Progressive Financial Service Invoice that was sent to my home to inquire about a repayment fee for my student loan.
I was not able to finish due to a lack of income and withdrew from college for a time. I was not able to go back immediately because of other obligations of a person matter, but now I feel as if I can be able to attend. But I cannot attend and have financial aid unless I find a way to repay a total amount of $9,201.17. I have no intention of paying this amount of money altogether. I spoke to a representative about my problem and agreed to put me on a payment plan of $100/month, but I support a family so that is hardly an option.
What would the best course of action be to repay this loan so I can get back in school?
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I’m not sure why you’re saying you have no intention of paying back this debt; you did borrow it … I can tell you from experience that this mindset will take you nowhere. I agree with Rosi, it’s humbling, but it’s also freeing, as odd as that may sound right now.
Your best bet is to (as Rosi said!) reevaluate your relationship to money, then talk to your financial aid counselor at school and see what options are available to you. If you want to go back to school, and need to take out more loans, then not paying your initial debt isn’t one of them. I’m sorry.
If the $100 a month payment is too much, then you are most likely in need of a job upgrade (or financial counseling?), which, depending on your field probably means some sort of school, which also probably means more student loan debt.
Good luck to you.
The ~$9000 shouldnt make you ineligible for financial aid. Theres a cap to how much you can get out and its in the >100,000. Can you get in to the program and defer?Â
she is ineligible while the loan is in default status. the loan will have to return to performing status before she can get more financial aid.
I have a friend who had a similar situation. Try talking to the financial office of the college where your debt comes from. My friend had an option – she told the school she owed that they would forgive her the amount and she comes back to them and takes classes and finishes her education (and thus they get money from her for the new semester she attends) or she doesn’t pay anything and goes to a different school. So it’s something or nothing option – it worked for her and the school forgave her $10K debt. Good luck!
At the risk of sounding like a bitch, I believe there’s a difference between getting out of debt, and getting out of paying your debt. I don’t think it’s realistic to say “I have no intention of repaying this debt” because you walked away, and then asking for more. If I were you, I’d rethink my relationship with money. It’s really hard to do, I know because I’ve been there. It’s humbling, which is not a bad thing, and when raising kids I know their needs come first. If it is at all possible to repay it, I’d try to make arrangements. If not, talk to a bankruptcy attorney, but I’m pretty sure school loans aren’t forgiven in which case you’d still have to pay it back. Make it a family event, collect bottles, have yard sales, send them what you can. It’s in your best interest (and your family’s). Make it a contest! Never mind what collections want, send what you can. Or save what you raise and maybe they’ll take a lump sum. Point is, eventually it will be paid. The hardest part is dealing with their demands. I’d ignore them, and just work to pay it off the best way you can afford to. Hope this helps. And read these boards! They’ve talked me off the ledge several times the past couple of years. Best of Luck!
Rosi
have your tried looking at grants
if your current income is such that finding $100 a month is tough, then i can see that you need to increase your earning potential. if you are going into a program that can really help you to find a better job, then i think it totally makes sense to go back. bear in mind that you will need to give this time and energy, and so will likely have to cut back on work, and probably take more student loans just to support yourself. make a realistic plan to get this done as quickly as possible. the sooner you graduate, the sooner you can get a better job. if you plan to go part time, over many years will you still be young enough when you graduate to make the investment of time and money worhwhile?
if you get federal student loans, you can go into income based repayment, and have your payments set at zero until you can afford to pay more. you simply submit your tax douments every year and direct loans will tell you home much you can afford to pay.
if you find you never find a better job, and your payments remain too low to pay off the loan within 25 years, the remaining balance will be discharged. this can be a big problem for some as this discharged debt is taxed as income. in circumstances such as these, when the discharged debt would lead to an unaffordable tax bill for the debtor, then it is possible to have the remaining balance discharged in bankrupcy, though this does not happen often.
$100 a month is a pretty reasonable amount to get your loan back to performing status. It just happens to almost represent a 10 year 3.4% loan for around $9,200. You do need to see in writing that the $100 gives you more than just interest and that the payoff would happen  in around 10 years, but I would suggest trying very hard to do this.
If you can’t swing $100 a month for a student loan payment, I would suggest that you think very hard about going back to school. You are living hand to mouth and if you take on a $500 a month payment for your new student loans you are going to be forced to earn at least that much more as a result of your education. Are you going to immediately find a job paying at least $500 more each month? And what about the other expenses not typically covered by loans. Where will you get the cash for transportation and supplies if you can’t free up $100 a month.
Paying back student loans isn’t really a choice. The lenders are likely to collect from tax refunds and even Social Security checks until they are paid. A poor decision on student loans can result in poverty in your old age.
If you do successfully rehabilitate this loan and become eligible for more loans, be sure to get government loans and not private loans and be sure that you are committed to finishing school. As you can see, the debt remains regardless of if you actually got the education.
Good Luck!
can you rehabilitate this loan? rehabilitation means paying on time for an agreed period, eiter 9 months or one year. after that time the negatives will be off your credit report and your loan will be in good standing. you could then get financial aid again.