I Finally Became a Registered Nurse But I’m Drowning in Student Loans. – Carmen

Dear Steve,

I went back to school to earn my Registered Nurse License. Took out huge loans for school that I can not pay back at the moment.

As a new grad, it took me almost 2 years to finally find a job. I have been working as extra help/on-call for approx 9 months now and was told I will possibly be cut off from work in mid sept, due to budget cuts. But, also need to act upon this dark cloud over me..DEFAULTED LOANS!!! pls help

Private school loan defaulted to third party(chase recovery payment). Third party offered a written settlement(on papaer) Of $38, 000..I pay 6,000.= zero balance owed. Is this real?

Federal school loans defaulted…third party contacting me…?????

Also, Sallie Mai loans defaulted. Third party contacting me…what do i do? So confused and scared. Pls help/advise


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First off, take a few big deep breaths and relax. The fear you are feeling is common and understandable but it will lead you to make bad choices as we deal with the situation.

I could go on and on but I’m going to give you the summary, STAT!

If you have other consumer debt that is holding you from making the required student loan payments, you should really consider a second chance and fresh start in bankruptcy to make room for your student loan payments.

You can click here to find a local bankruptcy attorney and talk to them for free about your specific situation. Get the facts and then you can make an informed and educated decision if bankruptcy is right for you.

If other debt is not causing you to miss your student loan payments we need to prioritize tackling the student loan attack.

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First, follow this guide to see what forgiveness and income contingent repayment plans you might qualify for. If you are a nurse in a public health setting this program can forgive your student loans.

Some unsubsidized student loans in the medical field can be consolidated into a federal Direct Loan. These include:

  • Health Professions Student Loans (HPSL)
  • Health Education Assistance Loans (HEAL)
  • Nursing Student Loans (NSL)

Just because you have some loans with Sallie Mae, that alone is not an indication they are not subsidized in some way. This guide shows you how to check if they are.

As far as the rest of the private student loans, bluntly, they can simply get in line. They will not be able to garnish your wages without suing you and if they do sue you then you may be able to get a suitable payment plan at that point or stop them with bankruptcy.

I’m not advocating you should ask to be sued but this all comes down to how much money you can free up on a monthly basis and what you can realistically afford.

You could always keep the private student loan holder at arms length if you filed a chapter 13 bankruptcy. But with an RN degree and your potential ability to earn it is probably doubtful you would be able to completely discharge the private student loans. But a partial discharge or favorable payment terms is possible. See A Look at Sallie Mae and Other Student Loans Discharged in Bankruptcy in 2012 and you can see the results others obtained.

When it comes to bankruptcy and other legal advice, there is no substitute for getting a specific legal opinion from an attorney licensed in your state.

Bottom line, it might feel hopeless, but there are some good options to provide you with some relief and a light at the end of the tunnel. – Source

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You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

Damon Day - Pro Debt Coach

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Steve Rhode

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