Subscribe to our mailing list

X

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

By on May 30, 2013

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?

Alex

This is your chance to be a hero and help out this person by providing your feedback and answer to the question in the comments section below.

READ  How Can I Consolidate My Sallie Mae Private Student Loan Debt? - Laura

Last step, fill out the information below or call us for Priority Assistance.

What problems are you having with your report?

Your first name is required. Your first name is required to be at least 2 characters. Your first name cannot be longer than 50 characters.
Your last name is required. Your last name is required to be at least 2 characters. Your last name cannot be longer than 50 characters.
Your email is required.
Your phone is required. Your 10 digit phone number is required.
Your state is required.
Your age is required. Your age must be greater than 18. Your age must be less than 100.

By clicking on the "Contact Me" button above, you consent, acknowledge, and agree to the following: Our Terms of Use and Privacy Policy and to receive electronic communications. We take your privacy seriously. That you are providing express "written" consent for Debt.com or appropriate service provider(s) to call you (including through automated means; e.g. autodialing, text and pre-recorded messaging) via telephone, mobile device (including SMS and MMS - charges may apply), even if your telephone number is currently listed on any internal, corporate, state or federal Do-Not-Call list. Consent is not required as a condition to utilize Debt.com services and you are under no obligation to purchase anything.

By clicking on the “Contact me” button above, you consent, acknowledge, and agree to the following: (1)That you are providing express “written” consent for Lexington Law Firm, Debt.com or appropriate service provider(s) to call you (including through automated means; e.g. autodialing, text and pre-recorded messaging) via telephone, mobile device (including SMS and MMS – charges may apply), or dialed manually, at my residential or cellular number, even if your telephone number is currently listed on any internal, corporate, state or federal Do-Not-Call list; and (2)Lexington Law’s Privacy Policy and Terms of Use and Debt.com’s Terms of Use and Privacy Policy. Consent is not required as a condition to utilize Lexington Law or Debt.com services and you are under no obligation to purchase anything.

About Consumer

This is information that was submitted by a third party and not generated by GetOutOfDebt.org or Steve Rhode.

4 Comments

  1. Alex

    May 30, 2013 at 3:24 pm

    Is there now answer from Steve?

    • Steve Rhode

      May 30, 2013 at 3:56 pm

      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.

      • Jennifer

        June 1, 2013 at 10:13 am

        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).

        • Steve Rhode

          June 1, 2013 at 12:47 pm

          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.

Share a Comment / Leave a Reply

%d bloggers like this: