Overburdened with student loan debt, need advice
Date: Mon, 08/09/2010 - 23:19
Overburdened with student loan debt, need advice
So I went to what many people consider a good school. It was out of state, private. I think my parents just wanted the best for me and although they couldn't pay for my schooling they took out a bunch of loans in my name in hopes that I would be able to pay for it over time when I got out of school. It wasn't until my Junior year that I realized how much debt I was accumulating, and I wanted to drop out or transfer, but my Dad convinced me to stick it out because I was now so close to graduation. I think that was good advice.
Over the course of 4 1/2 years I accumulated approximately $120,000 in student loan debt. I am now 26 and I have been making payments with (while I was looking for work) and without help from my parents . Right now, I have a decent job in my field, I am a laboratory analyst full-time, and I work part-time in an electronics store. I work about 55 hours a week, I gross around $40,000 a year with both jobs. And I am struggling to make my payments, which amount to +/- $1000 a month.
I tried taking classes in community college to defer my loans and this helped me out for a little while, but I didn't have time to take the classes and ended up dropping one and failing the other. I would like to just quit my 2nd job and go to school part-time which would make my loans payable but this isn't really a solution because I would not be making a dent in the principal.
My full-time job pays around average and I could make a little more if I got a better job, but there isn't a lot of money to be made in my industry. The past couple months have gotten bad because I needed to fix my car and don't have any emergency savings. For the 1st time in years, I found myself putting gas and food on my credit card because I just don't have the money for it after getting my car fixed, and then when my next pay check came most of the money I had was already spent. How do I prevent this from happening and pay back my debt?
I also am struggling to pay other bills. For example, I needed to get contact lenses and an eye exam last month, but I don't qualify for assistance because I make too much money, but I hadn't had an exam in two years, So I broke down and went to the cheapest optometrist I could find (Walmart), but I couldn't pay one of my loans. Am I supposed to do this for the next 25 years? I want to get married and have a family, and I feel too over burden to do any of this. Furthermore I don't think my career will support my student loan debt. I am not living a life of luxury, but I don't think one should have to give up all forms of "average activities" (i.e., going to the movies, taking a day trip to a national park, going out for dinner sometimes) just to pay back student loans.
I thought about trying to find a financial advisor who could help me figure out a way I could pay back my debt, while still saving for my future, is this even an option?
Please Help (thanks for reading all of this!)
For starters, what type of loans do you have. Private or federa
For starters, what type of loans do you have. Private or federal?
Ok...your parents book out loans for you??? Did you not sign th
Ok...your parents book out loans for you??? Did you not sign the notes? Or where these e-prom notes.
Unfortunately you are going to pay the price for that private education that you could not afford. You should have switched to a public and affordable school in your junior year.
Ok...what is the mix of your loans? Have you consolidated your federal loans? How much in private loans do you have?
No I have not consolidated my federal loans. This is what I can
No I have not consolidated my federal loans. This is what I can tell right now, I have to take more time later, but I have Direct loans about $10,000, another direct loan which might be a different stafford loan for 2,600. I have a National Collegiate Trust Gates loan (3 of them) for a total of about 21,000. The majority of my private loans are Sallie Mae approximatively $65,000 split up into 4 loans, they wouldn't consolidate. One loan from a smaller company in my home state for $16,000. Oh and a perkins loan for about $3000. They all have reasonable low interest rates, no more than 6 or 7%. I think Sallie Mae is the highest.
I haven't tried consolidated my federal loans.
Isn't there a maximum percentage of my salary that these loan companies can collect?
Well for starters, you need to consolidate all you federal loans
Well for starters, you need to consolidate all you federal loans (stafford and perkins) with Direct Loan Consolidation. Go income contingent. Get then under control. Then you can concentrate on your private loans. They will be your problem children....and dont let them default. They will sue.