Hello I am Ryan, a recently graduated college student, and I just found out that I have $12,500 dollars in student loans.
When I was first starting college for my BS in Business Administration the dean promised me a few things. First, he promised that the universities career placement program would place me at an entry level management position. Second, he promised that the free ride he was offering would cover all expenses and cover my entire financial aid package. Neither of these things turned out to be true.
My freshman year of college I had my full ride and got a $12,000 dollar scholarship on top of that. I saw none of that money. My sophomore year I had to take out student loans to pay for books and tuition, but I was assured by the people in the financial aid office that I wouldn’t have to repay the loans due to my scholarship. Well that was a lie. I also took out loans junior and senior years, although I didn’t see any penny of my junior year loans until my senior year because the school failed to get the checks to me. Luckily I had worked during the summer and could pay for their random expenses until my free ride student federal loans kicked in, and I got my money back.
I graduated July 22nd, and was not placed into any career at all. Only towards the end of my Junior and Senior years did I get any kind of help from Career Services. Their ‘help’ consisted of practicing for interviews and writing resumes. I once told the career counselor that I would like to look into getting a job that I wanted or would like to be doing, and he basically told me that’s not how it works I need to do whatever they found for me and work my way up because it is a rough job market. Guess what, after graduation I was out of sight out of mind.
I moved back home with my father in order to cut down expenses until I could find a management job or any job that I would like doing. I done a few internships but nothing worked out. I didn’t work for about 8 months, but I was actively looking for good career opportunities and applying to many places. Now 8 months later I have received a notice from SallieMae. They claim that my student loan is more than 60 days delinquent. They claim my past due amount is about $500, and that I should contact them to start paying. This was a huge shock! I don’t have any written proof of my scholarship that was never paid or of the university promising to pay all of my student aid through the full ride. When I talk to the University they claim I have to repay student loans, that my full ride only covered tuition, and that my scholarship or loan checks are too old for the school to remember and I’d have to ask the other party about them.
I am hesitant to call SallieMae to work out a repayment plan because I don’t want them to default. The notice they sent includes a default date, and I’m not sure pushing a default forward would be the best choice of action.
When I got this letter from sallie mae I first freaked out, then I denied it, then I was angry. But I finally forgave the university and realized that I would have to live with the consequences of this. In fact some of it was attributable to my own ignorance and blind trust. So I ran out and got the only job I could find, a part time cashier at wallmart making minimum wage. My current plan is to live at my father’s place and work and just pour as much money as I can possibly pour into paying off these loans. I never would have taken a loan had I known I’d have to repay it, that is against my religion. Now that I know I have one I’m into panic mode, gonna do whatever it takes to get the loans paid off.
I have a couple thousand saved in the bank, this was my fall back and real life happens fund. It could be mostly shoved into a loan though if that’s wisest.
The loans are as follows according to the notice I received: 3500 at 6% FFELP. 4500 at 5.6% DLSUB. 4500 at 4.5% DLSUB.
It was a Private University, if that makes any difference.
30 year repayment forgiveness, deferred payment with interest piling up, getting deeper into debt is not a plan of action that I wish to go.
I got here by not being very smart, and just having a vague plan like work and throw all my money at it isn’t really inspiring any confidence.
What exact and specific plan should I follow in order to get out of this debt, or what resource can I use in order to form an exact and specific plan for myself?
The first step is for you to call Sallie Mae and then report back here. Not calling them doesn’t change anything and we need to know what the situation is to come up with a game plan on how to deal with it.
If you don’t call them and don’t get on the same page as them they are simply going to do whatever their computer screen says and you don’t want that kind of surprise.
Get the facts and we can decide what to do next.
Please post your responses and follow-up messages to me on this in the comments section below.