Debtconsolidationcare.com - the USA consumer forum

Forums
  • Latest topic

substantial student loan debt

Date: Tue, 09/13/2005 - 12:01

Submitted by anonymous
on Tue, 09/13/2005 - 12:01

Posts: 202330 Credits: [Donate]

Total Replies: 6

substantial student loan debt


I have a question about my specific situation. I have substantial student loan debt. After I finished with college several years ago I neglected to pay and the loan defaulted. Approximately 6-8 months ago now allied interstate tracked me down and informed me that they had verified my employment and that I had to pay $800 a month or they would garnish my wages. I finally got someone to agree to accept a payment of $200 a month. Now, I make $12 an hour, I have a child and I pay child support, I'm single so I only have my income and I live in Atlanta so the cost of living isn't cheap but I stay here so I can be with my son. That brings me to today when I received a call at my work number (after I told them to use my cell phone which is my only personal phone) and told me that the Dept. of Ed. said that the $200 monthly payment was no longer acceptable and the only option I had was the "rehabilitation" program they offer. I told them that it was not a good time, since I was at work and that, if they wished, they could call me at 1pm during my lunch break. They still haven't called me back yet. My question is, what options do I have? You can't get blood from a turnip and I truly can't afford anything more than $200 a month on any given month. If they garnish my wages I will either get fired or have no choice but to leave this job and find another one and simply drop all communication with them so that they will have to take more time to track me down. From the point they contacted me I have paid the the $200 a month every month. I want to get out of this debt but I don't have any options. I can't declare bankruptcy since it's student loans. Somebody please help me. Thank you.


Hi sandman_cr,

Welcome to forums. I understand your situation. That is a real problem most of the people encounter. Student loan issues are controlled by federal government and it should be paid back.

As repayment is really tough for you at your present situation, you have to plan way so that it does not affect your financial standing adversely. You cannot defer, as you account is defaulted. Check what you can do ???

  • Apply for forbearance ??? It will reduce your monthly installments as the principal amount will not be deducted for the time being. But you should pay the reduced installments timely.
  • Loan discharge/cancellation ??? Under some special circumstances your loan is forgiven, but it is difficult to get granted.
As you are already defaulted and the account is with collection agencies, it will not be easy to get the above options granted and it will affect your credit report also. So the only way you have open is consolidation. It can really help you a lot. A consolidation loan is able to bind all your older debts at one place and the interest rate is usually lower than the loans you currently owe. So you will be able to repay your loans with your present income only.

For any more information, please post your queries in the forums.

Regards,
Bryan


lrhall41

Submitted by 4u.bryan on Tue, 09/13/2005 - 12:54

( Posts: 819 | Credits: )


sandman_cr,

beware of federal laws that provide you with enough freedom to ask the debt collector not to call at your work. you can tell them the best time to call also.

wage garnishment is not possible without court order. debt collectors use so many techniques to squeeze you. read the article on wage garnishment here -
http://forums.debtcc.com/forums/garnishment-info.html

buddy


lrhall41

Submitted by anonymous on Tue, 09/13/2005 - 13:26

( Posts: 202330 | Credits: )


Hi Guest,

Welcome to the forums. To enter into a consolidation the best way is to go through an agency that is expert in this field. Once you enroll in the program, a consultant will guide you and explain all the repayment options and benefits you can enjoy. So you will get a number of alternatives to repay your debts.

For any more information, please feel free to ask in the forums.

Regards,
Bryan


lrhall41

Submitted by 4u.bryan on Tue, 09/13/2005 - 14:54

( Posts: 819 | Credits: )


Hi Guest,

Welcome to forums. It is possible to consolidate private/non-federal student loans. There are student loan providers who allow private loan consolidation. Once you consolidate your loans the interest rate is reduced and you need to pay one monthly installment. Moreover you can enjoy flexible repayment options which make the process easier.

But technically it will be right to consolidate your federal loans first. It improves your credit score and makes you eligible for more federal grants.

Regards,
Bryan


lrhall41

Submitted by 4u.bryan on Tue, 09/13/2005 - 17:26

( Posts: 819 | Credits: )