Seeking Advice on Student Loans

Wish I could help you. I have experience with rehabbing Govt. student loans, but not private. It's my understanding that most private student loan lenders don't rehabilitate, but YMMV.

For some excellent advice and reading, check out www.myfico.com -- There are folks there with amazing experience and sound advice on all sorts of credit topics. They have a forum area specifically for Student Loans, too.

Aye that's where I'm getting to now. Tried calling a couple places like Wells Fargo and they won't even look into consolidation if the loan isn't "current". But for a defaulted loan there is not "current" it's either paid off in full or nothing.

As it's standing looks like I'll be getting sued soon, and there is no way I can come up with $76k for a one time payment, despite making payments on time since they received the account.

Appreciate the link will check there as well.

Student loans are tough to deal with and lenders aren't much help. You might be able to file a Chapter 13 bankruptcy to stop the lawsuit (avoiding wage garnishment) and get back on track with payments over a period over 5 years. The student loans aren't dischargable in bankruptcy, so they won't go away and must be repaid, BUT a Chapter 13 helps you pay only what you can afford and keeps the private student loan company off your back. Contact a good bankruptcy lawyer asap.

Aye, just finished a Chapter 7 last fall. That's why the student loans are in default. Guess there is a clause in the loan agreement that no matter how good or bad your status or payment history, bankruptcy is immediate grounds for default.

The company that bought the loan has 0 wiggle room, basically they want it in full or it's going to court. Had worked out a payment plan which I've stuck too since then but apparently it was only a temporary solution and looks like my payments weren't even enough to cover the interest so I'm actually ~$300 in the hole more than when they bought the account.

There has to be some kind of workable solution. I'm already handing over almost about 40% of my gross income to just student loans.

I'd even look into getting a second job, but since I'm on call 24/7 removes that option. Don't want to be flipping burgers and get a call a server is down.

I hear you. You can file a Chapter 13 immediately after a Chapter 7, so that's still an option. I bet your chapter 13 plan payment would be less than the 40% you're paying towards it now.

Have you tried Direct Loans? they consolidated my govt. and private loans. Yes, a few were in default too.

Hrm didn't know about the Direct loans had thought they were purely for federal loans. Will look into it further thank you.

My bankruptcy lawyer was helpful I'll give him a call too considering a 13 option.

INC - other than getting a second job, have you looked getting a better paying one? I know it's WAY easier said than done, but the IT market in Toledo is still pretty good and maybe there is some opportunity out there that would allow for better cash flow.

Don’t hesitate to apply for jobs that you can’t do everything they are asking for, company job posting are like wish lists and no one will have everything they want. Also post your resume on to major job engines, I still get a call/e-mail every month or two on a resume I haven’t updated in 4 years.

Just a thought…

SensorG beat me to it. If you're in the IT industry then get yourself a better paying job. You'll likely have to leave Toledo, which is not a bad thing. You might also take a job on contract. The pay is higher, you get paid for the hours you work (so if they call you in at 2:00 AM you get paid to fix the problem) and you can work on a W2, same as any regular employee.

There are other advantages, but between Chapter 13 and more money coming in you could whittle that debt right down in a few years.

This posting just made me inquire about mine. It's depressing...

wishiniwasfishin: I just called and unfortunately they don't handle private loans anymore. Seems like a lot of programs out there, but they're all geared toward just federal loans. As soon as you go private you're completely off the radar.

Appreciate the idea though, another door closed but at least it's one I've traveled :)

Sorry to hear that INC. I must've gotten in under the wire.

I'm getting ready to consolidate mine too! I have about 35,000 in loans

Make sure you read up on the pros/cons of consolidation of your student loans before making the decision to do that.