My daughter, Robin, graduated from college in 1990 and owed $40,000 in student loans. She consolidated all of her loans with Sallie Mae. Due to difficult circumstances, she defaulted and did not pay for some time. A large amount of interest and fees were added to her debt with them and she ended up owing over $125,000. She now has consistently paid on this for almost 20 years and still owes $80,000 because of the 8 % interest rate. At this time, she is partially disabled due to serious back problems and makes less than $35,000 per year, has a son to support, but has to pay Sallie Mae $711 per month and most of it goes to interest.
What are her options? Can she obtain forgiveness of this loan or lower her interest rate?
Am I correct in assuming these are all private student loans and not government subsidized student loans?
Please post your responses and follow-up messages to me on this in the comments section below.Big Hug!