I am 28yrs old with one child. I currently owe Sallie Mae over $100,000 in student loans. I also have several other student loans with Department of Education and Citibank.
My total debt is close to $200,000. I was 18 when I started getting private loans from Sallie Mae. I didn’t know exactly what I was doing or how it could very likely impact me now.
I tried numerous times to offer my affordable payment to them and they would not accept it. They wanted me to pay over $1400.00 a month at that time and unfortunately I was only making $10.00hr and have a child. There was no way I could pay that.
So its been almost ten years and I have not paid one dime to them. As the older I get I see that this is really hurting me in many ways.
I cannot afford to pay back those loans. I only have a Associates degree. I know it sounds crazy but as I stated I was 18 at the time and really didn’t know what I was doing.
I am a single mom of a 7-year-old daughter and I feel like I have no hope for the future. I was told I couldn’t file my student loans on bankruptcy.
My question is How can I go about trying to eliminate this debt? What steps do I need to take?
If you have not made a single payment or payment promise to Sallie Mae for your private student loans for a decade, it is likely the statute of limitations has expired in your state and your private student loans would be eligible for elimination in bankruptcy.
It sounds to me as if you need to talk to a different attorney about filing bankruptcy and get a second or third opinion. The key points to mention to them are the length of time since you made a payment and the fact these are private student loans.
Sadly, not all bankruptcy attorneys understand the nuances of dealing with student loans. Many still believe they are not able to be discharged but that is an incorrect belief. Many are eligible for discharge under bankruptcy. See these articles for more information.
On the federal student loan front, if you have not done so already you should look into the Income Based Repayment plan to keep your federal loans in good standing but with a payment that might be as low as $0 per month. There is no need to let your federal loans default with the options available for them.
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