“Dear Steve,
Hello. I am an IT professional who has been out of work for two years now. At first, I was getting low level jobs which were adequate enough to pay bills. Then, in 2007, I was in a contract that ended abruptly, causing me to go into default on my Stafford loan (Sallie Mae). I found another contract in the beginning of 2008 but it ended in a few months and I have been looking for work ever since. After applying everywhere, I am finally being contacted for a govt job I applied for months ago but I am still receiving calls from my creditors. Due to my unemployment status, I’ve been unable to pay or even negotiate with the collections agencies because my living expenses must come first.
My question is: How may I obtain relief from this debt situation before I get slapped with a default judgement and are there any programs which can get me back into a good payment standing with my original loan guarantor?
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Thanks.
J”
Dear J,
If your loans are with Sallie Mae you’ll have to talk to them about any sort of rehabilitation plan that would allow you to bring your loans current. At the very least you’ll need to make at least your contractual payment.
If you have a government backed student loan you’d have a lot of options. Sallie Mae, not so much.
