I went to graduate school when I was 35 and racked up both govt and private loans. My private loans were okay around 350/month for the first two years, now they are $572/month. This is very hard for me to pay right now but it seems there is no solution or answer. I teach part time as an art professor for a university. My govt loans are in deferral (or maybe forebearance I cant remember which). Is there anything that can be done to reduce a private loan at this point? I dont qualify for any more forebearances. I have two kids and am married and are children have real costs like braces, etc. that are only going up (my son will be going to college in 3 years).
I wish Obama had done something to work on these private student loans.
Is there anything that can be done to reduce a private student bank loan (US Bank, Great Lakes) when a forebearance is not an option – and I’m done with lower payments?
There is nothing that can be done for private student loans except to go bankrupt to clear all the other debt out of the way and leave room for the student loan payments. Private student loans are not obligated to offer any sort of alternative payment plans like government backed loans do. But then again, they didn’t when you took them out in the beginning. The only change over the years was the 2005 Bush administration change which eliminated the discharge-ability of student loans after a certain time. Any change back would require Congress to alter the bankruptcy code and how likely do you think that is?
The only option would be to look for a private student loan consolidation lender. I wish I had better news but this is a subject I have railed on about since 1994 and was shouted down most of the time by people saying this was not a problem because private student loans were a good debt.
Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.
P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.