Student Loan Panic!!!
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Student Loan Panic!!!
| Mon, 05-08-2006 - 5:59pm |
So I just logged into my sallie mae account because I know that my loans will be due soon, and I see that it says Monthly Payment Due: 398 dollars!!!!

The first thing I would do? Go onto the website and see the terms of your loan. How many years is your loan? What kind of loan did you get? There are 3 or 4 different types of loans...there is standard that is 10 years, graduated(that starts lower and gets higher as the years go on) and extended. There may be a plan that lowers your payment. What is the total that you amount you owe?
Once we know that maybe we can trouble shoot from there!
Aerandel,
Your payments probably are higher than you expected because of that private loan. Is it variable? Mine is variable and climbing steadily...about $100 in the last year.
I can't tell from your post exactly what you asked about when you called. I think if you are trying to consolidate (although I thought you only had the one private loan so I think you are in the same boat I am and will be unable to consolidate that in with your other loans), I would first complete that process. When you are done with that, call the loan servicing agency(ies) and ask about your various repayment options. There are TONS of them, especially for the federal loans and some of them are income-sensitive so you may well qualify for those even in a full time job. I would get yourself onto the cheapest plan possible for both but particularly the federal and then start pounding on that private loan. Depending on the interest rate on the cc, I would snowball whichever one has the highest interest rate. While saving for the car is a great idea, it may need to be set aside for a while to work on these loans. It doesn't make any sense to save at 4-5% when you are paying that much interest on the student loan.
In a few years, your income (and hopefully DF's) will have climbed and this will all be really doable. Hang in there. You did the right thing borrowing for the education. It is going to be worth it in the long run.
WHATEVER YOU DO, do NOT default on these student loans. They NEVER die and you will just keep digging yourself into a horrible hole. Sorry to yell but wanted to make sure you got it. No way should you ever let these 'get away from you'. Call them when you are going to have to make a late payment, keep communications open always. There is a fair amount of latitude in granting forbearances (basically tacking late payments onto the end of your loan term and bringing the loan current) and the fact that you take care of things and communicate with the lender will go a long ways in them helping you.
Peg
Ok here's the student loan situation as of today:
I have just about 50K now total in student loans with my private, federal loans and also with accrued interest.
HUGS!
Student loans stink.
Did you ask about deferrements that you can qualify for? There is a hardship one, forbearance (up to 24 months I believe)... The interest still accrues, but you can pay that or it will be put back into the loan.
Is interest only payments an option? I did that way back when I didn't have a job for a while 10 years ago.
There is alway the education deferements. My loans were such that even if I went back to school for 1 class, my loans were automatically pulled out of repayment. I don't know if you can do that anymore...esp with private loans. Hmmmm. But if you can, I would take an online class at my community college...(yes I have done that before). Hey, it worked. I was at home with my newborn at the time, we couldn't afford the $200 payment, so I signed up for a $50 telecourse, and it deferred my payments for 6 months. I still paid the interest on my loan, even though I could have rolled that back into the loan.
I am not suggesting to put off paying your loans...what I mean is for you to have the option of not having to pay so much each month (and having late pays) if something comes up. I would still recommend paying the original pmt each month, just to stay in the habit of paying it, even if deferred. It just takes the pressure off, is all.
Good Luck!
Sola
Another point to consider is that once you start paying on your student loans, then the interest paid is tax deductable. This is true whether you itemize or not. This will give you a little breathing room at tax time. Otherwise, just keep negotiating to extend the terms and lower the interest, and just keep at em.
Interstingly enough, I graduated 10 years ago with $45,000 in loans and a starting salary of $35,000. I was facing $550 payments, so I extended terms and consolidated whatever I could. I've had some deferments and forbearances along the way, but my loan balances are going down. Yours will too. I understand the frustration of having a job in your field and still having trouble making ends meet. It is aggravating, but ultimately your education is going to help your lifelong earning power. Honest :)
-Sarah
Sarah
Mom to Gina & Tony