Defaulted on Student Loans

[nanette1985]

Consult a lawyer, right now. You think it's bad now - it's going to get worse.

 

[HombrePequeno]

Can't you restructure your loan payments? I know when I was consolidating my loans it asked whether I wanted graduated payments that started off small but increased over the years or if I wanted a flat rate.

And christ, find a car that gets better than 18 miles to the gallon. Do you have a big SUV or something?

 

[BigJ]

Originally posted by: Willoughbyva
My job pays about $10.50 an hour. I live where I live because it is the house I grew up in and tho I don't own it the costs of living there are about $300.00 a month, which includes taxes, insurance, and utilities. Even tho it is out in the sticks.

I did not graduate from uni. I still have 6 classes to go before I can, and I haven't attend school in 4 years. I know I need to make major life changes, but it is hard to do because one medication I takes costs $600.00 a month, but with my insurance it covers it.

Thanks for all your help. I think I will try to take waggy's advice and offer to pay a little bit a month.

No, your cost of living is not $300/month for the house. It's $800/month.

 

[waggy]

Originally posted by: halik

Originally posted by: Willoughbyva
Also I have to drive over 100 miles a day to and from work. My car gets 18 miles to the gallon or there abouts.


Perry

So you're driving 100 miles a day for 8.75/hr (net) job? You know retail (ie mall jobs) will pay you more than that...

Most clerical jobs that require no college degree will pay over 10/hr pre tax, I really don't understand why you're driving 100 miles a day for something that pays highschool entry-level wages.

you are giving him far to much credit for having a college degree.

he is in default. driving 100 miles a day for a $13/hr job (well around that).

he could get a local job and a part time job and spend the same amount of time working as he does now (well work and driving) AND make more.

just takes some effort.

 

[Feldenak]

Originally posted by: Willoughbyva

I did not graduate from uni. I still have 6 classes to go before I can, and I haven't attend school in 4 years. I know I need to make major life changes,

Thanks for all your help. I think I will try to take waggy's advice and offer to pay a little bit a month.

Almost exactly where I was when I defaulted on my loans. Call them and see what they can do. Get an agreement with them that once you're caught up the derogatory credit remarks are purged. Call! Call! Call!

 

[Homerboy]

I think the OP has bigger issues than default student loans. And those problems most likely do not stem around financial issues, though the financial issues are likely adding to the initial problem(s).

 

[Casawi]

Don't default on your student loan man! bad idea ! if I were I would consider going back to school (this can stop you loan payments)... move closer to work (I would break a least before I default on my student loan payment).
I would also consider asking my company for more money.
Looking to car pull with someone (craigslist might have people looking for rides), this will save you a couple of hundreds a month.

 

[Linflas]

Originally posted by: Feldenak
Call them. Due to a crossed paper trail, I defaulted on my loans (I didn't pay for about 6 months) about 5 years ago and the Dept. of Education worked with me on a rehabilitation program and when it was done the derogatory marks on my credit report were purged. I cannot stress enough, call whoever holds your loans and ask about your options.

Good advice here. The number one thing most people fail to do out of embarrassment or ignorance is contact the creditors.

 

[waggy]

Originally posted by: Feldenak

Originally posted by: Willoughbyva

I did not graduate from uni. I still have 6 classes to go before I can, and I haven't attend school in 4 years. I know I need to make major life changes,

Thanks for all your help. I think I will try to take waggy's advice and offer to pay a little bit a month.

Almost exactly where I was when I defaulted on my loans. Call them and see what they can do. Get an agreement with them that once you're caught up the derogatory credit remarks are purged. Call! Call! Call!

yep they will reduce the amount to keep it out of defualt!

also got back to school! from what i understand if you are going to school you don't have to pay. so go back and get those 6 classes!

 

[Born2bwire]

Originally posted by: BigJ
You need to move and find a better job.

$1400 take home is what, approximately $1700 before taxes? That means you're getting $10.60 an hour as a college graduate. Hell, even if you're not a college graduate, $10.60 an hour in certain parts of the country is still relatively weak.

Hell, pick up a part time job waiting tables. 2 Nights a week and you'd probably average at least $100/night. That's an extra $800 in income.

And this isn't even factoring in that gas figure. $900/month is your effective take home pay, which is equal to $5.63/hours, or $6.76 before taxes. Get a job at the McDonalds around the block for crying out loud.

What he said. I make more than you as a Grad student but I know the reality is that I could do better working full time at McDonald's.

 

[Gunslinger08]

Sounds like you need a good ass kicking so you'll get it into gear.

 

[umbrella39]

Warns the OP not to mention GAS in a thread about student loans and that is what most of the posters here seem to be focusing on. Consider a deferment or forbearance before you default as once you have, there is no getting a deferment or forbearance. You can usually buy yourself a few years or just paying off the interest while keeping the total intact, then when you are in a better financial situation, you can continue paying down the balance. Contact your FA office.

 

[nonameo]

You guys are forgetting that his job HAS to have health benefits due to an unnamed condition. A McJob or some retail job probably won't provide that (as it probably won't be full time)

Can you carpool with someone? Maybe you could find a partial carpool(maybe not in the same city/job, but shares most of the same route)

Perhaps you could find someone that will rent you a couch/shower on the weekdays so that you don't have to commute all the time.

 

[Willoughbyva]

Well, there is the possibility that I could go on an older medication, but it might have more side effects. I am going to talk to my doctor soon about it. I want to work closer to home even if I make less. Maybe get 2 jobs if I can.


Thanks for all you guys help.

Perry

 

[edro]

Originally posted by: princess ida
Consult a lawyer, right now. You think it's bad now - it's going to get worse.

Yes, because paying a lawyer to talk to your loan officer makes perfect accounting sense.

 

[Gibson486]

Hmmm...i don't think you can consolidate once payment has begun......

 

[AnyMal]

OK, here are few things to consider:

1) Loan companies are not interested in bringing you down to the point where you can not repay them. Give them a call and see what thy can do to either dramatically reduce your payment (at least temorarly) or to defer it altogether for some time. Again, they want you to be able to repay, not to default, so they'll work with you.

2) As someone already pointed out, your cost of living is not $300.00, it's $800.00 because you have to include the cost of commuting to/from work. Consider either moving or changing jobs. Either way, you'll have to make some sacrifices.

3) The easiest way to get forbearance is to go back to school at least half-time. If you think about it, it's a win/win situation for you. Not only will your payments be deffered, you will get to complete your degree which should open more/better employment opportunities for you.

4) If you're contemplating the "easy way out" i.e. bankruptcy - don't. School loans are not dischargeable.

Good luck!

 

[Jeff7]

Originally posted by: BigJ
You need to move and find a better job.

$1400 take home is what, approximately $1700 before taxes? That means you're getting $10.60 an hour as a college graduate. Hell, even if you're not a college graduate, $10.60 an hour in certain parts of the country is still relatively weak.

Agreed. I've got a job at a warehouse now, and they don't even require a GED. Starting pay is $10/hr, which is even after a staffing agency takes their cut. That's in eastern PA.

100 miles per day is just nuts. I don't think I'd ever do that. Moving closer, even if the rent is a bit higher for an apartment, or higher land costs, it still should be less than $500/month, and you gain lots of time by not having to drive so much.

 

[rudder]

Originally posted by: Willoughbyva
Also I have to drive over 100 miles a day to and from work. My car gets 18 miles to the gallon or there abouts.


Perry

Sell the gas guzzler and use the savings to buy a honda civic.. and ask for a raise.

 

[JEDI]

Originally posted by: Willoughbyva
What are my options? I bring home about $1,400.00 a month, but have to spend about $500.00 a month in gas. Can I consolidate my loans or is there any way to ask for forbearance or what can I do? I can't afford to pay them back right now. I have been looking for a better job for the past 9 months, but am unable to get even an interview. My life feels hopeless. Plus I have health problems that I have to have insurance where ever I work at.

You can flame me if you want, but I need some good advice.

Thank you for your time.

Perry

dude... $1400/month = $17k/yr. that's $8/hr.

work at Starbucks! after 6months you get an automatic 10% raise. it's on every block. no need to spend $500 on gas.

 

[Willoughbyva]

Yeah I am looking into working closer to home. Thanks for your help guys.

 

[waggy]

Originally posted by: rudder

Originally posted by: Willoughbyva
Also I have to drive over 100 miles a day to and from work. My car gets 18 miles to the gallon or there abouts.


Perry

Sell the gas guzzler and use the savings to buy a honda civic.. and ask for a raise.

bad advice.

with someone in his financial situation this would not be a good idea.

 

[Willoughbyva]

I drive an old car. A 1993 Buick Lesabre. I am doing research now to see if an older med would be just as good as the newer med. I really want to work closer to home. I am tired of driving 2 hours a day and then having to wait for a bus to drop me off closer to work.

I will call this evening and see if I can work something out with them.

Thanks for your ideas. I do feel a little bit better now.

Perry

 

[jagec]

Originally posted by: Willoughbyva
Also I have to drive over 100 miles a day to and from work. My car gets 18 miles to the gallon or there abouts.


Perry

Even if you can't find a different job that still gets benefits (and you should keep looking!), you CAN find a car that gets better mileage. There's no reason not to get north of 30mpg if you have THAT kind of commute. Or get a motorcycle/big scooter.

Originally posted by: waggy

Sell the gas guzzler and use the savings to buy a honda civic.. and ask for a raise.

bad advice.

with someone in his financial situation this would not be a good idea.[/quote]

How on earth does getting a more efficient car, using the proceeds from the sale of the less efficient, not make sense? We're not talking about buying new, that's just stupid.🙂

 

[waggy]

Originally posted by: jagec

Originally posted by: Willoughbyva
Also I have to drive over 100 miles a day to and from work. My car gets 18 miles to the gallon or there abouts.


Perry

Even if you can't find a different job that still gets benefits (and you should keep looking!), you CAN find a car that gets better mileage. There's no reason not to get north of 30mpg if you have THAT kind of commute. Or get a motorcycle/big scooter.

Originally posted by: waggy

Sell the gas guzzler and use the savings to buy a honda civic.. and ask for a raise.

bad advice.

with someone in his financial situation this would not be a good idea.

How on earth does getting a more efficient car, using the proceeds from the sale of the less efficient, not make sense? We're not talking about buying new, that's just stupid.🙂[/quote]

great. now how is he going to be able to afford it? he is makeing $1400 a month. where is he going to pull the money out of?

last i checked a 93 buick is not worth a lot. so thats out of the question. and buying a decent used car is still 2-3k..