| HELP! I'm getting screwed by Sallie Mae Private loans... 
I am writing in this forum because I am horrified with my current student loans situation and am looking for people in the same situations or have some advice about what the hell I am supposed to do.
I have about $60,000 out in private student loans from Sallie Mae. I took them out when I was 19 with no co-signer in order to go away and to live at college (which I graduated from with a BS in Exercise Science and English). I planned on continuing my education and becoming a Physical therapist.
I have been out of school for almost 2 years now and am a receptionist and a part time waitress. I have recently just finished paying off my credit card debt (which was about 4500 from a stupid trip to London that I took) I have been putting my loans into forbearance ($50 per loan) since my grace period ended, because I apparently am not eligible for deferment. Now i am getting bills for $600 a month for all three loans with variable interest rates! And the forbearance only last about 3 months 
I still live with my parents and with car payments and insurance and cell phone bills (and previously cell phone bills) I would barely get by. I am working 6 days a week and though I know I could manage to start paying the loans now, that's all I would be working for and where ALL of my money would be going! Am I not allowed to move forward with my life? Should I just keep them in forbearance so I can save up money and move out of my home town?
I've called them numerous times telling them I want to consolidate my 3 loans and lower my payments to about $200 a month and they said I can't because of the economy they do not consolidate and that the lowest I could pay is $400 a month (interest only). I feel so trapped ... no other companies seem to consolidate private loans.
I was planning to save money and move to California(because I am from shit town) and go back to school (where my loans would be deferred as long as I was full time, adding to my debt) but I feel like I am trapped by these outrageous bills! How can this be legal? I was so young when I took them out and had nobody telling me otherwise, I didn't even have a co-signer. Do I have options here? Am I destined to live with my parents and be a receptionist and never move on with my life? Any advice or experience stories would be appreciated. I'm desperate here.............. |
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| Why don't you look for a job at some medical center where you can make good money and put that BS Degree to work.
Last I checked you couldn't claim bankruptcy on Student loans or it was really hard to. Not sure if that's changed.
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Email/MSN: Michael at hardwaregeeks.comAIM: MikeR35292 |
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 MickeymeYou might be right, but, I don't carePremium
join:2008-09-05
Carson City, NV
2 edits | reply to Jessica1984
And this my friend is why the economy is in the shape it's in. People take out loans they can't repay.
First off dump the cellphone.
Pay your debts - your FICO scores must be shit now and getting worse by the month.
How are you going to get a place (house-apartment) if you don't pass a credit report? Unless you plan on living in the slums somewhere. |
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 MrFixitCTpay it forwardPremium,VIP,ExMod 2001-06
join:2000-12-01
Charleston, SC | reply to Jessica1984
said by Jessica1984 :
Am I not allowed to move forward with my life?
Sure, but that does not release you from your commitments (unless you're a big bank or wall street)... |
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 Combat ChuckToo Many CannibalsPremium
join:2001-11-29
Erie, PA | reply to Jessica1984
said by Jessica1984 :
but I feel like I am trapped by these outrageous bills! You were stupid and now you pay for it. Get a second job, make payments over the minimum and be thankful that you have a house over your head, food in your stomach and can make the payments.
The reason you feel trapped is because you don't want to face reality. Suck it up, work a little more, play a little less and in a couple years you'll be better off and feel much better about yourself.
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Come let us reason together. |
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 Mr NeutronLooks like I picked the wrong week toPremium
join:2005-05-30
Gorham, ME | reply to Jessica1984
said by Jessica1984 :
I am working 6 days a week and though I know I could manage to start paying the loans now, that's all I would be working for and where ALL of my money would be going! Am I not allowed to move forward with my life? ...
Unfortunately, until you've paid your debts, you really can't move forward with your life.
The thing that most people (not just you) don't understand about debt is that when you take on debt, you are, in effect, mortgaging your future in exchange for some sort of present benefit (in your case, education).
But miss, in your case, your bill has now come due. And as boring as it sounds, yes, you do need to buckle down and pay it. After all, you made a deal with the people who loaned you the money to pay them back, didn't you?
I know this isn't what you want to hear, but until you've paid your debts in full, you shouldn't be thinking about "moving forward" at all. Even if paying off your debts is where ALL your money will be going, that's where it needs to go.
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We could use the £5,000 to buy a spoon. And then fill up with ice cream. |
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| reply to Mickeyme
my credit score is good at this point because i've never defaulted the loans are just in forbearance i just have limited credit history. I was an idealistic 18 year old just trying to go to college u know? |
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 AbBaZaBbAPremium
join:2002-07-10
Wildomar, CA
kudos:4
1 edit | reply to Jessica1984
find a community college with cheap classes (preferably online). take 1 class per semester.
or move out of the country.
Or stop going on expensive trips, sell your car and buy a beater, cancel your cell phone and get prepaid and try to pay them back.
Student loans cannot be discharged like credit card debt. You must be able to prove that you are unable to ever earn enough income to pay them off which usually only happens if you are old or disabled. Also there is no statute of limitations on student loans. With credit cards if you just stop paying after a number of years 2-7 or so depending on your state they cannot legally come after you for the debt anymore. Some people transfer all of their student loan balances to credit cards and do this, but it is illegal if you plan it in advance and it's basically impossible to do now because it's so hard to get credit.
You have a bs in english... why not become a teacher? I hear from time to time they do have forgiveness of student loans for teachers, not sure exactly how that works though. It's a steady job that would allow you to pay off the loans eventually. |
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MickeymeYou might be right, but, I don't carePremium
join:2008-09-05
Carson City, NV | reply to Jessica1984
You work and live at home?
What are you doing with both paychecks?
Wasting it on new Clothes, Starbucks, Eating out, Partying in bars.
If you give your parent/s money to live with them from you ask them if you can not pay them so you can pay off your debts.
Do you really need a cellphone? I'm willing to bet you have a plan that cost at least $69 a month.
That's right there will allow you to pay down a piece of the debt. |
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| Well up until January, all of my money was going towards my credit card. |
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| reply to AbBaZaBbA
thank you. |
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 MajestikWorld TravelerPremium
join:2001-05-11
Tulsa, OK
2 edits | reply to Jessica1984
Can't believe you have done all off this and never received any advice.
You just did not listen.
I can tell from your reply so far. |
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| reply to Jessica1984
www.daveramsey.com |
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 drslashGoya AsmaPremium
join:2002-02-18
Marion, IA | reply to MrFixitCT
said by Jessica1984 :
Am I not allowed to move forward with my life?
In better economic times you would have a better chance at a more immediate ability to move forward. You will need to cut your expenses to bare essentials. Even though you may find many rejections you should search for a job in the medical field, even if it is sweeping floors at a doctor's office or clinic. This will reflect favorably on you when you come across a job that is more fitting with your career desires. If the car you are making payments on is essential to get you to your current jobs then you should sell it and buy a cheap car. If you have another way to get to work then do without the car.
said by MrFixitCT :
Sure, but that does not release you from your commitments (unless you're a big bank or wall street)...
...or a cabinet nominee.
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Save water...drink beer!
Democrats don't mind raising taxes because democrats don't pay taxes. |
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DodgePremium
join:2002-11-27 | reply to Jessica1984
You will have to repay your loans that is not even a question. What you can and probably should do is look into different payment plans that salliemae offers. They have many options some of which may lower your monthly payment. I see you tried to consolidate, but did you try extending the term? As an example I am pretty sure you are on a 15 year repayment plan, if you switch to 25 year your payments right now will be lower and if you get a good paying job later on you can always pay more than a minimum.
From salliemae's site:
Extended Repayment - Standard: This repayment plan, designed to allow the borrower to make lower monthly payments through a lengthened repayment period of up to 25 years, is available to borrowers with more than $30,000 in outstanding Federal Stafford, PLUS and/or Consolidation Loan balances and whose loans were first disbursed 10/7/98 or later. Payments cover monthly accruing interest and principal. The repayment term available on your private student loans may vary depending on loan type, outstanding loan balance, repayment plan, and the terms of your promissory note.
Extended Repayment - 2 years interest only: This repayment plan, designed to allow the borrower to make lower monthly payments through a lengthened repayment period of up to 25 years, is available to borrowers with more than $30,000 in outstanding Federal Stafford, PLUS and/or Consolidation Loan balances and whose loans were first disbursed 10/7/98 or later. You make two years of interest-only payments; then payments increase to cover monthly accruing interest and principal for the remaining repayment term.
Extended Repayment - 4 years interest only: This repayment plan, designed to allow the borrower to make lower monthly payments through a lengthened repayment period of up to 25 years, is available to borrowers with more than $30,000 in outstanding Federal Stafford, PLUS and/or Consolidation Loan balances and whose loans were first disbursed 10/7/98 or later. For up to the first four years of repayment, payments will cover only monthly accruing interest. For Stafford and PLUS borrowers, payments then increase to cover monthly accruing interest and principal for the remaining repayment term. For Consolidation Loan borrowers only - after the interest-only payments, there are three years of payments that step up, and then fixed payments covering monthly accruing interest and principal for the remaining repayment term.
Hope this help and like others have suggested you need to seriously reconsider your recurring bills. |
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Jaber
join:2007-07-07
Mount Prospect, IL
1 edit | reply to Jessica1984
I have a $45k loan with them and like you I wasn't able to re-consolidate. My loan payments started June 2008 at $600 a month then lowered to $565 a month. Half is federal and the other are private loans.
Sorry but you didn't play your cards right. If you got in this deep, you should of started getting a job in your field right after you graduated.
I used to work full-time making $12 an hour. when I ran the numbers, I realised when I start paying my student loans... IT WOULDN'T BE ENOUGH. So I got a better paying job (in my field, took a while), put $550 a month into my savings for a whole year before my payments started in case of emergency's.
I do live with my parents, but have to pay for everything (rent, soap, toothpaste, whatever I use).
I'm on the 10 year payment plan, but managing money is not a problem for me. Unfournatly my parents didn't have the money for me to go to college, but that didn't stop me from going. |
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MrFixitCTpay it forwardPremium,VIP,ExMod 2001-06
join:2000-12-01
Charleston, SC Reviews:
 ·Home Telephone
| reply to drslash
said by drslash:or a cabinet nominee. a former housekeeper testified that she had heard Helmsley say: "We don't pay taxes. Only the little people pay taxes ..." |
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| reply to Combat Chuck
you're right |
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| reply to Mickeyme
I have every intention of paying my loans back, but I wanted to do it once I started my career. I didn't go to college to be a receptionist. But you're right, I'm lucky to have a job. |
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1 edit | reply to Jessica1984
I made the same mistake as you, I was an idealistic 18 year old who thought I would be a millionaire. Got a few credit cards and well my credit went to hell.
But I didn't let that stop me from doing what I had to do.
My Ideals were still in place so after I got knocked down by debt I got back up and fought back and won.
You probably feel trapped but don't let your bad debt dictate what you're going to do next.
Go to legal aid and have them write a letter to sallie mae saying you are faceing a difficult time and you are asking them to please give you time to repay your debt.
They will most likely give you more time. |
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