I have been ill, have

Hav you talked to them about forebearance? They can defer your payments for a year....

Yes, they have agreed to a six month forebearance but I know that and even an additional six months will go by fast. After that, there is no forebearance option.

I am going to do everything I can to find a way to pay back my debts, but I am just very fearful of unmanageble monthly payments. Do you know if less than the payment they want is sent each month, but at least something is sent, can they still garnish wages?

Unfortunately, yes they will. And they do not have to take you to court to do so because its the government all they have to do is have a judge sign off on it. Have you contacted them about financial hardship? I had to do that because of the financial mess my husband has put me in and finding out I was pregnant...I called them and qualified for financial hardship and they gave me 12 months. Also, after your six months is up and you pay on it for six months you can apply for another deferment on the student loans. That is what my sister does because she does not qualify for financial hardship. Also, since you have been ill-are you receiving any kind of assistance? this makes a huge difference as well. Are you on unemployment or receiving state funded medical care? If so, that makes a big difference as well.

[quote]I have been ill, have already declared bankruptcy. Sallie Mae has told me the lowest they will ever drop my monthly payments is to $300.00 and that is only if I am unemployed and homeless.

Is this for federal or private loans?....Sallie Mae does both. With Federal you can get 3 years plus of deferements. With Private loans, your options are much more limited. Actually very limited. They legally dont have to give you any deferemtns or forebearances but will do so as a courtesy.


Is there any way to fight back. My research so far makes things look pretty bleak. This looks like legal usury.

The rates are no where near that bad! It sounds like you are talking about private loans and this is the risk you take. Private loans are in some ways like federal student loans...educational deferements, no BK and NO SOL. However, they are also partly like consumer loans in that they do not have to offer you the benefits of federal consolidation. Private loans serve a purpose ....to fill the gap between federal funds and the cost of attendance. If it had not been for private loans, would you have been able to complete your education?? Where would you have gotten the funds from?

Really there is no way to fight private loans. You signed a prom note agreeing to the terms.

I owe much more in federal student loans and another private loan.
Have you consolidated your federal loans with Direct Loans yet???

Does anyone know of a fair debt consolidation loan that a person can without good credit? Is there any other way?

Thanks... [/quote]