I enrolled in college and the student loan money was easy to get. Now the money is due and we are being crushed by the payments of the student loans. I have close to 70k in student loans and my income is not going to be substantially impacted by my degree. We put our credit cards with a consumer counseling agency and have paid all but 4k so far. This payment is $511 a month. We also have a car payment and some credit cards that I did not put with the counseling agency as well as 2 personal loans totally about 11k. I work as a Correctional Officer in a state institution.
What can I do to either lower my monthly payments or come out from under the student loans.
If your loans are government backed there is a program called the IBR or Income Based Repayment plan. That’s your best shot at getting a lower payment even though you will have to pay on the loans for 20 years. If you have private student loans, you’re screwed.
For anyone reading this and just starting out on a journey to get out of debt, when faced with credit card debt and crushing student loans the first choice must be to consider bankruptcy to discharge all the unsecured debt so you can focus on the student loans. Student loans have tremendous power over borrowers, can’t be discharged in bankruptcy, can levy bank accounts, intercept tax refunds and tack on up to 40% in penalties if you default.
Student loans don’t take prisoners in a battle.
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.