I was wondering if anyone here has had Student Loans, or knows anything about that general subject.... Currently my girlfriend (and me) have Signature Student Loans taken from Sallie Mae and her repayment period has started. Initially they sent her a bill for $1k a month and some change which is laughable and she spoke to someone on the phone who said she could lower it to $799, which is still laughable. That's about how much it costs for rent, bills, and food for the month, and we barely have that much to begin with. So I'm wondering, what would or could they do if she only paid what she could? I mean would they actually sue if someone wanted to make payments but could only pay a little? Honestly, if they sued they'd get nothing and then after that they're assuredly never get another dime. I just don't see how they benefit by having people sued or arrested (if they even happens) when they sincerely want to repay their loans but cannot pay the amount the lender wants and asks for without questioning anything else. It seems illogical if they expect to get repaid, am I wrong? And I'm going to have to go through this in three months when my repayment starts. It just seems outlandish.
Daily Kitten Chat Forum » General Chat
Student Loan Question
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Yes they can and probably will sue, but my understanding is that they won't until you are 6 months behind. What I would suggest is that you consolidate your loans (if more than 1) with direct loans. They have repayment options based on your income (I had repayments once of 0). You couls also aks your lender about deferments or foreborance options. I dont know if private loans have those, but federal loans (like the direct loan program) does.
Posted 4 months ago by planetkitty #
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I am the student loan queen! My payments are $1500 per month. I cannot afford that but that is what they want. Talk to someone who knows what they are talking about. There is a plan for new grads about a gradual payment plan which means you start out paying smaller amounts (usually just interest) and gradually the payments increase. They base it on your current income at the time you request to do this. IF they say NO!, then contact the Department of Education for a consolidation. Trust me, they will be willing to do this as they want their money back. Even if it is only one big loan you want it consolidated. Then you pay back the Dept of Education directly and don't pay some stupid lender who gets their cut, thus raising your payments. It is called a William Ford Loan, you can look it up online. I have had some trouble paying mine back and they have yet to even threaten to sue me. My lawyer said they most likely would never do that. Only thing is, they will not allow you to release it in a bankruptcy if you ever file. They are more than willing to help you thru this, trust me. I lost my job, then had a car wreck which left me off work over a year, etc and know the ins and outs of student loans. Contact me if you need more information. My email is mollycat71 at yahoo dot com.
Posted 4 months ago by mollycat71 #
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Like Planetkitty said, go with Direct Loans (the one thru the Dept of Education). They will be more than happy to take over your loan. There is a lot of crap with student loans going on right now with the government. Like or hate Obama there is going to be some new legislation coming soon. There is some talk about companies like Sallie Mae and their wrongful practices and taking advantage of people. And yes, I paid them only 10.00 per month for quite some time but it was payment and my lawyer and accountant said they were thrilled to get anything. With the economy the way it is they are happy to get what they can.
Posted 4 months ago by mollycat71 #
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Thank you, I wasn't totally aware although I recall vaguely enough something about consolidation...we will most definitely look into it. And we have no intention of being in our current situation for that long, but the shortest forbearance they told her they'd grant was 3 months which wasn't quite long enough. I have no intention on defaulting or not repaying my loans...And we want to pay, it's just that if we paid what they asked for, they'd get paid maybe for two months and then we'd be without home, food, and thus unable to pay anything. But we'll look into the Direct Loan consolidation, and thank you for the good advice. I may just e-mail you if I have any other questions!
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I'm not sure what you can do. It sounds like the direct loan option is worth looking into. Someone I know had a similar issue and they went this route.
You can't default on your loan by paying what you can. They will eventually try and get you; although, I would think they would want to take what they can get and just keep charging you interest on the loan. $799 seems so expensive. Sheesh!
When I was applying for school loans it seemed so easy. I got the Stafford loans, both subsidized and unsubsidized. I'm uncertain why everyone doesn't take this route. Of course, I'll probably be paying off my loans forever, but my payments started at $86/month and are now $185/month (6 years after graduation), with a 1.5% rate. I tell everyone approaching college now to at least look at them.
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Wolcar, you are so lucky! I was in school in the rock of ages, ok the 80s and early 90s when the government was trying a wacky plan of a "flexible" inerest rate. It fluctuated depending on the current market. That meant between 10-13%!!! Well that is one thing the consolidation did not save, I am still stuck with that interest rate. Those of us that got screwed got screwed. At least all my classmates are in the same boat as me. Tobert, I know what you mean. When you get out of school you are more than broke. You can't make those payments at all. That is why I think the consolidation with the step up plan will be more comfortable for you. First off consolidation takes a LONG time and during that time you don't make payments if I remember correctly. Then your payments will drop drastically the first one to two years then every two years it goes up until you get to the full amount. This is why I will never own a house, I have a "house" in my head: grad school!
Posted 4 months ago by mollycat71 #
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One thing to consider. If you have a co-signer on your loan they will go after that person. Please be careful to not ruin a co-signers credit rating. Make sure they are in on any discussion, plans, negotiations, etc.
Posted 4 months ago by KYKAT 12 23 #
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Well she called the Dept. of Education and they said they couldn't consolidate the Sallie Mae loans because they're a private lender...so now we're stuck again.
And if we only pay what we can pay, will they try to charge us late fees?
The people on the phone haven't been helpful in the slightest, in fact they border belligerent.
And we took the Signature loans because our parents have terrible credit themselves, and we had no credit at all...it was the only loan we were guaranteed.
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Ya know, I wouldn't give up just yet on the Direct Loan. Mine were private loans that I had difficulty paying after my car wreck. I wouldn't take the first answer you get. With this you have to be persistent. You have to advocate for yourselves!
Posted 4 months ago by mollycat71 #
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well the first/only woman she spoke to said they only consolidated federal loans and then proceeded to mention some number (I forget the specifics, but they pertained to consolidation another branch/entity did) but then said it would be of no use to her and never gave it. I guess you're right. This wouldn't be the first time we had to call multiple times just to reach someone who could help. It just makes one feel hopeless because we honestly do want to repay the loans, it's just that we never foresaw this unwillingness to help us do that, that we've seen on Sallie Mae's part. Over the past three years I've dealt with people and businesses that defy reason...deals and brokerings done so poorly that I still cannot fathom why they were able to stay in business.
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We're still trying to get the payments lowered by Sallie Mae...she called today once and the woman refused to connect her with the supervisor, so I told her to call back and try again. If they still refuse, we'll go back to calling the dept. of education. If that doesn't work, Sallie Mae is getting $10 a month and that'll be that. When they call wondering why she hasn't paid more, she'll give her the name of the woman who refused to assist her.
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Be careful! Not paying what they ask for will go on your credit history for up to 10 years. A few late/reduced payments won't hurt much but if it goes on for any length of time it will affect future credit.
Posted 4 months ago by TrufflesMom #
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I remember being harassed by a collection company once and they were rude. Them contacting me is what brought to my attention some identity theft. Anyway, it took a few return calls on my part to finally get through to a person who was actually helpful. I'm certain I was first dealing with a department that is used to those that don't pay their bills. This is probably similar to the department you're calling, especially if you haven't made your full payments yet.
I would keep calling back until you get someone whose helpful and keep track of the rude people you've been in contact with. I think companies need to know who isn't being helpful and who is being helpful.
I'm not familiar with other types of loans other than the stafford loans I received. However, your monthly payment just seems so ridiculous. I'm just wondering if you could get some kind of signature loan to pay off your school loans. I wonder if the rates would be more doable for you. I can't see there not being a solution to this. It's a shame it has to be so difficult for someone to get an education.
I hope you get this taken care of. Hopefully you will keep trying and get in touch with someone who really knows their stuff.
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A signature loan to pay off our signature student loans is quite humorous, but no, I'd rather not take out any more loans. We will be vigilant in getting through to this company that what they are asking for is quite unreasonable. And in all honesty, I'd rather take some poor credit over trying to accommodate their desire of being paid so much per month. We've already decided not to pursue a house until after the loans are dealt with, and we don't plan on getting any credit cards any time soon.
It's times like this where I think a blog would come in handy...But generally speaking I frown upon blogs.
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I have almost paid off my loans!!!! Do not give up. Talk to a supervisor, even if they say no...keep calling, keep insisting! After graduate school I was unable to pay for a while but got back on track. I know they sound awful on the phone but they will not come after you! It took me several years to repair my credit rating but it can be done. Do not give up hope. Pay what you can and sleep well at night. Best of luck!
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I spend an unfortunate 20 minutes googling Sallie Mae and I must say, I'm quite scared. And I say that honestly and truthfully--it makes me sick to my stomach realizing what they could do...but those are worst case scenarios, and I believe in myself and my girlfriend that we will succeed and repay these loans just fine. In our promissory note it says: Minimum Payment - Notwithstanding paragraphs 3, 4, 6 of this section, I agree to pay at least $50 per month, or the unpaid balance, whichever is less, on all my signature student loans combined.
I'm taking that to mean that I'm well within my right without being in violation of the note to pay them at least $50 a month instead of whatever amount they've requested. But we're going to see if they can consolidate (apparently they do offer private loan consolidation at sallie mae), or 3-month periods of forbearance.
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Try the IBR.com (income based repayment) if you go in to certain professions with your degree they forgive your loans after so many years of on time payments! Its a great deal, its done through the government. I have already signed up and will on the IBR when i graduate..my sister just started the IBR plan and she makes 0$ payment for now(because she has yet to find a job) then when she does find one she estimates her income around 40k a year....she has 2 kids in a single family home her payments are like 106 a month. Since she is going in to a state job(we both are) she qualifies for the loan forgiveness program! Its all pretty neat and takes the stress off you!
Posted 4 months ago by Hizlilbrat #
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