Graduated 2011 from Houghton College. Lives in DC. Paying $600 a month for student loans.
Read your article about the ten reasons to stop paying private student loans. I’m to a point where I don’t want to pay and its killing me.
I’m still living with my parents because I cannot afford to move to a apartment or buy a home. Now with my private student loan AES their “financial management” had locked my account because I had a couple of payments sent back.
I had problems with my bank but I’ve been on time since 2011 everytime. Now after two rejected payments they have locked my account. I cannot look online, I can’t see my account summary to know how much I owe. I never received a warning no phone call, no emails, no mail to my home. I don’t feel like i can continue these payments until 2031.
What are the best options for getting rid of private student loans?
Is filing for bankruptcy a feasible and good option?
I certainly get a lot of emails from people about the struggles they have with private student loans. Next to tax debt it is the worst kind of debt to owe. Private student loan debt is a trap but don’t get me started on that.
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I believe you saw my article, “Top 10 Reasons You Should Stop Paying Your Unaffordable Private Student Loan.”
Dealing with problematic private student loan debt is an exercise if picking the best worst option on how to deal with them. There is no magic wand and no perfect solution to deal with them. That being said, there are options.
Bankruptcy is certainly one option for private student loans but it depends on the loans you took out and what they were used for. It also matters if the school was accredited. You should read “These Private Student Loans Can Be Easily Discharged in Bankruptcy.”
Not wanting to pay and can’t pay are two different situations to be. If you can’t pay then you might want to accept the risk of defaulting, having that reported on your credit, being in collection, and face being sued. The reality is you can’t pay what you can’t pay.
Not wanting to pay is a different issue. That would involve a more contemplative review of your situation with careful considerations of the pros and cons of that strategy. After reviewing your options and situation with a professional debt coach like Damon Day then you might embark on a strategic default strategy if that is what you decide is best for you.
What I can guarantee for sure right now is you need to do some more research and educate yourself before you leap to do anything.
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