for the banks in 2010, which they are obligated to pay back to the government ( the republic ) go into a student loan bailout pool then use cap and trade’ incentive to reduced the compound interest rates from the lender, then use retroactive against the lenders for penalties and interest. Or join the tea party movement and kick out the federal reserve. I probably will go for the bailout , then the fear of over inflation comes this will become very interesting for the gods. LEts hope for a good year.

  • Dan020350

    Looking at the comments starting from ’09 – ’11 students deserved to be bailed out. Let all the money that was bailed out for the banks in 2010, which they are obligated to pay back to the government ( the republic ) go into a student loan bailout pool then use cap and trade’ incentive to reduced the compound interest rates from the lender, then use retroactive against the lenders for penalties and interest. Or join the tea party movement and kick out the federal reserve. I probably will go for the bailout , then the fear of over inflation comes this will become very interesting for the gods. LEts hope for a good year.

  • Michaelknorr

    I got my Tax Return taken by the Department of the treasury. I was on a payment plan And I was found to be in a hardship if they garnished my wadges. I have two childern ages 8 and 1. I am going to be evicted from our home. Can anyone help. Is there anyone I can contact to help me get all or some of MY hard earned mon ey back?

  • Michaelknorr

    I got my Tax Return taken by the Department of the treasury. I was on a payment plan And I was found to be in a hardship if they garnished my wadges. I have two childern ages 8 and 1. I am going to be evicted from our home. Can anyone help. Is there anyone I can contact to help me get all or some of MY hard earned mon ey back?

  • Chris E

    Hi there,

    So, I graduated college in 2007, and I had 6 months until my payments started to kick in. I tried to get my Private Loans consolidated in 2008, unfortunately thats around the same time when the banking crisis hit. I couldnt find anyone who was willing to consolidate. I finally found AES, and after a long and grueling attempt, they “lost” my paperwork and I was no longer able to consolidate through them. I tried contacting local government to fight this carelessness on there part, but no one was willing to help. I ended up losing out, and my credit was destroyed. I’m so far behind on my payments I have just given up.

    I’m considering military (the national guard) but I heard they won’t help if you are in default. Is there a way they could overlook it, either if I talked to the lender or the guard? I DO want to pay this off, but no one, not even Sallie Mae (the lender) is willing to cut me a break. I’m lost, confused, and I just want to get my life on track. Thanks.

  • Chris E

    Hi there,

    So, I graduated college in 2007, and I had 6 months until my payments started to kick in. I tried to get my Private Loans consolidated in 2008, unfortunately thats around the same time when the banking crisis hit. I couldnt find anyone who was willing to consolidate. I finally found AES, and after a long and grueling attempt, they “lost” my paperwork and I was no longer able to consolidate through them. I tried contacting local government to fight this carelessness on there part, but no one was willing to help. I ended up losing out, and my credit was destroyed. I’m so far behind on my payments I have just given up.

    I’m considering military (the national guard) but I heard they won’t help if you are in default. Is there a way they could overlook it, either if I talked to the lender or the guard? I DO want to pay this off, but no one, not even Sallie Mae (the lender) is willing to cut me a break. I’m lost, confused, and I just want to get my life on track. Thanks.

  • POst it

    Uhhhhh we do have jobs. We pay taxes. I dont see anything wrong with free education and healthcare. That would really freak the top 1% out. Oh, great, here comes an army of highly educated, hardworking people who aren’t sick. Right now, everyone is complaining and pointing fingers at eachother and saying things like Wlecome to America Socialism- when in the history of this country we have never been in such a economic crisis due 100% to GREED and the American public being robbed by the RICHEST people in this great nation.

  • Dottie Ghanbarian

    You already subsidize other people’s education- it’s called the public school system. You, being an older person, should also appreciate how things were different when you grew up. I don’t know how old you are . . . but many jobs that used to only require a high school degree now require a B.A. I worked in the employment industry- so that is my point of reference. I doubt you have had to compete in the labor market with young bucks in a major way or you would realize how difficult it is. I pay $60K in taxes per year and live in Section8 housing. I have to live in a major city to find a job that pays enough so that I can afford the loans and TAXES. I think a lot of things are unfair. But trust me, you pay for things like food for a serial killer, wars that are only to make the rich richer, you bailed out the banks, you bail out people who use credit cards like crazy for luxuries and then go bankrupt . . . .

    Don’t get mad at us. We are the ones who will pay for your SOCIAL SECURITY CHECK each month. I know you paid into the system, but we will pay for you, and it’s highly unlikely the program will exist when we are OLD.

    Instead of bailing out people for their credit card debt or allowing people to have 8 kids and live off of the government . . . let’s give some bright young people the chance to re-build America, challenge the RICH who undoubtably run this country…

    And by RICH, I mean the people who could pay for your degree by selling one door knob at their residence. They LOVE when us poor people fight with each other.

  • Stanleytim

    I have school loans and i will be paying on them this March and they were in deferment twice. I was wondering can I go back to school and still pay on them while going back to school.

  • Stanleytim

    I have school loans and i will be paying on them this March and they were in deferment twice. I was wondering can I go back to school and still pay on them while going back to school.

  • Steve Rhode

    There are no good options for private student loans and letting then go into default will only begin the path to having your wages garnished or tax return intercepted. Those are things that can happen with student loans without suing you if you default.

  • CLopezPhoto

    I graduated college in June 2009. I was not able to find a job until April 2010 and even then it wasn’t something in my field. I finally found something in my field but it pays close to nothing and I’m barely making rent. I consolidated my federal loans with direct loans and I’m now paying $139 a month with the IBR program. This is a reasonable plan for me. But now Sallie Mae wants me to pay them $670 a month for my private loans. This is completely unaffordable as I will not be able to afford rent. After speaking with them countless of times they have told me that the only thing I could do to make my payments cheaper is to pay the interest only… which is $540 a month. Still not affordable. I just paid them a forbearance fee of $150 today to get them off my back for another month but I wanted to know if I should let my loans go into default and take my chances with the outside creditor who buys my debt. Will they be able to offer me a better repayment plan. Will I be able to settle with them? Should I contact other banks or credit unions and see if they can buy my loans? I really don’t know what to do and I do not want to be sued or have my wages garnished.

    Crystal

  • CLopezPhoto

    I graduated college in June 2009. I was not able to find a job until April 2010 and even then it wasn’t something in my field. I finally found something in my field but it pays close to nothing and I’m barely making rent. I consolidated my federal loans with direct loans and I’m now paying $139 a month with the IBR program. This is a reasonable plan for me. But now Sallie Mae wants me to pay them $670 a month for my private loans. This is completely unaffordable as I will not be able to afford rent. After speaking with them countless of times they have told me that the only thing I could do to make my payments cheaper is to pay the interest only… which is $540 a month. Still not affordable. I just paid them a forbearance fee of $150 today to get them off my back for another month but I wanted to know if I should let my loans go into default and take my chances with the outside creditor who buys my debt. Will they be able to offer me a better repayment plan. Will I be able to settle with them? Should I contact other banks or credit unions and see if they can buy my loans? I really don’t know what to do and I do not want to be sued or have my wages garnished.

    Crystal

    • http://GetOutOfDebt.org Steve Rhode

      There are no good options for private student loans and letting then go into default will only begin the path to having your wages garnished or tax return intercepted. Those are things that can happen with student loans without suing you if you default.

  • Mike

    Both your stories sound horrible. I have 65k in student loans myself and had to consolidate them out to a 30 yr loan to make the payment affordable enough. Have they considered doing that, stretching the loan out? I know it’s not the best idea, but 30 yrs of lower payments vs 10 years of back-breaking payments and garnishments seems like a no brainer to me.

    And your right, Rhonda, there’s some irony there.

  • Lmj100

    Your statement about the banks getting a bailout is so true, and the student loans have interest added each month while they are getting the bailout. Something should be done about that. For every penny taken from the bailout, that amount should be taken from the loans at each bank!!! There has been 1 suicide in the family from student loans and my daughter is threatening a 2nd. However, the banks don’t care. They get self-enjoyment out of harrassing the person until death!

  • Lmj100

    This is so much like my daughter’s debt for student loans. She is so smart and believed that jobs would be there to pay a loan back. The student loan people will not take what she can manage to pay and she is at the suicide point at 32 yrs of age from college at 18 years old. They wont accept what she can pay, have done a loan payment schedule to see that she cannot pay what they want her to pay, and hound her endlessly and freeze money in her bank and threaten garnishment while the government subsidizes the loan but interest compounds regularly. Her Dad stated that he, she, and I can pay the rest of our lives and not pay the loans off. Mafia-interest is added monthly to the loans. It is a nation-wide scam.

  • Stephanies

    i feel the same way

  • Stephanies

    people like me and zoey are not allowed to join the military bi polar is serious :(

  • Debbie

    I feel my sister who has a hearing & speech impairment & 50 years old is being misled into taking out student loans. She’s been going to school on and off over the years. First medical transcription, then nursing & now she’s changed it to med lab tech. Everytime she gets a job in these fields she gets harrassed by her fellow employees because of her disablity. Some people are just plain immature and cruel. So she would quit these jobs only to get disapointed over and over again. She figures she’ll continue in schooling to be a medical lab technician and now she’s 50 yrs old which makes it harder for her now to find a job. But she’s never going to get away from the fact that some people are just plain cruel. Now on top of her disability shes faced with being up there in age. She’s got too many strikes against her and she keeps punishing herself over and over again just to prove to people that she’s smart and doesn’t have a disabilitiy. I know she’s smart and a beautiful person inside out but that doesn’t matter to her. I worry about her and I feel as though she’s being mislead into to taking out all these student loans that she can’t affored to pay back. Her and her husband lost their home because she won’t just take any job. Her husbands frustrated with her but is afraid of hurting her feelings. How can some of these colleges mislead people under these conditions into taking out student loans and not let them be aware that under certain circumstances it’s going to be hard finding jobs especially at her age. I’m sure it’s a money thing. When it boils down to dollars theres so much dishonest people who don’t care how they get it. My question is can some of these colleges keep encouraging people and promising them? I’m just so worried about her. Should I just stay out of it and walk away or is there something I can do?

  • Debbie

    I feel my sister who has a hearing & speech impairment & 50 years old is being misled into taking out student loans. She’s been going to school on and off over the years. First medical transcription, then nursing & now she’s changed it to med lab tech. Everytime she gets a job in these fields she gets harrassed by her fellow employees because of her disablity. Some people are just plain immature and cruel. So she would quit these jobs only to get disapointed over and over again. She figures she’ll continue in schooling to be a medical lab technician and now she’s 50 yrs old which makes it harder for her now to find a job. But she’s never going to get away from the fact that some people are just plain cruel. Now on top of her disability shes faced with being up there in age. She’s got too many strikes against her and she keeps punishing herself over and over again just to prove to people that she’s smart and doesn’t have a disabilitiy. I know she’s smart and a beautiful person inside out but that doesn’t matter to her. I worry about her and I feel as though she’s being mislead into to taking out all these student loans that she can’t affored to pay back. Her and her husband lost their home because she won’t just take any job. Her husbands frustrated with her but is afraid of hurting her feelings. How can some of these colleges mislead people under these conditions into taking out student loans and not let them be aware that under certain circumstances it’s going to be hard finding jobs especially at her age. I’m sure it’s a money thing. When it boils down to dollars theres so much dishonest people who don’t care how they get it. My question is can some of these colleges keep encouraging people and promising them? I’m just so worried about her. Should I just stay out of it and walk away or is there something I can do?

  • Linda Perkins

    I attended Cittone Institute in Paramus, New Jersey. I attended this school back in 2004 or 2005. I fell upon a hardship and had to go to a shelter and could not finish. I would like to know if I can qualify for the Obama Forgiveness Program. I would like to attend Culinary Arts in February in the town that I live in (Newark, NJ) and there is a problem. How can I resolve this matter through your program.

  • Linda Perkins

    I attended Cittone Institute in Paramus, New Jersey. I attended this school back in 2004 or 2005. I fell upon a hardship and had to go to a shelter and could not finish. I would like to know if I can qualify for the Obama Forgiveness Program. I would like to attend Culinary Arts in February in the town that I live in (Newark, NJ) and there is a problem. How can I resolve this matter through your program.

  • Queen Dee

    That’s sounds like some bull shit.

  • westcoast

    So our options after getting a degree to become more educated contributors to our society are to not be able to support ourselves at all, or join the military, leave our children, and go kill or be killed so that this rich country can stay rich? That’s beyond horrible. I feel like I’m trapped in some medieval time, paying bribes to be allowed to work my ass off and stay alive. I think we all have to just stand up against this together. How much more can the rich take from us? Next they will want us to sell our babies.

  • Steve Rhode

    Unfortunately, no.

  • Hank Williams

    can a private student loan be converted into a federal student loan. I am not trying to get out of repayment, but would like to get better interest and terms.

  • Hank Williams

    can a private student loan be converted into a federal student loan. I am not trying to get out of repayment, but would like to get better interest and terms.

    • http://GetOutOfDebt.org Steve Rhode

      Unfortunately, no.

  • onestressedoutmom

    Does anyone know if a petition for student loan forgiveness has been started to send to Obama?
    It sounds like many of us are in the same boat with these student loans and don’t you think it is ridiculous that they can legally charge interest on interest!!
    Maybe if we get together we can get something to our government that will get their attention and get Obama working on this huge problem.

  • onestressedoutmom

    Does anyone know if a petition for student loan forgiveness has been started to send to Obama?
    It sounds like many of us are in the same boat with these student loans and don’t you think it is ridiculous that they can legally charge interest on interest!!
    Maybe if we get together we can get something to our government that will get their attention and get Obama working on this huge problem.

  • Bob

    Sue, the trouble with this country is not that we are fighting each other, the trouble is that there are those who believe that the government should finance (with tax dollars) those who made poor decisions, and those who are paying the tax dollars who claim it’s not the government’s role to use private citizen’s tax dollars to pay a financial obligation of someone who made an uneducated financial commitment. It’s really that black and white.

    I completely agree 100% that we all need to band together to prevent our politicians from using our tax dollars for unnecessary wars, benefits to illegal aliens, monetary gifts to countries, etc. I agree. No argument. Where I get confused is your logic that you are so fed up with government waste with out tax dollars that we should extend unnecessary waste with programs like loan forgiveness? Really? You, yourself are a government employee who’s paycheck is paid for by US tax dollars, and you’re angry that other government paid programs have not paid your loans. How insulting to us tax payers is that? That is beyond unbelievable. Your paycheck comes out of my tax dollars and you want even more? Here’s a radical idea, if you don’t know who owns you loans, friggin’ educate yourself and figure it out and and ask enough questions to know the answers….and once you do, work it out with the loan provider…not me, the US tax payer. I am fed up with people entering financial agreements they didn’t fully understand and then, once they realize they made a bad financial commitment, turning to me, the tax payer to bail them out. That is just not fair.

  • zoey

    I’m one of those people who took out a lot of loans for med school and never finished. i also found out that i’m bipolar a little too late. if i had found out before entering med school i would have had a chance to finish. anyway, the depression has lasted over 3 years and unfortunately sallie mae was on my tail the entire time. i’ve never defaulted before in my life…always had good credit…this is beyond surreal. i’ve got police officers showing up at my door with summons. the fed gov’t will be garnishing my wages, whenever i start working for the rest of my life. my future looks grim. i want to pay my loans i just haven’t been well enough to work. i don’t think it’s fair to be treated like a criminal. i spoke to sallie mae so many times during my hardship and they thought i was lying. i did the best that i could. now i’ll suffer for the rest of my life.

    my advice to anyone reading this….don’t take out school loans. if you can’t afford school then do something else. :( i don’t want you going through all of the crap that i’ve been through. the collections agency laughed at me when i told them i was bipolar…of course i cried my eyes out. there were so many times that sallie mae reps harrassed me and made me cry uncontrollably. taking loans out is not worth the trouble.

  • Sue

    That is the trouble with this country instead of working together we fight each other. One set of people want to help the down and out and the other group says…..b…s….. Americans should be fighting to make our polititians more aware of what is happening around the country. We are going through the worst crisis in many many years. I graduated in 1995 with a MBA. At the time I was interested in getting into a MGT Program with the Federal Govt. The month after graduation I was diagnosed with cancer and there began a 2 year battle. My husband and I were subsidizing our income with a small business cleaning offices on nights and weekends. Because of my illness we one by one had to let go of our contracts. We became late on our bills, student loans and mortgage. Finally, we lost 2 houses and we filled bankruptcy. The first thing we were told was to STOP paying everything. So our SL went into default. It’s been a nightmare since then. I don’t know who has my loans. I’ve had creditors call and threaten to garnish but, since I was a federal employee they could not garnish my wages. Of course being a fed employee I was in jeapordy of lossing my job so I allowed a creditor to garnish my wages and I paid $250 per month for 6 years, total $18,000. I ignorantly thought I was working with the Federal Government and my money would be safe. Guess what! None of those payments were credited to my student loans. They went straight to the creditor to do with whatever! Because it turns out that they were a private company that the loans were sold to. I also was duped twice more by 2 more credit agencies that claimed to be working for the Department of Education. Each one promised that my SL would go out of default after making 1 year worth of payments. $200 per month for each to be exact. After the year passed they dropped me. Where did $4,800 go! Not to my student loans. I called the Department of Education and was told that these agencies could do what they wanted. So do you see why I am reluctant to go into any repayment plan. I don’t trust any of these agencies. For you people that are in default…… I believe that the government sold our loans to predatory credit collection agencies. So don’t make the same mistake I made. There is appromately $22,000 of my money that I paid in good faith and I’m still in default, my credit is still ruined and because these loans have been moved so many times and these agencies change their names or go out of business there is nobody to turn to to find out anything. THAT IS WHERE THE REAL PROBLEM IS? Nick if it’s you that’s paying $1,000 a month payment and proud of it. You must be making a hefty income. Because I can bet that if you were in my, or the others shoes you would be crying the blues about not having enough money to live on. How about getting off your high horse and hear what we have to say. The majority of people that sign up for anything do it with good intentions but life happens.

    How about showing outrage at what is happening out there… Billions and Billions of dollars on an unnecessay war, benefits to illegal aliens, monetary gifts to countries (how many really need it). How about our own polititians that only serve 4 years and are given retirement pay, how about all their freebies (cars, lunches, interest free loans, health insurance). How about they are still giving themselves pay raises will the rest of us get nothing. How about the fact that they can raise millions of dollars in campaign funds….and get to keep what they don’t use. Isn’t some of this money our money? How about the millions of dollars in tax money that they give to frivilous causes. That’s just a few. Instead of going after low income, disabled, sick, down on their luck people who are holding a hand out for assistance. How about directing your anger at all this madness.

  • Sue

    That is the trouble with this country instead of working together we fight each other. One set of people want to help the down and out and the other group says…..b…s….. Americans should be fighting to make our polititians more aware of what is happening around the country. We are going through the worst crisis in many many years. I graduated in 1995 with a MBA. At the time I was interested in getting into a MGT Program with the Federal Govt. The month after graduation I was diagnosed with cancer and there began a 2 year battle. My husband and I were subsidizing our income with a small business cleaning offices on nights and weekends. Because of my illness we one by one had to let go of our contracts. We became late on our bills, student loans and mortgage. Finally, we lost 2 houses and we filled bankruptcy. The first thing we were told was to STOP paying everything. So our SL went into default. It’s been a nightmare since then. I don’t know who has my loans. I’ve had creditors call and threaten to garnish but, since I was a federal employee they could not garnish my wages. Of course being a fed employee I was in jeapordy of lossing my job so I allowed a creditor to garnish my wages and I paid $250 per month for 6 years, total $18,000. I ignorantly thought I was working with the Federal Government and my money would be safe. Guess what! None of those payments were credited to my student loans. They went straight to the creditor to do with whatever! Because it turns out that they were a private company that the loans were sold to. I also was duped twice more by 2 more credit agencies that claimed to be working for the Department of Education. Each one promised that my SL would go out of default after making 1 year worth of payments. $200 per month for each to be exact. After the year passed they dropped me. Where did $4,800 go! Not to my student loans. I called the Department of Education and was told that these agencies could do what they wanted. So do you see why I am reluctant to go into any repayment plan. I don’t trust any of these agencies. For you people that are in default…… I believe that the government sold our loans to predatory credit collection agencies. So don’t make the same mistake I made. There is appromately $22,000 of my money that I paid in good faith and I’m still in default, my credit is still ruined and because these loans have been moved so many times and these agencies change their names or go out of business there is nobody to turn to to find out anything. THAT IS WHERE THE REAL PROBLEM IS? Nick if it’s you that’s paying $1,000 a month payment and proud of it. You must be making a hefty income. Because I can bet that if you were in my, or the others shoes you would be crying the blues about not having enough money to live on. How about getting off your high horse and hear what we have to say. The majority of people that sign up for anything do it with good intentions but life happens.

    How about showing outrage at what is happening out there… Billions and Billions of dollars on an unnecessay war, benefits to illegal aliens, monetary gifts to countries (how many really need it). How about our own polititians that only serve 4 years and are given retirement pay, how about all their freebies (cars, lunches, interest free loans, health insurance). How about they are still giving themselves pay raises will the rest of us get nothing. How about the fact that they can raise millions of dollars in campaign funds….and get to keep what they don’t use. Isn’t some of this money our money? How about the millions of dollars in tax money that they give to frivilous causes. That’s just a few. Instead of going after low income, disabled, sick, down on their luck people who are holding a hand out for assistance. How about directing your anger at all this madness.

    • Bob

      Sue, the trouble with this country is not that we are fighting each other, the trouble is that there are those who believe that the government should finance (with tax dollars) those who made poor decisions, and those who are paying the tax dollars who claim it’s not the government’s role to use private citizen’s tax dollars to pay a financial obligation of someone who made an uneducated financial commitment. It’s really that black and white.

      I completely agree 100% that we all need to band together to prevent our politicians from using our tax dollars for unnecessary wars, benefits to illegal aliens, monetary gifts to countries, etc. I agree. No argument. Where I get confused is your logic that you are so fed up with government waste with out tax dollars that we should extend unnecessary waste with programs like loan forgiveness? Really? You, yourself are a government employee who’s paycheck is paid for by US tax dollars, and you’re angry that other government paid programs have not paid your loans. How insulting to us tax payers is that? That is beyond unbelievable. Your paycheck comes out of my tax dollars and you want even more? Here’s a radical idea, if you don’t know who owns you loans, friggin’ educate yourself and figure it out and and ask enough questions to know the answers….and once you do, work it out with the loan provider…not me, the US tax payer. I am fed up with people entering financial agreements they didn’t fully understand and then, once they realize they made a bad financial commitment, turning to me, the tax payer to bail them out. That is just not fair.

  • Ylcrowe41

    Hi I have been paying student loans since 1996 and instead of my debt going down it is increasing by the 1000′s and I have tried the hardship they are garnishing my checks at a rate of 200 a month and I’m a single mother what can I do. I want to pay them back but at the rate I’m going I won’t be able to and I can’t get ahead. HELP!!!!

  • Ylcrowe41

    Hi I have been paying student loans since 1996 and instead of my debt going down it is increasing by the 1000′s and I have tried the hardship they are garnishing my checks at a rate of 200 a month and I’m a single mother what can I do. I want to pay them back but at the rate I’m going I won’t be able to and I can’t get ahead. HELP!!!!

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  • cora75

    BULLSHIT.

  • cora75

    BULLSHIT.

  • unemployedinaz

    Let me start this off by saying I WANT to repay my loan, and I have every intention of doing so.

    That said, right now, I am unable. While I was still in school, because of medical issues and my own stupid mistakes and misunderstandings of my loans, I used up my 6 month deferment period and my loans went into default. I got really sick (had to withdrawal completely) and then I screwed up and didn’t follow through with every option (though I did attempt, I was not told what all of my options were).

    Fast forward a few years – I have a job, not a high paying job in the slightest but a job nonetheless. My loans are in default – I can’t go back to school because of it, I want to rehab my loan. I contact who I’m supposed to and they tell me I need to pay approximately $500/mo or they will garnish my wages. After paying my meager living expenses – rent, utilities, gas & food, I didn’t have $100 extra dollars, let alone $500.

    Just so you know:
    - I am single. I depend on no one other than myself for support. There is no boyfriend or husband or family to carry me. And I am not searching for someone to do so – that’s just not right, and it’s not anyone else’s responsibility.
    - I don’t have children. I know I can’t afford to raise any so I have not had any.
    - I have lived in small apartments with low rents.
    - I don’t have credit card debt.
    - I am not living beyond my means – I don’t spend frivolously on designer handbags and shoes and then wonder why I have no money. I buy needed clothing used or on clearance/sale at places like Target and Kmart.
    - I shop sales exclusively for food and use coupons as much as I can. I don’t eat out or eat fast food.
    - I don’t have fancy electronic equipment – my TV is the old style (bought used) that needs a converter box to receive signals, I don’t have cable/satellite or high speed internet. I also don’t have a smart phone or phone data plan. I don’t have a lap top; I have a 5 year old desktop computer. I don’t have an ipod/ipad or anything else of the sort.
    - All of my furniture was either a gift/hand me down from someone or purchased used over the years.
    - I live very frugally and I have nothing of worth to sell.
    - I don’t go to bars or clubs. I don’t drink, smoke or use any drugs.
    - I pay taxes – state and federal.
    - I’m never late on my rent, utilities or other payments.

    Basically, I am doing the best I can. Because I cannot afford the payment amounts they insist on, they proceed with wage garnishment. I appeal, based on the fact that it would cause undue financial hardship, send all the paperwork, etc. And they agree – to garnish my wages would cause me undue financial hardship.

    We go round and round about this over the next couple years – I don’t get a raise at work because the economy is worsening. In fact, I lose my vacation and sick pay. That’s fine. I still had a job. Health insurance costs increase greatly. I swallow it because I have to – preexisting conditions and all, I can’t go without coverage. Then my hours are cut – I have to take a furlough day once a week. 40 hrs/week down to 32/hrs a week. At least I still have a job… all the while, I’m looking for something else. Something part-time to supplement – no luck. Something new, full-time – no luck.

    And then I’m laid off. I worked in the office of a wonderful small business that was greatly affected by the recession – more so than many other businesses (new home construction industry in Arizona). I’m so sad to lose my job but I understand.

    So now I really am unable to do anything about my student loan debt. I desperately want to rehab my loan. I want to apply for one of the many repayment plans available to student loan borrowers but with my loan in default, I cannot. I want to not only utilize my degree but pay back the loan – IN FULL – but at this point, I am completely unable to do so.

    So now I am in a job search, for my life, literally. And I get so close to getting offered a job (I’m a great worker and interviews go really well, everything like that) then they run a credit report/background check and…There’s no job. The only blemish in my history of ANYTHING is my defaulted student loans. And that’s enough to disqualify me.

    How am I to pay them back if I cannot get a job because I have not paid them? How do I get overcome this catch-22 and be the productive member of society that I want to be?

  • unemployedinaz

    Let me start this off by saying I WANT to repay my loan, and I have every intention of doing so.

    That said, right now, I am unable. While I was still in school, because of medical issues and my own stupid mistakes and misunderstandings of my loans, I used up my 6 month deferment period and my loans went into default. I got really sick (had to withdrawal completely) and then I screwed up and didn’t follow through with every option (though I did attempt, I was not told what all of my options were).

    Fast forward a few years – I have a job, not a high paying job in the slightest but a job nonetheless. My loans are in default – I can’t go back to school because of it, I want to rehab my loan. I contact who I’m supposed to and they tell me I need to pay approximately $500/mo or they will garnish my wages. After paying my meager living expenses – rent, utilities, gas & food, I didn’t have $100 extra dollars, let alone $500.

    Just so you know:
    - I am single. I depend on no one other than myself for support. There is no boyfriend or husband or family to carry me. And I am not searching for someone to do so – that’s just not right, and it’s not anyone else’s responsibility.
    - I don’t have children. I know I can’t afford to raise any so I have not had any.
    - I have lived in small apartments with low rents.
    - I don’t have credit card debt.
    - I am not living beyond my means – I don’t spend frivolously on designer handbags and shoes and then wonder why I have no money. I buy needed clothing used or on clearance/sale at places like Target and Kmart.
    - I shop sales exclusively for food and use coupons as much as I can. I don’t eat out or eat fast food.
    - I don’t have fancy electronic equipment – my TV is the old style (bought used) that needs a converter box to receive signals, I don’t have cable/satellite or high speed internet. I also don’t have a smart phone or phone data plan. I don’t have a lap top; I have a 5 year old desktop computer. I don’t have an ipod/ipad or anything else of the sort.
    - All of my furniture was either a gift/hand me down from someone or purchased used over the years.
    - I live very frugally and I have nothing of worth to sell.
    - I don’t go to bars or clubs. I don’t drink, smoke or use any drugs.
    - I pay taxes – state and federal.
    - I’m never late on my rent, utilities or other payments.

    Basically, I am doing the best I can. Because I cannot afford the payment amounts they insist on, they proceed with wage garnishment. I appeal, based on the fact that it would cause undue financial hardship, send all the paperwork, etc. And they agree – to garnish my wages would cause me undue financial hardship.

    We go round and round about this over the next couple years – I don’t get a raise at work because the economy is worsening. In fact, I lose my vacation and sick pay. That’s fine. I still had a job. Health insurance costs increase greatly. I swallow it because I have to – preexisting conditions and all, I can’t go without coverage. Then my hours are cut – I have to take a furlough day once a week. 40 hrs/week down to 32/hrs a week. At least I still have a job… all the while, I’m looking for something else. Something part-time to supplement – no luck. Something new, full-time – no luck.

    And then I’m laid off. I worked in the office of a wonderful small business that was greatly affected by the recession – more so than many other businesses (new home construction industry in Arizona). I’m so sad to lose my job but I understand.

    So now I really am unable to do anything about my student loan debt. I desperately want to rehab my loan. I want to apply for one of the many repayment plans available to student loan borrowers but with my loan in default, I cannot. I want to not only utilize my degree but pay back the loan – IN FULL – but at this point, I am completely unable to do so.

    So now I am in a job search, for my life, literally. And I get so close to getting offered a job (I’m a great worker and interviews go really well, everything like that) then they run a credit report/background check and…There’s no job. The only blemish in my history of ANYTHING is my defaulted student loans. And that’s enough to disqualify me.

    How am I to pay them back if I cannot get a job because I have not paid them? How do I get overcome this catch-22 and be the productive member of society that I want to be?

  • Broke Grad

    I graduated from WPI a couple years after Anthony with $100,000 in debts

  • Toni

    did obama pass anything that changed the student loan collection laws? i have for all but 5years been a single parent and i owe for my two grown students and am now 57 with little income the collectors call me constantly . i wanted my children to have an education…call me crazy.

  • Toni

    did obama pass anything that changed the student loan collection laws? i have for all but 5years been a single parent and i owe for my two grown students and am now 57 with little income the collectors call me constantly . i wanted my children to have an education…call me crazy.

  • Bob

    Nick. Thanks for being a rationale, responsible, accountable and productive member of society who doesn’t expect your peers to pay for your decisions. It is beyond unfortunate that you are burdened with $1000 a month in student loan payments, but that is a financial obligation you agreed to and I am both proud and impressed that you are owning up to it. So many others on this board are so quick to claim: “I made a very uneducated, bad financial commitment so now tax payers should bail me out.” Really? No. Really?

  • Nick

    Does anyone here realize that if we had NONE of these types of programs that give money to people who don’t pay taxes like the rest of us, EVERYONES paycheck would increase to an amount that would probably fix all of your personal debt issues? I know that of my $2000 gross income twice a month, $700 of it goes into the system. WOW!!!! How an extra $1400 a month would completely erase my debt worries!!! If only it was that easy though… when we have people in our government eager to start these programs so they can get the votes from people that honestly don’t deserve to be voting for the reasons they more than likely are basing their votes on! Hate all you want, but the reason this country blossomed the way it did was because people were free to do whatever they wanted!! If you aren’t going to take that freedom to become something great that supports the lifestyle that YOU want to live… you aren’t truly an American are you?? You say you are disabled and can’t work the job you have worked the last 15 years of your life… go find something that you can do that pays better!!! If that means you have to go back to school to do so, your private loans will go back into deferment while you get your new degree and you can get more loans (the MINIMUM you need) to make it through graduation so you can get a new job!!! Or better yet… if you are a single parent, I know for a fact that the government will help you pay your way and there are scholarships that specifically look for those broken home people. How awesome is that!!! Just because you started your life on one path doesn’t mean that, when you hit that brick wall, you can’t change directions. People in this country give up too easy… Your back got hurt and you can’t be a carpenter, welder, stock boy, auto tech anymore… get a degree in a field where you can sit all day! It may be tough for a while, but things work themselves out in the end. Make plans, stick with them, do the research and be a smart AMERICAN.

  • Nick

    Does anyone here realize that if we had NONE of these types of programs that give money to people who don’t pay taxes like the rest of us, EVERYONES paycheck would increase to an amount that would probably fix all of your personal debt issues? I know that of my $2000 gross income twice a month, $700 of it goes into the system. WOW!!!! How an extra $1400 a month would completely erase my debt worries!!! If only it was that easy though… when we have people in our government eager to start these programs so they can get the votes from people that honestly don’t deserve to be voting for the reasons they more than likely are basing their votes on! Hate all you want, but the reason this country blossomed the way it did was because people were free to do whatever they wanted!! If you aren’t going to take that freedom to become something great that supports the lifestyle that YOU want to live… you aren’t truly an American are you?? You say you are disabled and can’t work the job you have worked the last 15 years of your life… go find something that you can do that pays better!!! If that means you have to go back to school to do so, your private loans will go back into deferment while you get your new degree and you can get more loans (the MINIMUM you need) to make it through graduation so you can get a new job!!! Or better yet… if you are a single parent, I know for a fact that the government will help you pay your way and there are scholarships that specifically look for those broken home people. How awesome is that!!! Just because you started your life on one path doesn’t mean that, when you hit that brick wall, you can’t change directions. People in this country give up too easy… Your back got hurt and you can’t be a carpenter, welder, stock boy, auto tech anymore… get a degree in a field where you can sit all day! It may be tough for a while, but things work themselves out in the end. Make plans, stick with them, do the research and be a smart AMERICAN.

  • Nick

    I’m in complete agreement with Bob on this one. I have $70,000 in student debt and am living in a crashing economy where people all around me are losing their jobs just like most of you are. I, however, did as Bob did and researched EVERYTHING before getting into any kind of mess. The internet is a fabulous tool to find out how much money you can afford to pay back with an estimated salary after graduation, how to consolidate loans, what types of loans are out there, etc. If you don’t do the research and blindly jump into debt you won’t be able to handle because you were too ignorant to spend some time researching the facts and consequences of your signature on a piece of paper, then you don’t really deserve what you’ve been given. There are loan repayment options out there that base the amount you pay each month on your income. If you lose your job, or are disabled, they have programs that deal with that while keeping the repayment still in your responsibility. Also… while I’m paying around $1000 a month on my student loans for the next 10 years, I really would rather not be paying another tax to help you pay your loans back because you weren’t proactive enough to figure things out on your own before burying yourself in debt over your capabilities. Live up to your mistakes and understand things FULLY before signing up for something that affects the next 10-20 years of your life!! If they start making me pay back everyone else’s student loans, I think I’ll let my loans go into forbearance and YOU can pay MY loans back!!! Then we can all live in an ignorant state of mind!! If you are one of the few people with the saddest story in the world, my apologies, that is one gray area where it would almost be OK to help you out. But, if you are someone who had 5 kids, bought an expensive house, got divorced, and spent $60,000 on a degree that earns you only $10/hr… that’s just bad life planning on your part. Really… I’m not going to pity someone who can’t sit, think, and realize how dumb that was!

  • MgobBoblue

    Again, Vision9202, of course the respondents to question #1 are 88% wanting tax dollars to pay for loan forgiveness – I’m actually surprised it’s not higher – after all, this board is made up of participants who owe student loans – so of course they (you) want tax dollars to pay for your loan. Not surprised at this result at all. You ask the same question on a board where people took out student loans and paid them back on their own (i.e. no tax dollars) and I guarantee the results will be radically different. Again, I ask you, how is if fair that 47% of U.S. Households paid no Federal Taxes in 2009, an you are asking the other 53% to cover your financial obligation? How is that fair? Would you feel as strongly if you had to take your tuition bill and walk around your neighborhood knocking on your neighbor’s doors asking them to pay your bill? Because that is exactly what “Loan Forgiveness” is. Someone else paying a financial obligation you made. Take the emotion out of the debate and think about it rationally.

  • Jenna

    We are all in this together and everyone’s situation is different. Let’s all pray that a miracle from God forgives our student loans. Some of us received degrees and cannot get a job and have the stress of Great Lakes calling off the hook and all hours of the day….

    God Bless all
    Jenna

  • Jenna

    We are all in this together and everyone’s situation is different. Let’s all pray that a miracle from God forgives our student loans. Some of us received degrees and cannot get a job and have the stress of Great Lakes calling off the hook and all hours of the day….

    God Bless all
    Jenna

  • Vision9202

    Bob, I am not naive. Let look at the two questions above and the voting statistics.

    As at this moment.

    Question 1: 88% or 4381 votes say “Yes”, whereas
    12% or 624 votes say “No”.

    Question 2 : 79% or 1400 votes say “Yes”, whereas
    21% or 363 votes say “No”.

    Would you say the majority of us who voted “Yes” are naive? You and the rest of your gang who voted “No” are not? Please give me a break.

  • Bob

    Vision9202 – with all due respect, it’s your responsibility, not the government’s, to educate yourself about loans and the obligation you assume. So your basic argument is the government is so F–ked up that we should rely on that very same government to fix the problem? Seriously? No, really? The institution that you claim caused the problem is the same institution you think can actually fix it? I’m speechless. Are you really that naive? I can clearly see that your investment in additional education probably was not a wise investment. One that my tax dollars are not going to pay for.

  • Bob

    Tim, I’m glad you agree, in principle, that if you assume a debt, it’s your responsibility to repay it. In that we are in total agreement. The concern I have is with the fact that you blame the loan provider with not pointing out the fine print to you. That is, completely, 100% your responsibility to understand what it is you are signing. If the “predatory” lending institution puts 200 pieces of paper in front of you to sign, and you don’t completely understand it, common sense says, don’t sign. Ask a thousand questions until you fully understand what it is you are signing. I almost got into a very bad mortgage agreement. I didn’t fully understand what they were asking me to sign, so I asked enough questions to realize I would be insane to sign the papers they wanted me to sign. Back to my basic point: it’s unfortunate you didn’t ask those very questions, but it is unfair to ask me to us my tax dollars to pay for your mistake. Isn’t that fair?

  • Vision9202

    Bob, The student loans debt is now overrun the credit cards debt because the government allowed it to happen. It gets to the point that it becomes a big F–ked up mess that no one congressmen nor a president can fix it. It happens because congressmen are bankers and bankers are congressmen. I say, let the government use its taxpayers’ money to fix. One perfect analogy is, if you let your child plays with fire and burns your house down, you, as a parent, should fix it. You let it happen because you don’t educate your child the danger of playing with fire. Our country produced so many scientists, enterprenuers, engineers, accountants, etc… because of education. The government has an obligation to educate its citizens at the lowest cost as possible so citizens can have less debts and contribute more to the society. But it is not the case any more today because of the greedy congressmen who involved predatory lending practice with Wallstreet. Bailout “too big to fail bullshit” when its citizens are out of jobs, children are starving because mothers have to make a decision to pay student loan debt or to let the child go hungry. The government has loss its creditability as a education provider because of this F–king student loan mess. There will be no more middle class. There will be a 5% of the richests and 95% of the poors society. Bob, where do you fall in? after all, it boils down to this.

    Student loans = Divorce = suicide = no dream home = no dream car = no marriage = no children = wages garnish = tax garnish = embaressment = children starving = foreclosure = moving in with parents = no bankcrupcy discharge = forgiveness amounts is a taxable income after 25 years, Why?…you can fill in some more if you wish.

    Why the government treats government workers better than the non-government workers. Is the non-government workers are the second-class citizens?

    We need an old fashion conservative third party person to run the WH and some good old fashion R_Necks and H_Billies who don’t like to associate with Big Banks in any way, shape or form, to run the Congress. In this way, hopefully everyone can have a little American Dreams back.

    Bob, I hope you change your mind on your perceptions so America can be America again. “Unite We Stand, Divide We Fall”.

  • Tt_nguyencftsse

    Bob, I am totally agree with you that we are all obligated to pay the loans back as we had promised when we were signning the promisory notes. And We should and must no questions ask. I didn’t run into some circumstances that some people had, i.e., large medical bills. But let say, every loan provider was engaged in a predatory lending practice and schools that helped those loan providers knowlingly it was deceptive and bad for students, but did they care? No, they didn’t care because they all got a kick back with a large sum of money. Let ask yourself, and be truthfully to your answer. When you sign that promisory note, did that loan officer explain to you the consequences if you are going to default on your loan? Did he tell you to read the fine print closely? Did he, at all, give you a real formal education about student loan? I bet he just tell you to sign here and sign there, and then shows you here is the loan amount you will get. You accepted the amount without questions because the school told you so. Did you need that much of money? anyway, in short, American dream never be a dream for some students because of this predatory lending practice. Let look at an example. Let say you are well educated and got a good paying job and you have a $40,000 student loan outstanding. And let say you make $500.00 a monthly payment on the loan and for 20 years. This is a calculation $500 X 12 month/Yr X 20 Years = $120,000. Is this 3 times the amount of your original principal? Let say you buy yourself a very first Lexus = $40,000 do you want to pay $120,000 when you are done paying for it. Elizabeth Warren saids, ” student loan providers really make Mobster envious”. I am sincerely wishing you and your family in good health for ever. Because the bad consequences are there, a time bomb for every student loan that is in default. How the government will treat you when you are in default is another story. Your embrassement with your company’s payroll department is another story. your retirement funds (if there is any) is another story. So on and so on….

    Have a nice day Bob. The world values the intellectual thinkers.

  • Gennygarden

    I have a student loan since 1994. It was for living expences. I just became single and was supporting 3 children. I never could get my head above water to pay back the loan. At only 10.00 an hour for the deploma I recieved was bad. taken over the years about $12,000.00 out of my tax returns over the years for a $4000.00 loan. They still say they can not pay off my loan due to tax and penalties. Our government is worse than the banks that did preditory lending. How can I stop this raping of my money…..

  • Gennygarden

    I have a student loan since 1994. It was for living expences. I just became single and was supporting 3 children. I never could get my head above water to pay back the loan. At only 10.00 an hour for the deploma I recieved was bad. taken over the years about $12,000.00 out of my tax returns over the years for a $4000.00 loan. They still say they can not pay off my loan due to tax and penalties. Our government is worse than the banks that did preditory lending. How can I stop this raping of my money…..

  • Bob

    Tim, we are not narrow minded. It is extremely unfortunate that your medical bills and work situation has caused extreme financial crisis. But that crisis is something you need to work out with your loan provider – not with the U.S. tax payer. When you took the loan out, you agreed to pay it back. The U.S. tax payer did not agree to that obligation. If you’re having problems with your loan provider, do everything in your power to work it out with them. It’s not my responsibility as a tax payer to pay your bill.

  • Steve

    So Laura, your major complaint is “watching people live on welfare most of their lives and foreigners come to this country and get OUR tax dollars to start business and go to school without being expected to repay a dime.” Whether or not your xenophobia is true, I do completely agree with your point that NO ONE should be living off U.S. tax dollars. And that includes you. “Forgiveness” is Obama speak for socialized welfare that you are so happy to take. How are you any better than the “foreigners” you are so quick to condemn?

  • Tim

    File bankcrupcy, chapter 7 and then get on the 9 month rehap program.

  • johnny lofton

    i had a $2500 student loan 35yrs ago and told thar if i worked in the area it would be taken care of. after filling my obligation i moved on to bigger things. this was ongoing and reagan,i believe,stepped into office and said no more freebies and all student loans would be paid back. now all of a sudden it jumped to $15000 10 years later and my income tax refund has been taken,so i made it where i didn’t have any refund coming,but the interest didn’t stop. now it has grown to $25000. i now have a 15 and 16 year old and wife and live off a VA disability pension that can’t be touched but my loan gets tossed around banks and everybody trying to get a piece of me. well i filled my initial obligation and back to the original problem. is obama going to forgive me or not,because i’m a parapalegic now and it will be one less thing off my back.

  • Steve

    Hey George, wake up, it’s not FREE MONEY. It’s MY TAX DOLLARS you’re so quick to take. The Federal Government doesn’t have any money of its own. Every paycheck, the federal government grabs MY money. The Federal Government is just a conduit to give away MY MONEY. And I, along with many others, are fed up with programs just like this. It’s not fair that 47% of US Households pay no Federal Taxes (pay nothing into the system) yet expect to get their loans paid off, their health care paid for etc. Being one of the 53% that is paying into the system, I’m fed up. Own up to your own responsibilities and quit taking money out of my pocket!

    • George

      Hey Steve . . . Read the whole post! If you had then you would know that I agree with you. I’m sick of all the big government spending. I’m an upper middle class tax paying contributor to society. I’m tired of seeing my tax dollars go to these types of programs. But I also have no problem taking back some of my tax dollars IF we qualify for any of these programs. My point is that if these programs didn’t exist(which I’m in favor of) then we’ll “own up” as you say and pay the money back ourselves. As long as the government is handing out MY money I’m going to get some of it if I can! Take the cash for clunkers program for example . . . If you had an old junker worth maybe $500 and were in the market for a new car . . . you’re telling me you’re not going to cash in on that program and get a $3500 credit . . . that’s just dumb! That’s all I’m saying as long as they’re handing the money out I see no problem with people applying as long as they qualify. YOU would be dumb not to.

    • George

      Oh and Steve . . . Thanks for the social studies lesson on where the government receives it’s revenue from. Very insightful! I feel enlightened and AWAKE! Thanks.

    • George

      One final comment. I’m not the one taking money from you Steve. It’s our government and you’d be wise to get as much of it back as you can.

      • Steve

        Hey George, here’s an even better idea. Let’s just rally to get those of us who are actually paying taxes to simply stop. They can’t go after us all – they won’t have the money to pay the IRS agents. Oh, I like that idea. Drain the government of their never-ending source of revenue….us:)

      • Steve

        Hey George, I did read your whole post and I do realize that we are in agreement. And I can see your point that it would be “stupid” not to take the money if it is available. But I think your cash for clunkers is a great example – I was 100% against that and refused to “take advantage” of that. My stance is, no one should take it. I know that is not a realistic stance as there are too many people on this board willing to take a quick tax-payer handout. But if people like you and me start participating in these insane programs, then they are guaranteed to continue. I’d rather have people like you (and me) stand up and say: “No this wrong, I am not supporting, encouraging or endorsing this by participating in this (even it it means not accepting “free” money). That’s all. Wrong is wrong. I won’t be a part of it.

  • George

    My wife recently graduated with her masters in school counseling and we’ve racked up quite a bit in debt in the process. I believe that debts should be paid back and that our federal government should stop spending so much money. Having said that . . . If we qualify for a loan repayment program, you bet we’re going to apply. If we’re approved then great. If not then we’ll pay it back ourselves. We would be stupid not to apply even if we disagree with the government program. It’s free money. Why shouldn’t we take the money if we quailify for the program? It would be irresponsible not to apply. Here’s 50k to pay your loan off . . . no strings attached. No thanks I think I should pay it back myself. How insane does that sound!? I have no problem with people applying and taking the money as long as the government is going to continue it’s irresponsible programs. Someone is going to get the cash. Why not me? Why not you? Take advantage while you can!

  • Shaina

    I have to say that I am glad for those of you that can pay off your loans. I on the other hand can not afford it. I am unable to work after suffering from an illness that has left me disabled. I know that I can get help with my federal loans but I didn’t get enough to pay for school with those so I was forced to take out a personal student loan. At the time the interest rate on it was supposed to be 8%, I have come to find out that it is 11% and over the course of a few months it has gained around $8,000 in interest. Now since I am unable to work through no fault of my own I cannot pay it back and they are not really helpful when I try to pay less then their minimum payment. My point is, some of us have hit very rough times and it was not planned and in my case it is permanent so any help from the government would be a blessing, even if its forcing the company to accept what I can pay and make them stop harassing me.

  • Steve

    Here’s a radical idea. Pay your own debts. How did we get to a point as a country where we expect our neighbors to carry our debt. 47% of U.S. Households pay NO FEDERAL INCOME TAX. That means 47% of the country is not paying one dime into the “system” yet expects the “system” to pay their debts. I don’t think so! Being one of the 53% that is paying taxes, I’m fed up with the blatant injustice of it all. I’m already being told that I now have foot the bill for helthcare for those are not paying into the “system” now you want me to pay for your education as well? Heck, why not just send me your mortgage bill and car payment while were at it. How is it possibly fair to ask half the country to foot 100% of the bill? Welcome to America Socialism.

    • POst it

      Uhhhhh we do have jobs. We pay taxes. I dont see anything wrong with free education and healthcare. That would really freak the top 1% out. Oh, great, here comes an army of highly educated, hardworking people who aren’t sick. Right now, everyone is complaining and pointing fingers at eachother and saying things like Wlecome to America Socialism- when in the history of this country we have never been in such a economic crisis due 100% to GREED and the American public being robbed by the RICHEST people in this great nation.

  • Laura

    I have sat and watched people live on welfare most of their lives and foreigners come to this county and get OUR tax dollars to start businesses and go to school, without being expected to repay a dime. I have worked my whole life, went to college and due to the current economy am unemployed. I’ve even gotten screwed out of unemployment because of Congress….but I know welfare is still raging on and monetary gifts to non-us citizens. So no one needs to preach to me or anyone about me paying my debts. And social security will likely be a distant memory after all the years I pay into it…so if I can get help with my loans, you are damn straight I will. Want to preach and complain about people getting free money, address the aforementioned programs where people do nothing and get everything. I pay my rent, take care of my children, pay bills, taxes, etc…so I have no qualms getting help with my loans…or forgiveness.

    • Steve

      So Laura, your major complaint is “watching people live on welfare most of their lives and foreigners come to this country and get OUR tax dollars to start business and go to school without being expected to repay a dime.” Whether or not your xenophobia is true, I do completely agree with your point that NO ONE should be living off U.S. tax dollars. And that includes you. “Forgiveness” is Obama speak for socialized welfare that you are so happy to take. How are you any better than the “foreigners” you are so quick to condemn?

  • Liz in DC

    Being an older person who recently went back to school and had to pay cash for it, I think it is wildly unfair to expect me to subsidize other people’s education. I might consider some special repayment program if a student is going to work in an area where there is a critical shortage, such as math and science education or General Practice Physician.

    • Dottie Ghanbarian

      You already subsidize other people’s education- it’s called the public school system. You, being an older person, should also appreciate how things were different when you grew up. I don’t know how old you are . . . but many jobs that used to only require a high school degree now require a B.A. I worked in the employment industry- so that is my point of reference. I doubt you have had to compete in the labor market with young bucks in a major way or you would realize how difficult it is. I pay $60K in taxes per year and live in Section8 housing. I have to live in a major city to find a job that pays enough so that I can afford the loans and TAXES. I think a lot of things are unfair. But trust me, you pay for things like food for a serial killer, wars that are only to make the rich richer, you bailed out the banks, you bail out people who use credit cards like crazy for luxuries and then go bankrupt . . . .

      Don’t get mad at us. We are the ones who will pay for your SOCIAL SECURITY CHECK each month. I know you paid into the system, but we will pay for you, and it’s highly unlikely the program will exist when we are OLD.

      Instead of bailing out people for their credit card debt or allowing people to have 8 kids and live off of the government . . . let’s give some bright young people the chance to re-build America, challenge the RICH who undoubtably run this country…

      And by RICH, I mean the people who could pay for your degree by selling one door knob at their residence. They LOVE when us poor people fight with each other.

  • Linda Terrell

    I am looking for help to pay off a MBA student loan – currently I work in a school district that is 98% under the proverty stricken guidelines also this town is rated the poorest rural town in the United Stated (Hopkinks Park, Illinois-Pembroke Township. The position I hold is the Parent/Community Involvement Coordinator and the Broadcasting Facilitator for 6 students. I have held this osition for 6 years with the beginning salary of $21,000 – $34,000.
    Where can I get help to pay-off a $47,000 loan at the age of 55.

    • http://MSN Kate

      Please let me know that also. I am 53 and owe 57,000. I am also in default and am starting to lose sleep over this. My credit is ruined and at my age I don’t think it will get fixed. I have taken my name off of our home just in case they try to take it. Everything is in my husband’s name. There is no reason for him to have to take the heat for my big mistakes, if I had to divorce him to save him from my debts, I would do it.

  • Lady K

    Wow!!!
    I’m currently working two jobs to support myself, very active in my community, and a full-time student. I pay ALL my bills on time; I take the bus or ride my bike to places and I don’t use credit (I know most of you on here do)… meaning I have the cash to pay for all items. And most importantly… I don’t any support from ANYONE!!! Are you saying it’s ok to charge me 10,000 dollar on 6,000 dollar loan? Wow!!! Being the very 1st to ever go to college, education is very important to my family!!! Yes, my choice but it doesn’t help when you graduate with a degree such as Biochemistry and can’t find a job or the job you end up working at McDonalds for $8.50. Is that right?
    My grades are excellent and hope to graduate with honors. I’m currently 65,000 in debt and my choice but education is expensive and I’m sure everyone would agree. I know people say “look for scholarships” and I did, receiving an extra 4,000 dollars to help with cost but it still wasn’t enjoy and I had to get student loans to cover the 4-year cost. I also not very happy with the institution I attended because they set the scholarship agencies back money, stating I was over the maximum amount but why not send the loan company back the unnecessary money???!!! … Oh, but they stated “We know what’s in your best interest.” B@$^ S$%#!!!!!
    You know what everyone is entitled to their opinion but I’m so tired of people jumping on the people who bust their asses, to graduate with honors and end up in large amounts of debt and athletes are able to get a full ride because they can dribble a basketball or make touchdown when they have 2.0 GPA’s. (Trust I HAVE SEEN THIS) This is not for everyone but for those who do get by…. Why do get a full ride with a 2.5 when I have 3.99 and can’t even get two-thirds of tuition in scholarships?

  • Cindy

    Higher education is a CHOICE…..there are plenty of people out there who are very sucessful financially without it………the problem is CHILDREN are looking for the quick and easy…..they cannot see the future……they want what they want now….our parents would have NEVER thought of borrowing for something like this…….the up and coming generation is LAZY and thinks that they should be taken care of……..they rack up debt……they have unprotected sex because they are to LAZY to buy birth control…..then when they are single parents who dropped out of school because they have a baby and their parents cannot afford to pay for the care of that child while they are in school they cry the blues……..I’m a single parent……..I can’t afford that….the government isn’t helping me…….I ONLY get food stamps for 200 dollars and I have 5 kids that are dirty and nasty and uneducated and run wild like animals……….get a life…….stop doing things that are going to screw up YOUR future!!!!!! Getting pregnant is not like cancer….its avoidable…….think about what you are doing……..YOU are in charge of your life…………control it by making good decisions…….I collect on student loans every day and I have heard it all……the peple who have HONESTLY had a hard life are more willing to pay this debt than the ones who are able to work………DEAD BEAT………shovel cow pies if you have to in order to pay the bills…..butn they think they are to good for that….TRUST ME…..there are jobs out there it just depends on how much pride you have and what you are willing to do to TAKE CARE OF BUSINESS AND GROW UP!!!!!!!

    • Josh Larson

      In high school I ended up graduating 5th from the bottom of my class. I was told I was stupid, dumb, and college was not for me. I wanted to prove those who said that wrong, and prove to myself I was not what they said I was. So I enrolled in a community college where I managed to raise my GPA above a 3.2. I then applied and was accepted to a University studying psychology and graduated with a 3.1 GPA. Knowing I could have done better I decided to go to graduate school and study management. Upon compellation of graduate school I earned a Master of Arts degree in Management with a 3.8 GPA.
      That being said, I ended up borrowing a total of $58,000. My $58K will now be $97,000 in total repayment due to interest. I make $45,000 a year and have high anxiety and depression because I am now 32, about to be 33 years old and still cannot afford to live without a roommate in a cheap apartment.
      The biggest triumph in my life, my most proud accomplishment, has led to shame, guilt, and the largest financial burden of my life. I cry, wish, pray, but at the end of the day, I ask myself “was it worth it” and I can say without a doubt NO. I wish I listened to those telling me I could not, because proving I could cost me more than anyone can imagine.

      Lazy is not my issue, I work hard, very hard…

  • Shemekia

    I am right at 50K in debt. My dream has always been to have a wonderful career with a great job, start a family, and purchase my dream home someday. Now I don’t feel that those things are possible. I’m currently single, graduated and received by my bachelors in computer information systems about three years ago. After I got finish with my bachelors degree I applied, applied, applied and applied for jobs in my field but no one would except me. It was sad because I worked extra hard in college but it seem that I had been awarded a degree I could not use. During that time I probably only owned about 20,0000 back in loans. Being that I applied for so many jobs and noone would even call for a interview I felt my credentials wasn’t strong enoough so I started working on my Masters. Before I finished my masters program I was offered a low level job thats similar to my field that started my pay off with less than 30,000. Just recently I had to forbearance which is still terrible because the payments continue to accrue interest. And those IBR and income sensitive plans do no good by just taking the payment down 5- 10 dollars. I’m not trying to blame anyone but I feel that I was forced into debt by the system. Because when we graduate from college and we start our job search nothing out there will offer the pay that we deserve. It seems that they hate to even offer a recent grad a good paying job because of no experiene. I just dont see how lenders expect borrows to pay back loans when the job market keep pushing away the ones that are trying to move forward. But then again I think to myself if I had no degree then I definitley wouldnt stand a chance in this economy. If there can’t be a such thing as loan forgiveness there should be more better options. I wouldn’t mind working 10-12 hours a day if I knowed my loans were getting paid back.

  • Tracy

    What the heck? I have now spent about a week trying to just find out info about what, where, when, and how to apply for some for loan forgiveness programs. There apparently are tons and tons of options out there. But where exactly is “OUT THERE?” I keep finding tons of sites that give me all sort of blogs or opinions about who should or should not recieve such a program. BUT I just want to find a program to apply for? I do not care who thinks what about me or my situation. I just want to find free resources and free ways of getting out of debt. Any leads? I really want to see how to get my government to pay anything for me since they take so much from me. P.S.- For anyone who is busting at the seams—-I am a mother of four, a soon to be granny of two, and still work over 80 hrs. per week just trying to earn a comfortable living. AND, oh yes, I too am a over qualified and underpaid professional.

    • KS

      Let me know when you find out! I’m in the same boat. I don’t really care what the rest of you say. I’m not lazy. I’m not uneducated. I give back to society in a HUGE way, as do many of us with loan issues. I don’t have a problem paying back my loans, but at least work with me in how I can do that, which the banks aren’t willing to do at this time. That is what is starting to cost me and it’s getting ridiculous. With $25 a month in late fees even though I make something of a payment, I just can’t keep up. Help would be nice. It’s the banks that are making the money and that’s who should be targeted in getting rates down, loan forgiveness, etc.

      • http://[email protected] carol cook

        I need to find out the same thing. My husband is disabled and I am retired and our student plus loan is over ten years old and I thought that the government proposed a forgiveness plan. But , where is it? I know we would qualify because of my husband’s Muscular Dystrophy. Anyone know??

    • Cindy

      Have a couple more kids and teach them to have kids they cannot afford!!!!! Why is there this intense desire to have so many children…………over populate the world with more children who have no values………FABULOUS!!!!

    • Zach

      Tracy… I’m right with you on this. I have tried to be as responsible as possible and don’t really give a crap about what people think of me with this. The FACT is that the jobs and pay are just not there anymore. Everything that people have been told about getting an education is basically a lie. Yes you CAN make more money in your salary but that will be quickly eaten by the huge payments that you have to make.

  • Cassius

    Can student loan be forgiven if it’s over twenty yrs old?

  • MedStudent

    I’m about $100,000 in debt right now after my first year of medical school and a year of a masters already. 3 more years of loans of $70,000/yr, and then into residency. So I’m looking at over $300,000 in loans. Don’t expect primary care problems to be solved without fixing the problems with financing medical education. It’s no problem if you come from a family of doctors, like many of my peers, but for me, there is no lofty bank account to fall back on. So I joined the National Guard which will give me back $150,000 over 3 yrs. But still, I would’ve preferred to simply have less debt in the first place. Medical education should not cost this much…

    • doctor

      Medstudent,
      You bet! I made a comment earlier but I’ll reiterate some of my points and you might be able to stave off some of my painful experience.
      Came out of medical school in 2001 with 250k debt. Finished residency 5 years later and that debt accumulated to 330k. You will not have the financial stability to make any loan payments during residency…although when I did residency it was 120 hrs a week and I understand that policies have changed to max at 80.
      If I had known what I know now, I would’ve happily joined with one of our armed forces in return for their help paying back the debt…so good move with that one…other factors to consider are joining a practice which will sign a contract that they also match paying back your debt…except that usually it will force you to join a rural setting.

      Medical education shouldn’t cost so much, but as far as I know, most medical students are still greenhorns that believe socialized medicine (obamacare) is going to be good for the U.S. Just wait until you are 7-10 years down the road and you just finished your residency while you have been living in modest comfort, and you find that you _aren’t_ making a gazillion dollars a year like the public thinks. And on top of that, consider that with that type of debt you will have, if you make the ‘recommended’ payment each month, your debt will not be paid off until you are 70 years old. Solution? Paying it off as quickly as possible. Result? Living modestly for the next 5-10 years. So…there ya go….living the dream and finally being able to afford some of the nicer things in life when you hit 50 yrs old. Seems rather paradoxical to me.

      • MedStudent

        So then the next question would be simply to work and live happily and pay the minimum loan payments for 20 years in hopes that Obama’s loan repayment program is still in effect?

      • doctor

        well, my min payment is 1700/month….@ 20 yrs, that comes out to be 408,000. I’m more inclined to just make the 5k monthly payments and be done with it in 5 years and then use that extra 60k a year to go towards retirement for the next 15 years….then again, you could argue that you could save 39600 yr by making the min payment….yeah, i dunno. I just hate being in debt. The future is always open and one never knows what is going to happen.
        My overall outlook is that if I’m completely debt free (house paid, no car payments, no loans), then i’ll really only need to pay bills and house taxes…which would give the option to work 3-7 days a month, depending on what extra perks one would want. If I made the min payment, I am locked in fulltime for 20 years.
        …but what do i know :)

  • Tabai

    I am single parent with a Masters, ive working in social services and criminal justice since i was 19Y/O, im now 36. with my undergraduate and graduate degree, i am about $160k in the hole. that is $1070 per month. How am i expected to pay that with a mortgage of $1380, car note of $415, utlities, and other expenses. I dont have credit cards, nor any other debt aside from the “good debt” listed. I am applying with xpress loans for a lower amount based on my income. I sure do my expenses count. i cant sleep because the responsible person i am wants to pay back what i owe, but if i dont, my wages will be garnished. I will just rely on my faith and hope its approved.

    • Eddy

      Damn you got a good deal. I owe 111k, and my minimum monthly is 1100…I’ll have the whole loan paid off in 1 year but only because I have a solid job. I don’t know how anybody can afford to pay that amount and actually live. I wish the Govt would step in these Default / Interest Fee’s are absolutely tearing apart any dream young kids have today.

  • Shannan

    Just for anyone saying that people with a lot of student loan debt are lazy….well that is BS. There are students that work practically full-time and go to school full-time trying to make it better for their selves. However, other cost of living payments are high and life events happen where it keeps one from paying off student loans or from taking out smaller portions. I am a first year graduate student going into school counseling. What do most school counselors start out at with Master’s degrees? 35k-40k is average, and I have how much in student loans presently? about 80k+. Am I lazy? Not even close. Am I irresponsible? No way. I accept that it is my responsibility to pay some, but with certain circumstances one should not be expected to make a mortgage payment after graduating moving onto a career to help people making lower amounts of money (35k) Everyone has different circumstances and should not be punished or stressed financially for trying to make a difference in their life along with many others.

    • TJ

      So other people who worked hard to pay their debt should pay for yours?

      • SD

        No, let’s pay 45k a year to keep one prisoner in prison. That makes more sense.

      • Was going to college worth it?

        California spends 300 million annual for executions .. go figure

      • Shannan

        I’m not saying to forgive all student loans, but something has to be said for graduating with over 100k loans with a Master’s degree that starts out at 35k right? And to make the implication of me not working hard compared to your working hard to pay your debt off just doesn’t work. Many people’s situations are different and why is it that K-12 is publicly funded, but post-secondary education is not when there have been studies upon studies showing how effective post-secondary education is for everyone at large?

    • Anonymous

      You made a choice and now you must pay for it. Your debt is not a “punishment” at all, it is the consequence of a choice that you agreed to. No one prevented you from leaving the program to pursue a different career. No one prevented you from transferring to a different Master’s program. You are not the only person in this country “trying to make a difference” and getting into a more expensive college or program does not mean you deserve special treatment. 

  • http://Website Charity Henschen

    I can see all sides of this delima. I was a single parent trying to get by when I took out my student loans. However, I have worked very hard and gone without allot in order to become current with them. I except responsibility for these loans; however, I can’t help but ask myself, why in the world would anyone give out these massive loans to practically children? In my day, we didn’t have the hightened awareness of credit like we do today. They are plain taking advantage of people. If I knew then what I know now, I would have sent half of that money back (they gave me twice the amount I needed to pay for school). Now that I’m older, I’m looking at these interest rates and it just boils my blood to see all of the money I am paying and the pricipal stays pretty much the same… the only way to get this monkey off our backs is to pay every extra cent we have when we have it, just to reduce the amount of interest paid in the end… I know that something needs to be done – and I except my responsibilities.

  • Eric

    Forgiving debt is B/S. I had 15k+ in loans and a ten year window to pay them off. It wasn’t that much, but the interest rates were 5% & 7%, which in my opinion is too high, so I paid that stuff of in 2 and half years. I took those loan and it my responsibility to pay them off. If you deny your desire in the short term (buying used cars, renting small places, not buy iphones, computers, new anything, taking big vacation) you can cut that down debt very quickly. Anyone that want forgiveness are irresponsible. Capping interest rates or re-evaluating them based off your income would be reasonable.

    • Shannan

      See comment below

    • Joe

      A very short sighted view, there. I net a pretty decent wage myself, and still have to struggle to make ends meet with my student debt re-payment of over $500/month. I’ll be fine but I can’t imagine how anyone making less could pull this off. But the bigger point is this… degreed citizens improve this country by unfathomable heights (imagine if almost no one got a formal education) and so students who graduate should have their debts forgiven. It’s not about who is able to pay them off thus everyone should.. it’s about a country recognizing the contribution degreed individuals make to society. Not to mention the higher wages that will mean more commerce taxes, contributing back to the government likely more than what they’d pay out for paying off the loans of graduates. It would also almost necessarily decrease the drop out rate or dramatically increase the finishing rate, creating more higher waged citizens for even more commerce tax.

      But again, the typical “I can do it, so can you” is not only inconsiderate, but not applicable to answering WHY graduates should have to pay back the loans from the government. The fact that they are called “loans” seems to shortcut people’s thinking about why they should be paid back.

      • Joe

        “degreed citizens improve this country by unfathomable heights ” Are you kidding? Saying that is quite offensive. I couldn’t afford school and when I couldn’t I went into the military instead. I spent 10 years serving my country during peace and at war. I was able to get some college in but with deployments it was difficult. My goal was tonot have any student loans. To date I have not finished my degree, but let me tell you something about the “un-educated” I made 107K last year not including bonus or pension. I manage a global team of 40 people. I have refused to hire “degreed” people beause of the lack of communication during an interview. A piece of paper, in my opinion, is not worth a dime if you can’t communicate with people Give me someone with 10 years experience in their field any day.

        Your comments, frankly, are demeaning and perhaps you should re-take a few of those basic cultural communication courses.

      • Joe

        Wow. You just supported my case twice. First, you retorted my point of “just because YOU could do it doesn’t mean everyone can” with just that same argument (rolling eyes). You also have an unreal lack of understanding of statistics or the the profound depths of differences between schools when you generalize those with degrees. In all, you exhibit the exact flawed thinking of a non-4 year degreed individual, all the while touting the amazing accomplishments of your non-degreed self. Your retort is a classic.

      • Beverly

        Touche! You ARE educated!

        People like you and the poster to posted to help to improve this country. People in service fields especially help to improve this country! There should be some breaks given to those of us who are trying to further our education (anything post-secondary). Most people go to college not only for the education but also to be able to provide for their families. It’s a shame that getting a degree is a step back for so many people.

      • Make More Than YOU

        Ignorant. Don’t hire people because they have a degree. I make what you make Mr. Fancy pants and I have a degree. People with a degree show they can at least commit to something, getting through 4 years of College is extremely tough. Go pound sand loser!

      • Was going to college worth it?

        I appreciate you expressing this direct truth .. I needed to read this .. Thank you Joe!

    • Zach

      Eric, it is wonderful that you were able to do that. But, you are very short sighted by the situation. Now take a real world situation.

      I wasn’t able to go to College before I met my wife and her two wonderful children. In fact, it wasn’t until about a year after I adopted them that I was finally able to get to college. The military wasn’t an option for me due to medical issues but I wanted to provide a better future for my family.

      After talking about it for weeks with my wife and researching jobs in our home area, we decided that it would be the best thing for our future. Now, the future is looking terrible. Our kids are now in high school and we can barely make ends meat because all of the jobs disappeared. So answer me this then… Was I supposed to not go to school to chase after the jobs that were available when I enrolled? Was I not supposed to do what I could to help my family? How is one supposed to know what is going to happen 4-5 years down the road?

      The Government itself pushes people to get a higher education. Employers themselves push people to get higher education. So what is someone supposed to do that has a family, mortgage, and school loans but can no longer get a decent paying job? Is that parent not supposed to buy new clothes for his children? Not take them to the dentist to get braces? Not try to provide a safe, healthy home?

      I am all for scrimping and saving. In fact, we don’t have a choice but to do just that. So what is someone supposed to do that was told better jobs will be there and they aren’t when that $500/month bill starts to come around?

      • Was going to college worth it?

        Did you ever consider attending a trade school versus college? Just wondering ..

      • Anonymous

        You could have just as easily gone to a community college or cheap local state school. Many intelligent high school students refuse to go to prestigious universities because they know the experience is not worth the cost in the long run. You made the decision to go to an expensive school so you must bear the cost. Why should responsible students who made the intelligent decision to save money be forced to pay for your education? Do you think you are “special” and deserve the world to be handed to you on a platter? The people who complain the most about the cost of college will be the first to affirm their schools are “better.” These students get what they deserve.

    • http://google Lyn

      Eric, you are a totally ignorant fool! Good for you that you paid yours off. Get off of those who are struggling. I don’t live in a fancy house. Don’t own one. I live in a tiny 1 roomed suite that I rent. My pay is only 10.50 an hour & as of yesterday I have only 6 permanent hours a week. So I am doing whatever I can to get more work so I can be responsible. Someday you may find out what it’s like to have thousands of dollars in medical bills. Emergencies happen & then you are in a pickle.

  • http://Website Bryce Cooper

    I don’t think anyone is arguing for “free money” here, but after a certain amount of time, loan companies have made more than the original amount — and can expect plenty more. We’re looking at ending up paying $45,000 for a loan that was originally $25,000 (over a period of 25 years). It seems as though forgiveness of these type of loans wouldn’t really cost anyone any up-front costs — the loan companies would just lose out on this empty, free, potential money that’s over and above the orginal loan payment.

  • http://Website nips

    I have thousands of dollors in student loans,but that was my choice..I do not want anyone to wipe them out..it is my debt noone elses. People need to take responsibility for themselves and stop depending on others

    • Shannan

      See my comment below

    • Molly

      Thank you for taking ownership of your privileges to higher education. I hope people like you will make a difference in educating future generations to understand that the government should not be the bailout for our personal choice in spending.

      • J.J.

        It’s true that we should own up to our debts, but at the same time think of it..now a days the economy is hard and more then ever people having a hard time keeping up with bills. True, you go to school knowing that you have to pay you’re loans back, but who’s to say that you’ll go to school for 4 years or more and suddenly find the perfect job that pays you more then enough so that you can quickly pay your loans back? Excuse me for being blunt, but people who think that something like that would happen apparently are living in a dream while the rest of us are working our tails off just to make ends meet. If I had to advise a person just getting out of high school, or almost ready to graduate high school, I’d advise them to try to get some sort of scholarship and while they are in school get a job and start paying back….or even put money aside so when they finish they would already be ahead of the game (you usually get a 1 year grace period before you have to start paying back). Secondly, if by the time you have to pay back you don’t have enough (like they ask for $300 per month but you could only pay $150) there are programs that allow you to pay lower then the asking price.

        All in all, what I’m saying is that it just cause someone is seeking help, it doesn’t mean that they are lazy in anyway or can’t take responsibility, some people really need the help and truth be told, student loan debts are nothing like credit card debts. There seems to be more help for that then for student loans, so I really hope that there is a student loan forgiveness program out there that would help those in dire need.

    • http://MSN Kathie

      I too have loans that I took out but I don’t have a job and they are now in default and they have been sent to a lawyers office, so yes I need them to be included in a bankruptcy. good for you if you can pay your. don’t judge me.

      • http://google Lyn

        I am 51 & still have over 5,000 on my loan to pay. I got the loan back in 1983 when it was only 2,000. I have had to be in forbearance for a while so the interest still acrued. Everytime I start paying on it again something happens. My hours in healthcare were cut 3 weeks ago from 36 hrs to 21 then yesterday from 21 hrs to only 6 hrs a week. How is anyone to survive like that. My husband & I are considering bancruptcy but the loan can’t be included. Someone shouldn’t judge when they are not in your shoes. It’s not that people don’t want to pay their own way. Circumstances happen where they cannot. I say help us before helping all the other countries & big company bail outs.

    • Candace

      aww shut up NIPS, who asked you?

    • Zach

      Here is the real deal with education loans though. The reason I went to school was because I couldn’t get the higher paying jobs in my area. I lost out on a great job because I didn’t have that piece of paper even though I had 7 years experience at the time. Because of the economy, by the time I graduated from College, all of the jobs that used to pay $80K+ were now paying the same amount as the job that I already had while in College.

      Employers have figured out that they don’t have to pay as much as people are demanding. There are so many people looking for jobs that they can pay less and still get very good employees.

      I am only able to pay for half of my loans right now and the other half are going to default in the near future unless I can get a second job to pay for them (I guess I don’t need to see my wife and kids right?). Because I need help with something that I did to better the future of myself and my family, does that make me irresponsible? Even though it was “my choice” to go to college, it wasn’t “my choice” for the economy to tank and take all of the jobs with them. Is it somehow my fault that the economy is in the toilet? I purchase from stores, have a reasonable mortgage, and have not run up $100K+ credit card debt. So why is it that corporations get the help? Why is it that people who stupidly take out a mortgage that they can’t afford get help? Why is it that those of us that legitimately try to do something good are the ones that get worked over and are made to suffer?

      I do not think that all should be forgiven necessarily but what I do think is that a portion should be adjusted out due to the economy being so bad and the fact that there aren’t very many good jobs. I have been in my line of work for over 12 years now, have a Bachelor’s degree in my field, and am not making any more per month that I was before I went to school. Take in the rise for cost of living and I am actually making less now.

      I say forget bailing out the homeowners that took out loans that they couldn’t afford. If you sign up for an “ARM” loan, you are asking for trouble. Do help the homeowners that have lost their jobs though and do help the people that did everything they could to make a better life for themselves and their families. Namely the people that sought after higher education.

    • Tim

      if you got sick and run up some large medical bills or worse disable unable to work you will change your thought from there. Once your loan is in default due to some unforeseeable circumstance beyond your controls they (your loan provider) will treat you like a dirt-trash loser. More to that the government will treat you like a no-class citizen, your dissability benefits ,whatever the amount that is, will be garnish with no mercy and no begging. So many people be there, that route, and done that. So please do tell me you are a perfectionist. I am sorry for your narrow minded thinking.

      • Bob

        Tim, we are not narrow minded. It is extremely unfortunate that your medical bills and work situation has caused extreme financial crisis. But that crisis is something you need to work out with your loan provider – not with the U.S. tax payer. When you took the loan out, you agreed to pay it back. The U.S. tax payer did not agree to that obligation. If you’re having problems with your loan provider, do everything in your power to work it out with them. It’s not my responsibility as a tax payer to pay your bill.

      • Tt_nguyencftsse

        Bob, I am totally agree with you that we are all obligated to pay the loans back as we had promised when we were signning the promisory notes. And We should and must no questions ask. I didn’t run into some circumstances that some people had, i.e., large medical bills. But let say, every loan provider was engaged in a predatory lending practice and schools that helped those loan providers knowlingly it was deceptive and bad for students, but did they care? No, they didn’t care because they all got a kick back with a large sum of money. Let ask yourself, and be truthfully to your answer. When you sign that promisory note, did that loan officer explain to you the consequences if you are going to default on your loan? Did he tell you to read the fine print closely? Did he, at all, give you a real formal education about student loan? I bet he just tell you to sign here and sign there, and then shows you here is the loan amount you will get. You accepted the amount without questions because the school told you so. Did you need that much of money? anyway, in short, American dream never be a dream for some students because of this predatory lending practice. Let look at an example. Let say you are well educated and got a good paying job and you have a $40,000 student loan outstanding. And let say you make $500.00 a monthly payment on the loan and for 20 years. This is a calculation $500 X 12 month/Yr X 20 Years = $120,000. Is this 3 times the amount of your original principal? Let say you buy yourself a very first Lexus = $40,000 do you want to pay $120,000 when you are done paying for it. Elizabeth Warren saids, ” student loan providers really make Mobster envious”. I am sincerely wishing you and your family in good health for ever. Because the bad consequences are there, a time bomb for every student loan that is in default. How the government will treat you when you are in default is another story. Your embrassement with your company’s payroll department is another story. your retirement funds (if there is any) is another story. So on and so on….

        Have a nice day Bob. The world values the intellectual thinkers.

      • Bob

        Tim, I’m glad you agree, in principle, that if you assume a debt, it’s your responsibility to repay it. In that we are in total agreement. The concern I have is with the fact that you blame the loan provider with not pointing out the fine print to you. That is, completely, 100% your responsibility to understand what it is you are signing. If the “predatory” lending institution puts 200 pieces of paper in front of you to sign, and you don’t completely understand it, common sense says, don’t sign. Ask a thousand questions until you fully understand what it is you are signing. I almost got into a very bad mortgage agreement. I didn’t fully understand what they were asking me to sign, so I asked enough questions to realize I would be insane to sign the papers they wanted me to sign. Back to my basic point: it’s unfortunate you didn’t ask those very questions, but it is unfair to ask me to us my tax dollars to pay for your mistake. Isn’t that fair?

      • Nick

        I’m in complete agreement with Bob on this one. I have $70,000 in student debt and am living in a crashing economy where people all around me are losing their jobs just like most of you are. I, however, did as Bob did and researched EVERYTHING before getting into any kind of mess. The internet is a fabulous tool to find out how much money you can afford to pay back with an estimated salary after graduation, how to consolidate loans, what types of loans are out there, etc. If you don’t do the research and blindly jump into debt you won’t be able to handle because you were too ignorant to spend some time researching the facts and consequences of your signature on a piece of paper, then you don’t really deserve what you’ve been given. There are loan repayment options out there that base the amount you pay each month on your income. If you lose your job, or are disabled, they have programs that deal with that while keeping the repayment still in your responsibility. Also… while I’m paying around $1000 a month on my student loans for the next 10 years, I really would rather not be paying another tax to help you pay your loans back because you weren’t proactive enough to figure things out on your own before burying yourself in debt over your capabilities. Live up to your mistakes and understand things FULLY before signing up for something that affects the next 10-20 years of your life!! If they start making me pay back everyone else’s student loans, I think I’ll let my loans go into forbearance and YOU can pay MY loans back!!! Then we can all live in an ignorant state of mind!! If you are one of the few people with the saddest story in the world, my apologies, that is one gray area where it would almost be OK to help you out. But, if you are someone who had 5 kids, bought an expensive house, got divorced, and spent $60,000 on a degree that earns you only $10/hr… that’s just bad life planning on your part. Really… I’m not going to pity someone who can’t sit, think, and realize how dumb that was!

      • Bob

        Nick. Thanks for being a rationale, responsible, accountable and productive member of society who doesn’t expect your peers to pay for your decisions. It is beyond unfortunate that you are burdened with $1000 a month in student loan payments, but that is a financial obligation you agreed to and I am both proud and impressed that you are owning up to it. So many others on this board are so quick to claim: “I made a very uneducated, bad financial commitment so now tax payers should bail me out.” Really? No. Really?

      • Vision9202

        Bob, The student loans debt is now overrun the credit cards debt because the government allowed it to happen. It gets to the point that it becomes a big F–ked up mess that no one congressmen nor a president can fix it. It happens because congressmen are bankers and bankers are congressmen. I say, let the government use its taxpayers’ money to fix. One perfect analogy is, if you let your child plays with fire and burns your house down, you, as a parent, should fix it. You let it happen because you don’t educate your child the danger of playing with fire. Our country produced so many scientists, enterprenuers, engineers, accountants, etc… because of education. The government has an obligation to educate its citizens at the lowest cost as possible so citizens can have less debts and contribute more to the society. But it is not the case any more today because of the greedy congressmen who involved predatory lending practice with Wallstreet. Bailout “too big to fail bullshit” when its citizens are out of jobs, children are starving because mothers have to make a decision to pay student loan debt or to let the child go hungry. The government has loss its creditability as a education provider because of this F–king student loan mess. There will be no more middle class. There will be a 5% of the richests and 95% of the poors society. Bob, where do you fall in? after all, it boils down to this.

        Student loans = Divorce = suicide = no dream home = no dream car = no marriage = no children = wages garnish = tax garnish = embaressment = children starving = foreclosure = moving in with parents = no bankcrupcy discharge = forgiveness amounts is a taxable income after 25 years, Why?…you can fill in some more if you wish.

        Why the government treats government workers better than the non-government workers. Is the non-government workers are the second-class citizens?

        We need an old fashion conservative third party person to run the WH and some good old fashion R_Necks and H_Billies who don’t like to associate with Big Banks in any way, shape or form, to run the Congress. In this way, hopefully everyone can have a little American Dreams back.

        Bob, I hope you change your mind on your perceptions so America can be America again. “Unite We Stand, Divide We Fall”.

      • Bob

        Vision9202 – with all due respect, it’s your responsibility, not the government’s, to educate yourself about loans and the obligation you assume. So your basic argument is the government is so F–ked up that we should rely on that very same government to fix the problem? Seriously? No, really? The institution that you claim caused the problem is the same institution you think can actually fix it? I’m speechless. Are you really that naive? I can clearly see that your investment in additional education probably was not a wise investment. One that my tax dollars are not going to pay for.

      • Vision9202

        Bob, I am not naive. Let look at the two questions above and the voting statistics.

        As at this moment.

        Question 1: 88% or 4381 votes say “Yes”, whereas
        12% or 624 votes say “No”.

        Question 2 : 79% or 1400 votes say “Yes”, whereas
        21% or 363 votes say “No”.

        Would you say the majority of us who voted “Yes” are naive? You and the rest of your gang who voted “No” are not? Please give me a break.

      • MgobBoblue

        Again, Vision9202, of course the respondents to question #1 are 88% wanting tax dollars to pay for loan forgiveness – I’m actually surprised it’s not higher – after all, this board is made up of participants who owe student loans – so of course they (you) want tax dollars to pay for your loan. Not surprised at this result at all. You ask the same question on a board where people took out student loans and paid them back on their own (i.e. no tax dollars) and I guarantee the results will be radically different. Again, I ask you, how is if fair that 47% of U.S. Households paid no Federal Taxes in 2009, an you are asking the other 53% to cover your financial obligation? How is that fair? Would you feel as strongly if you had to take your tuition bill and walk around your neighborhood knocking on your neighbor’s doors asking them to pay your bill? Because that is exactly what “Loan Forgiveness” is. Someone else paying a financial obligation you made. Take the emotion out of the debate and think about it rationally.

      • anonymous

        People don’t have control whether they get sick or not (usually). However, they DO have control regarding which college they choose to go to. Those who chose to attend an expensive school must pay for it. There are many trade schools, public universities, and community colleges that are cheaper. 

  • http://www.forgivestudentloandebt.com Robert Applebaum

    While there may not be a full, across-the-board loan forgiveness program yet, some of us are waging a long-term battle to achieve just that! Visit us at http://www.forgivestudentloandebt.com and see how you can help!
    .-= Robert Applebaum´s last blog ..How Far are You Willing to Go to be Heard by Congress? (Pick the most aggressive form of Protest you’d be Comfortable With). =-.

  • http://Website Humphrey

    My adjunct pay is $3,600 per semester in New Jersey. This salary is divided by 10 pay periods (or $360 per pay period) and this period runs every 2 weeks. And now 10% of these checks are being garnished. Does Title III, Consumer Credit Protection Act, include student loans. And if so, why is it that my wages are still being garnished even though it is less than 60 times the federal minimum hourly wage ($7.25/hour) or $435.00.

  • http://Amero.org Amero.org

    Please ignore my typos. I have a virus that eats letters and words.

  • http://amero.org Amero.org

    I was not thinking when I replied to you this morning.
    If you are totally or permanently disabled on federal loans you can be discharged on your loans even if you are in default. I’m not sure how to works with private loans, but I will try to find out, because this interest me.

    My content writers are actually preparing a section on student loan repayment for my Student Loans site, and it will be ready next week. I’m sure your options, but try reading through it, maybe there is something. For example, I did not know you can be discharged on federal loans for disability, but it makes sense.

  • http://amero.org Amero.org

    @digger,

    On tip I can give you is that you can actually sue them for threats about your kids. Legally your kids are not liable at all, and the fact you do not own the car means they are making false statements in order to scare you.

  • http://Website digger

    I have about 30.000 in loans but have become seriously disabled. my income is below the amount that they can garnish but they call almost daily to make sure thing haven’t changed even though they know my circumstances will never change. They even threaten to put a lean on my car and have said that they will go after my children for it after I’m dead and they can’t do a thing about it. Is this true about my children? And as for my car the joke is on them because I don’t have a car. I can’t afford to own one even if I got it for free. I have heard of a hardship discharge (from them) but they are so tight lipped about the process that I wonder if it wasn’t just a ploy to gain my trust to find out if I own anything. These people are unrelenting and brutal. Is their anything I can do?

  • http://amero.org Amero.org

    You see. The results started to go in the correct direction.

  • http://amero.org Amero.org

    I run a Financial Aid – Student Loans website and let me give you a tip. Try editing your question into something like this:

    Do You Think the Government Should Forgive Student Loans Using Your Money To Pay It Off?

    And then you can compare the poll results.

    • http://GetOutOfDebt.org Steve Rhode

      Cool idea. I’ll put up the question. Come back and vote.

      Steve

  • http://Website Mary

    Why should you be able to “forgive” loans? YOu took out the loans! I worked full time and had a small child and was able to get through school without borrowing more than 10,000. I only borrowed my tuition and books! I know people and my daughters friends who borrow all this money to “live” on, “party”, drive a fancy car and go out to dinner everynight, shop til you drop! You signed the loans people, pay it back! Your lender will work with you, you are not trying hard enough! Sick of hearing this crap! I paid ALLLLLL of my loans back with interest over 10 years, you should to.

    • http://Website Rick

      If you’re so sick of hearing stories like this stop reading websites dedicated to helping people get out of debt.

  • Chris McMceil

    I currently have a consolidated Sallie Mae student loan for just over $13,000.00 – more than half of which is interest. The loan date is 3/14/89. Original loan amount was $5279.00. However, due to many financial hardships due to unemployment, layoffs and low paying jobs over all these years, I had taken forebearances and deferments on the loan. The most recent unemployment deferment ran out November 2009. I was laid off for almost a year. I am now working again, however, the loan payment which was suppose to start in Nov. 2009 is $199.53. I have substancial household expenses which I am trying to catch up on and could not and cannot pay that additional monthly payment. I have been in contact with Sallie Mae since November but the only option they say I have is to “apply” for the IBR. They are “requiring” me to submit IRS info. which includes my husbands info. This is my loan from years ago before we were married and the financial information should be mine alone. Can they do this? The loan is currently 120 past due. I a afraid they will garnish my wages. If I start making a payment of $50.00 a month, will this prevent them from taking further collection action?

  • John

    I had a disability discharge, all but one loan was discharged. Sallie mae said that loan lost it’s insurance because they could not contact me. Yet every other servicer could and I was in the national database. The loan is 17 years old started at 2,500 and is now 6,000 or more, afraid to look. I fear Sallie mae will offer a settlement then after paying the settlement say I still owe the remaining money. I want to sue sallie mae, should I do it after I pay the settlement or try to pay off the full amount they say i owe then sue them for the money back? Is there a 20 year statute of limitations on student loans? Is it still a student loan if it lost it’s insurance?

  • justagirl

    To Maxwell Strang:

    You are most likely eligible for the IBR (Income Based Repayment) plan that went into affect at the beginning of 2009. Get ahold of whoever holds your loan and demand IBR, which means your monthly payment cannot be more than 15 % of your income, and after 25 years, the rest of your debt is completely forgiven.

    To everyone else: NEVER EVER ALLOW YOUR LOAN TO GO INTO DEFAULT. Once it’s in default, you have almost zero options. Get ahold of your lender before you default. Stay atop of your loan; know what’s going on with it. It’s irresponsible to ignore your student loan. There are many options to avoid defaulting on student loans. Lenders DO NOT want you do default, and they will work with you to find a solution to avoid that situation.

  • Maxwell Strang

    I graduated in 2008 with an accounting degree. Prior to attending college I had screwed up my life with some legal situations. I chose to put myself through college because I thought it would be a good way to turn my life around. Boy was I mistaken!
    Over the few years that I attended college I managed to accrue loans adding up to around $48,000. I couldn’t find a job after graduating because the economy just sucks. I managed to get a forbearance on some of the loans but now my loans are around 60,000 because of compound interest.
    The only income I receive is GA and SSI which equal only $674 a month. My loan payments are $600 a month. This doesn’t include the rest of my bills which total around $500 per month.
    Right now I’m only able to eat and survive through my parents. I’m 30 years old and I’m still forced to get help from my parents. My parents just both went on social security so things are not looking good. Where is the help in this country? How can anyone survive off of $50 a month in food stamps and only $670 a month when the student loans in themselves cost $600 a month?
    Is there anyway that we can voice our situations to legislation or something? I know of at least 6 other friends who are pretty much in my same situation.

  • Peter R.

    I graduated from law school in 1991 with a loan balance of $28,000. I made payments on the loan in accord with the payment schedule for 10 years. Then as luck would have it I was out of work and temporarily actually had to take work as an $8/hour security guard. Student loans went unpaid and into default. When I finally got back on my feet with a good legal position, and inquired aboout starting repayment of mt loan, I was informed my balance was now $43,000. Yes, that’s $15,000 more than the ortiginal balance and after 10 years of repayments. I refused to pay that rip off and of course eventually they garnished my wages, but I will be dead and buried before the loan is paid off….about 90% of the garnishment goes to interest. What a wonderful world!!

  • Eva Stewart

    I graduated with a Bachelors in 2001 and came into the corporate world only to find companies laying off instead of hiring. My degree is still not satisfied and my Federal and Private Loans want their money. I am in about $70,000 worth of debt. Ive been on and off paying these loans throughout the years because of life’s obligations to live life. My taxes were taken away this year and I think its very unfair that I cant get relief. I never thought I would say this, but I wish I never went to college. I wanted to push for a masters, but I dont even have a chance with debt like this. What do u do when all u want is a higher education and a better life to live with the benefit of the $$$$$ *shrugs shoulders* I had a conversation with my Aunt the other night and she told me to that Obama had a forgiveness program. I hope this will help me because all I can do now is to asks for GOD’s help to guide and lead me in a better direction.

    • Ian Towle

      I know exactly how you feel…. Education is no longer the single route to a productive life. My best friend growing up works in the trades and already has his own home, family and savings… I work as an architect, but I have been buried under debt and living in a converted attic. I hope you and I both get some relief with this IBR.

  • Annie R

    Why doesn’t the government mandate a standard, across the board interest rate for student loans? Two or three percent for EVERYONE. Just because your parents make a decent amount of money doesn’t mean they are paying for your college tuition and expenses. I have private loans with significantly lower interest rates than my government Stafford loans. And this “loan forgiveness” makes me so angry! More than likely you aren’t going to get your dream job right now, but you suck it up, work where you can and pay your damn bills! Take some responsibility people! College is a privilege, not a right.

  • garrett

    I want to go to school so much and finish a degree. i have just study and not work. im not one of those smart overachievers i guess, but i need to study allot and not be distracted by living expenses. i think that the country needs and wants more educated people and i think that education is one of the greatest things that there is in life. like health care i think that education should be much cheaper and/or affordable.

  • Krinken

    I had been going to community college for a couple of years while working full time. I am smart, but come from a low income back ground, so I had to work my way though school. In 1995 I transferred into the University of Texas and became a full time student. I was studying biology and psychology with an interest in neuroscience. In order to get grant money for tuition financial aid is very strict; you have to go full time and can not work more than 20 hours a week. So in order to have food and rent I had to take out student loans.

    At first I was very skeptical about getting them even though at the time I heard nothing but good things. So I made sure I asked very important questions. I asked “Am I protected under the same consumer laws as regular loans and debt?” they said I was in fact more protected. The loan was guaranteed and had many federal protection programs built into it. I asked if the loan could be frozen or if the interest accrued while I looked for a job post graduation. They said since it was subsidized by the government it was very low simple interest that does not compound like other loans. No I am not making this up a loan officer actually told me this! I also asked if there were any service that would help forgive some of the loan and they said yes like AmeriCore and the National Guard – which is true to a point. So I took the plunge and racked up $40,000 by graduation time 1999; just in time for the dot com bubble bust.

    My first, second, and third job post dot com speculation era did not pay for much; it is just a good thing rent at least was cheap. I called the US department of education since I could not pay the full amount to see if there was a program for those who could not afford the full amount. They said all they could do was extent the loan from 10 to 20 years. I only had $100 extra a month (I only made 1400/mo.) to spare at the time but they wanted about $260 minimum. So it went into default. By the time I could afford the $260/mo a few years later the debt collection agency (US department of education will not talk to you when it is in default. They have a contract with the debt collection company to allow them all money collected until the loan is rehabilitated) said that I needed to pay $590/mo minimum. It had ballooned to $60,000 by 2007.

    In the final chapter of my adventures a company called West Asset Management sends me a notice every 6 month that they are about to garnish my wages. I now make about $50k/yr but I have to support a wife who does not work and 3 children. West Asset Management says they will not take any less than $990/mo and the loan is now $99,000. So every 6 months I have been sending in an objection form on the basis that it would cause us financial hardship and they stop the procedure. However this last time I forgot to add in the tax return and they rejected my request so I quickly re-applied to the objection. Unfortunately now the garnishment has taken effect and is eating though our savings as we wait for the new objection to go though. That will teach me to mess with the government!

    1. I would have never applied for the student loans if the interest and fees were properly explained.
    2. I would have never got the student loans if I had known I was giving up my consumer rights.
    3. I would have never got the student loans if I had known how corrupt the system of lending is.
    4. I would have never got the student loans if I had known there are no workable fail safes.
    5. I would have never got the student loans if I had known that I would be lied to and lead astray.

    We need student loan reform. Just keep it simple! Invest in intelligent and talented people’s future since they create the resources and tax base. Give them low interest options, like 2% fixed, and limit total interest and loan length. Income based repayment (IBR) should be available to everyone who it applies to especially people in default.

    Incidentally the law “technically” currently allows people with defaulted loans to apply for IBR plans however according to the US department of education since they are not in a current plan they are not “practically” allowed to. – Technically but not practically: Wow figure that one out! –

    I personally do not know what to do about my own situation.

  • Liza

    My husband and I both have graduate degrees which have totaled more than $180,000 between the two of us. Our student loans are consolidated via Direct Loans the government student loan agency. They are not consolidated together. How will Obama’s loan forgiveness plan work for the total debt? Will the 15% of income limit be for a married couple or will we have to pay 15% of our income on each loan which could end up being a lot of money?

    • http://GetOutOfDebt.org Steve Rhode

      Liza,

      The 15% plan already exists today and is called the Income Based Repayment Plan or IBR. Follow the link to check it out.

      Steve

    • Justin

      From my understanding of the IBR, it takes into account your income and your spouse income. So I’m assuming you would need to combine both your incomes and take 15% of that for your loans and then combine your incomes again and take 15% for your spouse loan.

      If you consolidate both your loans together and take 15%, I think it would still be the same amount either way.

  • Linda Colbert-Chenet

    How do I apply to get my student loans waived. I am in the health care field and I have heard if you are in the health care field, Obama has waived student loans because of the need for health care professionals. How do I apply for that program?

    Thank you

  • Thomas

    Hello, I have a student loan from 1988 that was in default.$4500 principal $10,706 fees and interest. I am currently in a repayment program with Financial Mgmt. Systems (FMS). They first told me the Dept. of Ed was willing to take a settlement of $2300 dollars to be paid up front now, and I would have to continue to pay $150 a month
    for 9 months and I would be done. I asked to send me that in writing which they did. The 2300 had to paid in full by a certain date which I had deducted EFT out of my checking account paid well before the deadline date. Next I received a letter from FMS claiming they did not get the payment in time and the offer is now null and void, so I still owe the full amount. I made calls only to get circle talk about the settlement was for a previous judgement, etc.,but still acknowledged getting the payment and just continue to pay the $150 dollars for the next 9 months. So I asked what happens after the nine months and the response was, then you will pay whatever you can afford. ??????????? Any comments. Should I hire an attorney to reclaim the settlement. I have the letter along with my paid on time bank statement..Thanks

  • Cat

    I feel so sympathetic to most of you here. I went to college in 1994, and just like most of you, got student loans to assist in the cost. In 1998, when I should have been finishing my degree, the school revoked my enrollment, saying I “wasn’t a serious student” if I wasn’t enrolled for 15 credit hours. This was impossible for me to afford at the time, as I had borrowed my limit, and was paying out of pocket. As you might guess, I did not finish my degree, and it would have cost me 2 years enrollment at any of the other schools in the system to finish the same curricula.

    Years later, I decided to use the credits, get a BA instead to at least tie up the coursework, and move on. I had been in academic and financial deferrment on my loan payments, and all was well.

    Then, out of the blue, the office holding my loan LOST my paperwork to refile for financial hardship deferrment. (I was making less than $900 a month, and was on food stamps in order to even afford food.) They did NOT notify me that they didn’t receive my refile, and a few months later sent me a letter that my loan was going into default. I immediately purused action and sent a verbose letter to the company asking for an appeal. It was denied.

    The financial corporation now in possesion of my defaulted loan sent me a statement asking for the $66,235 I owed in full as an immediate payment. I called them to try and arrange payments, as I had heard that you could get better credit, lower payments, and an easier status of default through payment loyalty over a certain amount of time.

    I have a severe medical condition that requires daily (lifelong) medication and frequent rechecks with a physician. I work full time despite this, and take home about $1100 a month.

    When I asked if I could get on a low monthly payment plan, the associate said the minimum was $580 per month and when I told him that was impossible, he was rude, made very insulting comments and did NOT offer any options. He insisted I was irresponsible and yelled “didn’t I have a DEGREE that I was making money with to pay the bills?!”

    At any rate, the representative said that they could garnish my wages for that amount. I spend $675 on rent, and $150 on medications and copays a month. That doesn’t LEAVE $580 to make a student loan payment. Is it LEGAL for them to take over 50% of my income in garnishments? Is there anything I can do to avoid that?

    It’s almost as if they would rather I live in a cardboard box on the street than actually try to make a living and PAY for my own way…

    Very frustrated… any advice would be very appreciated.

  • Wow

    Wow, you people are in deep. There is something wrong with a modern economy in which a hard-working determined individual who is willing to live frugally cannot pay off their student loans. Especially if you have a reasonable degree. Though if you have a BA in something useless i guess that is your own fault.

  • Derek

    I see all this help for people with federal loans, But what about me who has 100,000 dollars worth of private student loans, How am i affected? am I?

    • http://GetOutOfDebt.org Steve Rhode

      Derek,

      The government has no control over private loans.

      Steve

  • Sandra

    Hello, I have had a student loan from 1982, that I have been paying on for at least 20 years plus. I started with a $10,000 loan consolidated and after that many years it had sky rocketed to a whopping $21,000 plus with 9%, that’s alot of interest. I religiously made my payments month after month as was my responsibility to do so, but every year it was $20,000 and it wouldn’t go down in amount.I now have finally this last year have gotten it down to $18,800. That’s alot of years of interest, in fact my largest interest for one year was about $2500. This last year it was $1681. Granted I get to right some of this off at tax time, but I would really like to be able to use it when it is needed. I think I paid for the loan two fold already if not more. Hopefully, President Obama can help us all with this Student Loan Forgivness Program.

  • Justin

    I graduated from Penn State in 2008. Still haven’t landed a job in my field. When it comes to student loans my family and I thought we were doing the right thing by taking loans out both in my name and ParentPlus loans in my parents name.

    I have about 25k in my name and my parents have about 75k in their name. I pay all monthly payments. I want to take advantage of the IBR system to repay all of my loans. But, I can’t do it for my ParentPlus loans. Is there anyway around this? Or do you have any tips at all to help me out. Thanks

    • Jeff W.

      I am not sure what the IBR system is, but it sounds like some type of repayment plan where someone else pays your loans. However, the loans must be in your name. Correct.

      I would look into the specifics before doing something like this, but you might consider consolidting all your loans together, that way your name is on all loans. It is just a thought, but like I said eariler, look into the specifics before you do somthing like this.

      • Justin

        I don’t think you understood what I said.

        I am asking for help on trying to convert the loans that are in my parents names to my sole name. That way, all my student loans will be in my name and I can choose the IBR system.

        IBR system is a government program that allows you to pay 15% of your total monthly income for 25 years and no matter if your entire loans get paid off, your loan is done.

        If you listened to the State of the Union, Obama introduced his plan on reducing the IBR system to 10% income and 15 years. Even less if you have a public service job.

        In my current situation I can use the IBR for my loans, but it is only $25k, so my payments aren’t that bad. I can use the IBR for my ParentPlus loans, but the monthly income % will come from my mothers income and her spouse combined. So that isn’t an option.

        I need to figure out how I can convert the ParentPlus loans in my parents name to my name. So I can take advantage of the IBR system.

        If anyone knows if this is possible, please help. Thanks.

    • Ian Towle

      Unfortunately the parent plus loans are not eligible.

  • Ian

    Why is the government profiting on the education of its populace?

    I have 180,000 in student loans. Even as an architect I am facing severe financial challenges. The minimum payments I make don’t even touch the principal balance and only go to interest. Most of my student debt is through the government at an interest rate of 8%.

    My issue with all this is in part my individual struggle, but also disbelief in this system… While our government subsidizes all kinds of social programs with NO return on investment – educating its people at the higher level – which is a foundation of national growth and wealth – is allowed to reach the breaking point it’s at…

    Paying the government interest on an already outragous debt…. for the “privalage” to be a productive member of society…… Most of the time I feel our country deserves to fail.

    • Chris

      Ian,

      Have you looked into the Income-based Repayment Plan as a possible option? Obama announced in the State of the Union address he wants to see the monthly payment amount capped at 10% of income (after living allowances), instead of the current 15%. True that may not happen for a while… But the IBR plan forgives any balance paid after 25 years in the program (and they are talking about shortening that to 20 years), and after 10 years if you work in the public sector. I hope this might help…

      • Ian Towle

        Thanks Chris – I actually did just apply for the IBR and if I get it I will be in a much better position.

        …Not to bite the hand that’s feeding me then, but this still seems flawed… seems like its fixing a symptom and not the problem… Adds a huge burdon to the government and allows schools to charge even more under the assumption that it’ll all be picked up by the government.

  • Angelou

    My wage is garnished because of a large student loan debt which I am unable to pay for. How do I get out of wage garnishment? PLEASE HELP!

    • Tim

      File bankcrupcy, chapter 7 and then get on the 9 month rehap program.

  • maria

    I got a student loan for 2,500.00 for a 6 months course got a certificate in 1985.25 years I have been paying and they keep my income taxes. Also i had a huge agruement that it was reported to credit report and it was documented 5 times a huge error, so the loan went up to 12,500.00 for a six months course and a certificate. I have tried to reason with the student loan dept. I have paid this loan off the first 2,500.00. But they continue to harrass me and garnish my wages. I haven’t worked for 1-1/2 years due to my parent suffering a stroke which left them in a coma. 6 months ago I found a company who would pay me 5 hour a day to care for my parent, I soley care for parent 24/7 no outside help of any kind.. Parents gets 500.00 SS check which only covers parents partical debts in which I pay the rest. I am waiting for the garnishment to begin. Can someone help me with this problem I have been harrassed and garnish wages I can’t afford a lawyer. what do i do

  • Kevin

    Hi Steve,

    I left a professional school after a few years and accrued about 60k in loans. For a few years my wages were really low and I couldn’t afford to pay, but that didn’t stop them from garnishing my wages. Now I have a better paying job, but the amount that is being taken puts me right back at my lower wages. I want to pay, but the garnished amount I’m paying now is very high and I can’t afford to pay them anymore, which is what they said I would need to do for a period of time before the loan can be rehabilitated (also, they stop garnishing my wages after that time). Is there any help for me? Are there any organizations that you would recommend that would be willing to negotiate with them for me so that I can pay them and lift the garnishment? Thank you for any help you can provide!

  • Lula

    Hi I graduated approx. 2.5 years ago. In that time I have married a british citizen and have moved to the UK. I know this may seem like a strange Idea but I am only curious if it would work… I think I have figured out a senario to where I could get my loans written off.

    I would get a private consolidation loan from a bank. I would move in with my father in America. IF I could not find a job I would POSSIBLY be forced into bankruptcy at which point (since these loans would no longer be “Student Loans”) I would get my debt written off. I know it would be a bummer to have no credit so I would then move back to England where I think my credit would not follow…

    Could this work?

    • brifam

      don’t have any idea what credit reporting agencies you would have in England, but if you could pay off the student loans with credit cards or other non-federal gauranteed loans, you should be able to file a bankruptcy and get rid of it all…. wish I had the option!!!! Most of us don’t have that kind of credit, especially once the Dept. of Ed sends your loan off to collection and then it gets reported on credit reports.. then you’re history.

  • Sharon

    Hi Steve!

    My question is a little bit different. I’m a student college and I have some students loans. I want to buy a house but the bank its telling me that there’s a new law that says that they can count the student loans and because of that they won’t approved for my mortgage. Witch law is that? Can you please advise?

    • http://GetOutOfDebt.org Steve Rhode

      Sharon,

      I assume they are saying they are counting your student loans as part of your overall indebtedness. Is that correct? Or are they saying they can’t count your student loans as income?

      Steve

      • Sharon

        Yes Steve,

        They are counting them as part of my overall debts. They are saying that this is a new law. And I’m just wondering if anyone know something about this law and witch one is it.

        Thanks

    • Queen Dee

      That’s sounds like some bull shit.

  • Tanya

    If your in default you are not eligible for the Peace corp or vista or any other program out there. They want all their money up front and now and will hound you. Obama needs to think about coming up with an IBR plan for those already in default to get onto the IBR. And you can’t declare bankruptcy on student loans. And no employer will hire you when they have the government debt collectors calling all the time for the money you owe. Who can come up with 50,000 bucks! No one!

  • Kally

    Hello, the last 3 years have been the worst! I work for one of the big 3 car companies and have learned the more money you make the more you spend. First its starts with having a rental property with a Adj rate, and a renter who did not pay on time. I was forced to file bankruptcy chapter 7 which was discharged Dec 2007. I lost everything my home, my car and more. The problem is the house was already in the forclosure process, so its still showing up on my credit as a negative. I returned my car, and I was left with over 50k(about 20k in intrest) in student loan debt that is now in default. I understood that gov loan can not be eraised with a chapter 7, but I also had(15K) private loans with a bank, that are also still remaining on my credit. I tried to make repayment attempts with my 2 loans on in which is already consolidated, and the other one from Saliemae that a lawyer now has! The 1st loan I was making ontime payment to get out of default, but was laid of from my job after 10 1/2 and was then evicted from my apt. The 2nd loan I called and tried to make payment, but the Lawyer laughed and said that My payment was nowhere near enough and that they will continie to sue unless I paid $17,000 right then and there.

    So update to 2009 I was out of work for 8 months(oct 08-aug 09) with no money coming in . I now have my job back, and trying to rebuilt my credit, and get my student loans out of default! I also want to return to school, but with default student loans I can’t get any help and my job is no longer paying for schooling!

    I ordered my credit reports, and debt from 2004 is now popping up on my credit after a chapter 7 in 2007. At this point I don’t know what to do! My credit is the worst,and I don’t know where to go from here. I would like to one day be able to purchase another home, buy a car, and have good credit. Where do I start? Are there programs that will forgive my debt, or help me get out of default?

    • http://GetOutOfDebt.org Steve Rhode

      Kally,

      There is no need for you to wander in bad credit after bankruptcy. The first step would be to get on a payment plan with the private loans and the Income Based Repayment plan (IBR) with the government loans. Just follow this simple process for rebuilding your credit after bankruptcy.

      Steve

  • Jeff W.

    WOW! today was great for me..:)

    I have been out of school for about 10 years, while I was in School I took out approx $8000 in student loans. Over the last 10 years I have had some financial problems and have deferred my student loans about 3 times, but I have always gone back to pay them after my deferrment. Last year I had a good year and so i tried to pay a little extra on my loans.

    I had about $900 left on my student loans eariler this month. …

    Today, in the mail I got a letter from my lender telling me the balance of my loan was being forgiven. They said it was a way “of thanking me for taking care of my loan obligation in a diligent manner.”

    What? who does that? Don’t get me wrong…I’ll take it! It was only $900, but why would they do this? Is this because of some type of Obama program. Maybe someone was just trying to write off loans before the end of the year…I don’t know..but I would be curious if they had some type of ulterior motive .

    • http://GetOutOfDebt.org Steve Rhode

      Jeff,

      Was this a government backed student loan or a student loan from a private lender. Interesting, tell me more.

      By the way, congratulations.

      Steve

      • Jeff W.

        It was a private lender. I am not really sure I understand the difference, but it was a conbination of both stafford and unstafford loans. Nelnet was the one managing it.

        thanks!

        it feels good to be done with those loans…I feel like a weight has been lifted.

  • Kristi

    P.S. I am so desperate, I am seriously considering selling my eggs for money. I cannot believe my life has already come to this point in my early twenties!

    • vanessa

      Kristi, I have consider to do this as well,
      even to be a surragate mother as well since they pay more. I’m drowning in debt.

      • Alicia

        Wow. Ditto. I was just thinking about donating my eggs today. I’m going to live with my parents until I’m thirty five. Haha. No, it’s really not that funny. . .

    • Stephanies

      i feel the same way

  • Kristi

    I am 23 years old, and have recently graduated from UM with a BA. Unfortunately, I’ve also graduated with $110,000 in loan debt, $20,000 of which is federally-backed. It’s the other $90,000 in private loans that have got me backed into a corner: From what I can tell, I have no options as far as repayment plans go, deferment or forbearance (I’m currently in AmeriCorps — which is like the domestic version of the PeaceCorps — and my loans would not defer!), or forgiveness programs. I am now at the point where I am considering bankruptcy, but I have a sneaking suspicion that I will not be eligible for even this…. Do I have any options available to me whatsoever?

    My monthly loan payment is $850 for the first two years (interest-only) and then is supposed to jack up to $1100 after that! :( Can this be legal? Even if I somehow manage to find a job paying $14 or $15/hr., I would only be bringing home around $1500 net…. How am I supposed to survive on $300 or $400 per month? I went to college to have opportunities after I graduated — not to be shackled.

    At 18 years old, I did not have a realistic concept of what this type of commitment meant….

    • http://GetOutOfDebt.org Steve Rhode

      Kristi,

      You ask if it is legal and I’m afraid the answer is yes if you entered into a contract for student loans and you were at least 18 years old. You can attempt to go bankrupt but for the most parts bankruptcy does not discharge student loans unless you can prove the are an unreasonable burden and file a Chapter 11 bankruptcy. You’ll need to find a local bankruptcy attorney and discuss all of this. In fact you can click here to find a local bankruptcy attorney that will give you a free consultation.

      participating in AmeriCorp does you some student loan benefits but I believe it is an award you get after twelve months of service to be used towards future education, not to repay past private student loans. Some colleges will match the funds awarded to help the student as well.

      Additionally, some of your federal loans may be forgiven as a result of your service. But that really doesn’t do anything to address the private student loan issues.

      “Only AmeriCorps VISTA alumni who choose the stipend and have student loans may be eligible for up to 15% cancellation on certain types of loans. To determine what student loans may be eligible for cancellation and to receive forms, contact the U.S. Department of Education at 1-800-433-3243. AmeriCorps VISTA members who choose the education award may not claim a partial cancellation.” – Source

      Steve

    • Nic

      How did a BA cost $120,000? I graduated w/ a BS (same as BA w/out the language) and a teaching certificate. Then I went on to complete a MA at Johhns Hopkins. All on Student loans and my total is $52,000. I thought that was bad!

      Did you apply for any aid at all and did you use loans to supplement your lifestyle too? This is the kind of debt I associate with a MD. Not a BA!

      • Ed

        ha, yes a BA today costs … My debt is $105,000 That was with help from my parents and grant from my University.

      • http://? doctordebt

        I paid for my college, went on to get a master’s degree at a private institution and proceeded to complete medical school ending my schooling with a debt of ~$250,000. -THEN- I went on to residency which was 5 years while I made 33k-40k (increasing over the 5 year term). This money was enough to support my family, but not make any significant payments on my loans, which then accumulated interest and after residency were ~330,000.

        My current salary is $155,000 a year. There are private and sub/unsubsidized loans (which were consolidated at 7.2% interest rate because I was “guided” by a consolidation company (no, there is no excuse for my ignorance with regards to finances)). The interest alone is ~$22,000 a year. This interest is not deductible because I make “too much” money because I am a rich doctor. So you take the .6 x 155,000 and my take home is 93000, subtract another 22,000 and I’m a professional with 15 years of education and make $71,000 take home. That’s without making any additional student loan payments.
        My solution:
        Instead of working 50 hrs a week, I’ve increased to 70 hrs a week. I make $4000 payments a month to the student loan criminals ($48,000/yr) and thats money I pay after it has been taxed. Under this current payment system, I should be done with all student loan debt 2015, just in time for healthcare to be socialized at which time I can take a further pay cut. I’ll be 44 years old at that time. Yippee, I spent the best years of my life so I could be an indentured servant to corporate america…and working 70 hrs a week, man I got it easy. Everyone should be a doctor!!

  • wendy

    Thank you veryy much. I am keeping my fingers crossed that this will be the case

    • http://GetOutOfDebt.org Steve Rhode

      Wendy,

      Please come back and give me an update on what you learn. Your information can help me to help others.

      Steve

  • wendy

    the original loan was for $5000.00, now thaey say I owe close to 9,000.00 because of fees. They then told me they would settle for $3500.00. My question is if I settle for that amount will it be forgiven and will I be able to get another loan in the future so I can go back to school

    • http://GetOutOfDebt.org Steve Rhode

      Wendy,

      The real test is if the new school financial aid office says they can get you approved after you settle the old debt. Wow, that seems like a good offer to me. If it allows you to be eligible for the RN loans but results in negative information on your credit report it is still a good deal.

      Steve

  • wendy

    Steve, I took a sallie mae loan out 4 years ago for my son to attend sylvan learning center. Shortly after that we had a tragic accident with my older son and the loan went into default and has been for 4 years. I have been unemployed for the past 2 years and need to go back to school to become a nurse. I have spoken to the collection agency and they will take a settlement on the account but after I pay the seetlement fee will I be able to obtain another Fed student loan for myself to go to school? I have asked about rehab. the loan, reaffirming the loan and they told me at this point I cannot, I can only pay it off or pay the settlement. I am lost and nee some advice

    • http://GetOutOfDebt.org Steve Rhode

      Wendy,

      When it comes to student loans, consumers have no power, control or options.

      The settlement options seems like it could be a great deal for you. What specifically are they offering and can you do it?

      Steve

  • INeedDebtHelpASAP

    Hello, the last 3 years have been the worst! I work for one of the big 3 car companies and have learned the more money you make the more you spend. First its starts with having a rental property with a Adj rate, and a renter who did not pay on time. I was forced to file bankruptcy chapter 7 which was discharged Dec 2007. I lost everything my home, my car and more. The problem is the house was already in the forclosure process, so its still showing up on my credit as a negative. I returned my car, and I was left with over 50k(about 20k in intrest) in student loan debt that is now in default. I understood that gov loan can not be eraised with a chapter 7, but I also had(15K) private loans with a bank, that are also still remaining on my credit. I tried to make repayment attempts with my 2 loans on in which is already consolidated, and the other one from Saliemae that a lawyer now has! The 1st loan I was making ontime payment to get out of default, but was laid of from my job after 10 1/2 and was then evicted from my apt. The 2nd loan I called and tried to make payment, but the Lawyer laughed and said that My payment was nowhere near enough and that they will continie to sue unless I paid $17,000 right then and there.

    So update to 2009 I was out of work for 8 months(oct 08-aug 09) with no money coming in . I now have my job back, and trying to rebuilt my credit, and get my student loans out of default! I also want to return to school, but with default student loans I can’t get any help and my job is no longer paying for schooling!

    I ordered my credit reports, and debt from 2004 is now popping up on my credit after a chapter 7 in 2007. At this point I don’t know what to do! My credit is the worst,and I don’t know where to go from here. I would like to one day be able to purchase another home, buy a car, and have good credit. Where do I start? Are there programs that will forgive my debt, or help me get out of default?

  • Lynne

    what about a “debt settlement” for student loans??

    • http://GetOutOfDebt.org Steve Rhode

      Lynne,

      Nice try. Nope. No debt settlement for student loans.

      Steve

  • Lynne

    I agree..student loans are a trap
    and dishonest and misinformation is given at the time they are offered
    Good comment concerning making US slaves to debt and the banking system
    It is time that we as citizens make noise
    “is there an age cap on joining the military?
    what about a civilian job with the military?
    what about the health field? would that take care of the debt I have with this student loan??
    thank you
    Lynne

  • Rob

    I know that if you enlist in the military with a degree they will pay off your student loans. Even in the reserves.
    Here is a link to the Coast Guard reserves:http://www.gocoastguard.com/find-your-fit/reserve-opportunities/reserve-officer-opportunities/.
    I also read that if you do some time for the Peace Corps they will pay off some Perkins loans.

    • http://Website Sara

      After all, you only pay with your life.

    • westcoast

      So our options after getting a degree to become more educated contributors to our society are to not be able to support ourselves at all, or join the military, leave our children, and go kill or be killed so that this rich country can stay rich? That’s beyond horrible. I feel like I’m trapped in some medieval time, paying bribes to be allowed to work my ass off and stay alive. I think we all have to just stand up against this together. How much more can the rich take from us? Next they will want us to sell our babies.

    • Stephanies

      people like me and zoey are not allowed to join the military bi polar is serious :(

    • Raechelnmurphy

      They dont always pay off student loan debt. We are a military family and we have been told by a lot of people that their recruiters told them all their student loan debt would be paid off, but it was all a scam to get them in. 

      • http://GetOutOfDebt.org Steve Rhode

        This might help:

        Recipients of a National Defense Student Loan may receive partial cancellation of their loan for their service in the United States Armed Forces if the loan was disbursed after April 13, 1970 and full-time active service began after June 30, 1970.

        Recipients of a National Direct Student Loan and Perkins Loan may receive partial cancellation of their loan for their service in the United States Armed Forces if his/her military service was for a full year in a hostile fire/imminent danger pay area.

        If you believe that you may qualify for cancellation of your loan(s) due to your military service as described above, you should send a copy of your DD214 (discharge form) and letter of explanation to the agency servicing your loan.

  • roninmd

    The whole student loan thing is designed to turn the free American into a slave. Once that is done, we will have a fascist Orwellian state of affairs. That’s why the banks get a bailout and the people of America do not.

    It’s time for a revolution.

    • rory

      You are absolutely right. Our education system is no longer about educating our people, it’s a business just like any other corporate monster. At a young age when we are still naive and ignorant we are ushered into the idea that higher education will take us to a better life. We sign these documents before ever having much real experience in the world or any perspective on just how difficult it will be to live once we are indoctrinated into the American system of debt. The amount of money schools get away with charging us in this country is absurd. The debt numbers we accrue are so immense they become an abstraction, literally to the point where most of us just accept the fact that we will be paying this debt for the REST of our lives. We need to voice our discontent. We need to become a country of free people again. A lifetime of debt and the anxiety,misery and bondage that come with it are not worth four years at any college or university.

      • http://GetOutOfDebt.org Steve Rhode

        Rory,

        I’ve said for years that while some have been outraged by credit cards on campus the real tragedy has been student loans, especially private student loans. Talk about taking no prisoners, they leave their victims hopeless and without any options at all.

        Student loans are assumed by many to be ‘good debt’ but in reality the majority of people that take out student loan debt never finish their degrees and are saddled with the debt for the rest of their lives.

        Steve

      • zoey

        I’m one of those people who took out a lot of loans for med school and never finished. i also found out that i’m bipolar a little too late. if i had found out before entering med school i would have had a chance to finish. anyway, the depression has lasted over 3 years and unfortunately sallie mae was on my tail the entire time. i’ve never defaulted before in my life…always had good credit…this is beyond surreal. i’ve got police officers showing up at my door with summons. the fed gov’t will be garnishing my wages, whenever i start working for the rest of my life. my future looks grim. i want to pay my loans i just haven’t been well enough to work. i don’t think it’s fair to be treated like a criminal. i spoke to sallie mae so many times during my hardship and they thought i was lying. i did the best that i could. now i’ll suffer for the rest of my life.

        my advice to anyone reading this….don’t take out school loans. if you can’t afford school then do something else. :( i don’t want you going through all of the crap that i’ve been through. the collections agency laughed at me when i told them i was bipolar…of course i cried my eyes out. there were so many times that sallie mae reps harrassed me and made me cry uncontrollably. taking loans out is not worth the trouble.

      • Trippler16123

        you are right on the money my friend, and the key word is bondage bondage [ˈbɒndɪdʒ]
        n1. slavery or serfdom; servitude. SLAVERY!!! we are slaves in the most sophisticated sense that we aren’t even aware of it, we need real change and we need it now, and it is only when we all individually look within ourselves and re assess the value of a human life and stand up for real beliefs that we can be set free.  

      • Was going to college worth it?

        I think for a long time people where made to feel as though college was a pass that afforded a better quality of life. Yes, we need doctors and lawyers and engineers, etc .. We do need highly skilled individuals inorder for society to function properly. But my question is this .. do you idolize athletes? Maybe thats why the education system is so screwed up. More attention, more money, more admiration, more money, more investment, more money, is paid to THOSE folks then to the ones who are REALLY NEEDED in society. The government isnt totally at fault.

      • helpless mother

        I came across this website while searching options for my son’s student loan. He work himself hard thru UCLA and USC graduate. But got into about 70k of student loan with 6.8 – 8.5 % interests.  We are a single parents family. Both him and his sister worked so hard to earn their degrees.  But he was so upset of the system here and felt that the student loan basically is a scam to our young generation who are seeking better education.  We need a movement to reject the high cost for education.  While mortgage loan is in history low, why student loan is hight to 8.5%.  This country is abusing it’s own most hopeful bright highly educated young generation. Abusing its own future.  If we can’t change this,  we have no future in this place.  I woke up every mid-night and pray for our young generation.  I love my son and they are our future.  We need to fight for the solution for their future.  Get up and fight, get up and take action. get everyone together to make a movement.  fight the student loan scam.  It is the the biggest scam besides mortgage loan.

        A Helpless Mother

    • Lmj100

      Your statement about the banks getting a bailout is so true, and the student loans have interest added each month while they are getting the bailout. Something should be done about that. For every penny taken from the bailout, that amount should be taken from the loans at each bank!!! There has been 1 suicide in the family from student loans and my daughter is threatening a 2nd. However, the banks don’t care. They get self-enjoyment out of harrassing the person until death!

      • Was going to college worth it?

        Lmj100 – So far your message is the most distressing I have read on this site. Im stunned.

    • Was going to college worth it?

      Wow .. all those words really prove you paid attention in college. Its a shame the reward is intense debt that you have to die to get rid of. I wonder .. will you encourage your KIDS to go to college to continue THIS legacy? I wonder.

    • Helpless mother

      Student loan is the biggest scam besides mortgage loan. No any other country slave their young students like here.  Charging student loan interest 8.5%.  Are this country helping its own kids to get better education and have a better future?  Or just find every chance to rib them off by high interests student loan and become slave for 25 years till they are gray and old ?? I saw my gentle, happy and kind hearted son became depressed, upset, lost hope in this country,  It broke my heart.  All the stories posted here are all real life stories.  I felt the pain for everyone.  I think it will be too late if nothing change right away.  Our young generation will be lost like China’s culture revolution.  Wake up,  Wake up,  Wake up..

      Helpless mother

    • Coquito32

      Reading all this coments is like watching a horror movie. I can belive this is a “first worl country” we have to do something enough is enough my husband and I we owed a total of 72k for my daugher students loans is there any hope for workingclass people? We have to ask ourselfs why the banks. And rich people declared bankrupcy and they come out clean???? It should be more oportunities for hard working people that they just want to give to the childrens a better life..

  • Gina

    I am a single mom working at state job; I have to pay rent, utilities, buy groceries, home necessities, pay for a vehicle, car insurance, gas for my vehicle, and on top of that I have two teenagers at home. I have tried to keep up with my school loan payments because I can’t afford for my wages to be garnished, but I’m having a very difficult time making my payment. I know my payment isn’t huge–it’s $125 a month but by the time I pay for everything there are times I have to make the decision of making my loan payment or allowing my kids to join a program at school that is going to cost. Please help me in explaining what my options are. I’ve already had to quit paying on two credit cards because I can’t afford my bills anymore. In the meantime, I am also looking for a second job but it will definitely keep me away from my kids more and they are at that age where they really need me homw in the evenings when they are home from school. Please help!

    • Cody80

      Don’t know what your religious background is, but if you’re Christain, you should make sure you pay your %10 tithes. That could change things and make a world of difference. Trust.

  • Rhonda L

    Our son has 115,000 in student loan debt. Two separate loans. One Federal, one Private. Federal lowered his payment based on what he makes. Private loan won’t even talk to him. He Has his degree, decided to join the Air Force to get a job in his field. Guess what, the Air Force won’t take him because he has too much student loan debt. We helped all those companies with billions and billions of dollars. And the United States Air Force says sorry.

    I am still in disbelief. He has no credit card debt. He just paid the last payment on his car, he has one cell phone account. And he is too in debt even for the government. What a country!!!! Four and a half years of his life wasted. He had begun the masters program,then this happened and all has come to a screeching halt.

    And the banks are garnishing peoples wages. Even after they themselves got a bailout. I know there is some sick irony here.

    I only pray that the President and all the CEO’s he helped with bailouts and bonus money aren’t sleeping a wink at night. Or at least I hope they suffer from night terrors. I wish them acid reflux 24/7 and chronic mental fatigue for the rest of their natural lives. Then it is up to God what he does with them. It’s the same sentence the American public has been given, why should the rich be any better off. There should be a price to pay for being rich, greedy and always stepping on those below you in society.

    • Lmj100

      This is so much like my daughter’s debt for student loans. She is so smart and believed that jobs would be there to pay a loan back. The student loan people will not take what she can manage to pay and she is at the suicide point at 32 yrs of age from college at 18 years old. They wont accept what she can pay, have done a loan payment schedule to see that she cannot pay what they want her to pay, and hound her endlessly and freeze money in her bank and threaten garnishment while the government subsidizes the loan but interest compounds regularly. Her Dad stated that he, she, and I can pay the rest of our lives and not pay the loans off. Mafia-interest is added monthly to the loans. It is a nation-wide scam.

      • Mike

        Both your stories sound horrible. I have 65k in student loans myself and had to consolidate them out to a 30 yr loan to make the payment affordable enough. Have they considered doing that, stretching the loan out? I know it’s not the best idea, but 30 yrs of lower payments vs 10 years of back-breaking payments and garnishments seems like a no brainer to me.

        And your right, Rhonda, there’s some irony there.

    • Terry

      I can’t believe they didn’t.. My husband joined the AF and he has $130,000 in debt. I know what you mean about private tho. Federals willing to do military forbearance but private wants $700 a month just for “interest only” payments and we can only do those for two years then the payment goes up.. Thay want half what he makes and we have two kids. They’ve told us they don’t car about the size of our family and before my husband joined we were on food stamps. They wont listen at all. I did come across something today about “Private Student Loan Bankruptcy Fairness Act of 2010″ that says since it’s loaned by banks and stuff they’re now counting it when declaring bankruptcy. I’m going to look into that more but a lot of people get kicked out of the military for declaring bankruptcy. Sallie mae is horrible and I tell everyone I know to find other ways and I’ll help them. good luck to everyone.

      • http://GetOutOfDebt.org Steve Rhode

        For the record, the military today view bankruptcy as a legal method of satisfying problem debt situations. See this link.

    • Bnk

      Did your son know how much debt he would have when he graduated? What was his degree in

  • shonte walker

    ive heard about the obama forgiveness package i was wondering if it was true ? im a single mom with 3 kids who wants to go back to college but cant due to the fact i have a loan in default

    • http://GetOutOfDebt.org Steve Rhode

      It’s a scam. There is no such package.

      Steve

    • Arnoldbowers

      I imagine if you are a citizen and your x was a citizen you are getting child support. Quit a bit, if you are an anchor or an illegal alien you have had enough free tax dollars you need to look to your native country for moneuy

  • anthony diorio

    my son graduated college in 2007 with approximately $60,000 worth of student fed/private/and some other loan that was provided by the fed at 6.5%. He has tried to consolidate these mutliple loans to reduce the monthly payment but is being told by Sallie Mae that they do NOT consolidate. he makes $39,000 pcy and his payments are approx. $800 per month. Is there any program out there that he can apply for? His debt to ratio is upside down and has been rejected by private lenders. GOt any suggestions?

    • Smitty

      I am having the same issue with my daughter, graduated college with Private/Fed loans adding up to $100,000. I can’t find help. Please share any information you receive in resolving this issue.

      Thank You…………

      • melissa in texas

        my daughter and her boyfriend are in the exact same situation… incomes in this economy can not keep up with this debt…..get on as many petitions as you can!!!!!!

    • sarah

      did you ever find anything out about this student loan thing? Both I and my boyfriend are in almost the exact same boat with Sallie Mae…

      • Don

        Same here, and if a petition does go around, please fwd that along in an email, asap!

    • Sean

      My fience and i are in the same situation. $70000 in debt and knowone will help us consolidate the loans. Sally may is by far the worst. They will not consolidate and want huge monthly payments. They are also saying that her wages will be garnished if we do not pay.

    • Broke Grad

      I graduated from WPI a couple years after Anthony with $100,000 in debts

      • Russell Prsctt

        How?

    • Tornado

      Sallie Mae is the worse place to get student loans from. You can’t transfer or consolidate your private loans from them at all. say if your monthly payment was 50.00 a month and lets say you couldnt afford to pay it. They actually charge you 50.00 a month to put your student loans on hold plus interest of course. If you think someone that didnt have 50.00 to begin with why the hell would we put our loans on hold and give them a free 50.00 a month for?

      They don’t work well with the consumers at all. I actually had them harrassing me all of the time and threating me over the phone if I didnt pay money I didnt have my loans would go into default. The people at Sallie Mae just don’t give a damn. They are greedy selfish company that would bleed you dry. Education is over rated with expensive cost anyways there is no need for education to be that expensive. It’s all a game inside the world of bankking and investments. Anyways good luck with your adventure with Sallie Mae they are a tough company to do business with. However you can transfer only your Federal Loans to another bank but the private loans stay with Sallie Mae until you pay it off.

  • Terri James

    I would like a phone number to speak with someone about the obama grant program. Thanks

  • Faith

    Steve,

    I was in student loan rehabilitation program with Pioneer Credit Recovery and because of the rough economy and other issues I fell behind. They are now telling me that the only option I have is to pay $33,000 “TODAY” or have my wages garnished. Is there anything I can do?

    Please Help

    • cwynn95

      Go to your lender and get a forbearance (hardship), you can request them annually. OR, pay $50 a month, and they will not be able to garnish or rate you negative on your credit report. There are options so you ae not garnished. Check into it. GOOD LUCK!!!

      • Newoportforever

        CWYNN95, My loan, started at 5K, now totaling 20K with penalties and interest, is in default and I think they have a default judgment against me.  I’m filing for BK, can I do this forbearance for hardship each year too?  And if not can I do the $50 per month thing?  Where is more information found on this subject?  You have given me some hope, I think.  Thank you for that.

  • Marie

    i have a student loan for $23,000.00 i attended a school in 2000.The school was close after a couple of months. I didn’t finish now they end up garnish my checks. I was wondering if i can get some help.the loan is with SML.

    • http://GetOutOfDebt.org Steve Rhode

      Marie,

      You may be able to have your student loan debt discharged if your school closed while you were enrolled.

      The loan can be discharged if you were enrolled when the school closed and couldn’t complete the program because of the closure. If you were on an approved leave of absence, you are considered to have been enrolled at the school. If your school closed within 90 days after you withdrew, you are also considered eligible for the discharge. However, your loan cannot be cancelled because of personal circumstances that caused you to withdraw more than 90 days before the school closed. If you need to find out the day when your school officially closed, you can visit the Closed School Search Page.

      For a list of contacts for closed school information, click here.

      Steve

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