Student Loan Defaulters ONLY

mazy · Jan 22, 2011

You're not a bad person, millions of people in this country are going through what you are going through.

But you cannot default on a student loan, even through bankruptcy, and if you put money aside in a savings account they will go after it.

Don't know what your other debts are but some things to consider:

Talk to loan agency and see what kind of deal you can work out to stay on top of the very minimum payment requirements.

Talk to a debt management company to see if you can work out some kind of debt repayment plan that doesn't destroy your life. Be careful about which company you choose. There are a lot of scammers out there.

Here is a link for for more information:

http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre19.shtm

Consider declaring bankruptcy to discharge any other debts. I'm assuming you don't own your home, which would make it an option worth considering. Many lawyers offer a free consultation and they will give you the information you need to figure out the best course of action. Try looking up your state bar association to get a list of lawyers.

This is really stressful I know and I wish you the best of luck.

ckh23, BSN, RN · Jan 22, 2011

But it's not illegal for them to check your credit prior to an employment offer. Seems like there are easy work-arounds to this law.

This is true, but the have to disclose a credit check to you prior to running it so a person would be aware of it prior to employment.

ckh23, BSN, RN · Jan 22, 2011

If you can give sound advice DONT post! I have enough people on my butt without you so called peers b

Unfortunately when you post on the internet with a bunch of strangers you do not get to pick and choose who will respond and what their opinions will be.

BettyBoop01 · Jan 22, 2011

Your thinking of putting some money away to go back to school? Did I read that correctly? You can't afford to go back to school, and the money you are thinking of putting away can go to your student loans right now. I just think with your student loans unpaid, going back to school right now seems like a bad decision.

Perhaps you could switch to nights & weekends. The differential will help, and your childcare costs will go down. Or find a job that offers 8 hour shifts instead of 12. Try LTC they usually do 8.

If what your doing now isnt working, try something else.

robby5313 · Jan 22, 2011

Depends on the type of loan, but most are not eligible for discharge in bankruptcy. I would try to repay them as best as you can because as others have said they will not go away. Eventually if you default you can be sued for the money and you will most likely lose. If you lose you will get a judgment against you and they can wipe out your bank accounts and depending on where you live they can start garnishing your wages.

I was young and dumb and allowed my loans to go into default. Marriage trouble, etc. etc. I was one of the lucky ones that was able to to include mine in my bankruptcy before they changed the laws. But be aware you will obviously not be eligible for any more loans, financial aid.....NOTHING! My nursing lisence was not affected. They will tack on HUGE and I mean HUGE penalties...almost as much as the loans themselves. They can take your tax return each year, garnish your wages and yes, take anything in your bank account. Don't do it unless you absolutely have no other choice.

robby5313 · Jan 22, 2011

Can understand just try to pay them. I have a hard time paying them myself. Some reason they think I can afford the amount they want me to pay every month about 500 dollars. My hubby is working part time lost his full time job. I work full time and support a family of five on my first yr. nursing job. Not easy guess I will have to get a second job to afford it. I applied for numerous things and get denied make too much money for it. They assume it out of my gross salary and no consideration of family size. Just got behind and I am struggling to pay it. Guess I need to live on the streets or have no insurance to afford it. So I understand it. I have been looking for another job so I can work more than 3 nights a week to pay the bills. Guess seeing my kids is an option I do not have and do not see light out of the tunnel so before you condemn someone for defaulting and getting behind you need to know all the story.

Your student loan is 500.00? Holy Cow. How much are your loans?

Anne36, LPN · Jan 22, 2011

Im starting to get curious how much people take out in student loans. Spode, how much did you take out? (if you dont mind) I just started LPN school and am also worried about repayment later on.

You didnt mention how old your children but this time will pass quickly. Eventually you will only need before and after school care which will be more affordable. I understand about the health ins issue, we are in a similar spot. You either do without or go broke paying it yourself. (we are paying our own, and going broke)

It sounds like you can make more than your husband. Have you thought about working more and him working less? If he took the weekends off and you worked all weekend, would that help? I know its not ideal, but until your kids are older and need less care you may have to work opposite shifts.

pinksugar · Jan 22, 2011

Again, I asked for advice on a solution, not your opinions of me and that I am a bad person for struggling financially. If you can give sound advice DONT post! I have enough people on my butt without you so called peers b

You aren't a bad person, but you asked for advice and people are giving you good advice - it just isn't what you care to hear/read. I find it hard to believe that you would be worse off working full time than PRN. If that is the case then perhaps you and your husband need to sit down together and figure out where you can cut your budget - you already stated that your housing is free (a true luxury that I assure you most folks do NOT have) so you should be able to figure out somewhere to cut costs so that you and your husband can get ahead and you can pay these loans off without having banks, etc. breathing down your neck 24-7. I wish you luck.

SHURN · Jan 22, 2011

OP, this is a hard situation. I think it is easy for us all to look at it and say "do this" and ask "why did you do this?" I would call your loan company and work something out. Just reading all the advice here, defaulting just does not sound like an option AT ALL.

Also, to everyone condemning people for taking out high student loans - how do people manage to pay for college? In my state, a STATE school right now costs > $25 grand a year. I'm sorry, but that's a lot. I went to a private school that didn't even cost that much. Maybe it's just raised every year - but in reality, very few people right now have had wage increases in line with those tuition increases. I don't think eveyone's parents have that money, or should be expected to pay it anyways. I have a lot of loans, I worked all through school to pay what I could, and my parents helped the very little they could. (BTW I'm not having trouble with repayment.) Until this country gets with the program, this will continue to be a very real problem. We want people in this country to take all the "opportunities" offered, but it's pretty hard. Unless you really are poor or are an emancipated minor, getting government loans is impossible. So you are left with private loan, which are similar to the crazy credit card deals we are so used to seeing.

I'm not trying to rant (I know it turned into one). I just think about what will happen when the children I will one day have want to go to college, and I get all worked up. It's just scary!

MJB2010 · Jan 22, 2011

You live rent free? And you only work PRN and complain of money problems? You need to work full time, and perhaps get a second job. Thats what the rest of us do. I'd love to be able to go back to school and only work part time but I cant afford it. Sounds like your working the system. A lot of us would love to do prn and spend more time with our family!

Maybe in the meantime you could sell the car and buy a used one. That way you'd save money on car payments and insurance. Start couponing. Sell Tupperware or Pampered Chef? These are things you could do at home without needing additional childcare.

Maybe work overnights before your husbands day off. You'll get night diff and can sleep while he is home with the kids, eliminating childcare costs for at least one day. If you work nights & weekends, your diff would be higher and childcare costs lower. That way the kids sleep while your husband is home. Youll both be exhausted, but well, thats how it is these days trying to make ends meet.

Dont ruin your credit, it will haunt you for years. Keep calling the loan people they will work with you! Just dont give up it is hard when the kids are small. When they are old enough for school it will get better.

morte, LPN, LVN · Jan 22, 2011

I have no clue....but are the fees for child care that she is listing, reasonable?

eriksoln, BSN, RN · Jan 22, 2011

Nope. No defaulter here. I did in the past, when I was less responsible and more interested in "Hmmmm, should I make it Budweiser or Miller tonight".

Now, I pay extra. I don't want to wait forever to be done with them. I figure spend the next few years paying extra and be done with it instead of always having it as a thorn in my side.