I Have to Do My College Degree All Over Again But I Have Old Student Loans. – John

“Dear Damon,

I’ll try to make this as informative as possible.

I was a senior at my last college, and I took a 30k starter loan. I really thought I would be graduating months later. However, that was not the case, and I had to start over at a new school.

This new school has required me to pretty much recomplete my degree, which has required me, in turn, to be in school for 3 and a half more years so far. I am nearly finished with school, and should be done by September at the latest.

I have been attempting to pay off this loan for 2 and 1/2 years @ over $500/month. For a student currently in college, such is pretty much impossible while taking into account other college/housing bills.

I stopped paying the loan in November 10′. I have not answered many of the phone calls recently, because I don’t know what to do. Apparantly, my sister in law got a debt collecting call yesterday. I dont know how they got that information, but this has to stop.

I believe I have payed off about $11000 of the total loan amount. i also own ~9k to family members (they are lenient on the pay back time frame) as well as about $25k to school loans that I have taken to get through my new school and ~1k on a credit card bill. In my estimate, I am about 50-60k in debt.

I dont know what to do, or how to approach the situation. If I can be out of school and working by September, I will be ok. At my post-college job, I will make nearly 100k/year. If I can get to that point, I will be fine.

However, the phone calls to family has to stop. I am going to call the creditors and explain my situation to them, and see if we can work something out. I have zero money to give them at the moment though.

How would you approach the debt collectors and paying off the debt, given my circumstances?

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Any advice is greatly appreciated.


Hello John,

The best advice I can give you is to contact the loan that is trying to collect from you, explain that you are still in school and you cannot afford it but should be graduating this year and will have the ability to pay them back starting toward the end of the year. The other loans you should be able to keep in forbearance for another year or a little more if needed after you graduate.

So the best place is to open the line of communication and see what they can offer. Usually they are willing to work with you, especially if you are still in school.

Please update me in the comments below once you find out what they say.

Damon is a talented independent debt coach that provides in-depth assistance and consultations for people struggling with debt. If you want a personal debt coach to help you through a difficult situation or want assistance to find secret discounts offered by debt settlement companies I think Damon Day is an excellent person to contact for advice and assistance. He can be reached directly at DamonDay.com

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