I graduated from college with a ton of debt.
Loan1 = $23,977.76
Loan2 = $35,285.42
Loan3 = $40,775.22
From Sallie Mae:
Loan1 = $2,664.58
Loan2 = $3,552.73
Loan3 = $5,567.47
My income is $42,000 / year.
I have tried to lower payments through AES, but according to the representative, they have made it much tougher to lower payments, and that I do not qualify because of that.
From what I understand, if I am paying over a certain percentage (15% I believe) of my income to student loans, I could qualify for lower payments. My government loans do not total to over 15%, but when combined with my AES loans (from private lenders), I am paying around 25% of my income into my loans.
I am also in credit card debt, and owe money to a couple collectors for bank accounts and an apartment complex.
This has ruined my credit, and the last time I tried to consolidate, I was denied.
Is there any way to lower my payments on my student loans, so I can pay off the bills that are pinging my credit score, so I can consolidate my loans?
I went to college to better my position in life, but with all this debt, for the time being, my life has become more difficult.
Thank you kindly for offering this advice free of charge.
Unfortunately both Sallie Mae and AES loans do not have some of the consolidation or payment adjustment features that a Department of Education backed loan has.
But I was surprised to see the IBR, Income Based Repayment, program on the American Education Services site, click here. Both AES and SallieMae offer some form of extended repayment terms.
I had the following questions that I’d like for you to answer before I can answer your question.