My Private Student Loan Company Won’t Let Me Pay What I Can Afford. – Mitch

“Dear Steve,

I’m a first generation college student, and attended Hartwick College for 1.5 years until transferring and finishing college at SUNY Oneonta. I owe near 80k from my college years.

I had two private student loans that were held thru CitiBank for a total of near 20k. Citibank worked with me on deferment, income based repayment, and delaying payments due to unemployment. I’m currently unemployed after holding a temporary job at a community college most recently.

Last year, CitiBank sold my loan to DiscoverStudentLoans and now my graduated repayment options have expired. Discover claims that I have NO repayment option other than the regular repayment option and that I must pay the $243.97 every month. This does not include any of my federal student loan debt. I cannot afford this payment and feel like I’m left with very little options. I’m not happy with the company that now holds my loan, and feel like I’ve been loansharked.

Please let me know if there is any option to get my loans delayed, or dismissed.



Dear Mitch,

Unfortunately it all sounds normal to me. Private student loans are not subject to any of the long-term income based repayment options that a federal loan is. And even a deferment is generally a bad idea since it results in the balance increasing while the payment is not being made.

The most logical approach would be to get your federal loans into an affordable repayment plan and if you have other debt that is preventing you from making your private student loan payment, think about filing bankruptcy to get it out of the way.

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.

When it comes to private student loans your options are going to be specified by the private student loan holder. You can use this Consumer Financial Protection Bureau online tool to review your available options.

See also  I'm Drowning in Private Student Loans. - Kathy

Otherwise, read my free guide on how to deal with overwhelming private and federal student loans. Click here.

Please post your responses and follow-up messages to me on this in the comments section below.


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

Steve Rhode

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