Quick Answer: SunTrust private student loans have fewer repayment options than federal loans, and bankruptcy discharge is extremely difficult. The student’s balance grew from $10,000 to $15,000 during rehabilitation due to accrued interest and penalties, with limited alternatives beyond standard repayment plans.
“Dear Steve,
HELP! As you can see, I am in need of dire help regarding student loan debt. I just recently got out of the rehabilitation program and the lendor who now manages the loan is SunTrust. I am only 22 and still in college.
At first, I owed $10,000 through the rehab program. Then, when it wento to SunTrust, I am now allegedly owing about $15,000. This loan piled up due to the fact that I do not have a career, I am in school, and my parents are blue collar working individuals.
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How do I pay them back? I don’t want to defer or consolidate becauase I know that interest rates acrue and by the time I get out of college, I’ll be owing more than the number listed above.
Can I fight the system? From what I read, I cannot file for bankrupcy (or can I?)
There are no laws that protect citizens when it comes to student loan debt, so I do not know where to begin.
In conclusion, I want to know what would be the best possible solution for me to eliminate this debt on my shoulders (perferrably not pay it at all if that could be possible).
Thank You
Kami”
Dear Kami,
If your student loan lender is SunTrust I ‘m assuming you have a private student loan. These loans do not have the same kind of debt repayment options that a government backed loan would.
If you participated in a reduced payment program with your lender it is quite possible the interest and penalties did grow your balance.
The best advice is to investigate any additional repayment options your lender may have that do not involve a forbearance or pushing forward of loan payments.
And yes, stay away from private student loans.
Please post your responses and follow-up messages to me on this in the comments section below.
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Hi Im a freshman in college and I already got a federal loan but I need a little bit more money so my question is: can perkins loans help me with my needs? help please I need a small loan because Im not working because of a surgery!
my email: kelly_vi_84@hotmail.com thank you indeed
I would suggest you go talk to your schools financial aid office for assistance.
It is a federal loan actually. I defaulted on it and now its back to being a regular federal loan.
Good news then. Talk to your loan servicer about this reduced payment program.