My Student Loan Payments Almost Equal My Income. What Can I Do? – Alex

27 year old with $200,000 in student loan debt and I really have no idea what to do about it. I make around $25,000 a year and as of right now I pay $32 a month towards my federal loans which total about $48,000.

The rest is in private and I make no payment on them since I can not afford to. The private loans, all $150,000 of them, is spread out between Sallie mae, Wells fargo, and AES which services them for about 3 or 4 different lenders. All are now in default.

I have tried repeatedly to get them to work with me but the total amount it just so much that my minimum payment for all of them would be around $1300 a month and I take home around $1500 a month so that is impossible. Most of them are now in collections and I send them back certified letters letting them know that I want proof that they have my loans but once I send the letters I never hear back from them.

I have no long term solution. I will never make enough to pay these loans. I was dumb in college and took out too much money. Then I graduated couldn’t find a job and and have been in and out of work since, all while not making payments.

Each loan payment is around $150-400 a month, which by themselves I might be able to handle but together I can not. It makes no sense to me to pay one loan only to have 6 more go bad.

I have gone through a bankruptcy to get rid of my other debt so now all I have is this student debt. What can I do?


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4 thoughts on “My Student Loan Payments Almost Equal My Income. What Can I Do? – Alex”

    • I posted it in the reader section first to see what suggestions people have.

      But here is what you need to explore. A chapter 13 bankruptcy will keep the creditors at bay and give you a payment that you can afford on your income. It won’t discharge the debt but it will buy you five years in hopes Congress changes the law back to make the private students dischargeable as the used to be up till 2005.

      Depending on where you live the chapter 13 bankruptcy will stop collection fees and penalties from being tacked on during the chapter 13 and there has been some recent cases where people have managed to get their completely unmanageable debt reduced or eliminated in bankruptcy.

      Find a local bankruptcy attorney and get a review of your situation.

      • Do you know what the laws are in this case if it were in Texas? I’m in a very similar situation, and I’ve heard Texas has different laws where I may be able to eliminate my private student loan debt in bankruptcy (roughly same amounts).

        • As far as I am aware in all states the only way to discharge private student loans without much of a problem is if the loan has gone uncollected past the statute of limitations. The big problem is getting past the statute of limitations without a wage garnishment or being sued. However some private student loan lenders are now offering to settle some of the loans.


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