02.08.08 | Private student loan bankruptcy protection denied
Private student loan bankruptcy protection denied
In the Higher Education Act Reauthorization (HR 4137) currently moving through Congress, an amendment by Representative Davis of Illinois would have extended some bankruptcy protection to students holding private student loans. Unfortunately for students, the amendment was voted down after strong opposition from banks and financial institutions.
The argument against the bankruptcy protection amendment was that its inclusion would ultimately make private student loans more expensive as lenders would need to increase rates and fees to cover loans that were in default and discharged in bankruptcy.
The Financial Aid Podcast has also done an analysis piece on this legislation.
The short version? For now, private student loan consolidation remains the best avenue for making private student loans more affordable.
The Student Loan Help blog is sponsored in part by:
Well, what are recent grads to do when, we don’t make enough money at our first and or second job to pay our cost of living plus our loan payments? What are we to do if we can’t consolidate because we don’t have a co-signer? Government is helping home owners and all the foreclosure cases, what solution is there for us? Living in debt, wanting to do better for ourselves, but are stuck in a big financial situation.
February 24th, 2008 | #
Depressing. Many people don’t not know the difference between private loans and student loans that are government guranteed. Private loans are far too easy to get. They should be dischargable in court just like any other type of loan. And the “powers that be” wonder why we are approaching a recession. Everyone is over burdened with debt, and companies aren’t paying grads what we need to live AND pay our debt. I’m starting to think my education was a waste. I came out of school burried in debt just to make the same amount as someone who didn’t go to school and has no debt. Depressing!!!
February 25th, 2008 | #
I agree! I think to myself everyday that college was a mistake. You are right in saying that companies don’t pay grads enough money, and my friends that didn’t go to college, make more, based on experience, that I don’t have, going to college, and they don’t have the debt for the student loans, so in all reality, they are doing better than me. I will be sure to pass on to my children, that college isn’t always the best answer to your finances, sometimes its the worst.
February 29th, 2008 | #
This is why it is important to go to the polls and vote this election year. Many students are unaware of the fact that Wm. Jefferson Clinton signed the bill into law, October 1998, forbidding people from discharging their student loans in bankruptcy. However, for many of us, student loans destroy our credit ratings, which causes many problems when trying to find housing to rent, let alone buy.
I wish the candidates would debate student loans and the bankruptcy laws. I wonder how Sen. Clinton would combat supporting her husband on this one.
March 2nd, 2008 | #
I agree. I relocated after college to another state to take a job, that didn’t work out. I went back back to school getting an additional 15,000 private loan on top of my 20,000 federal loan. The tech school I went to promised a job placement and internship. They basically lied. Now, I have all these certs, in addition to my degree, can’t get a job anywhere in the us, and am over 40,000 in debt. The tech school and the lender were in cahoots, and now i have high interest rate on my private loan and can’t pay! My friends who didn’t go to college all have decent paying jobs. think twice before going to college and accruing debt unless it is the healthcare field! What do I do now.
March 2nd, 2008 | #
I thought I was doing a great thing by completing my education and holding a master’s degree. I now owe more in student loans than my house payment. Where are we headed when to attend college could cost you more than buying a house. The deception comes in when we’re told, these degrees with give us greater earning power, I have yet to see it materialize. When are the Feds going to step in and lower the interest rates for borrowers who have consolidated and the payments are still causing a hardship.
March 3rd, 2008 | #
I don’t know that bankruptcy is the answer, but what about the inflammatory interest rates & interest they post each year to your private loan. We had no clue the difference between federal & private loans – or rather that there is a difference. My son’s first year loans of $27000 are now $44000! Hello! They need to make the banks remove that interest & just charge the interest as payments are made. The government is helping people who overextending on house payments – where are they helping in these situations? I actually had a nasty Chase person on my phone indicating if we lose our house that’s our problem………..Nice.
March 3rd, 2008 | #
Yeah its crazy. I graduated a year ago from a private art school in Pasadena Ca. I owe around 180k in loans, most of them are private loans. Tuition was 45k a year when I graduated. I am lucky enough to have found a job thats art related but my payments are a bit over 1700 a month. Thats more than half of what I make a month. It almost seems better that I just don’t pay them off but I would like to take care of this mess I got in.
March 19th, 2008 | #
I fully agree. I attended GA Tech for engineering, hoping to be able to afford to live after graduating. Forget it, even with the 4% loans. I can not afford the cost of living, insurance, and pay my student loans. And Hillary Clinton wants to tax us extra if we don’t get health insurance. I guess its all us students fault the economy is failing. Obama’s Rev. is right, G** D*** America, or at least the powers that be.
March 20th, 2008 | #
I filed bankruptcy in 2000. I also have a huge student loan debt and all my student loans are in forbearance except one. I have an attorney too. I know student loans are not dismissable in a bankruptcy. What I dont understand is why this one loan claiming to be a private loan and protected by bankruptcy is not in forebearance with the others. I underwent 2 natural disasters and left school. These people are trying to sue me. There is a natural disaster act which protects me but there are no attorneys who know how to validate those laws…does anyone know an attorney to validate those laws.
March 26th, 2008 | #
I live in Puerto Rico (for those of you who dont know, its a US Common Wealth island in the caribbean). We have the same laws concerning bankruptcy, and I agree. If the private student loan industry is protected from bankruptcy, then they are basically “risk free”. So why are they permitted to have so high interest rates? Congress is helping everbody else but us. No wonder why the economy is in recession. These loans are gonna follow me to the grave i’m sure of that!
April 2nd, 2008 | #
I am so glad to hear that other people are in the same situation I am in. i thought I was all alone. It still stinks that we are here though.
I grew up poor, and all my childhood my single-mother pushed how important a college education was, and that it would make my future happier, so we took out loans to get me through college. I went to a STATE school, but it was still about $30,000 with costs of living. I made it into graduate school and my loans totaled over $150,000, with interest, three after graduation, I am at over $180,000 and growing. The problem is that the promise society made me when I was younger, that if I got an education I’d make more money, has turned out to be a lie. I’m now over qualified to work in an office, but not enough experience to get a job in my field – turns out I have to intern 2 years in NYC, with no income, to get the experience I need to get a job that will only pay $25,000/year to start, and maybe $35,000 after 10 years. So I work in retail and make $18,000/year and hate my life more and more every day, as I default on my student loans and struggle to not end up homeless each month.
April 2nd, 2008 | #
WOW, after reading these posts, I am glad to find company in my misery… I am looking at 54K in loans and I haven’t finished paying yet for my masters, which happens to be in a field that will never make much money. Yipe. I do feel that perhaps going to college is not always the best way to have more earning potential, especially in today’s world where it’s not always what you know, it’s WHO you know and who is willing to give you a job. It makes me SO mad and frustrated that I will be paying for the next 25 years on this loan, and people who don’t go to college make the same or more as me, and will never have to pay a dime for an education that obviously wasn’t necessary to get them where they are.
April 9th, 2008 | #
It is somehow comforting to read these posts from people in similar situations. I have almost $100,000 in private student loan debt after a Master’s program. Federal loans were not available at my school so consolidation offers don’t work for me. The “dirty little secret” at my school was that many students are not able to earn much after graduation. I have already used up all the forbearances and now must confront the fact that I simply cannot make the payments of $764/month. A dear friend cosigned 2 of my 5 loans. He has been downsized and is now unemployed. How can I let them come after him if I default? I am searching for info from bankruptcy attorneys because I have been told they are the ones with the most expertise in student loans. I already went bankrupt several years ago but the student loans were not included. What a trap! Interesting to read people who mention how friends without as much education make equal money or better. I am seeing that as well. My profession requires a lot of overhead with insurance, license renewals, continuing education and supplies, on top of the loan payments – yet a hairdresser charges more for his services than I can.
April 11th, 2008 | #
I agree that there should be better disclosures when granting students privately funded loans. These disclosures should include what the payments will be too (if they do not already). We all have to look in the mirror though and realize that no one had a gun to our head to sign the promise to repay. I also agree it is hard to get a job even if one has a master’s degree and little or no work experience because real life experience is what really counts…I learned more in my first year of work than I did in 4 years of college. But not having a degree over one’s lifetime will limit pay more than having one…almost guaranteed. I am 40 and have a few comments to the above blogs: The fact is most student loans are being repaid otherwise private lenders would not be funding them…otherwise they would be out of business. Second, just because loans cannot be wiped out in bankruptcy doesn’t make them risk free – the lender’s sell them to credit collection agencies for huge discounts/losses and many will never get collected. Third, as far as going to private school and paying $45K per year…that is an individual choice…could have chosen to go to public school and paid far less…maybe with no debt. Lastly, if after getting a master’s degree you cannot make what a hairdresser makes, then consider changing careers. In many cases, I have friends who ended up working in fields totally unrelated to their degree. But having a degree in something got them a job. FYI – Stay hopeful, the economy will eventually get better, when I graduated only 20% of college grads got jobs in their field (1991). I am old but in 1980 the prime rate was 21% and we survived that too. Good luck out there.
April 16th, 2008 | #
I graduated school back in 2003 and at the time my tuition was about 25K a year. I went to school because I was brainwashed into believing that it was the only way to get ahead in this world. Upon arriving in school I ate up every word they were spoon feeding me. After graduating I found that the evil Sallie Mae was adjusting my interest rate as well as leaving me no options to afford the payment they wanted. I mean who can afford $1,000 a month on top of housing, auto payments and living expenses. I tried the negotiations route but was turned away every time.
I regret going to school everyday and wish that the government would step in and reverse the bankruptcy laws to allow us to wipe the slate clean and start fresh. Instead it seems that they (Government) would rather have a generation of people drowning in debt with their lives ruined for doing what they thought was right. I can’t even get a job because it seems that I am a criminal because that is how I am looked it because of my credit scores. What are we to do? I say screw it and screw all of them and don’t pay my Sallie Mae Loans. I can’t afford to anyways so WHATEVER!!!!
April 17th, 2008 | #
But what is the answer to all of our concerns??? Where can we go for help???
April 18th, 2008 | #
Thank goodness I am not alone out there. I dropped out of school over 10 years ago because I simply could not afford to attend any more. Now, as a single mother making $25,000 per year, I don’t have any disposable income to pay back these loans, as much as I wish to. Do you think these lenders care? Not at all. These lenders prey on the young, naive 18-year-old fresh out of high school, who thinks that attending college is the answer to a successful life. Ten years later, that young 18-year-old is struggling to make ends meet and the lenders are coming after her with a federal wage garnishment, which will literally take food out of the mouth of her 3-year-old daughter. Where’s the justice in that? Is there any help out there?
April 22nd, 2008 | #
After graduating with a culinary/hospitality degree (an education which required a principle balance of $74,000; but is now nearing $100,000 after interest) I’ve found that there’s just no way to make the $1200 monthly payments working in this industry. As a result, I’m taking a preverbial crap shoot–adding to my student loans by returning to school and finishing a business degree, then law school in hopes of making a wage appropriate to my debt. Success or bust so to speak. I just turned 22 and already feel that my life has been ruined financially, and see no other way out short of the lottery.
April 28th, 2008 | #
My son graduated from culinary school with $32,000 in private student loans. Three years later he has a girlfriend,a child, and a $40,000 debt with a 15% interst rate! He gets nasty calls from Sallie Mae but he can’t even begin to pay back the debt. I’m going to contact my senator and see if he even knows about this situation.
May 1st, 2008 | #
I kind of feel like I found a support group of sorts on here. I too am in the same boat as many of you. Less than an hour ago I wiped away my last tear of rage and helplessness. I am over 120 grand in student loan debt and cannot possibly make my monthly payments. I just applied for a private loan consolidation, with a co-signer, and got denied in 2 minutes whereas it took me about 45 minutes to complete the application and acquire the needed information. I am beyond frustrated. I too feel like my education was an absolute waste and I seriously would have been better off had I pursued my pipe dreams rather than being practical and getting an education. In two weeks I will have completed my masters program and of course I already got both my bills for my federal and private alternative loans. These banks are like satanic stalkers and they truly have destroyed my life and will continue to deplete any happiness or freedom I dare seek to obtain. I cannot find a way out. And I am not looking for a handout, rather, I am seeking a simple hand up. I have spent countless hours researching both ways to pay off my debt and ways to supplement my income. Like thousands of others, I am a teacher who isn’t teaching simply because my chosen field of focus (English, grades 7-12) is not of high need. I am sick of people saying “oh, but isn’t there a teacher shortage?? I cannot understand why you cannot find work”. Well there is a teacher shortage in the areas of math, science, second languages, and special education but there is an overabundance of English and Social Studies teachers. PLus, not everyone is fit to work in crime-ridden areas, commute 3 hours a day, or any of the variety of reasons that make some schools less desirable to step foot in.
ANyway, I am glad I can rant on here, as I am so ANGRY with this situation. I often wish I was born in another country where they care enough about their citizens that they educate them and provide health care.
Currently I am substitute teaching and with other living expenses and bills it is not humanly possible, even now that I took on a lot of tutoring after work, not possible in the least to pay my loans. What is so awful is that my family members co-signed some loans and they are liable for them if I default. I do not want my aunt and uncle to have a lien on their home or my brother who is trying to buy a home to have to have MY BURDEN. I am at a loss here. I cannot even imagine what I will do over the summer when there is no substitute teaching. Basically I am screwed unless I magically win the lotto or someone rich fellow takes pity on my poor soul and makes a donation to my pathetic cause.
What can we do?? It is amazing that so many of us are in this situation and no one cares and no one can help. Lovely corporate America and our Fascist system.
I just about had enough. Too bad it is so difficult obtaining a work visa in another nation…
May 1st, 2008 | #
I am about to default on my consolidated student loans and was looking for ways to limit the amount of “punishment” that is bound to follow. Such as, will the collectors get into my joint account with my husband? Will they get our tax refunds if we file together? (the answer is yes to that!) Will my social security be affected? I have no cosigner on my consolidated student loans, but do on my separate student loans … does that mean they can come after cosigners on those? I filed bankruptcy Chptr 7 in 1998, was a single mom with a handicapped child, no child support payments, few assets, went to graduate school to get a Masters in Public Affairs. Now the government and its representatives repulse me and I am overqualified for many positions, plus haven’t found a decent-paying job after being laid-off during a company closing. My payments start 5/7/08 at approximately $800/month at 8%, which seems like a high rate to pay. I am resigned to the fact that I can’t get out of this, so am looking at how to limit the repercussions. My husband says I will become an “unperson” financially, but I disagree. I’ll learn, adapt, and reinvent myself, as I have many times before. Now I wonder what the stats are on the percentage of students who are defaulting, esp in the last 5 years. I’m a survivor but it hurts my p[ride to realize there is no way I can ever repay. Most is interest! And my degree is a crock! Its always been who you know, who your daddy is, but I refused to accept that. Maybe its time to rethink the whole American dream. My son is in his 2nd year of college and getting loans is so easy for him. He gets multiple card offers and has a high score, but he’s never worked more than 6 weeks at a burger-joint. Corporate greed is draining us of our best minds and creativity by overburdening its citizens. And I’d like to pay back too…. but my options have run dry.
May 5th, 2008 | #
Don’t worry, my debt is in 6 figures, you guys with half that will be fine. I had no debt before choosing to go to law school, and now if I can even get a job it’ll be doing something I hate. Higher education is an absolute scam, once again the rich (lenders and schools) benefit by praying on the stupid middle and lower classes. Bill Gates drops out of College, but every idiot thinks a college degree makes them starter and entitles them to a good future.
May 5th, 2008 | #
if anybody has any advice please email me. I feel so depressed. I had my son get student loans with the promise that once he completed college I would mortgage my home which would be paid for by the time he graduated. Well, due to circumstances that were beyond my control our home is paid for but has a lein on it due to a tax problem created from a dishonest employee we had at the time. My son is in the mortgage business and is now only making minimum wage because none of his clients can get approved. There is no way he can make the $1700 a month payment. And of course his credit rating has been shot!! I don’t know what to do and I feel horrible that I put my son in this situation.
May 7th, 2008 | #
Oh boy! I thought I was all alone in this boat.
I graduated in 1983 here it is 2008 and I am no closer to paying off my student loan than I was before. I make monthly payments (which were reduced due to hardship) and my balance goes up every month.
I am in the process of forming a group (Students Against Department of Education)(?) I have 150 people signed up already. when the number gets high enough, we are going to lobby washington. I find it henious that our government can forgive TRILLIONS in aid to foriegn contries, (which was OUR tax money) and give BILLIONS to ILLEGAL aliens, but do NOTHING zilch, nada, for victims of the DOE’s shady business practices. we WILL have a voice soon. and they WILL hear it.
I will post contact information as soon as it is available.
May 9th, 2008 | #
Every student out there that had to get student loans are screwed. We will be paying off more debt than anyone, forget owning a house and cars, and having a good life.They need to reduce the cost of education and reduce the intrest on these loans.Why is it that it cost so much to go to college anyway? By the time I get my loans paid off It will be time for me to retire.So it looks like I get to miss out on life,These companies dont pay squat,not enough to pay for student loans and a house and cars and nice things, oh forget about having kids you wont be able to afford any.Our system today is so screwed up, We all at the same time should just quit, quit paying on these loans.
May 11th, 2008 | #
I feel like a door mat to all these Banks and schools and the Gov. and corprations. It just is not fair.Why should I even bother with my education if I dont get anything out of it but eye popping debt.There is just to many hands in the cookie jar, and I hope they choke on them.
May 11th, 2008 | #
I am in a similar situation as most who comment on this board, but I have also come to realize that no one made me get into the amount of debt I am in.
I am really starting to hate the argument that “other countries” allow students free health care and schooling. It might help to know that “other countries” many in Europe, but also in many other parts of the world require young people (sometimes just men, sometimes men and women) to do MANDATORY military service or community service.
If any of us would have done either one (Americorps, US military) then we would have had help for school payments. Please don’t fall into the ignorant trap of thinking that other people are getting off easier than you. It makes you sound like a moron- and all the college in the world can’t get you out of that one. How about studying something that will get you a job? How about working your ass off and taking two jobs while you were in school? Too many college students sign paperwork they don’t understand and then burst into tears because the government won’t bail them out. If you think life is going to be a walk in the park the whole time- you’re really in for a rude awakening.
May 12th, 2008 | #
I have a friend who got an MA and is now $45,000 (interest keeps raising that number). She said she’s planning on leaving the country because she can’t pay it. Before anyone says get a job, she is an English instructor at a local university. However, she only makes $1200 a month after taxes. There is no way she can pay rent, utilities, food, etc. and student loans. And no, she can’t get loan forgiveness for working at a university. I was just curious if anyone else knows of someone who’s left the country? I’m worried that she may get hauled back or the other country would extradite her? She says it’s fine, but I’ve never heard of anyone doing this before. Anyone know anything about this?
May 14th, 2008 | #
i too am in the same boat. nearing 100k in loans. cat find a job more then 28k/year. maxed out all my deferments and options. the payments are so high i cant even begin to repay, as the interest alone is more then i make!! i dont know what to do except hide and live my life without being part of the credit system. the only job i can get is 1.15 hrs from home and i spend most of my pay just getting to and from work. this is so out of control, eventually they have to forgive these loans or i’ll just grow old and die with 500k interest debt. in college i was just a kid, i didnt know these loans were a bad idea. the college said it was a good idea. i feel lied to, tricked, swindeled and now hunted.
May 15th, 2008 | #
Has anyone looked into income sensitive loans? I think those are my only options. I’m 120k in the hole from student loans and they’re asking me to pay 1700 a month and if I did that, I’d officially have NO life. I have no idea waht to do. I think about it every single day it’s awful. Every single dayyyyyy!!!!! What happens if you file chapter 13? does anyone know? who do we contact for help?
May 21st, 2008 | #
For my son and I this has become the big nightmare. There was no one for us to talk to about student loans, not even the bank where we got the loans. Like others, why is there not help for this young people who can not make the money it takes to make the payments and it is very hard to get the loans consildated. My son had to leave school to work inorder to start making payments. He also have health issues and new health problems on top of it all, still no help with the loans or health. This has always been the problem. You make to much money for one step and not enough to keep yourself from killing your credit. Now he feels like he will never have anything. And my credit is gone so I can’t help him either. Our goverment is so upside dowm in these areas. We are people trying to better ourselfs and now you get punished for it.
May 21st, 2008 | #
In the same boat as everyone else, with over 100k in student loan debt…anyone have any info on a group or petition that can be started or signed? Someone mentioned something above, but no contact info. We all need to do something.
May 22nd, 2008 | #
Miranda, I posted earlier and have been keeping an eye on responses. I just wanted to let you know that I don’t think you can get rid of student loans through bankrupcty. As far as I know, you can only get rid of them if you die or leave the country (and I’m not sure about the second). I wish they would make student loans interest free. That would help out everyone I know (including me-although I don’t have a large loan amount, it is still weighing me down.). To Ann, I’m sorry to hear about your son. It’s awful that we try to improve ourselves and then get screwed for it.
May 22nd, 2008 | #
Has anyone contacted his or her congress person/
May 24th, 2008 | #
1) You borrowed it, and you owe it.
2) Not everyone was fortunate enough to qualify for pussy federal loans. Many of us were stuck with private loans if we wanted to go to college. Would I have gone to a cheaper college had I realized how much money $40-50,000 a year truly is? Of course. But, at 18, we all thought we would go to the top schools and bank $70,000 or more upon graduation.
3) Do I think all loan borrowers, including federal, should be given clean slates? Of course not. We borrowed, we owe. But, additional repayment options and forgiveness opportunities for PRIVATE (NOT federal) loans would be a stellar start to a growing problem.
May 26th, 2008 | #
Patty,
Contact your student loan lenders immediately. Investigate repayment options and income sensitive repayments. Get a second, third, or fourth job. If you let your private loans go into default, you’re just fucking yourself and will magnify the problem. And, yes, your debt IS your husband’s debt, too. There is no getting around it.
May 26th, 2008 | #
I am entering my final year of college, and I just got denied a student loan….WITH my dad as a co-signer. He has great credit. I dont know what I’m going to do, but I am so worried I wasted my whole education and cant even afford to finish my last year….
June 2nd, 2008 | #
Amanda, try talking to your financial aid or bursar office. They may be able to turn you on to something that you would not have otherwise considered or known about. I think that financial institutions are really tightening their funds d/t the current status of the economy.
June 3rd, 2008 | #
I am 31 and work for an advertising company. I owe 25,000 in schools loans and after rent and buying food ect. I can hardly pay my loans off. I am about to default and have been trying to get the lender CITI Bank to work with me. After talking to them they say we cannot do anything since I do not qualify for income sensitive repayment. I know if I wanted I could just leave the US and not come back and say bye bye loans but I want to repay them and get my credit back on par. But with living is going up and up it’s hard! I say the loan payments should be based on where you live what you do and how much you make!
June 4th, 2008 | #
This is such a important issue that our government needs to address ASAP! As a student of divorced parents, I tried to qualify for federal loans before turning to private loans. However, because my father made six digits I did not qualify for federal assistance… but how am I suppose to MAKE my father pay for schooling when he doesn’t agree with college education. If we are to be adults at the age of 18, obtain our own debt, then release us from depending on our parents income to fund our college education under federal assistance. I turned to private loans like everyone else. Yes, they started at 5% and I took out roughly $76k to pay for 5 years of schooling. By the time I graduated, my interest rate was now 14% and I owed almost $92k because of fees and interest accumulated. Recently, I had to file for bankruptcy to eliminate my credit card and car loan just to try to get closer to making this payment. Now that my credit has crased guess what… my payment went up. They don’t get that we as student are trying to do what we need to make these payments but increasing them or the interest rate is not going to help. I work 2 jobs and still cannot afford my $1100 student loan payment with basic living expenses. This is CRAZY!!! I can’t even see myself purchasing a home anytime in the near future. Government wonders why so many homes that are for low sale prices are not being purchased. How can a student with $96k in debt and no other obligations get into a reasonable home of under $200k when our debt to income ratio is off the charts. Our economy will NOT change unless government looks to the student loan sector as well as helping relieve homeowners from foreclosure. It is frustrating. Student loans are suppose to be GOOD DEBT but we are treated worse then those with thousands in credit card debt. Looking at my truth-in-lending statement I want to cry. I am like otehrs who wonder if going to college was even worth it. It states that someone should make approx. $350k more in a lifetime with a bachelors degree however, my student loans states that I will pay $350 over the next 30 years!!! I am not asking for government to eliminate my debt because I did attend college and would need to pay tuition. What I am asking for government to do is to reduce student loan debt to the amount we borrowed and then apply an appropriate interest rate and tailor it to the salaries we current make and adjust every year. It is not realistic for creditors to think graduates can get out of college and make over $60k… I currently make $35k + bonuses. Alright, thats enought for now
exhausting… MAKE OUR VOICES HEARD. THE MORE WE MAKE THIS ISSUE AWARE, THE MORE LIKELY SOMETIME WILL GET DONE!!! GOOD LUCK TO ALL…
June 6th, 2008 | #
I feel so horrible for everyone on here – especially those who now regret going to college. At 28, five years after I received my BA, I am still having issues paying my school loans. My worst loan is my only private loan – a Wells Fargo education loan where my interest was 14.9% at one point. I pay close to $50 in principal, but overall my monthly payment is well over $300. My school loans total over $700/month.
My husband and I have tried to negotiate with Wells Fargo many times since I am now almost 90 days behind and am close to defaulting. They will not help us at all. I live in the NYC area, and with the cost of everything from gas to food, etc. going up, I am finding it more and more difficult to live that ‘American Dream’ we were all promised we would have once we graduated college. We wanted to have a child by 2010, but that doesn’t seem possible at this point and that saddens me.
However, I will say that I do not regret my college education. I’m not fond of manual labor, cannot style hair and have no other talents, so where would I be without this degree?? As far as I’m concerned, the problem is not getting an education, the problem is the cost of the education. Something that is necessary for me to survive in this country should not be so expensive. It’s all very depressing, but I’m glad to see that I am not alone.
June 6th, 2008 | #
Did anyone ever think they never of should of borrowed the money in the first place.
I do not think that any debt should be able to go into bankruptcy. All of these creditors shouldn’t have to lose and give away money to people who think they can sign a piece of paper and get out of paying a debt they incurred.
June 7th, 2008 | #
Considering in Europe college is pretty much FREE to people who WANT to go and better themselves, I wonder why we have to take out so much money and put ourselves so far behind the people who could care less about college and keep the money they make.
June 8th, 2008 | #
I decided to persue my dreams in the hospitality industry and enrolled at the California Culinary Academy. I was concerned about borrowing the money prior to enrolling in school. I spoke with an admissions rep and financial services rep and was assured that my payments would be around $250 a month. Since I felt this was completely manageable, I went ahead and enrolled. However, after I finished school and it came time for the loan to be repaid, my payments were over $600 a month. I spoke to a representative at Sallie Mae and was told that the first 15 years of repayment would go only to interest. I have looked into several companies that offer consolidation or debt relief, but since the majority of my loan is a private loan they say they can offer no assistance. Can anyone offer some advice?
June 10th, 2008 | #
I just received the latest threatening New York State Higher Education Services Loan Corporation Default Letter mailed to me and received in the US Mail today resulting from outstanding Student Loans owed as a result of trying to obtain a Masters of Science in Computer Science from the SUNY Post-Graduate Watson School of Engineering in 1984-86. I was excluded from pursuing a Bachelors Degree in Computer Science from the SUNY Binghamton Mathematics Department in the Spring of 1984 because I already had a Bachelors Degree in General Studies – Liberal Arts from Oneonta State College in 1973-77; but I was accepted into the SUNY Binghamton Post-Graduate Watson School of Engineering in the Fall, 1984 Semester despite only having 8 credits in Computer Science as a non-matriculated part-time student at SUNY Binghamton with a 3.60 GPA from 1982-84 and earning 0 Credits in Computer Science from Oneonta State College after getting a Bachelors Degree in General Studies – Liberal Arts there in 1973-77. The Federal Guaranteed Student Loan Program began in 1965 under the Lyndon Baines Johnson Administration. The Bankruptcy Protection Option for Students was removed by the Reagan Administration in 1980 and Wage Garnishment was initiated under the George W Bush Administration. My current balance owed to the New York State Higher Education Services Loan Corporation is currently $42, 321.232. My current annual salary with Endicott Interconnect Technology is $ 19, 281.60.
June 16th, 2008 | #
I too am in the same position. It upsets me that some people get on this site and make smart comments about how we should have thought about what we were doing. Well, when you don’t have someone around you who is smart enough to explain what you are getting yourself into, at the age of 18 to 22,it is very difficult to make the best financial decisions. At that age, you just want to go to college because it is supposed to be one of the best choices you could ever make. Most ADULTS don’t even make sound financial decisions. My argument is that I didn’t even have the chance to start out right. It is a huge shock to find out 6 months after graduation that a private loan should have been your last option, especially when you don’t come from a wealthy family. NOW that I am educated, there is no way out. It is so depressing and stressful because I am someone who wants to pay any debt owed. As a smart 26 year old who works in the financial industry, this seems pretty impossible considering the amount of my payments and how the loans have affected my credit. It’s not just the student loan payments. It also increases your debt to income ratio which in turn dictates your ability to obtain a reasonable car loan or home purchase loan. There is not any aid after school for private loans, but the lenders don’t have a problem giving you up to $30,000 a year whle in school. Consolidation? Even the loan collectors will tell you it’s basically impossible on a private loan. I am much smarter now and realize that I should have taken all of my federal loans before my private loans. My whole point is that it is rude and inconsiderate to talk down to someone suffering from private loan debt when at the time, we really just didn’t know any better. I mean, isn’t that why we went to school, to learn these types of things? It makes me sad that the government doesn’t have mandatory financial courses concerning debt as well as saving for retirement in all high schools of this nation. I certainly hope Obama is able to do something because I have seen too many good people suffer from financial situations and the inability to obtain health coverage.
June 17th, 2008 | #
May have found a loop hole for private loan repayment…
I am in the same situation as you guys. I was fed the same garbage growing up that college was a necessity. So upon graduating High School I went to College. I graduated expecting to make all of this money and then reality hit. I started working and found out that many people with no degree, and the same experience as me were making 15,000 more dollars a year than I was. This is absolutely ridiculous. So I started doing some research, and I mean a lot. I exhausted everyone of my resources and I think I may have found a loop hole around the private loan sector. I am not positive it will work, but when I know for sure I will post it on this site. Until then, Keep working hard, and living each day to the fullest. The government and banks may be able to take away all of your money, but they can’t take memories and friends. Find hope in the meanwhile and I’ll hopefully be back with some good news.
June 18th, 2008 | #
Wow, I thought I was all alone. I feel like I’ve promised my first born child to Sallie Mae. There has to be something we can do…
June 19th, 2008 | #
Go Phillip ! Let us know about that loophole. The biggest thing with me is how they (Great Lakes) do not explain any of the details to young people who are simply clueless about the fact that they are signing their financial lives away. Did you notice how fast that money poured into your account though? For our son it was simply on stated income. It really should be against the law.
June 25th, 2008 | #
Have any of you been tricked into the private loan? I think most of the people in the posts were seeking a career to make a better life. We have been played by the dept of Ed and the corrupt student loan industry. All of my education is worth nothing since the jobs in my field have been moved offshore. Compounding matters I am now 100% disabled and can not work, the private loan will not discharge.I am in process of going from an engineer to homeless. For Nick and Name which bank or Student Loan co.do you work for?
June 28th, 2008 | #
I went through sally mae because my school told me it was the best way to go. They even handeled everything for me. When I graduated I got hit with 700$ payments a month and 550 was interest. My loan was only 23k within one year it has jumped up to 33k due to the interest and me going into deferrment. Going to college was the biggest mistake of my life and I’m going deeper and deeper into a hole I can’t get out of. Going to college has ruined my life thanks to sally mae.
June 30th, 2008 | #
I have $130k in loans (all private), lost my job in November 2007, haven’t found a job in my field or any other field (Miami is terrible) how the hell am I supposed to pay my loans back? I fortunately am from another country and I will be leaving soon sending Sallie Mae to hell.
July 1st, 2008 | #
I know this situation is enraging; I have loans too. I know it’s hard to find out, too late, that most colleges are scams and hide behind self-righteous rhetoric to justify constant tuition increases to suppor their automatic pay increases and cush benefits, even as the degrees we earn help us little if at all.
‘
That being said, WE CAN’T GIVE UP. We can’t let these selfish, self-absorbed people ruin our lives. It won’t be easy but we must reinvent ourselves. We must develop a skill. Welders, mechanics, and plumbers are pulling in $80,000 in some parts. Two-year colleges are working with employers to develop curriculums and then those grads get JOBS after they graduate that start at $40,000 or $50,000 — even in southern states where the taxes and cost of living are so low.
We’re either going to live or die. If we live, let’s not give some of the best years of our lives to the thieves at four-year universities. Hang in there everyone and I’ll try to do the same.
July 1st, 2008 | #
LOAN CONSOLIDATION OPPORTUNITY @ 3.625%
I don’t think this is a scam but do not take my word for it. Apparently some federal loans taken out before July 1, 2006 can be consolidated at a fixed 3.625% interest rate.
Site: http://www.loanconsolidation.ed.gov/
Article: http://www.mainstreet.com/starting-new-job/what-fine-print-your-student-loan-really-says
July 1st, 2008 | #
Hi Everyone,
It sucks to start again, let me tell you, but nurses are getting signing bonuses around the country right now. Just a thought for getting things going again.
W222
July 1st, 2008 | #
Hey All,
I feel your pain! I returned to physical therapy school and graduated in 2006. I have Sallie Mae loans and they suck. My wife has cancer and they can care less. I applied for forebarence and they still said screw off! So much for looking out for our own. This government better wake up. Our government doesn’t work for us, they work for the damn businesses. You know what…if I default fuck it. You can’t get blood from a rock! My wife’s health is first. Thanks for letting me vent!
July 2nd, 2008 | #
Has anyone ever negotiated down a Private Student Loan?
I have $130,000 in Federal and $90,000 in Private. I can handle the Federal ones with the new income based program coming out but the Private loans are ridiculously high.
Thanks,
Matt
Make sure to visit:
http://projectonstudentdebt.org/
July 8th, 2008 | #
The government officials that voted for that stupid law in 2005 and against this one in 2008 are on the take. Yes, that sounds, naive, childish, and probably a number of other things but what other believable explanation can be offered other than its the truth.
And what the Attorney General was doing to make them spend money on some stupid advertisements and papers doesn’t help the damage that was done already.
When a natural disaster happens do you prepare for the next one and disregard those that are suffering because of the disaster? That’s what the government is doing.
The economy is crap because no one can pay off anything. Isn’t that why we pay high interest rates because they are private? if the government is going to insure they get their money then my loans shouldn’t have accrued $20,000 of interest in less than 3 years. Basically, they are saying to lenders like Sallie Mae its okay we don’t care who you lend to we’ll insure you get money and whatever interest rate you want as a return.
Yes, that is a joke can’t consolidate without a cosigner or working full time 2 years to present.
Obama vs McCain:
http://www.bankruptcylawnetwork.com/2008/07/05/barack-obama-on-bapcpa/
July 8th, 2008 | #
I am almost 63 years old, and have had two student loans, the first of which I got in 1979. I DID pay that one off, finally, for only the tidy sum of about $5600., and ( stupidly ) got another, along the way, for $5,000. I did pay, or try to pay that one, but did not complete my education, since I was a single parent, and, as a Dad, who was already somewhat handicapped, I could only do so much. As my health deteriorated, I continued to work as long as I could, but finally, at the age of 56, I put in for Social Security Disability, which I got. Meanwhile, in 1999, I declared bankrupcy, and included the student loans. Little did I know that due to a provision in the law a special petition needed to be but was NOT submitted by my lawyer, so much to my surprise, when my Social Security Disability ( NOT SSI, because I actually worked for my money ) reached the vast sum of $750. plus, I began to have monies taken out of my social security disability check ( I had innocently assumed, from my bankruptcy lawyer, that the student loan debt was already discharged ) The Department of Education, in Greenville, Texas, which is actually part of a collection agency for the Raytheon Systems, and who pass themselves off as the Department of Education, pay about 20 cents on the dollar for what they collect to the U S Government, AND crow about the billions which they collect ( AKA stealing, my words ) from individuals who had student loans. ( Wonder who else from Texas could be a friend of theirs ?). This outfit is based Falls Church, Virginia outside of Washington, D C, ( I’m sure you need to be handy to influence any pertinent legislation concerning Raytheon System’s many multi million government contracts ). and, at the current time, is doing me the great honor of actually allowing me to have $769.25 a month to live on, while they take another $135.75 cents from my Social Security check to try to pay off this student loan. The loan WAS $5000, at the time of it’s dispersal, and FYI, the Bank took out its several hundreds of dollars of interest for it’s interest and processing fees, before I ever even saw a student aid check, monies which I a not paying interest on, as part of this loan, but which the bank got from day one. In addition, I am disabled, and put in for a loan discharge due to Total and Permanent Disability back in 2004, but with the date of disability beginning in 2002, and since the loan should have been discharged retroactive to when the actual date when the disability began, it should have been discharged in 2005. This is what is stated on the application for for Student Loan Discharge for Total and Permanent Disability, buried on page two, in VERY fine print ). Of course, for some odd reason, I was informed that a decision had been made, years ago, in 2006, which I never received any correspondence about, informing me that I was not disabled, and that my request for a discharge due to being Totally and Permanently Disabled was denied, so this little charade of taking monies out of my Social Security Check began again, this year. I WAS told that I could appeal ( to the same people who informed me that they were going to deduct it from my Social Security check anyway ). All very legal, you understand, so this deduction began ( again ) in March of this year. I put in the paperwork from my V A ( AGAIN ) in January, 2008, for total and permanent disability discharge, and was told, in March of this year, by someone at this supposed Department of Education, in Greenville, Texas, which, by the way, is actually a collection agency, that they needed more time for a decision to make a decision, so at that time I got the offices of Senators Kyl and McCain involved. By the way, a total of about 2,8oo actual Total and Permanent Disability discharges ( sound a little low to you ) were made from 2002 to 2004. You’ll see why shortly. Last November, the law was changed so that any such attempts to have a student loan discharged would have a date of submission as of when the doctor signs the papers, signifying the actual start date of disability, NOT when the disability began, since before, if it began some time in the past, any monies paid by the student after that date would be returned to the student, but will not be now..and guess who steered, er assisted our congressman through the process of writing this hellish law, if that’s what it’s called. Oh, the upshot, by the say is the so-called Department of Education admitted to receiving the paperwork, from my V A Doctor, who signed off for me to state my disability, in January of this year. I am almost 63, and a disabled veteran, and DO get a whole check of $117. a month, for having Tinnitus, due to being in a place with lots of gunfire, and for which I am very grateful, and for which disability I am entitled to use the V A hospital. For those of you who do not know, ALL veterans who are 65 years of age are considered totally and permanently disabled, period, you don’t even have to do any medical exam, also period. This is law, and has been for years. I am almost that now, and happy news, when I called my doctor, who had been in contact with the Department of Education, a wonderful thing had happened. My V A Doctor, who had been discussing my case withe the so-called Department of Education in Texas, and who had signed off for my disability, in January of this year, and had been my doctor for the last three years proclaimed a MIRACLE. He said I was not, nor had I ever been disabled. Moreover, I was told by this good doctor, that I should be looking for work, since there was nothing wrong with me ( now if I could just tell my body this, and get it to agree !) and, since there was nothing wrong with me, nor had there ever been I should be looking for work, since I am, after all, almost only 63 years old ( THERE,! you Social Security and V A Departments, both of whom formerly sent me a disability check, for being totally and permanently disabled, and for Social Security, which STILL sends me a disability check, since I am considered disabled by its standards ). Also, I was told by this same doctor that he could not assist individuals who just did not want to pay their bills ( in this case the student loan ) and pretended to be disabled, and would not be a party to such actions. Obviously, the so called Department of Education, in Texas can buy whatever opinion it wants, even from a Doctor, if that’s what’s needed; at least that’s my premise. Also, I WOULD like to comment, on one last thing..several comments posted here by some smart alecs, who probably work for Sallie May, or the Raytheon Systems, AKA Department of Education ( NOT )….anyhow, these student loans are not a joke, and all of us are NOT dead beats, in spite of your efforts, Sallie May and So-called Department of Education employees, to make us appear that way. Some of these people DO try to pay, and we do not all work for blood sucking organization who will take an individual’s last penny, and then make catty comments as they go merrily on their way to their second or third home, which I’m sure are being paid for by us. I borrowed $5000. in 1986, have paid over $7000 back, and am told that I owe any amount from $6000 to $13,00 plus, or anything in between, no one even seems to be sure, since I’ve gotten over a dozen different amount THIS year alone, from the Department of Education. These laws need to be changed; it’s sad when a person who is disabled is having monies deducted from a Social Security Disability check, allowing an individual only about $750., or 85% of his disability check a month to live on, an amount that was set back in 1996, or allowing working people who do their best to try to pay these collection agencies, which Sallie Mae and this so-called Department of Education in Iowa, and Texas really are. For Shame, United States Congress, for allowing such thievery to be perpetrated on the American people. I’m sure no one is taking any monies from any of your checks, along with your many congressional perks. Some of you seem to have forgotten that you are there to help the American People
, and not just to legislate so that the haves, who already, in my opinion, have far too much, can take even more from the working men and women whose greatest mistake was even daring to try to get ahead, and who went to school to advance their educational skills, with the hope that they too would be able to have a piece of the American Dream.
July 12th, 2008 | #
Wow! I feel so much better just knowing that I’m not alone in the downward spiral my role models called “higher education.” I had no parents and was a ward of the court when I started college, and was told that the hardest part in my life was just getting to college in the first place. I was told that if I could get into college, the government would help me pay for it since I had no parents, but they lied. I had scholarships, but it didn’t include the cost of living that I had to pay since I had no one else helping me. I ended up with $31,000 in student loans, so I consolidated with a new “fixed” interest rate of 6.14%. But, this increased my debt to an astonishing $56,000!!! That’s almost double what I owed in the first place, and I had federal loans. Luckily, I only pay $181 per month because of an income-based plan I chose when I began paying my loans back, but in five years that will increase to $380–an impossible amount on a single teacher’s salary. My fiance is foreign-born and wants to return to his country, where I can go to grad school virtually free. So far I have made all my payments on time, but I know that when I leave I will default on my loans because there is no way I can make a $380 payment with the difference in salary (Which is more than one month’s salary where we will be living, even though the salary we will make there will be considered “upper class” and can afford us all the luxuries we want). I don’t know what happens when you do this, but I’m willing to take the risk to make a decent life for myself. What else can you do when the government doesn’t take care of it’s most valuable resource, the people? I’d rather live a life full of living and raising a healthy, happy family, not working myself to death to pay back my student loans while my family goes without and my children are discouraged from getting an education.
July 12th, 2008 | #
I know what all of you all are going through. It sucks really bad. I am 25 years old and am in about $60,000 in debt. I went to cullinary school at the age of 21. Sense those four years I have been out my loan has doubled. My payments are $600 a month. I also have a federal loan wich is around $8,000. My monthly payments all together are around $750. My income is only $1100 a month. I work my butt of in the kitchen. I should make more but life sucks and I dont. All of this debt has drove me into the ground. I was in the hospital from to much stress. It was to the point that I was hearing and thinking things that where not really happening. I wanted to kill myself thinking maybe that would be the best way out. I decide that was not a good way out. I want to pay my bills I just dont have the money. I am so tired of the phone calls and no one working with me. I dont know what to do. It makes me so depressed to even think about this stuff. I also really hate Sallie Mae they have screwed my life up.
July 14th, 2008 | #
I commiserate with all of you. Between undergrad and grad school, I’ve built up a $150,000 student loan debt, on which Sallie Mae expected me to pay $1200 a month. That’s over half of what I make, and with rent, my car payment, gas, groceries, etc., there’s no possible way that I can pay that amount. So basically this is what I’ve done: when Sallie Mae called (for about the thousandth time), I said, “Listen, this is what my take-home pay is per month. I pay this much for rent, this much for my car, etc., etc. I can afford to pay this much on my student loans, and that’s going to have to be good enough until I start making more money.” And if you can believe it, they actually negotiated with me and got me down to a manageable payment! I’m fully aware that I’ll have to pay back more in the long run due to interest, but at least my credit’s not being affected and I can live my life without this crippling payment. I think that at this point in the economy, Sallie Mae is more willing to take what they can get–you just have to be really firm and say, “This is what I can afford right now and that’s the end of it.”
Here’s the thing that really pisses me off, though…had I decided to just charge my tuition to a bunch of credit cards, I could have declared bankruptcy and had the debt forgiven. But since I took the “responsible” route (I have no credit card debt) and took out student loans, this will be hanging over my head for the rest of my life. So basically, people who run themselves into debt with irresponsible spending can have it wiped clean, but trying to get an education is somehow unforgivable. Doesn’t seem quite fair, no?
July 18th, 2008 | #
Yes, I thought I was the only one in the boat. At the age of 45, I decided to go back to school and finish my BS, a life long dream. I started out with federal loans and then after 2 semesters was told I was no longer eligible, so in a panic, I had to get private loans. They are mounting steadily. I’m too deep already. If I quit school, I cannot make the payments and will never have a chance of having a job that will be sufficient. Therefore, I have decided to keep going. It is quite a gamble. Especially after reading all of your comments.
The only advice I can give to all the young people here is 1) you may feel that your education has been a waste, but I can tell you from experience that it has not. I have worked for 30 years and have only tripled my earnings from $3.35 – $16.00/hr. I assure you, in 30 years, your earnings will be much greater and the $1000 in loans you are paying will be akin to a $150 payment!
2) Just because you cannot get a job in your chosen field, you will be eligible to get a job elsewhere and start in the middle of the job pay scale. Throughout the years, whenever I changed jobs, I had to work my way up from the very bottom (cashier, clerk, fast food cook); whereas, my college graduating friends were able to immediately be hire as assistant managers and supervisors upon graduating.
3) Most of your college friends are in the same boat. Rent a house with 4 of your closest friends, have some fun, and lighten the load.
4) Know that you are not guaranteed anything in life.
5) And finally, life changes at an amazing clip. Laws can change. Write your congressman and let them know what a burden it is to you and your family.
I know this debt seems insurmountable, but hang in there. Yes, I know, many of you are actually facing becoming homeless, as I am. Just keep working and in a few years, you will be more interesting and an inspiration to others because of what you have been through.
My personal view is that college students should not be charged interest rates until they have graduated. The financial institutions will still get 15-25 years of interest, so what is the harm of making that change. Retailers often give their customers no interest for two years on large ticket items, so why not give college students a break.
Also, for those few saying you have a choice and no one made you get the loan. You are sort of correct, we could just sit at home on welfare and let YOUR taxes increase year after year. We were just trying to improve ourselves. How silly of us.
July 19th, 2008 | #
I feel so understood finding this site. I have been sp depressed by my student loan debt. I am the first person in my family to go to college. I am a teacher. I feel like I am destroying my family. I have two children and a wonderful husband, but the debt is too much for me to pay back. I don’t know where to turn or what to do. I am already working two jobs and I can’t afford teh payment. Someone help? I am scared.
July 21st, 2008 | #
Well, there are a lot of us. And the stories are fairly similar. It is true that education has become a business and it behooves the “institutions of higher learning” to facilitate the borrowing process to ensure their customers can afford their purchases – just as car dealers assist in financing auto purchases for their customers.
There are supposed to rules against fraud and misrepresentation both in the common law and by statute. So, when schools make promises of copious on-campus interviews, their spectacularly proficient career counselors and the fantastic jobs awaiting their graduates why are they not responsible for fraud or misrepresentation? It seems to me there is a huge problem in the US.
On the other hand, you could just leave the US. Believe it or not life is really good outside the US and there are many of us out here (millions – literally). The move is not nearly as daunting as one may think.
July 21st, 2008 | #
#66 expat And #65 Darlene I agree leaving the US is not to bad of a idea.
I have thought of one of the Island would be great. If you do think about this problem all the time it really can get scary.
July 22nd, 2008 | #
I just don’t know what to do. You work so hard and then just feel like your working for nothing. Moving away is not an option for me. I think that you should be able to file bankruptcy on private student loans. My interest rates are going up and up, and they don’t work with you at all. Does anyone know what the they can do if you just can’t pay it back? I mean what would happen to me?
July 23rd, 2008 | #
Dear Darlene, Moving away or to another country isn’t an option for my son and I either. I wish we could file bankruptcy on private loan too. Three years ago everyone could. When my son and I saw the frist lawyer I wish we would have filed instead of trying to make things right, because 3 threes later we are in a worse mess. I wish there was something we all could do.
July 23rd, 2008 | #
Hello Ann, I have been looking and researching and it looks like the bankruptcy laws might be changing again. What can we do but wait. I don’t know what your beliefs are, but I feel God did not bring me this far to let me go. I am praying for relief to come. I used to have excellent credit, and never had anyone calling about a bill. But the Private loan lenders are relentless. It makes me start feeling bad about myself as a person, a mother, a wife. But all of us were doing something that would make us better. Education is key….right? The real motto that places should be saying is Money is freedom. I work hard, and I feel trapped. I know money can not buy happiness. But I am so happy with everything I have already, it would be really nice to just have my debt wiped away. I wonder if any of the celebrities would want to adopt adults lol.
July 24th, 2008 | #
Hello people. Has any body here dealt with AES? I’m over 60,000 in debit from private loans which has gone up over the past couple years even though I continue to make payments each month and have for over 2 years now. I have yet to miss a payment on my student loans or other bills for that matter but I’m to the point of just giving up. 1) the balance continues to grow 2) I have been unsuccessful in getting a job in my field. I want to pay it back but I need a manageable payment that is going to make a dent in the debt itself. AES will not consolidate my private loans, which clearly makes no sense. They will lend me the money, but than they won’t consolidate it to make the debt more manageable to me so I can afford to pay it back. I’ve always had a little money in savings, so I’ve been able to get by but with in the last year my employer has cut my pay by roughly $4.00 an hour putting me in the hole each month. I’m going to be contacting an Attorney regarding this issue and see what my options are. You are able to file bankruptcy on private student loans but the Judge has to justify that the debt themselves would prevent you from being able to get out of the debt. Now that I’m only making $1200.00 a month I can’t afford the loans themselves and have no choice, but to make some drastic changes, even if that includes filing bankruptcy. Under the law that is our right and we have no reason to feel bad about it.
July 24th, 2008 | #
I am in a situation with my student loans that?s about to become really ugly. I am a Canadian student who came to the states for my education. After finishing school, I am now in debt about $225,000. I make about $110, 000 in the medical profession. I have one loan with Sallie Mae in the amount of $55,000. The other is with MEFA which is in the amount of $170,000. Salle Mae has agreed to extend the term of the loan, which really helps me out. But the other loan company will not under any circumstances do anything to help me. My student loan payments next month will amount to almost $3000! I have attempted calling almost every consolidation company and bank and credit union out there and have been unsuccessful. I have also done hours of internet searches as well. The current state of the economy is causing most of the lenders for consolidation loans to suspend their programs. Moreover, since I?m not a US citizen, I cannot qualify for any government consolidation loans. I am wondering if anyone else out there has any advice or suggestions. I?ve exhausted all options, and am not sure what to do. Please, please, PLEASE help!
July 25th, 2008 | #
I am 25 over $60000 in debt because I was dumb enough to get student loans… I had to file bankruptcy because before I could finish school my chosen field had collapsed. I had no job and had to move over 1100 miles to get one. Of course I couldn’t afford to do this. I lost my car, my house, everything. I finally found a job and started working. I got me another cat that I could drive to work and before I knew it I was again receiving nasty calls from AES. They had bought all my student loans and jacked up my interest rate to over 10%. my car loan was for less than that!!! Now they want 767 a month… I simply cannot do it. I make 27000 a year. Have a car note (and full coverage insurance cause I couldn’t get the loan for it if I didn’t) rent, utilities, 80 mile round trip to work a day at 4.00 a gallon for gas, and I also have to eat… I simply cant pay them… But do they care? absolutely not! I filed bankruptcy thinking they would go away, but to my surprise they didn’t. Now I’m being threatened will garnishments from what little I do make after they take insurance, and taxes out. I asked what do i do if i lose my car because I cant afford to pay it because you take my check. They simply replied “that’s not our problem”. I guess it would be if I have no mode of transport to work. Then what are you gonna garnish? I hate that more people are in this position. But I am glad I am not alone at the same time.
July 29th, 2008 | #
Brian
I am also in debt 60,000 with AES. They are horrible to work with. My loans are private, and my payments fluctuate also. Unlike you I have not been able to keep a steady payment. I am always past due 1 month, because they won’t forbear any more. I spoke with someone again today (past due calls) and asked them, what do they expect me to do/ Of course they say try to get someone to consolidate, but with my credit (from student loans) I can not. So let m eknow what your attorney says. I am about to just stop paying them. I found out today that only 1 % of my payment is going toward principal, the rest is interest. RIDUCULOUS. If you find out anything else email me at darlygirl1973@yahoo.com Just hang in there. We are all good people. Someone said awhile back that if we were to charge up everything, live above our means and then we would be ok to file bankruptcy, but for the people who were just trying to better themselves and then loan cmpanies refuse to help us, we are turned away. This world is upside down. Trust in God he will make a way. Believe that.
July 30th, 2008 | #
I hear you loud and clear James. They don’t care. The problem isn’t that none of us want to pay back our loans, but the fact that the companies (AES and the rest of them) make it impossible to do so. They can only garnish 10% of your wages and only 1 place can garnish at a time. So they probably would get less if they garnished you. Check your laws in your state. I think we are all running a race, and now that some of us are seeing that we can not finish, then we will just stop. I would like to know what they can do to you if you just stop. I hate the phone calls, but we all need to eat and live. We could die tomorrow and should not live with this constant stress. Where is the help for people like us?
July 30th, 2008 | #
Hello all,
I also have more than $60 000 in private loans with AES. They are horrible to work with as Darlene said above. They will not work with you no matter what. I told them that I am about to default but they do not care. All but less than 1% is going towards the interest. It is said that I now must make make a decision to leave the country. I know there is a better life somwhere else than living here as a prisoner for the rest of mylife. Even if I tried to make my 750 a month payments, I will not be able to pay these loans off, ever. I will take them with me to the grave. I have to leave behind my fiancee, my family, friends, etc. but I am not giving a dime to these sharks ever again. I asked for lower payments, they ignored me time and time again. hang in there everybody! Dont give up the fight. Please check out the studentloanjustice. org website. Tell your story there and write to your Senator, Congressman, women. Do what ever you can, but dont give up the fight. We all should do something about this.
God bless you all,
Al
July 30th, 2008 | #
It’s true, they lied to us! They told us that college would be beneficial. They told us that college was necessary for our future. They told us as we were signing for our college loans not to worry about the debt. They said we would be able to consolidate our student loans after we graduated. And then the day came when all of our loans were due. The banks wont consolidate the loans because of the mortgage crisis. The government wont consolidate the loans because they are too busy bailing out the banks. If people think the economy is bad now, just wait. We were supposed to be the next generation of consumers, the next generation of home buyers, the generation that would spend the money to keep the economy moving. Instead we are the generation of debt. We are the generation of home losers. We are the generation with nothing to spare. Do you know why? Its because they lied to us!
July 31st, 2008 | #
My son and I are in the same boat with you all. I get upset with myself because I wanted my son to have better then me.I wanted him to have a better education,future then I had. I thought I was doing the right thing by getting private loans. So where we are trying to see how we can live and make payments. I too have lost income due to illness. Doctor took me out of work until surgery. My son is having more health issues that is scary for us. The lawyer told us to get medical records together for my son and we will see if there is a settlement that can be made. So that is what we are working on now. There is some how we all can work together to fight this problem. God Bless you all.
July 31st, 2008 | #
I would like to know how many people on this web site is from the state of West Virginia and is not working in their field of degree or haven’t been able to finish because of AES. May together we can start doing something at the local level and go from there. Please email me at anndemere@msn.com Thank You
July 31st, 2008 | #
I checked out studentloanjustice.org (slj) site. Used it to contact the four members of the Senate Health Education Labor and Pensions Committee who HAVE NOT been paid by the Sallie Mae PAC. I asked them to consider amnesty for those who defaulted on their student loans and linked them to slj site. I’m currently in deferment. One loan is at 94,000. The other is at 75,000. My teaching job pays my living expenses. To come up with the $1200 a month I’ll need for AES and NextStudent, I’m gathering information to open my home as an assisted living facility. I’ve been considering this for several years, but been dealing with family health issues (among them: my husband suffering with congestive heart failure) If I can get clients, maybe then my head will stay above water. I thank God for my life and pray for the best. God bless you. Jeanne
July 31st, 2008 | #
Does anyone have any idea when the private consolidation loans will be back?
August 1st, 2008 | #
Hey all,
I published a statement on 7/1. I have over 50 G’s in student loans with Sallie Mae. I am paying over 300. but my wife has cancer and I am working fulltime with 2 kids. I just taken on a second job to pay bills but its not making the cut. I am now 2 months behind in paying them. I called Sallie Mae on 7/28 and they told me to fill out a forbearance app/ and pay a 50 dollar non-refundable fee. SO if they say Hey Scott you don’t qualify like they did a year ago I am out 50 bucks. I am still expected to pay the money. Everytime I call I get someone that can barely speak english. I am not prejudice, its just really hard to understand them. I am at the point to say: Hey, This is what I am going to pay you, if you cant handle it oh well. I am tired of strangers determining what Ican pay, when I sign my own chex. u all hang in there.
SC
August 2nd, 2008 | #
Cando: I didn’t know that private consolidation loans were not available. I do know that my credit score is too low for the banks to work with me.
August 2nd, 2008 | #
A lot of loan companies are putting the Private Student Loan consolidation programs on hold. This is because of the economy. Not that any of us were aware of the finacial problems of our world (smile). I believe that something is going to happen for all of us in this situation. I say lets all unite and stop paying. I don;t want my credit any more damaged then it is, but I will be the first in line when the bankruptcy laws change. You will all see me, smiling and thanking the lord. Life is short and hard enough, we are good people, who wanted and want better for ourselves and our family!! I am searching for a miracle, I seek the impossible, I know the Lord can hear me. I am waiting for his help.
August 3rd, 2008 | #
This is a big money trap. You have to become absolutely homeless (forever) in order to get rid of Student Loans. I had borrowed ($30,000) for a private nursing school that went bankrupt and the lender is forcing me to pay back the money. I could have taken out bankruptcy back in Oct 2005, before the laws changed about private loans, but I had property I did not want taken away. So I decided not to take out bankruptcy. Now I’m stuck with a big payment and cannot get out of the loan and my income has not increased!!!
August 5th, 2008 | #
TO DARLENE –
Thank you for your post dated July 21. I think I speak for all of us in saying that you are NOT ruining your family. You are actually to be admired — working two jobs, trying to do the right thing by your kids and husband…those are heroic qualities in my mind.
You only did what you thought you had to do to give your family a better life — but the college marketing machine neglected to tell us that the ridiculous cost of tuition, caused by the staff’s automatic pay increases and cushy benefits which are UNDESERVED, as well as their inability to operate campuses more efficiently, is not justified by the opportunities a college degree offers. You may struggle for a little while, but the self-righteous hypocrites who ripped us all off will have nothing but shame and dishonor when they die. You at least will know in your heart that you did what you thought best for your family, and nobody can blame you for that.
In terms of what to do now, a few things come to mind:
1. Have you called the loan provider, explained that you are a teacher, and asked to renegotiate your payment?
2. Have you consolidated the loans at a lower interest rate?
3. Does your state offer student loan forgiveness if you teach in certain rural/inner city areas? Your State Dept of Ed would know.
4. Have you thought about writing a book or a blog to help others avoid this painful situation? If you can help even one person avoid this problem, your suffering is not in vain.
5. Have you considered teaching in Georgia? That state has some of the highest starting salaries, and you can teach in towns/cities with lower costs of living. Also, I hear that a shortage of principals is coming soon.
Good luck to you Darlene! I’m not perfect, and try not to be self-righteous or impose my faith on others, but I want you to know that I’m adding you and everyone on this site to my family’s prayer list tonight. Hang in there everyone!
August 5th, 2008 | #
I actually refinanced my home at 8% and used some of the money to pay for a portion of my private student loan through Sallie Mae when it was at 10.5% on $33,000 (of which $12K was compounded interest that accrued before I graduated – Real F&cking slick Sallie Mae). I wish now I had paid the entire amount with the refinance money. If I had done that, I would have satisfied my obligation for paying what I owed for my education plus the compound interest to the bastards at Sallie Mae. And now that I am in a divorce and have to pay for my apartment and my house at the same time I will have part of that original Sallie Mae loan forgiven in bankruptcy as the bank forecloses on my house.
Another positive point – Since the government only allows me a maximum deduction of $2000 in interest loan payments when I file my tax return (from the form 1098-E Sallie Mae sends us; I usually pay a total of $5000 in interest on student loans per year and can only deduct $2000) I was also able to increase my interest paid deduction since now part of the education debt was rolled into my refinance (or second mortgage) which has a WAAAAAAYYY higher deduction limit than the $2000 education limit.
So my advice to you all, is cut your loses with those a$$holes at Sallie Mae and possibly look at moving the debt somewhere else and handle it throw normal channels. But keep in mind you must wait 90 days before declaring bankruptcy, as debts within that time frame are not eligible for forgiveness.
And yes I realize it is wrong, but if the goverment is too stupid to close the loopholes for SallieMae and allow them to screw us I would rather do this than wait until I have interest, fees, and all the other bull$hit add-ons.
August 6th, 2008 | #
Today, I heard on a news report that many students are losing their loan money because banks are pulling out of the student loan business. Loans that were promised, but then withdrawn. (Supposedly loaning to students is not profitable enough) How much profit is enough?
Darlene, have you exhausted all of your deferment and hardship grace periods? The harassment of phone calls is too stressful (when delinquent)…and the loss of certification is real. Then what?
Is the second job worth it? (Emotionally? Socially? Family-wise?) Financially, is it paying for your loan?
It seems like I heard that there was relief out there for folks in service industries (like teaching), where, if you taught in the field for ten years, paid regular on the loan, then it would be forgiven. ..And this would happen even you were paying income based repayments…The loan has to be consolidated under the Direct Loan program.
August 7th, 2008 | #
Has anyone heard of student loan debt negotiators? Has anyone tried to negotiate their student loan debt? If so, what happened? How did you do it?
August 7th, 2008 | #
This is legalized slavery and just 1 percent shy of usury. I only get to take home 50% of income after garnishment, social security and taxes. 90% of take home goes to housing, utilties, and transportation. Only 10% goes to food, clothing, and nothing else.
August 11th, 2008 | #
WOW,,, I am glad im not in this thing alone. I too am a bastard child to Sallie Mae, and AES. I believed the BS they fed me when I was in school. I now am in default with AES and very shortly with Sallie Mae, they are threating to garnish my wages 99%! Thats what the lady at Sallie Mae told me. I dont believe that they can actually do that but anyway, I am already being garnished for Child Support. I just dont know how much of these harrasing phone calls I can take, I just dont answer anymore. I am so depressed about all of this I could scream!!!!! I went into this blindly I guess, and to make matters worse, My retired father co-signed. I have messed everything up. My family is so upset with me, but when you cant find a full time job, and the living expenses are 1/2 of what you bring home what are you to do… I am just waiting to be garnished I guess, I live in Michigan, does anyone know or has anyone had the garnishment started on them by sallie mae or AES, I know that my loan from AES was sent to Wolpoff and Abramson for collection. But I dont know much more because I am ignoring them, they wont work with me, they make me feel like S— when I do try to talk to them, so now… Here I am… I went to a debt management center, they told me that i was already -300 a month for my living, and that they dont touch negotiations with student loans. I left again feeling helpless, a lost soul. I just dont know… I hope someone else out there is feeling the same, maybee we can be a support to each other… Lainy.
August 11th, 2008 | #
WOW!! I am not the only one. DAMN!!! I am 75k in debt paying like 730 a month and I just lost my job, and talk about depressed!!! This sucks you guys. we should all come together and be lobyist or something, and voice up to this B.S. some countries value education and pay for people to go to school where this country just cant wait to see people struggle. The rich get richer and the poorer get poorer wtf ever happened to our middle class its quickly disappearing…..
August 11th, 2008 | #
Wow. At least now I know that I am not alone in all of this…I’ve spent the last hour (literally) reading all of your posts! I am 26 and about 40k in the hole right now thanks to my college degree. Yes, I borrowed the money. Yes, I owe it. I think lenders, especially private, make attractive offers to students who don’t know what they are signing. I know I made a big mistake, and it’s frustrating to think that had I not gone to college I would be making the same salary as I am now (which is not much, considering I work in retail). I think about this debt EVERY DAY, IT DRIVES ME INSANE, but I am hopeful in that I am not alone.
August 12th, 2008 | #
I feel a little better knowing I’m not alone. I have $120K in private loans and about $14K in federal. I was led to believe I couldn’t get federal! If so, I would have depended on them more. The thought of dealing with this keeps me up at night and hurts my overall quality of life. I have had panic attacks over this! That is why I am here now, I was researching the internet for options to hopefully make myself feel a little better.
I also have alot of medical debt I’m worried about because I’m uninsured (employer doesn’t offer it) and got sick and I also have ongoing health costs related to that which I have to scrape up somehow. I am no longer even in therapy because I can’t afford it even though I desperately need it. My income disqualifies me from low-income assistance… I keep trying to tell them when all my income goes to bills and I can prove it, it should still count!
Considering that they can only garnish 10% of wages, that would be a fraction of what I owed them. This may be the only option we have to survive.
I tried doing what everyone said would better my life. I was told I would make so much money and I’d end up destitute if I didn’t go to college. I didn’t even know what I wanted to do but was pushed into going by my parents. I feel like I wasted so much and screwed up so bad. The guilt just eats me alive sometimes that I chose to go to school and take out loans. But the lenders and lobbyists are not off the hook! If laws are changed, I will be in the front of the line with Darlene rejoicing that I no longer have to live my life as a debt slave. We may not be guaranteed anything in this life and may not be owed happiness but slavery (and don’t think this isn’t an insidious form of it!) should not be included. Life, Liberty and the Pursuit of Happiness, folks! Debt slavery takes away those constitutional rights from us and should be illegal. If these corporations can be bailed out with no consequences and no guilt, consumers with far less debt should get help too! Instead we are the FIRST to be hanging out, bare butt to the wind!
Write your senators and the presidential hopefuls about this issue! Laws can change, sometimes surprisingly in our favor. I hope someone is courageous enough to challenge this in court and hopefully get it struck down. We should NOT be punished for trying to make a better life for ourselves and being a good citizen of society. Even the Bible says that ALL DEBTS should be forgiven after 7 years. There is a REASON for that wisdom!
August 14th, 2008 | #
Hang in there everyone. Coming on and hearing your stories and listening to your encouragement is carrying me through.
This to shall pass
August 15th, 2008 | #
Has anyone looked into the Student Loan Relief Organization? You pay them a fee of $900.00 and they are supposed to help get borrowers of all types of student loans affordable monthly payments. I was wary when I heard about this but they are an accredited business on the Better Business Bureau. I left my contact info. and someone called me within a day or two. I have not decided exactly what I am going to do yet, but sofar this seems to be the best option. I have about 90,000 in student loan debt and boy do I know how depressing it is. I too have sleepless nights and am constantly distracted by the thought that there is NOTHING I can do. But maybe there is, check out their website and talk to someone, it might be the relief we are all looking for.
August 15th, 2008 | #
To Lori: I’m so sorry to hear about your mental health issues. Panic attacks are difficult to work through. May God grant you peace.
Are your loans due now? Have you called your loan agencies to ask for deferrment or forebearance? Explain your situation. Customer Service may work with you. I’ve been in deferrment or forebearance since my graduation in 12/06. My husband has been seriously ill. I earned my Masters, but lacked two classes needed for receiving state certification for the position that would have increased my salary to pay for my overwhelming loan. And, because of my husbands illness, couldn’t take those classes (it was 90 miles, one-way, to the campus- 2X a week!)
I realize that I’ve probally used up all of my grace times…but, the deferrment time has been beneficial. My husband health has improved. Now I can focus more on meeting the challenge of this debt.
REGARDING WRITING OUR SENATORS AND PRESIDENTIAL HOPEFULS: Great idea! Let’s do it! They need to keep hearing our stories!
August 17th, 2008 | #
Check out http://www.studentloanjustice.org (Entry #76, Al, first spoke of this site). This is an political action committe, advocating (it sounds like) for “legislation that returns standard consumer protections, includeing full bandruptcy protections, statutes of limitations, and refinancing rights to student loans.” It also seeks to end “social security and disability income garnishment” and “increase federal grants for education.” There is more info at their web site.
August 17th, 2008 | #
hey guys i know what you are going through……..i have around150,000 in dept from private student loans and i was in forberance for 6 months and now none of my companies consolidate private loans and almost no one does……all of my loans are at very very high rates and i cant make payments worth of 1500 a month since i cant really find a good job with this economy……..oh i dont know what to do now..CRAZZZZZYYYY…..plus my father is a cosigner on all of my loans……and i really dont know what to do ohhhh
August 18th, 2008 | #
This site makes me feel a lot better knowing that I am not alone. I come from a small area where everyone stayed at home and commuted. There was only a handful of us that went away to the bigger schools to try to get a new start away from home. It hasn’t really gotten us anywhere except in the hole. I filed for bankruptcy last year because I had credit card and hospital debt that I knew I could not deal with once my student loans came crashing in full force. I have a smaller loan with federal but a much larger amount with private. I was a product of the AES loans and I had to get away from them. Because I filed last year I could not consolidate therefore my parents took matters into their hands and consolidated with ACS. I make the payments, I just used their credit. In comparison to AES, ACS was a breath of fresh air. AES was so hard to deal with and wanted to keep increasing my payments with a varible interest rate. ACS has a fixed interest rate as well as a fixed monthly payment for the duration of the loan. Its still a high payment but to know that my interest rate and the actual payment will be the same for the rest of my life is something that I can deal with.
Good Luck to everyone. Glad I found this site maybe something will give us a break soon.
August 23rd, 2008 | #
I am with you all in trying to find some way of dealing with this problem. I have contacted my federal senator-Jay Inslee- about this. His aide sent me info about possibilities for some help-it mentioned that there were some instances when loans could be forgiven because of bankrupcy-rarely though- if the person paying the loan were proved to be in great hardship because of repaying.
He also pointed to a new Direct Loan consolidation program that offers loan forgiveness in exchange for 10 years of full-time work for a broad range of non-profit service jobs-the terms of this may not work for me as well as some of you younger debtors- I am now 30 years out from borrowing my student loans and am 58 years old, so MIGHT not have 10 more years of work in me. The non-profit work could include teaching in a public school-and of course you will have had to pay for a certificate to teach in public schools for that to work. The work also can include working for alot of other non-profit organization- and income sensitive payments are offered for the 10 years of work.
This new deal is only a month or so old, so maybe someone in the government is getting to idea that SOME good thing should be done.
In 1983-7 I borrowed 10,000, consolidated my garunteed loans, and so now owe 64,000,54,000 in interest, because I have not yet found work that would pay me enough to make loan payments, despite trying very hard-long story-short. I went back to school on a teaching fellowship and got a masters degree that would make me able to teach in community college with the idea that then I would make enough money to pay off my then much smaller debt. In doing that I entered into yet another rigged system-most college teachers are either grad students or adjuncts who make little more than 1ooo-13oo a month working very long hours. As an English teacher I was required to work 50-60 hours a week to keep up with paper grading, for which I was only paid the time I was in class. So I got forbearance and deferrals on my loan. I burnt out before I got to the high paid “full-time” job. I was told until last year that those deferrals I got would be given indifinitely if I did not earn more-which was not so.
It seems that there are the beginnings of people coming together to try and make a difference about this problem-at least talking about it helps- maybe we can turn this into a loud demand for change! I am desperate too, and would be glad to find some way of making a public fuss about the student loan problem, or something!
I how we all try not to let the bad guys really get us down entirely, and live a life, at least internally, that keeps our spirits alive. Good luck out there!
August 24th, 2008 | #
Last year I was very ill and had along stay in the hospital. Sallie Mae began to call at home, on my cell, at work and at the hospital. I spoke to a rep in order to defer my loans before defaulting. However, Sallie mae continued to call me at all times calling me a liar. I was unable to find a teaching job once I was out of the hospital and took on a job as supervisor in a childrens bookstore. The sallie mae people called every 15 minutes nearly crippling the store. They threatened my boss and nearly had her in tears one night. They wanted her to make the first three payments for me and take it out of my pay. I kept telling them that I was deferred but they said it was illegal for me to defer at this point because they had bought the loan and I was no longer eligible for deferment. Meanwhile the reps told me that this collector was a sallie mae rep herself. I fell into such a depression, I could not stop crying, everyone I worked with found out I owed money, I was nearly fired until finally my brother called this witch and threatened her with legal action and she stopped.
I still do not understand how that level of harrassment is legal.
I became a teacher, mistakenly thinking that I was working towards being a productive part of our society, only to be insulted and harrassed. I can not make the repayment amount and this year I am considering taking courses in order to prolong the repayment. I cannot afford it without going homeless. I do not know what else to do. My medical bills are nearly 30,000 and sallie mae is 85 grand. I have no other debt and yet I am drowning because I became ill and because I became a teacher.
WHY ARENT THE POLITICIANS TALKING ABOUT THIS!!!
August 28th, 2008 | #
btw I have written and emailed every congressman, senator and politician I could find. If we continue to email and write, I believe that something will change. Perhaps a crisis on the level of the housing foreclosures will force them to make the repayment income sensitive in addition with lowering the cost for an education. Just a thought.
August 28th, 2008 | #
DOES ANYONE JUST WANT TO MAKE A TELEVISION AD STATING HOW THESE STUDENT LOANS ARE B.S. I REPEAT DO NOT GET PRIVATE STUDENT LOANS THEY ARE A RIP OFF…?? Smile?? has anyones intrest rates went down mine did it went from 10.5 percent to like 7.4 bringing my payment rate to 50 bucks.I wonder how long this will last?
August 28th, 2008 | #
That is a great idea kristen but be prepared because Sallie Mae hires vultures to attack. I’m surpirsed this group isn’t littered with comments meant to shame us into submission and shame. But I think its worth a try. Hillary Clintons office has been a big help. They went through the ed dept to contact these crooks and find out why my interest is nearly half my loan. Its outrageous that to become a teacher, A TEACHER, that I could be in debt nearly 100 grand. Its no wonder we are importing foreignors from underprivileged countries to do jobs requiring math, science, engineering etc. The average American cannot afford to be specialized in any given field.
I was just offered the possibility of a teaching job but I need 12 more credits to get an extension to my masters to be certified in bilingual ed and that will be 8,0000$ more and I shopped for the cheapest school that I could find in my area. I applied but have not yet figured out what do to about loans or payment. I just do not have the money out of pocket.
August 29th, 2008 | #
Hi Everyone,
I’ve worked on The Hill and writing/calling people in Congress won’t get the job done. Members of Congress (MCs) get treated to parties and spend quality time with those who run the companies you have referenced.
If you want to effect change, I suggest you organize a spectacle the media will want to write about — if 10,000 showed up to an event at The Washington Mall, for example, that would draw attention to the cause. You must do something people can see and you must spark moral outrage for your cause.
Most importantly, you need to be able to propose something specific you want DONE. Give the MCs a task.
In terms of utilizing the Web, start and publicize an online petition. Get 100,000 signatures, print them out, and provide to each MC. That is something people can see.
Finally, compare the cost of what you want to the cost of wasteful projects such as the Bridge to Nowhere. You’ll get support.
August 29th, 2008 | #
OMG..my boyfriend and I watch tv and they have all of these commercials for Astrive student loans and they will give you 45,000 every year for up to 5 years!!! How is this still happening? I get Newsweek in the mail every week and there has been an increased amount of articles talking about the private student loan problem in this country. I’m with everyone else, it is beyond me why no one is talking about this problem. I know that I have a lot of friends that are embarrassed by the fact of their loan debt but something needs to happen.
I am going to have to go back to school so I can get a masters. I think to myself…if I continue to work full time and go back for just 2 more years to get a masters maybe I’ll land a job making double what I am now so I can pay off those loans easier. Its sad, I’m not even sure if I want to settle down and have a child because I am not going to be able to afford a kid as well as my college education. This is such a sad situation.
August 31st, 2008 | #
It is my fault for signing on the student loans. However, I was young, just getting out of the military (Army paid 14,000 in GI Bill) and really didn’t know any better. All I knew was I couldn’t survive well on minimum wage and the answer was supposed to be getting a degree. They said it was best to go with a fixed rate of 8% and consolidate which I did. Now, 10 years later, I still owe 41,000 at 8% and am having to file bankruptcy on everything else after a divorce and multiple companies going out of business or doing well and not getting a raise. Even though I graduated Magna Cum Laude in the Computer Science field that bachelor’s degree doesn’t look so good when I have to make payments for the next 30 years (I’ll be over 60 when they are paid off). Companies going out of business, offshore outsourcing, and hiring people on Visas has cut into the wage you can get paid. I’ve had excellent reviews and have always been made promises of pay increases at various businesses, but when it comes time, its always “sorry, even though you are one of the best employees we have, and we made 200 million in profit this year, we can’t afford to give you more than a 1% raise” it’s just not in the budget. My cousin dropped out of school and drove a dump truck. He has a house almost paid for, and no student loans. Who made the right choice?
September 18th, 2008 | #
By the way, when I lived in Europe in the Army, I stayed with a german family. They enjoyed the freedom of free education, and many people in the family went to school until their PHD with no loans or debt. They also had free healthcare. I had a surgery in a german hospital stay and it was one of the best hospital care experiences I’ve ever had. Ever wonder why its nearly impossible to immigrate to Europe when America is supposed to be the land of promise? Imagine what life would be like in the States if you never had to worry about healthcare or education costs.
September 18th, 2008 | #
I am in the same situation as most… I went to a private “Tech” (I won’t say who it is, but most in my field will figure it out very quickly) school that was nearly 50K and my parents made to much money for me to qualify for federal aid even though I was paying for my own school and I was still young enough to be called a “Dependant.” Now I say this while I look back on remembering the President of my college drove a 200K+ car to school everyday (and thanks to me I’m sure it’s paid in full). That was 6 years ago, my student loans jumped from about $380 a month to over $570 with no explanation after the first year. If I am more than 5 days late on a payment Nelnet is emailing and calling me constantly… The “Lender” offers NO defermant or hardship assistance. I cannot afford this anymore… I look at how much I have paid already over the past 5 years… scraping, charging it on credit cards even… and it seems I have barely made a dent in these loans. Halfway through school financial aid basically told me this “other” loan was my only choice if I wanted to continue school, so it was either I take it, or I drop out and owe 25K for nothing…. I really think there is something VERY shady going on but didn’t realize at the time… Now I’m basically screwed for life. Our tax dollars can bail out greedy banks and mortgage companies… welfare millionaire real estate scum sucker investors etc… but people who want to better their life get screwed for life! How these high interest loan shark student loan companies are protected from bankruptcy is one of the biggest crimes in the history of the United States… Something needs to be done and something needs to be done NOW! I don’t care.. Obama.. McCain.. somebody! LISTEN TO US!!! THIS IS ONE OF THE BIGGEST ECONOMIC PITFALLS EFFECTING MANY AMERICANS AND NOBODY FROM LOCAL GOVERNMENT ALL THE WAY TO THE WHITE HOUSE GIVES A RATS ASS!!!
September 23rd, 2008 | #
I hear you loud and clear RJ. I am just done paying mine. Next time they call I am going to tell them I am waiting for the government to bail me out. You hit it right on the head it is a loan shark company. I am going to see what the president is going to tell us. I will be back on with more!!! We have to band together!!
September 24th, 2008 | #
Thanks Darlene.. ya we are all in the same mess so don’t feel bad! I suggest to EVERYONE in this situation.. if these Banks/Loan servicing company’s email you… Reply to their emails and carbon copy your reply to ALL of your state congressmen, members of senate, Governor, even Nancy Palosi (these email addresses can easily be found with a little research). State in your reply what these loans have done to your quality of life and the harassment you receive. Make it well known that the email has been forwarded to these politicians. Explain your situation and basically ask for their solution to help you. After all they write the laws! And, I guarantee the bank will shut up real fast and be much more accommodating to work with you!!! EVERYONE needs to do this! Enough of these emails hopefully someone will take notice and jump on some reform for private loans and reverse the unjust protection from bankruptcy they receive!!!
September 29th, 2008 | #
Fran. I made the mistake of taking out private loans to get my masters degree. I took advantage of the easy credit. Now it looks like my children will inherit my overwhelming debt. I am (financially)in worse shape now then when I just had a bachelors degree. I thought that (with a Masters) I’d be making an extra $5000 to $10000 a month to easily pay the loan amount. It never happened.
September 29th, 2008 | #
I like your idea Darlene and I am sharing with my son. We will just tell AES and the rest we are waiting for the bail out. I told my daughter they can’t get blood out of a turnaup.
September 29th, 2008 | #
I hear all of you me and my husband together are 135,290 in private student loan debt……I was really hoping for that bill that lets private student loans go into bankruptcy but of course they threw it out…….we just really want to buy a house and start a family but hell we can’t do that b/c of our payments…………..the government needs to wake up and realize what all is going on…..cuddos to all of you!!
September 30th, 2008 | #
i dont understand,why does sallie mae get a bailout and now all of wall street is talking about a bailout. why hasnt that money been used to help us so that we dont foreclose or default or end up losing our businesses. if alot less that 7 billion dollars was used to prevent us from drowning in debt and they would consider restructuring our loans and making them income sensitive maybe sallie mae and wall street wouldnt need bailouts. Instead sallie mae insulted me and harrassed my boss EVERY HOUR.. not just everyday..during one of the scariest illnesses I have ever had to deal with in my life. I have never hated anyone in my life but I hate these big corporations and their greedy heartless little ceos and all the crony politicians who are in bed with them.
October 1st, 2008 | #
We all should do what RJ said and forward all this stuff to our politicians. I have been through hell and back and I am just not going to let them worry me any more. My credit is ruined, but I am alive and well. None of us are promised a single moment longer on this earth, please don’t stress. Live your life and keep God first. I am going to forward all my AES stuff to the politicians. I just want to know why can’t we get the BAILOUT. We just wanted a better life, an education. I still have hope for a bankruptcy law reform. You know on all those credit apps, I wish I would of put the White House’s phone number, then they could be calling and stalking them. Can you picture it, “Hello President Bush”,….Yes this is an attempt to collect a debt lol
October 1st, 2008 | #
From: “Project on Student Debt”
Good News About Public Service Loan Forgiveness
While the U.S. Department of Education finalizes its regulations for Income-Based Repayment (IBR) and Public Service Loan Forgiveness (PSLF), we’ve been active on other fronts to make sure that these programs really work for borrowers. For example, because the IRS treats most forgiven debt as taxable income, we asked key Members of Congress to seek clarification about the tax status of debt forgiven after 10 years in PSLF or 25 years in IBR. Just last week the U.S. Department of Treasury confirmed that participating in PSLF will NOT create new income-tax liabilities for borrowers, which is great news.
In response, Congressman Sandy Levin (D-MI) — who has been leading this effort — introduced a bipartisan bill to ensure that debt forgiven through IBR and Income-Contingent Repayment (ICR) will get the same common-sense treatment. Responsible borrowers with modest incomes should not be hit with potentially crippling tax bills because of forgiven student loans.
Letter in support of H.R. 7098
http://projectonstudentdebt.org/files/pub/HR7098_support.pdf
H.R. 7098
http://www.govtrack.us/congress/billtext.xpd?bill=h110-7098
Bankruptcy and the Bailout
The $700 billion bailout bill that Congress is negotiating currently includes a provision to enable the U.S. Treasury to buy troubled assets, including private loans, from student loan providers. In a letter to the leadership of the House and Senate banking committees, we joined 12 other organizations in urging that such a step not be taken without also including relief for struggling borrowers. If student loan providers get bailed out, student loan borrowers should not be treated so severely in bankruptcy.
If bankruptcy protection for private student loan borrowers is not ultimately included in the bailout bill, we will continue to fight for it in the next Congress.
Read the letter
http://projectonstudentdebt.org/files/pub/bailout_letter.pdf
October 5th, 2008 | #
I just got my accounting from Sallie Mae and I now owe $194,000.00 to her. Nobody is consolidating provate loans anymore either. Even if they do, the rate is higher than you already have because you cannot get a low fixed rate. There is no way that I can pay these loans and live. It is two mortgage payments and I don’t even own a house. I have friends who didn’t go to college and they make more than me and I have been practicing law for 3 yrs. I cannot do this. If we are going to be socialist and pay for everyone’s mortgages then erase my capitalized interest and consolidate and fix my private loan interest rate at 2.35 like my federal loans so I may have a chance to live and pay my debt. Why do people who made such a bad decision to buy a house that they clearly couldn’t afford get bailed out by my tax dollars while I owe nearly 1,000.00 a month just in interest on my student loans? Obama and McCain need to explain that one to me.
October 9th, 2008 | #
I have been reading all of these stories and I can tell all of you this is terrible for all of us. I too took out a private loan with Gaurntee National Bank in WV for 5,000. I was young single mother and my cousin sort of talked me into it. I had some reservations, I was not working, I kept thinking how do you get a loan from a bank without a job? Sound familiar, this was back in 1985, I remeber now I was going to Teacher College, but I never graduated, I changed my major I think to Counceling, but then I relized that I would never make enough money to pay back all those loans if I had continued to borrow. Long story short, in 1993 I consolidated them but I ony had one loan, dont ask me, but I got a smaller intrest rate. Then i lost my job in 2002, after many deferments and hardship loans, I sumitted the wrong paper work accidentley and suddenly Im dealing with AES and a default. When I called them to explain what happen the first thing they say to me is This is your responsibility. I explained to them I was not working due to my mother who is ill and i take care of her, I am now 54 years old have worked all my life paid taxes etc. Then they tell me I would have to pay 290 a month for 9 months to get this thing out of default. I called them back 4 days ago talked to someone else who then said I would have to pay 200 a month for 9 months and I would have to authorize a automatic withrawl from my bank account for 9 months to be eligable for the rehabilitaion program, Then I called back today and I was told I could pay 112 a month money order. I asked them how they came up with 200 dollars a month and they said 10 intest on my 20,000 loan. Well quess what my intrest rate is 8 percent. So they are trying to garnish my wages that I dont have , the most dispictable thing about all of this is that our goverment just robbed us out of 850 billion dollars using the same tactics as these people are doing to all of us, Using fear and manipulation and lies to get our money, and we get no bail out no forgiviness no bankrupcy no mercy, this loan is 23 years old I offered several times to pay the 5000 dollars but oh no they couldnt do that, that is because the goverment is wicked, intest of this amount is wickeness. So I suggest all of you instead of begging these crooks in the Senated and Congress to give us the same deal that they took from us, I suggest you look up that bill and write down who voted for it in your district and vote them out of office. Maybe with a brand new Congress and Senate, they might start listening to us.Really listening
October 9th, 2008 | #
Listen up, we all have fight left in us and don’t give up the fight. We can make things happen and make things change. I agree that it is frustrating and evil that our tax dollars are paying for rich wall street big wigs and people that got in with mortgage loans, but something will come for us. If not then I just will keep sending my letters and not giving them a dime.
October 13th, 2008 | #
This is a lot, but it is food for thought. http://voptsslf.blogspot.com/2007/11/challenging-student-loan-contract-for.html
Monday, November 26, 2007
Challenging the student loan contract for fraud.
Well Thank you congress. You took away our right to bankruptcy protection, and have left us with alleged DEBTS that grow beyond our ability to control.
Well, we have 5 options.
1. DIE.
2. Become totaly disabled, aka a VEGTABLE
3. Work in one of several limited fields of employment.
4. Pay off the loans, (If you can)
5. Challenge the loan contract as a being unenforcable due to fraud.
In other words, the question we must place before the court is this: “Was a valid contract created and entered into, by both parties?” I think the answer is clearly NO.
Under the rules of contracts, a contract entred into under false pretenses, or with out full disclosure of all terms, etc, the contract is null and void. In other words, its NOT a contract. And thats what we have to do. Challenge the US Dept of Educations claim that they have a real contract.
FIRST. The money. Were you loaned money or bank credit? I wrote a letter to my lending insituttuon asking them this, and they remained silent. According to US V. Twill 550 Fed 2d 297,299,300 states that silence can only be equated with fraud when there is a legal or moral duty to speak or an inquiry left unanswered would be intentionaly misleading.
And US V Parker, 7 SupCt. 454 120 US 89 30 L ed. 601 states that ability or refusal to timely refute or contest a presentment constitutes a final determination, in other words, default.
Banking associations, from the very nature of their business, are prohibited from lending credit. They cannot, for compensation, for others, become an accommodation endorse.
See:
St Louis Savings Bank v. Parmalee, 95 US 557, 24 L Ed 490;
National Bank v. Kansas City, 61 Fed 809, 10 C.C.A. 87;
Flannigan v. California National Bank, 56 Fed 959, 23 LRA 836;
Atena National Bank v. Charter Oaks, 50 Conn 167;
Lucas v. White Line, 70 Iowa 541, 30 NW 771, 59 Am R 449;
Monument National Bank v. Globe Works, 101 Mass 57, 3 Am R 322;
Farmers Bank v. Troy City Bank, 1 Douglas 457;
St. Louis Third National Bank v. St. Charles Savings, 244 Mo 554;
National Park Bank v. German Mutual, 116 NY 281.
So in my case, the bank defaulted way back then.
Now, under the rules of a contract, we are probbaly going to have to prove, that the school and its represenative acted as agents for the loaning institution as they are the ones who presented us with the applicaitons. This might be difficult to do, as they are probbaly not considred by the courts as direct agents of the loaning insitution itself, rather they mearly act as agents. Either way they were our “point of contact” when filing for student loans, and the ones who helped us fill out the paper work.
There can be three different ways in which contracts can be set aside. A contract may be deemed ‘void’, ‘voidable’ or ‘unenforcable’. Voidness implies that a contract never came into existence. Voidability implies that one or both parties may declare a contract ineffective at their wish. Unenforceability implies that neither party may have recourse to a court for a remedy. Recission is a term which means to take a contract back.
Misrepresenation, which will be most of what our claims are based on, means a false statement of fact made by one party to another party and has the effect of inducing that party into the contract. For example, under certain circumstances, false statements or promises made by a seller of goods regarding the quality or nature of the product that the seller has may constitute misrepresentation. A finding of misrepresentation allows for a remedy of rescission and sometimes damages depending on the type of misrepresentation.
According to Gordon v. Selico, [ Gordon v. Selico (1986) 18 HLR 219 ] it is possible to make a misrepresentation either by words or by conduct, although not everything said or done is capable of constituting a misrepresentation. Generally, statements of opinion or intention are not statements of fact in the context of misrepresentation. If one party claims specialist knowledge on the topic discussed, then it is more likely for the courts to hold a statement of opinion by that party as a statement of fact.
Most significantly, schools misrepresent students’ prospects for employment upon graduation. Typical prospective students are particularly susceptible to this type of misrepresentation, because a student’s primary motivation for enrolling in a proprietary school is to maximize his or her chance for subsequent higher-paying employment.
Representations of post-graduation employability are particularly pernicious given the less-than-encouraging labor market for people with the skills typically taught at proprietary schools. According to the General Accounting Office (GAO), proprietary schools funnel students into labor markets that are oversaturated with workers. The GAO indicates that in twelve states, proprietary school students received training in twenty-three occupational categories where there is a labor surplus, with over two-thirds of these students receiving training in the oversupplied markets of barbering/cosmetology and electrical/electronic technology sectors
There are three tort doctrines that could provide redress for victims of proprietary school fraud and could deter proprietary schools from employing predatory practices: (1) fraudulent representation, (2) negligent representation, and (3) educational malpractice. However, these doctrines must be received through the prism of the academic abstention doctrine, which courts often invoke to dismiss claims by students against educational institutions. For several reasons, the doctrine of academic abstention reflects courts’ (both state and federal) reluctance to delve into the operation of educational institutions and hold those institutions liable for the harm they cause students. First, schools often are financially burdened and have limited resources to absorb the cost of litigation. Courts believe that whatever good that might be derived from such suits would be counterbalanced by the subsequent dearth of educational opportunities for society, as qualified but financially burdened schools fail because of the need to defend frivolous suits. And here, I believe we can clearly prove there are no friviolus suits, due to the long history and numberous complaints on public record about these schools.
Second, many judges believe that, as experts in law and not in education, they should not participate in the creation of educational policy. Finally, because regulatory agencies actively supervise school operations, courts believe that regulatory agencies have greater institutional competence than do courts to adjudicate proprietary school fraud claims.Although courts have had more opportunities to apply academic abstention in the context of litigation involving public schools, some courts have invoked the doctrine in the private proprietary school context, thus creating a significant obstacle for making victimized students whole and deterring proprietary schools’ predatory practices.
Fraudulent misrepresentation actions in the proprietary school context are difficult to litigate successfully. The requirements of fraudulent misrepresentation actions present greater difficulties for plaintiffs whose factual scenarios are less favorable than the scenario in Lester. With respect to the first (falsity) and second (intent to deceive) elements, it is not always clear that proprietary schools’ representations, however misleading they may be, can be proven to be literally false statements as a matter of fact, made with the intent to deceive. When a school fails to satisfy a forward-looking representation of future performance that is within the school’s direct control, it is fairly easy for plaintiffs to demonstrate that, at the time the representation was made, the school did not intend to perform it-especially if the school’s director admits this intent on the witness stand. It is more difficult to succeed in a fraudulent misrepresentation action when the school falsely represents that the student will find a job paying a specified minimum salary upon graduation. Here the fulfillment of the representation is subject to forces beyond the school’s control, such as a tight labor market or a student’s low competency level. Thus, the school technically does not know the representation is false.
Ok so the school did not intentionaly commit missrepresenation. HOWEVER, the fact is that their information (proper or not) was relied upon by the student, as true and correct, and that the school knew what it was doing. Thus the entering into contract, based upon the information given by the school, should be grounds for having the contract declared null and void.
The schools agent, did not inform us, nor is there anything on the paperwork, (that I can find) that says I am surrendering my Constitutional secured rights, and that congress will be able to change the rules or the terms of the contract at their will, and that we as students, will have to accept those changes.
On the contrary; It is my postiton that when congress changes the rules, it voids the contract if we the students do not accept the new changes. In other words, they make a proposal to the rules, and we must either accept them or refuse them.
For the courts to uphold congress’s ability to change the rules without our approval, and to enforce the new rules on us, amonts to nothing but a form of involuntary servitude in conflict with the 13th amendment. In other words, once you sign on the line, you are trapped forever. No law can allow such a contract to stand as a valid contract, due to the misrepresenation or lack of information to that respect.
Posted by Victim at 12:23 AM
Labels: student loan missrepresenation contract fraud
2 comments:
VeronicaUSA said…
Very good article.I like where you are going with this. In Real Estate they talk about Fiduciary responsibly of the RE agent. I wonder if this could apply?
I got a lot out of your research and complement you on your hard work. Thanks..
I use to be on StudentLoanJustice@yahoogroups.com
However the owner of that site was rude to me and vulgar to another person. Therefore , I left. She reminded me to much of the people I have been dealing with for over 18 years..ECMC/SLM crooks.
My story:
Recently without my knowledge the collection agent for Student Loans and Sallie Mae (ECMC) garnished my pension. I originally borrowed $8000 for my education in 1989. I had 5 deaths in my family in a 4-year period…mom, dad, brother, and my daughter’s father and a beloved cousin was murdered. None of them had death insurance so my sister and I did the best we could. However, I went behind on my Student loan.
I made a deal with them (and it was like dealing with the devil 1995) to give they 12 checks, they would cash them and then I would be put in good grace with the loan rehabilitation, that was what they called it…they did take the checks and did cash them. I revieved a thank you note every month.I even have a letter from Higher Education saying, “Congratulation”, you have fulfilled the terms of your rehabilitation by making 12 consecutive payments as scheduled. So how did I default? I have always tried to work with them and never try not to pay the original debt. However, the lies just are so outrages. Therefore, for all the fees and the ruining my credit and garnishing are so illegal. All they did to me from that day after should be seen as illegal.
Now you must understand something I did not know at that time collection agents for student loans WANT you to go into default. Why? Follow the money. That is how Sallie Mae has made her fortunes (billions). Off the backs of honest, hard working student borrowers.
Moreover, each month they sent me a thank note. I have it all in black and white. However, on the 12 month I call and said ok now clean up my credit and back to normal payments. My plan was to have them clear my credit report so I could get a loan and pay them off. Now you must understand something I did not know at that time.
Well the devil lied and said no you did not pay; you defaulted. By the way, default is music to Sallie Maes hears. How could I have defaulted, you cashed my checks? Recently I found out that was illegal to make me send them all those checks. But not even congress can mess with Sallie Mae (and I did have them help me). However, they failed also. Now I am wondering if I could not get the help because so many of them take money from Sallie Mae and the lobbyist?
So then the $8000 went to $27,000…default fees and what ever fee they could add.
So I got an attorney file bankruptcy (chapter 13), he said all set, paid him $2000. ECMC never showed up to the court proceedings. They later filed a Then 4 years later ECMC student loan collection agent came back at me; now they loan was $38,000. ECMC never showed up for my chapter 13. However, filed a late entry and judge disallowed it. Meaning they could not ever come after me. Well wrong. you see it is like this, student borrowers have no consumer rights, prisoners and none USA citizens have more rights. THIS IS A FACT. I challenge you to prove me wrong.
The rule is this: rehabilitation…
“Your loan(s) will no longer be considered to be in a default status.
The default status reported by your loan holder to the national credit bureaus will be deleted.
You will be eligible for the same benefits that were available on the loans before the loans defaulted. This may include deferment, forbearance, and Title IV eligibility.”
Wage garnishment ends and the Internal Revenue Service no longer withholds your income tax refund.
“The student loan law (Higher Education Act of 1965-1998) for rehabilitation requires the following: The Higher Education Act of 1965 and the 1998 amendments clearly states the required statutes of this Act. If the Dept. of Education or the lender involved do not expunge the prior delinquent history after you have successfully rehabilitated the loan then they have violated the HEA and the FCRA and can be sued.”
By not living up to what they promised ECMC was “allowed to collection fee of 25% to the principal, interest, penalties. In addition collection agencies charge the Department of Education a commission of about 28%. That commission is passed on to you, meaning you have to pay the money you owe on the loan, the collection fee and the commission.” So wrong again. Furthermore they have been taking my income tax refunds. Wrong again. I never defaulted. Is anyone listening.
My rights were clearly denied in 1995. I have the letter to prove from higher education and they never expunge my information from the credit bureau. In turn I was never able to get a loan to pay them off. They violated my constitutional rights.
They never did this. They claimed I defaulted. I have the proof I did NOT default. The law also states you only can do rehab once and they were trying to force me to do it again.
Please note this, They can not have it both ways. They said I defaulted in 1995. Well when I filed bankruptcy in 1998 they claimed I had not have the right because I did not meet the seven year repayment rule. That rule requires you been in repayment for 2,555 days. They minus forbearance or deferment from the 2,555 days. They denied me the bankruptcy on the grounds they said I did not meet the requirements of the 2555 days. They used Deferments and forbearance dates to bring the 2555. Example they said I was in forbearance for a period of 1012 days. I believe they cheated on the dates…. Well first the law states:
“Per the terms of a Federal Family Education Loan Program (FFELP) Promissory Note, student loans are not eligible for deferment after default. The Promissory Note, under the section Borrower’s Rights and Responsibilities, Consequences of Default, states, “Failure to repay this or any FFELP loan may result in loss of eligibility for deferments.” A defaulted loan cannot be deferred for any reason. “Once a loan is declared in default, you are no longer entitled to any deferments or forbearances. You lose the right to deferment and to repayment of your account in monthly installments.”
They sent me approved forbearance payers claiming I asked for and was approved 1-20-1996, 10-20-1997 and other dates. Those dates amount to however; they claimed I was in default. So how can they have it both ways? They are counting dates I could not have gotten forbearance. By using those dates they said I did not qualify to file bankruptcy. The hearing I had with Higher Education on April 17, 2002 states I could not include them in bankruptcy because I did not meet the 7 year repayment requirements (2555). However, I did meet that date. In fact was in repayment for over 2555 because they never counted the 1994, 1995 and 1996. Moreover if I had defaulted on all the dates they said I did, then I could not have received a deferment or forbearance. They just cannot have it both ways according to the courts.
I worked for the state of CT as a Career counselor and ECMC student loan thieves garnished my work check for $380 from 2000-2005 a month…to the tune of $19,000. Well come to find out because they did not allow me to pay them direct…. bad lawyer again…the $19,000 was not deducted from the bill…. well some was, however, so unnoticeable…. I now owe them $38,000.
I retired from the state job 2005. With that they attached my $1,330 (a month) pension from the state retirement at the amount of $135 a month for 20 more years…not only do they get my pay checks they also take my income tax. ( I have paid to date well over $25,000 on an $8000)
I cannot tell you how sick I get over this. I have worked so hard all of my life to get a head and they just keep this hold on me. I served our great country in the Army; I am a Vietnam Era Veteran. I am not a deadbeat person. I pay my bills, however, this is a lie and so unfair to so many of us. My record is clean for paying my bills.
I have truly met the devil and it is Sally Mae and ECMC; it hurts me so deep what they are doing to me and believe me I have tried everything to get them off my back. But they are powerful…ECMC/Sally Mae pay congress and senators big lobby money, millions to get laws passed to hurt people like me
This is the biggest issue. They have convinced everyone that students don’t pay their loans. However, the truth and best kept secret is this: students not only pay what they borrowed, they pay 50-75 times more than they borrowed. Moreover, these so-called no-profit companies like ECMC are making billions of dollars off the money we pay on our student loans.
Students are paying so much in interest that we will never be able to pay the loans off. Therefore these crooks can say, see these student’s are not paying their loans off. When in fact we are paying them off 50 times over. I borrowed $8000 and have paid over $24,000 and not one penny went on my loan. And they say I owe $38,000. Someone has to see the injustice here.
Bottom line is this “borrowers are paralyzed by overwhelming student loan debt… At the heart of many of those stories was the almost mobster-like business tactics lenders imposed on their borrowers, specifically outrageous penalty fees and fines on late or defaulted loans.”
Student loan Borrowers “ lack of consumer protections”. Guess what prisoners and none USA citizens have more rights than student borrowers.
You have to admit something is wrong when, “Nearly a million people are currently not paying, or defaulting, on their loans”. Or so they say we are defaulting.
We have met the devil and it is Sally Mae and ECMC or what ever your collection agents name is…all the same…
Veronica
November 27, 2007 3:49 PM
aiuvictim said…
I attended AIU-L.A. The school has had accreditation issues for a long time and their final solution wich aslo helped them dodge many upcoming lawsuits was to close the L.A campus and offer a teach out program. I am in debt and never obtained my degree, can anyone refer me to information or any updates at all about options or assistance with fraudulent schools and how to get my money back? I tried contacting my financial aid lender- sallie mae- but they obviosuly don;t care about anything other than getting paid. Any information would be greatly appreciated.
September 7, 2008 1:27 PM
October 18th, 2008 | #
Most of us didn’t take these loans out in order to sit and rot with our debts.
I know I didn’t.
I am a young student, who receives no support whatsoever from his parents. Not for school, not for food, not for anything.
I work two jobs in order to live, and my rent alone for a one bedroom apt is 800$ a month. Despite working 2 jobs, I still need student loans in order to get through school. I will graduate in about a year and a half and in my profession will be lucky if I start out with 35k a year. Sure, that amount might be pretty great for someone who doesn’t owe a dime in loans and had their parents pay for education, but even earning double that would not be enough for some of us with these loans.
As of right now I have over 21k in federal loans. I also have 1 private loan from Sallie Mae which was initially for 11k. That 11k loan inflated in less than 3 years to 17k. And Sallie Mae estimates the payment on that loan to total 35k by the time I’m done paying it. 35k for a 11k loan. For one single loan. That is absurd. I feel tricked and taken advantage of. I was a young student, and still am, who had no means of a better life. No support from any family, and no one to turn to, I saw getting an education as an only option. Boy, was I wrong. When I see other people my age going to parties, going to bars, going to sports games, and I have to ponder if I can spend 8 bucks on a movie ticket on a Saturday night, it really makes me wonder how I ended up here. Everyone seems better off than I am.
This debt has devalued me. I do not ask for much and I do not drive a nice car or own nice things. I have an old couch in my living room from a thrift store and a table in front of it I borrowed from a friends family. I have an old mattress whose metal springs are outside of it. I own a salvaged car.
I am very devastated. Please go to studentloanjustice.org and post your story. Why aren’t the presidential candidates discussing this issue?! They’re talking about mortgage lenders and their predatory practices, what about these loans? What about Sallie Mae? Oh, that’s right, that’s because most of the people in the offices are actually PAID by Sallie Mae.
Most countries pay for the citizens to educate themselves, and here in the U.S. we struggle to pay for our education and pay 3x the cost of it. Some of us are going to die with these debts. .
I plan on leaving the country shortly after graduation.
October 20th, 2008 | #
It’s time we all say FUCK YOU to Sallie Mae. Unfortunately for her, education is an intangible object and can’t be taken back. I learned a lot with my Econ degree. I also became Bilingual, and leaving the country is becoming more and more of an option. My parents cosigned on 2 of the loans, but that only makes up about $400 of my 1100 dollar payment… for my private loans totaling now over $117K. The Federal ones I pay. My parents didn’t give me money or help me in college so why was their income considered? That’s bullshit. Advice for anyone considering college: Wait until you are 24 (I think that’s the lucky number) they don’t consider your parent income and you can qualify for all sorts of grants, scholarships, etc. Even if you’re a middle class white citizen like me with only average grades. I went to college so I could have options, not be forced into indentured servitude where I am compelled to a 60 hour work week, in a job that I hate, just to scrape by because of my loans. I will write my congress person, I will join and even help spearhead any group we can form. Furthermore, even if I win the lottery their is a good chance I won’t pay back my private loans on principle alone. Let’s play the game. Central/South America.. stay warm and loving for me.. I’m saving my nest egg and heading south. I am a waiter so go right ahead and try to garnish my wages, since the biggest check I’ve ever made waiting tables was <$100. I’m gonna attend flight school, maybe even grad school, but fuck you I’ll pay for it myself.
October 22nd, 2008 | #
Oh and if anyone has anything to share email me floyd4793@aol.com
October 22nd, 2008 | #
First I want to say God bless us slaves.
Sallie Mae is the Anti-christ.
My student loans have cost me my marriage. I’m $120,000 in debt and right now my education is obsolete due to where I live. These companies are vultures and I am ready to do something about this. If a speaker is needed for this group and it needs to be me… then so be it, but this legalized slavery shall end. We need to organize a display as mentioned by Levitt. We need to act. This has messed up my life and I’m not dieing because of this. These corporations get relief, then we should too.
October 22nd, 2008 | #
After reading through all this I cant believe this is happening in the US. SO here is another story much like everyone elses. I was the first kid to go to school in my family. I was sick of working low end jobs so at the age of 25 I went to school and got my degree in Design. I know make about 45K and recently bought a house. Thinking that I could consolodate my loans into something more affordable I was wrong. Sallie Mae told me that my private loan could not be consolodated. So here I stand with a 20K loan that I have no way of paying. I cant even afford the cost of living these days. Is there anything that can be done to help these situation if you own a home (Refinance or something…..) This is killing me and I dont know what I am prone to do if I lose my house. (Worked way to hard to lose it).
October 23rd, 2008 | #
I also plan on being screwed by student loans.
Currently I am in law school, I will probably make alot of money one day but with around $200,000 in student loan debt by the time I graduate, I will be living the poor life for the rest of my life. It makes me so angry that people in other countries get to go to school for free. It makes sense that you should get to if you pay taxes, but what do we get for the taxes we pay?
We get to pay into social security, a benefit none of us can get and one in which will probably not exist by the time we are old enough to get it.
We get to pay for wars in foreign countries. War on terror my ass. With all of the money we have spent so far on wars in the arab world, we could have solved the energy crises and have all of our student loan debt forgiven.
We get to bailout banks, the same people who have screwed us are the people our tax dollars are going to keep afloat.
The list goes on and on. I feel like I pay taxes everyday and get nothing in return. How are poor people who have to take out so much student loan debt to get ahead in this world? I am not going to pay any of it back. After reading all of these entries on this webpage, I say f**k it.
I can definately see paying for an education but not at the expense of my freedom. I will not bow to this modern form of indentured servitude. I will not be a slave to the same huge banks that have plundered the taxpayers.
I plan on leaving the country as well. I love the USA but my country has failed me.
October 23rd, 2008 | #
Elizabeth
If you REALLY care about this issue go to the web site “STUDENTLOANJUSTICE.org and read. Support Alan and his
fight to change. Student loan reform is badly needed.
Look at the sub prime banking mess and student loan industry
i.e. Sallie Mae. Many things are quite the same. Do ALL the
things Alan suggest, he really is trying to begin change.
Complaining will not help, action will create CHANGE.
October 27,2008
October 27th, 2008 | #
Anyone who wants to get involved in organizing a display, please email me SLReformNow@gmail.com
October 29th, 2008 | #
As with the rest of you I am in the exact same position. I attended Full Sail University where I was led to believe it was respectably accredited and on the same tier of schools as Berkley and MIT while specializing in recording arts and entertainment business. After reading fabricated magazine quotes and misleading placement statistics I enrolled. I graduated recording arts with respectable grades and was one of the top students in my entertainment business program while maintaining perfect attendance. However after graduation there were no real jobs available just internships. The schools motto is “we take your dreams seriously” and they took my dreams….seriously. All this and they were in the pocket of Sallie Mae. They pushed Sallie Mae before any other lenders and I am now in over $100,000 in debt for a degree that so far has been worth nothing. I have been through the harassing calls every 5 minutes along with my mother who co-signed. I tried to make a better life for myself and promised to provide for her as well. Now all I provide is stress and bill collectors with no way to use the degrees I worked and paid top dollar for. I have now found a retail job that has tuition assistance so I have been able to re enroll in a traditional 4 yr university. While trying to live and going even further into insurmountable debt I work to live and go to school, all while Sallie Mae will soon begin to garnish my living wages and make it even more difficult for me to survive and try to overcome this incredible burden. I do see people trying to make a difference and they are; http://studentloanjustice.org/ and http://durbin.senate.gov/contact.cfm. If we all voice our hardships to these outlets maybe we can eventually be heard and changes will be made. If not…I will see you all in Mexico! Audios mi Amigos!
October 29th, 2008 | #
$150,000 in student loans. 2005 Law School Grad. B.A. in Business. Only source of income for the past several months, charity of boyfriend (whose business stopped making any money in January) and my credit cards. Current credit card balance: $35,000 rising by $2,000/month. I live on $200 a month, the rest is credit cards and student loans. Can’t get job as attorney, no jobs for people with no practical experience, did not graduate top of class, degree from non-elite school. Stupid me. I wanted to get out of the secretarial pool. Well. I’m out and right in the unemployment pool. Can’t even get a job as a secretary. Why? Over educated. Can’t get a job as a cashier at home depot. Same reason. Here’s my life: depression, anxiety, feelings helpless, worthless, the big L. My life went from okay to crap because I wanted to better myself.
October 29th, 2008 | #
I went to the below-listed web site. I calculated my 160000 dollar loan amount against my 41000 dollar yearly income. My estimated payment would drop from over $1000 to approximately $250!
This was emailed to me from: http://www.ticas.org/index.php
The Department of Education has released the final regulations that govern the Income-Based Repayment (IBR) and Public Service Loan Forgiveness (PSLF) programs.
Over the summer, many of you joined the call for fair treatment of married borrowers in IBR and timely confirmation of eligibility for PSLF. Unfortunately, the final rules are not a satisfactory response.
Now it’s up to Congress to eliminate IBR’s “double-counting penalty” for married borrowers. We’ll work to make that happen in the coming months and let you know how you can help. As for PSLF, the Department acknowledged the need for more clarity about the process but stopped short of committing to annually certifying eligibility. We’ll keep pressing the agency on this issue and make sure the next administration knows it’s a priority.
The new rules also include several important clarifications and changes. One is that IBR eligibility will be based on the amount you owed when you first started repayment. This is good news for most borrowers already in repayment, since their original debt level is likely to be higher than whatever they owe when they apply for IBR. However, borrowers whose debt rose while in repayment may not benefit from IBR as much as they hoped. We have already updated the calculator at IBRinfo.org to reflect this clarification and will be making other updates to the site this week. We’ll let you know when they are complete.
Try the updated calculator
http://www.ibrinfo.org/calculator.php
See the regulations in the Federal Register
http://edocket.access.gpo.gov/2008/pdf/E8-24922.pdf
October 29th, 2008 | #
Bill:
I had that dream that I would make a lot of money while I was in law school also. However, I don’t make enough to pay the student loans. I incurred over $40,000.00 in interest alone within two (2) years of grad. We have to take stand I will check out Elizabeth’s recommendation but if that doesn’t work then those of us that are really serious about this can put our education to work and take Sallie Mae (and her friend’s like access)down. ALso, I agree that this is the school’s greedy fault as well. If the school didn’t charge so much then these private loans would not exist. We should take the school on as well because I think there was a matrial misrep and fraud in the inducement. In addition, Sallie is going to claim unjust enrichment if we do void the contract and we will still have to pay. However, the judgment interest is bound to be lower then the privae loan interest. Lastly, I cannot wrap my mind around justifying that anactual contract exists when at the time I entered into the contract, I could not possibly have known what I would be able to pay back and thus how was there a true meetings of the minds when Sallie knew I wasn’t going to make lots of money even though I didn’t because they already have 1000’s of people in default under the same loan terms.
October 30th, 2008 | #
Like others here i share a similar story. I made a decision to go to college because i wanted a better life for myself and my family. i could not afford school so i took out loans. Yes i knew the loans would have to be paid back, but the prospect of one day getting a good paying job and having a career was covincing enough that i could afford to pay back the loans and live a comfortable life. at least that is what i thought.
After college i was not able to settle into a career because most of the employers who had interviewed me responded that they were looking for qualified individuals with an advance degree or who had some work experience to go along. i was pissed and discouraged but i decided to further my education and i enrolled in graduate school. I took out loans again, this time both federal and private student loans. Graduate school did not go well, personal issues became prevelant, and i left.
I immediately started job hunting and i found work. Even though it was not what i wanted, it was a start to making money and repaying my debts. At first i was making enough to pay the bills and a little extra over to save, then my hours at work were cut and i was not making enough to pay the bills. I did talk to the creditors at that time for my car loan and private student loan but it was not a long term assistance.
The car creditor said they would pursue their rights after 3 months if i cannot make payments and the private student loan creditor gave me two six month terms to forebear. Distraught, depressed, and not knowing what to do i decided to take out payday and personal loans to cover my expenses and apply for credit cards to help with extra costs. Unfortunately, i could not keep up with payments on the loans and credit cards. My car got repo, and i was being contacted by collection agencies which lead to lawsuits and garnishment orders. I lost my job because i needed a ride to get to work. The bus routes were not of any help. All this time i went out looking for another job but i never got hired. i even applied at Mcdonalds. Can you imagine that.
I tried debt settlement programs like the ones you see on tv or when you search on google. These programs did not work for me. I could not afford to pay the fees or the monthly payments that were proposed, and they could not help with all my debts or help with the lawsuits and garnishments.
I found work which i was and still am thankful for, after months of being unemployed but the lawsuits and garnishments still followed and there was no getting around them. My only recourse was to file bankruptcy because i was not bringing home enough again to pay the bills and my debts were too much for me to deal with. At that time my wages exempt were 175.00, and until the recent minimum wage increase the exemption rose to 196.00. But even bankruptcy has its limitations in the form of student loans whether federal or private, and other types of nondischarge debts.
As of now, i am still in the same job, and i am still being served recurring garnishment orders, and i am paying a lawyer for bankruptcy.
The bankruptcy will eliminate all my debts except for the student loans which amount to currently 100K for federal and 15K for private. The private student loan creditor has a garnishment order in effect, and i will have to start paying the federal student loan soon because i have already exhausted the deferment time limit or continue to apply for forbearance until i am told i cannot use forbearance no more and let the interest increase.
I have no car, no savings, very very very poor credit, and only have enough in my pocket for the bus fare every week. I barely keep the bills paid. I applied for food stamps and because of my earnings i am only entitled to recieve up to 25 dollars a month. I still cannot find another job to help with some relief because of my already messed up credit. Employers now tell me based on my credit i am not a favorable candidate.
After bankruptcy, i will still have no car, no savings, no credit, no tax refunds, and will still be garnish for the private student loan and soon to be garnish for the federal student loan.
All i ask is, if anyone from Congress by chance happens to come across this website, an opportunity to work and take home a full pay to make a good living and find relief for student loan debt.
I understand there will be people saying why take out the student loans if i cannot pay them back or that i have made irresponsible decisions to incur debt without thinking it through. I am not denying i have debt problems and i did not make good financial decisions. I do need help like others here, and only through an act of Congress can such relief be found. The worst of it is the student loans which will never be paid in my lifetime. My intentions for taking out the loans were to better myself and live a prosperous life.
I have thought about alot of things like moving back in with my parents or quitting my job when i cannot even bring home a full pay due to a garnishment, or asking family members for money for which i could have done. But it still remains this is my debt and that all these will do is offer a temporary relief to my already debt problems.
Please do not mind my sentence grammer or composition, it is insignificant of my worries when in front of me is a never ending debt of student loans.
This is my story.
October 30th, 2008 | #
I am giving everyone an update. Sallie Mae has just announced as of last week they will be offer settlement amounts to people having trouble paying back the debt. So if you own a house already this is great news. You may be able to refi your house to pay off your debt. I am working with my bank right now to cover the 20k this will open up alot of channels in terms of monthly payments.
November 3rd, 2008 | #
I had my loans consolidated and I called and verified that all my loans had been reigned in and I asked for a list of the loans that were incorporated into the consolidation. One loan was left out. Did not find out about that one until just now. I was looking into my credit trying to figure out why I was being denied any kind of credit at all and I found out there was one loan that was marked as defaulted. I called and was told they did not know why or how that happened. My credit it ruined.
To make matters worse I was promised a job teaching in a bilingual program but I was told I had to get my extension certificate which is an addition 9 credits. I could not get another loan and I cannot pay. I attempted to incorporate the loan into the consolidation and was sent the wrong forms to fill out.
What happens when they make a mistake like this? My interest rate has soared and my credit is abysmal. I had to consolidate and defer as I became very ill with lyme disease and was unable to make payments for a period.
I hate Sallie Mae reps..they are the most ruthless disgusting asses I have ever had the displeasure of dealing with.
November 9th, 2008 | #
I can’t believe how ridiculous a situation many of us college grads find ourselves in. I always knew that I wanted to go to college. I’m smart, learn fast and absorb info like a sponge. The government said that my mother and step father made enough money to pay for my college: not taking into accoutn that my mom had her own student loans, 3 other kids, a house, was trying to pay off old credit cards etc. The financial burden of education, though stated by the gov. is held by the family, fell on my shoulders.
I worked all through college. However because I went to school for journalism and was very active in the field, my 15 hours a week at the grocery store…on top of 15 to 18 credit hours, on top of being Assistant News Editor at the school paper (one of the nation’s top award winning college papers) I had to take out loans, and because the gov would not help, I have 4 years worth of private loans. On a fluke I landed a good job…totally unrelated to my field but my education plays a big role in my abilities. But I had to move back home with my parents because after my student loans ($500 a month) 1 credit payment, phone, car insurance etc, I had no money left. Then 7 months later (about 3 weeks ago) I was offered a great promotion and 14,000 more a year and also meant relocation. But guess what, I still can’t live on my own because after taxes and all the money I pay to student loans prevent me from affording an apartment. I’m looking into taking the spare room in my office manager’s house.
We need to make our voices heard because this is ridiculous. I appreciate my education and understand that my debts must be repaid but at what cost? I make 34,000 a year 2 years out of college and can’t afford to live. If I want to buy a pair of work pants, it comes out of my food money. I think that student loan holders should get tax breaks. I’m not a financial expert so I don’t know 100 percent how that would work to keep millionaires from receiving such breaks. I want to repay my debt, but I also want to afford to just live. I say we contact our congressmen. We are the future and decide their future through the ballots—and Obama’s election proves that—if enough of us call for change, maybe relief will finally come and we won’t have to be the working poor.
November 11th, 2008 | #
People please read this from Levitt…
Levitt says
Hi Everyone,
I’ve worked on The Hill and writing/calling people in Congress won’t get the job done. Members of Congress (MCs) get treated to parties and spend quality time with those who run the companies you have referenced.
If you want to effect change, I suggest you organize a spectacle the media will want to write about — if 10,000 showed up to an event at The Washington Mall, for example, that would draw attention to the cause. You must do something people can see and you must spark moral outrage for your cause.
Most importantly, you need to be able to propose something specific you want DONE. Give the MCs a task.
In terms of utilizing the Web, start and publicize an online petition. Get 100,000 signatures, print them out, and provide to each MC. That is something people can see.
Finally, compare the cost of what you want to the cost of wasteful projects such as the Bridge to Nowhere. You’ll get support.
August 29th, 2008 | #
November 11th, 2008 | #
Once again SLReformnow@gmail.com
November 11th, 2008 | #
I am in same boat as everyone one here. I owe over $100,000 for film school with Sallie Mae and only after 6months of graduation, they are asking for $1700 per month, which there is no way i can afford and dont know what to do about.
But what I would like to do is make a documentary on this topic as I feel my and your voices should be heard. All of you have amazing stories and I would like to document each one and put together a story that will be heard loud and clear. And combined I think we can do it. Please contact me at solomonblank@gmail.com if you would be interested in doing so…
together we can stop these bastards!!!
November 11th, 2008 | #
I think we should also send a copy of this message board with a short letter detailing our own stories to our congessman on the 1st and 15th of each month. The private loans must be dealt with. We should also send them to Obama since he wants to distribute the wealth, then he can distribute the debt as well. Let’s send them to our state senators as well. If we become as big of a pain to them as Sallie is to us, then maybe we will see something done. I am tired of hearing that they want to make things easier on future students. What about past student’s with major debt? A $2,000.00 interest credit on our taxes does nothing for those of us with this kind of student loan debt. We should pay our original debt without all this interest or with a 2% fixed interest and based on our disposable income.
November 12th, 2008 | #
I would also agree that the banks and universities screw us in the short run, however in the long run I think we will be way ahead of the game.
First I will describe my situation with student loan debt. I went to a great school it was private and quite expensive. My private loan after consolidation through Citibank was $90,000, my federal loan after consolidation was $22,000, and some little loans that I received from the school is about $5,000. This equals about $117,000 that I have to pay on each month. The minimum payments equal to be about 1250.00 a month.
I don’t have a problem with paying this back, however my loans are for 30 years, and I pay at least on my private loan through Citibank only $4.00 a month towards my principal. How fare is that?
I get two paychecks and one gets gobbled up by this student loan burden. The other is for regular bills, car, insurance, gas, food, etc. My fiancé pays for rent with guess what student loans, since I can not afford to pay anything else, and we usually try to go grocery shopping every 2 months.
So my point being is yes I have a great job, yes I make probably less then the person sitting next to me who didn’t go to college, however how much will they be making in 10 years? In most cases the will be making roughly the same amount. The person with the degree will make more at the end of those 10 years and can move up the corporate ladder faster and if one chooses to get a masters degree that person has it made.
We chose to go to college because it will get us a head in the long run. College and the life after college for the first 10 years will be difficult; it is a challenge we should all have to face. The people who do not have to face this challenge get bailed out by mommy and daddy paying off their entire student loan debt. Who ends up being the better person in the end?
So yeah it sucks, but we need to deal with it or step up to the plate, use that degree and change the way financial companies abuse us from making so much money off the interest rates.
Just my two insignificant cents.
November 14th, 2008 | #
I just happened to come across this page because I have ben researching possible bankruptcy due to my enormous private student loan debt. Yes, I made a really bad decision in taking out over $70k in private loans for my graduate education at a private school in which the program alone was $54k. I was led to believe that my private loans could be easily consolidated into one payment over a longer span of time. In reality, you can no longer consolidate private loans. With a credit score of over 700, I was denied by AES (originally approved then received a letter that I was denied). Citibank is the only bank I think that offers private loan consolidation, but I was denied with them for having too much debt. How ironic. I am out of forebearances with both AES and Sallie Mae.
I was out on maternity leave for 3 months and when I went back to work, my job was cut. I am living off of credit cards right now and soon will be maxed out. My husband’s job does not cover all our student loan payments. We were seriously contemplating bankruptcy, but now I fear we cannot because our private loans would be the reason for filing and it looks like “unsecured high interest student loans” cannot be discharges or even worked into a chapter 13 repayment for 3-5 years and discharged after that. A lawyer actually told us we would be better off abandoning all our debt and moving to another country instead of filing for bankruptcy since bankruptcy would not get rid of our student loans.
Yes, people out there may think I am am some sort of loser for not being able to pay my private loan debt, but like many of out there, it has become too much to pay after a job loss. This government is bailing out the companies who put us all in this mess to begin with by freely lending money to people who obviously could never pay the money back. When is the bailout for consumers going to happen? Even if the bankruptcy laws are not changed, why not force Sallie Mae and AES to lower our interest rates and give 25-30 year consolidations on these rediculous high interest private loans?
November 18th, 2008 | #
OPTIONS FOR US ALL:
1. Please organize and link together on YouTube. There is no greater voice. We can build a community and send messages directly to each other via YouTube. You don’t need to appear on camera. Be creative and just upload a video telling your story.
Express yourself however you want but be brief and focused. Disable comments and voting but allow video responses. Use as many tags as possible so it will appear in as many searches as possible.
2. Make fliers in your neighborhood nears universities and colleges telling them to do that and to link together. We need as many voices as possible.
3. Write your senators and representatives. Tell them we are building a movement and we will not just go away. Tell your story. Send a photo of yourself reminding them that you are an actual person and not just a name.
4. When enough of us are linked together we can create an online petition or a “letter drive” to flood congress. If you do that, tell enough people, continue to look for others on YouTube, we WILL get some relief.
Do it right now. However you want. Put your story of this nightmare on YouTube and link with others and let’s see how many people we can get to demand the attention of congress.
November 23rd, 2008 | #
I agree the above stories are comforting as I too am in the same boat. I was the first person in my family to go to college and of course I wanted to go to a private art school because my public high school experience was so crappy that I was willing to take the risk to finally be able to learn an practice my passion in life.
I graduated in 2002 with $95,0000 of debt with a consolidated interested rate at 10%, my minimum payment a month is $800! I thought for sure I could find work in my field, I meen I studied interior architecture no scuplture! Since then I have been working in my field for about 8 years and have taken 3 major certification exams all costing about $1000 each plus annual professional membership organizations which all cost $500 a year. I have crossed all my t’s and dotted all my i’s in regards to making my career work for me and yet I make $48,000 a year…I live in San Jose California ‘Silicon Valley’ and can barely pay rent and buy groceries…I do not go out to movies, buy nice clothes, I don’t even have a tv or even go to resturaunts….
I am 30 years old now and when I think of my parents who are 50 now, they had a house, two cars, a child and my mom was a stay at home mom. My fiance and I have set back our wedding for two years, both still thinking we need more school, rent a one bedroom apartment, have loans on our cars and are still eating top ramen!
Universe help us!
November 24th, 2008 | #
I’m so glad I found this site.
There needs to be a forum and chat room created so we can all band together. Any suggestions where we can do that?
I’m in the same boat as everyone else. I just lost my job and was forced to drop out of college. I’m actually going back to a 4-year college just to be able to defer the loans. Guess what though, I have to get another private student loan because it’s too late to apply for FASFA.
I’m worried about paying my rent but my mom cosigned on these loans and her credit will be destroyed if I do nothing. Student loans should absolutely be allowed to be claimed on a bankruptcy. That’s the exact legislation that needs to be passed, period.
I just have no idea what can be done or what I can do to get things moving. We all need our own forum to converse and give news and advice.
November 25th, 2008 | #
I wanted to also mention that I checked out that amendment that was proposed by representative Davis of IL. Only 8 republicans voted for it. Democrats were heavily in favor of it. Now, with a democratic house, senate, and president this is absolutely the time to start getting this amendment added or some other peice of legislation passed.
The cards are in our favor right now and alot of people would really be helped if we could do something here.
November 25th, 2008 | #
I have a lot od loans to, however, for those of you who went to school, took out loans and have not been able to get a job.. there is a way out for you. Especially, if the school closed or the certificates that they offered were a bunch of crap. I helped my brother get out of a situation like this one. It’s called an “inability to benefit” and you can have your loan discharged and you will owe nothing. Do a google search for “Fasle Certification, Inability to Benefit” and you should find the forms you need to send in.
November 25th, 2008 | #
We need to do something.
With a majority of democrats in house and senate we could get something passes for sure. I wish we all had a forum to get together in because this is pretty impossible to organize.
November 25th, 2008 | #
Tom,
I don’t think what you said is insignificant at all. We have got to believe that we can see the other side of the tunnel. While I sometimes wish I was a nurse or welder (can’t outsource those!), I believe going through this experience will give me the determination I need.
Nobody ever thinks a movement is possible at the outset. It just takes one single person to offer a credible strategy and then many people will support that person. I’m not political, but think about this: OBAMA KNOWS THE YOUTH SUPPORTED HIM IN DROVES, AND THIS IS A PERFECT TIME TO CONTRAST THE PLIGHT OF OUR NATION’S YOUTH WITH THAT OF THE COMPANIES WANTING A BAILOUT.
November 29th, 2008 | #
Here is my suggestion:
File Bankruptcy for any credit card and other debts allowed.
Concentrate only on Student loan repayment
OR
Don’t pay anything to Sallie Mae.
Let it default.
Have them garnish your wages, quit your job, they cant garnish a wage anymore.
Live with parents or similar.
If everyone did it together, the system would collapse.
Imagine if EVERYONE (I mean everyone) decided to not pay taxes anymore. What would the government do?
God is the only person that you owe something to.
There is no money in heaven, no rich, no poor.
Don’t let Sallie Mae dictate your life on earth.
You cannot go to jail for not paying a loan.
December 3rd, 2008 | #
does anyone have anything new? there is no way i can afford a 1500 student loan payment. i am screwed.
December 8th, 2008 | #
OMG I am somewhat relieved to find out that there are other people in my same situation! I graduated from college in 2007, and I currently owe 44k in federal loans and 130k in private (after they tacked on all the interest charges! i did not take out this much money in loans!. My private loans are through Sallie Mae – which was the only lender my school would go through. I am getting no help from anyone and my payments are about $1400 per month, that’s 80% of my paycheck every month. I feel like I’ve exhausted all my options. I tried EVERYTHING. I don’t “qualify” for any help (ie.deferment, forbearance, consolidation) and I’ve tried getting a second job, but even with that pay it’s not enough. I’m afraid I will be living on the streets if something doesn’t change!!!! Thanks for letting me share my STORY!
December 9th, 2008 | #
So, what can we do to get some type of movement going?
The banks, car manufacturers, and home owners are all getting bail outs. What’s wrong with allowing private student loans to be dispersed in chapter 7 bankruptcy.
Now that there is soon to be a logical president in office, perhaps the democrats could pass the bill. It was the republican majority that voted down this amendment after all.
December 9th, 2008 | #
Considering how badly the financial sector messed up, I think the lobbyist are kinda SOL right now. They had a HUGE impact on how reuplicans voted on that Higher Education Act amendment.
We should get a forum going where we can get a strong core group of people together. I don’t know much about how to even begin to try and get them to pass a bill allowing private student loans to be added to chapter 7 bankruptcy.
Anybody have any ideas?
I worry that students are too busy trying to pay off their debt and nobdoy is going to alert President Obama.
December 10th, 2008 | #
Transfer your Loan to a Credit Card – If you own a credit card that allows the transfer of existing loans to it and it has low or reasonable interest rates, then do the transfer. This option is similar to consolidating your loan, only much more convenient and advantageous. You not only pay your student loan instantly, but you also get to pay lower interests. If anything goes wrong, such as if you were to go bankrupt, you can file for bankruptcy and have the loan waived or forgiven.
This might be a solution to some of our loan issues
December 11th, 2008 | #
Michael, I think you are on a good track. I have been reading this web site for the past year and there is so many good, but it stops there. I have asked people to join with me, so Michael just maybe we can get something together. My son and I are on the way to our lawyer to try to stop AES from garnishing his wages.
December 17th, 2008 | #
http://www.petitiononline.com/endloans/petition.html
http://groups.google.com/group/studentloanjustice?hl=en
Check these out.
SLreformnow@gmail.com
December 17th, 2008 | #
It seems to me that private student loan lending was every bit as corrupt as the mortgage industry during the same time frame… We signed on the dotted line and money came practically the next day. Did I know I would become a single mother without a job in a terrible economy? NO, I didn’t. Despite what those bank reps on the phone say, there is no shame in not being able to afford to pay your bills. There is absolutely shame in having the money and choosing not to pay, that is an entirely different story. It just kills me the phone calls and how they’ve increased as we get closer to the holidays. I will look for the You Tube group and add my story. I’ve got a good one as well. Use to be an upwardly mobile, fiercly independent New Yorker with a good credit score. Now I’m practically homeless – if it weren’t for the kindness of others – and an unemployed, without health insurance, single mother – my daughter’s doctor’s appointment cost me $150 bucks the other day – so much for Sallie Mae! Where is the help for the consumer? And then Citi tracks me down on the land line where I’m staying and says “well, I see you’ve been able to make your car payment” – right, and if I didn’t how would I look for work and ever get back on my feet again? duh. I should look into leaving the country it seems.
December 19th, 2008 | #
We really do need to get this going. I guess we need to find out how these things get started in between our long work days. The alternative is to try and get a personal loan and pay your loans with that and then bankrupt the personal loan. However, most of us do not make enough money to qualify for a loan like that. I feel helpless. I don’t even think this qualifies us to go ask the consumer advocates for help in lobbying.
December 19th, 2008 | #
Amanda-Whenever I go on line to apply for forbearance or deferment, I never seem to qualify. But, at least so far, when I call and speak with a real person, it seems to work out. It seems that with each loan, an individual may receive up to five years of either deferment or forbearance. I do believe that those folks working the lines at the other end realize the tough economic times we all face. Good luck to you.
December 20th, 2008 | #
Hi All,
Wow, thank you for this site. Although it does not help my current financial situation, it helps to know that there are others experiencing this. I am exhausted trying to manage this problem, with what seems to be no end in sight. I keep thinking that something along the way will change, that I just have not looked in the right direction yet. I continue to search for an answer, and if I find one, I will let all of you know.
Best of luck…
December 22nd, 2008 | #
I feel kind of relief now that I found this webpage. I thought I was alone. I have over 170k on private student loans to pay, and the amount just keeps getting bigger and bigger. Right now I have to pay $1480 per month and that’s more than 70% of my salary! AND I’m about to get fired (contract ending soon and with the way the economy is right now I don’t think they’ll renew it). I’m so depressed all the time, and the bank tells me it’ll take me 30 years to pay. wtf. I wish there was something I could do
December 31st, 2008 | #
I went to law school. Don’t do it. 100k in debt and all I got some crappy job as a public defender. I eventually defaulted on the loans and now owe an extra 40k in penalties. The money comes from the government, goes to rich chums of the government, then gets loaned out and the government’s chums make their money on the defaults. If the lenders don’t make money, it doesn’t really matter because it was never their money to start with. and of course they have bankruptcy protection, which we don’t have.
I told my last debt collector the truth. The truth was that I took the last 4k I had and bought shotguns and ammo with with it. I offered to drop those off if he gave me his home address, but so far they have not indicated na interest in those items.
I’m just going to leave the country for a year or two. Either things will start to get better and I’ll come back or they will get worst, in which case I’m in the first wave of ex pats. It’s always better to be first.
January 1st, 2009 | #
I am determined to leave this post. I just wrote a long dissertation and was unsuccessful.
For those of you who just graduated or are going to graduate who are lucky enough to stumble upon this information, please be very careful with any of your repayment decisions. Early on your lender may offer you a host of solutions for reducing your private student loan payments…this is a one shot deal….private student loans are strict and don’t give you all the options like federal loans, so please be careful. Even if you have to pull teeth to pay…it may be worthwhile to pay and decline the offer of the reduction in payments because there may come a time when you really will need the reduction, so PLEASE BE CAREFUL. This was one of the best decisions that I have made yet. I declined their continuous offers of a reduction, even though I had to struggle over the y
ears to pay the bills. There came a time when I really needed the price reduction and that option was still available to me.
For those of you who graduated from prestigious and not so prestigious schools and those of you who are licensed practitioners (i.e., doctors, lawyers) and are facing default…please consider the consequences of defaulting and don’t let it happen. Although it is unlikely you will be able to have your loans discharged in bankruptcy, please consult with a bankruptcy attorney about your particular circumstances, bankruptcy may offer other options that you have not thought of. I have been doing some preliminary research and what I have learned is that filing bankruptcy and then including the private student lender halts all further action that may be taken against you. (please confirm this information with a bankruptcy attorney). Don’t assume you know everything and don’t right off bankruptcy as an option before speaking with a bankruptcy attorney. I have been told that these lenders can go after your license if you default and if bankruptcy can save your license and offer other options…I guess it would be wise to speak with a bankruptcy attorney.
I have been in repayment for 12+ years now and even though I am not in default…and hopefully won’t be….I think it is important to look into things and be as prepared.
Again, don’t rely on anything that I have written…please check with a professional in your state!
January 4th, 2009 | #
I owe over $185,000 in student loans. I pay what I can. One word of advise: do not use the phone for any conversations regarding your student loans. Insist on all correspondence in email or letter form. You need a record of every word said, and the phone is dangerous to YOU. If they call you at work, refuse to talk. Do not return phone calls (write letters instead). Protect yourself.
January 4th, 2009 | #
I reread what qualifies as a deferment and I think you all should go look to. Derek, I am a lawyer like you and have 200k in loans with a 50k a year job. Do the math, this aint gonna work out. Here is the thing, as a public defender if you pay your government backed loans on time even on a reduced rate for income to debt ratio(they will adjust for this) for 10 yrs then your federal loans are forgiven. As for private loans, you can either go back to school and major in basket weaving (I am going to community college next semester I think)you can put your private loans in inschool deferement. The public defenders office probably has tuition assistance for this. Also, it appears that if we put all our loans together and our monthly payment is more than 20% of our monthly take home then we get an economic deferment. Can someone read this on the salliemae website under deferments and forebearance and tell me if I am reading this right? Sallie Mae’s staff will be the last to tell us that this option is available. They chage $150.00 every three months just to put my loans in forebearance. Everyone else read this too and we really do need to get organized in a movement on this before or as close to Obama’s economic stimulas package is finalized.
January 6th, 2009 | #
My advice is if you go into default, or know that you will go into default, STOP PAYING. Never pay them another dime. Once they hit you with the penalties, you will never get out of debt. Also from my own experience the loan “rehabilitation” they try to sale you is a SCAM. 100 percent SCAM. Do not do it!!!
I paid 400 dollars a month for 9 months to rehabilitate the loan, at which time it just got sold to another credit company and they added 38k in penalties. The rehabilitation scheme is just that a scheme, to get you to make some payments, that go mainly to the bill collector. None of your debt will ever be paid down.
Don’t make the payments… bottom line.
January 7th, 2009 | #
It’s kind of ironic that Education Finance Partners filed for chapter 7 bankruptcy in December 08. I guess what’s good for the goose isn’t good for the gander?
Also, http://studentloanjustice.org/ is trying to do something to help student borrowers.
January 9th, 2009 | #
MELISSA #21 I hope you read this. Just in case you weren’t aware….. While looking for a way to deal with my 200k in student loans (two daughters graduated at the same time!)I noticed that many of these banks are very forgiving with teachers. They have several options, some will forgive all your student loans. Like student teacher scholarships, you pay back the loan by working in an area that is in dire need of teachers. Usually not in the best neighborhoods though. I’m not sure how long you’re obligated to teach there but what a load off! Anyway, this far down the road of student loan he** no doubt you are well familiar with these programs. Just trying to help! Just had an idea..Class Action Suite anyone?
January 12th, 2009 | #
It sickens me that so many people who are trying to educate themselves are the ones that are “condemned” to high education costs, exploitive private school loans (greedy companys like Sallie Mae), lower wages from a f*&^% job market and a lifetime of gloomy debt. Meanwhile, the government panders to a particular class of people who don’t pay for school and get special treatment for employment. Anyone guess what my demographic is?!!!
January 13th, 2009 | #
I was afraid I was alone in the terror I face. I was a non-traditional student (over 50) when I went to school. I graduated Magna cum Laude. (Older people do have a few brain cells left)– After a difficultand costly divorce I was left with virtually nothing except $45k in retirement funds (which are worth half of that now)and $10,000.00 in savings. I decided it was time to get an education and improve my prospects for better employment. So…I utilized all that was available to me to get that education…and now I have debt of about $75,000.00 in student loans. — I’m now beginning to realize that my choice to get an education was not a wise choice. Since I am over 50 the job market is limited. I spent the remaining amount of my savings on trying to find work. To my surprise…one of the obstacles I face is….age discrimination. Not because employers think older folks can’t do the job…but first and foremost…health insurance premiums are higher than younger counterparts. Additionally, employers are seeking people they can employ for the smallest salary possible. They believe older folks will not be happy with entry level salaries. — Ironically, from reading your comments today…being older is not the only problem student loan recipients face in the job market. Employers are not interested in how much student loan debt we need to pay off….and salaries have comparatively declined in relationship to the cost of an education over the last 10 years. — Whoever said that the debt incurred to get an education as opposed to the benefit is upside down, was dead on. — Education is BIG BUSINESS. It is no longer designed to educate, but is dedicated to sucking out of our society the biggest buck possible. It is the most flagrant example of the “love of money” our country displays. — In the end…it doesn’t work. — But…we have adopted the “instant gratification” rule in our country…that I’m afraid even President Elect Obama will be hard pressed to change anytime soon. ———- I had been stuck with temp jobs…and contract work. (Employers want to escape the high cost of health insurance…so they hire, in droves, 1099 workers.) ——- I did find a $12.00 an hour job after 3 years of tortuous searching for work. It is not the most pleasant job…but it does offer insurance for now. — At $12.00 an hour though…and with a car loan that is also upside down..I haven’t been able to make the full payment of the ever increasing private student loan payment – which is now $3 shy of $300.00 a month. I feel sick and anxious about how I’ll ever find a way to pay the upwards of $800.00 a month I’ll have in Federal Loans now that I will no longer qualify for an unemployment deferral. — I’m not sure how my employer will handle a garnishment. Sometimes they’d rather dump the employee than deal with the paperwork. —– I too fear being jobless and homeless. – I most DEFINATELY would have been better off to stay away from a higher education.
January 16th, 2009 | #
I am 64 k in debt and am in tears I pay 584.00 a month. because there is nothing to offer for me I make 350 a week and am barely able to make my house payment, and no good job to go to because the job market sucks. I cant even walk into a resturant and get a job as a server when you used to be able to just walk in and start the next day. WTF how can these stupid politics sit here and read all these commments and not help us out. MAYBE OBAMA WILL do somehting to help. GOD I HOPE SO…
January 20th, 2009 | #
I am also 65K in the hole. Sallie Mae will have sucked $165K out of me in 25 years.
I just graduated, after 7 years of school, Im getting married, I should be frekin happy about my future right? Not really. Im so anxious and depressed. I am trying so hard to find a solution to this $800 a month burden. I don’t know what to do! I have been in tears since I got my first bill. To top it all off I lost my first job out of school after three months because it was out-sorced to india, so much for getting experience in a crappy economy.
I feel like the government is making this last on the list of to-do. I can’t believe that hard working students are homeless and starving so some fat lender can sit up in their ceo office and eat caviar. It just doesn’t seem right!
It’s not that Im lazy or Im trying to find an excuse for someone to pay off my loans, it’s just that I don’t think that loan companies should be so demanding of the money with out a reasonable payback plan. It isnt fair to demand money from me when I can’t even get enough experience to make $12 an hour.
I am def not sending my kids to school. School was the biggest mistake I ever made. I could have worked my way up through a company all those years and could have been doing so much better on my own now. I never thought I would be jobless and without health benefits 12 months after graduation.
Something needs to be done about this!
January 24th, 2009 | #
So has anyone done the “rehabilitation” process successfully? Has anyone paid their 12 payments and then had their credit cleared of the default and then picked up monthly payments again? I need to know if I should stop paying. If I am just throwing money away I want to know. My 12 payments will barely cover the penalty they put on me but that will be the last penalty right? Any assistance would be greatly appreciated. I’m not sure how to handle this. When should I stop letting them take out payments automatically from my checking account?
January 27th, 2009 | #
Kristen you can’t expect anyone to do anything if they don’t know the scope of this problem.
In your case I would argue for lower payments based on hardship.
http://www.congress.gov, http://www.house.gov, http://www.senate.gov are places to find your local senate and representatives from your state and get their contact information.
DON’T write your problems here. Send it off in letters (email is ineffective) to the people you elected to office. Change takes many people working together. Start writing those letters. Keep them short and to the point. Mine go out tomorrow.
If you are hopeless, depressed, scared, or angry, you are not alone. We can get through this. You must write. If you do not write then congress cannot possibly know. Tell them.
January 28th, 2009 | #
WE SHOULD EACH FILE FORMAL COMPLAINTS WITH THE DISTRICT ATTORNEY IN OUR AREA AND THE ATTORNEY GENERAL. PERHAPS IF WE ALL FLOODED THEIR OFFICES WITH REPEATED COMPLAINTS AND CALLS, THEY WOULD HAVE TO LOOK INTO THE MATTER.
I AM SO SICK OF ALL OF THIS ALREADY, I ABSOLUTELY HATE THIS CAPITALIST CORPORATE GREEDY SYSTEM THAT COMPLETELY IGNORES OUR STRUGGLES.
I CALLED THE ATTORNEY GENERAL FOR NEW YORK AND HE TOLD ME THAT THE BEHAVIOR I WAS DEALING WITH MIGHT BE CRIMINAL AND THAT I SHOULD FILE WITH THE DISTRICT ATTORNEY.
IT CANT HURT AND IT CERTAINLY MIGHT BE MORE PRODUCTIVE THAN DOING NOTHING.
February 2nd, 2009 | #
hope for the hopeless. i did as you suggested a few months ago. I called senator clintons office when she was senator and i called her emergency line. i spoke to a geri shapiro who told me they would investigate. i was then contacted by an ombudsman who handled my case and suggested i begin the post graduate classes i needed in special education in order to get a job teaching full time. well i started the classes and now i am being charged 4400$. The consolidation she told me she would personally oversee and that she would fax columbia university herself and reign in my perkins loan has now been passed on to another ombudsman. i am in a program that i cannot finish and the direct loan idiots who work in that department have taken 6 months just to contact columbia. i call every person involved every single day and several times a day just to get them to move at a snails pace.
when its time to pay them…they are SO ON THE BALL…when it comes to contacting them for a refund or a mistake theyve made…they screw you, hang up on you, cant give you a last name, evade accountability in every way.
Totally corrupt system.
February 2nd, 2009 | #
http://www.youtube.com/watch?v=pj5CcYSAjq8
Suzie Orman did a show about the student loan crisis.
She asks congress to get involved and put a moritorium on the interest rates of our loans.
February 2nd, 2009 | #
Help! well, it has come down to this. After explaining to the most obnoxious of the many collectors who call me – she was from Sunrise Credit Services – that I am unemployed in a bad job market with a toddler. She suggested I ask someone to pay the $35,000.00 debt. Now, for those of us with even limited critical thinking skills, obviously if I had someone to help me with that kind of money I wouldn’t have borrowed it in the first place! Nevertheless… a month to two months later, I am told my case has already been turned over to litigation – that I am being sued. This seems like an awful quick turn around process to me. Nothing in the legal system happens quickly unless someone is trying to take advantage of your situation – i.e. your broke and can’t afford to fight. I am so disgusted. Being poor is not a crime. Why is it that I am treated like a criminal and the loan sharks are given bail out funds? I will be writing to the D.A. and the my Congresswoman, AGAIN. Meanwhile, I am faced with the idea that I will NEVER be able to get out of the debt hole I am in if they garnish my future wages and perhaps I should seriously consider moving to another country.
February 3rd, 2009 | #
I’m curious as wether or not a student loan amendment will be put into this stimulus package. I can’t believe this massive stimulus package doesn’t have anything about student loans in it.
February 4th, 2009 | #
I just sent letters or emails to my Ohio senators. I am just putting my faith in God and praying. I have gotten a ton of calls today, saying that I am defaulting and that they will garnish and sue me and blah blah blah. I hope that these collection agency crazies lose their jobs in this economy and have some empathy for others. Why are they rude and hateful? I was almost in tears. Why am I letting these people suck out any of my thoughts. I respect all of you who haev posted on this page. Strength in numbers. I have never met any of you, but feel warmth for you all. I want us to have freedom also. I feel like a slave in 2009.
February 4th, 2009 | #
OK. I too have spent the last hour or so reading these posts and one thing has become quite clear: we need to organize. I made the horribly mistake of defaulting on about $70k of private student loans and now it looks like my life is over? That is ridiculous.
We need to contact a few people. First, your congressman, next,Senator Chris Dodd, who is Chair of the Senate Banking Committee and on the Education Committee. An organized effort with enough people will help raise the awareness to those who can make changes. Please do not hesitate to explain your whole situation to them. Also, please direct the intern who is likely reading the letter/email to give it to the legislative assistant who deals with banking issues.
Visit this website: http://studentloanjustice.org/whatwecando.htm
They are the only organized group that I could find. This is really our only option: organize and fight back.
That, and make sure you send letters to the collection agencies telling them that they can not contact you by phone, only by mail. PLEASE contact http://studentloanjustice.org/. Instead of spending ours dealing with the collection agencies, why not spend that time annoying your congressman until they do something about it.
Thank you all for posting your comments. I new that I wasn’t alone in this, but its nice to see there are others who are in my boat. If we work together we may actually fix this problem.
February 5th, 2009 | #
Heather–It is difficult to not be depressed. Having a student loan in this economy is a life sentence. Without intervention, there is no relief. I can’t believe that I got myself into this mire.
So far, I’ve dealt directly with the two loan agencies: AES and Nelnet. Between the two, I owe nearly $160,000. AES has me paying “interest only” for one year ($400 a month). Then, I’m signed up for some other temporary discount–In about 18 months, the $900-$1000 note kicks in. Nelnet has me for nearly $400-$500 a month. I don’t have the money for them. I plan to request another forbearance.
After I pay all of my bills, I don’t have money for groceries or personal items. I’m not sure how I will pay both notes, once they are fully due. But, today, they are not. For that, I am grateful.
BARBARA- Thank you for the word about Suzzie Orman’s request that Congress put a moritorium on student loan interest.
Don- have you found out anything about rehabilitation of a loan?
February 7th, 2009 | #
I’m looking at paying off $70,000 for the student loan that put me through 2 years of college. And do this while living off a disability check of less than $1000. I get to choose between food, medical supplies and service, walk on my polio legs or buy $4 gallon gas to get around while homeless. I worked hard for my degree and got honors. Then went out into the real world and landed some work in the manufacturing sector and worked hard some more. The pay was about half of what I was told it would be. Jobs were exceedingly hard to find in spite of my excellent work ethic attitude and abilities. The polio I got from a reckless activity a health department employee was engaged in. Polio foundation said my education would be paid for and I’m paying with my life.
February 18th, 2009 | #
Please help people like me from Student Loan Debt Hell by signing the Petition at the site below. I owe over $40,000 in Student Loans. Students can no longer even declare Bankruptcy from them and will even have their Social Security Checks garnished to pay them off when they are too old to work anymore.
Stimulate the Economy — Forgive Student Loans! – The Petition Site
February 21st, 2009 | #
I could not believe the amount of people who were in the same boat as I was in after stumbling across this page. I owe over 200K in private student loans. I had moved out at the age of 18 because my dad was an alocholic and my mother lived states away so I was on my own. No one could afford to help pay my bills let alone help fund my college education. So I turned to student loans – PRIVATE, dreadful student loans at that. Huge interest rates which have probably tripled by now. Most of them I have already used up my forebearances and just received a call here at work regarding one of them going into default. I haven’t made the first payment on them because I have a 6 month baby at home which obviously comes first along with the gas bill and groceries. My thing is, with all of us in the same boat and the economy like it is…what are we all going to do? I mean, seriously, they are like we are..in the same boat bills-wise and job-wise. The government is so stupid! Do they seriously think that bailing out the automakers will help any if the freakin people can’t afford to purchase a vehicle? Really??!! They talk about how low the interest rates on mortgages are going but none of us have the credit scores they want or can even be approved to get a loan to buy a house. Help out the jobless? OK, maybe for the people who have been laid off..but why help out the overflowing handfulls of people who choose not to work and are on welfare, food stamps, you name it…and continue to keep having children that us struggling working citizens have to pay for? I do not and can not get any kind of help because why? I WORK FOR A LIVING and it’s had enough to pay the necessities and these loan compannies are hounding all of us. Yes, we got ourselves into these situations but so did the companies who are constantly being bailed out. Help the honest, hard-working citizens…that’s what will help the economy. Instead of giving trillions of dollars to build roadways and create jobs that haven’t been created….divide it up between every “average-earning” citizen and I promise you…we will pay our debts off and put the money back into the economy where it needs to be anyways. If a non-working, single woman on welfare with 6 children can go out and have 8 more implanted into her and get overpouring donations and supposidly afford over half a million dollar house…..something is wrong with our economy! I have been ignoring the every day phone calls and messages from the loan companies. What am I doing to do when they start garnishing my wages and put liens on my car? If anyone out there has any suggestions or want to vent, feel free to email me at palm_tree_nut@hotmail.com
March 11th, 2009 | #
i read for an hour….. so i had to write something. yeah im screwed too… praying for something to happen soon. im paying close to $2K a month for loans, owe over 180K between sallie mae and direct loans, with massive interest rates. so now, i live in England. I had to move out of the country to find a job that would pay me enough money to pay off my american school debt. its truly funny how people in every other part of the world laugh when they hear how much americans spend on school and how literally screwed we all are.
so now i take £1.50 every friday and play a lucky draw number with the euromillions lottery…. best suggestion i have to any one of you. good luck. take care.
March 19th, 2009 | #
Im in the same boat as everyone else. My husband and i have around 175,000 in student loan debt, probably half is private. they made it so easy and teh shcool even suggested we do it. we were 20. we had no idea what we were really gettign ourselves into. he is now finished and is only makign 24,000 per year, adn this is my last year, i am working as much as i can but i knwo when our both come sue, we will be screwed. it will probably be like 2300 fo rboth of our payments and we will never be able to make that and live. You can file bankrupcy, chapter 7 or chapter 13, its jsut difficult to get a chapter 7 fogiven, but it does happen. Chapter 13 will help you with payments and only make you pay what you can afford to live. Thsi is our last resort but if we have to do it, i will. im so scared adn streesed to. Its all i think about adn its so hard to study or anything, becasue i too feel liek college was a huge mistake adn has gotten me into debt i can never recover from. it just makes me want to cry. I guess i have been hearing you can leave the country…… i dont knwo if thats true?? if it is then if thats your last resort i say do it. if you cant pay it back… then what do they expect everyone to do, we can only work so hard and make so much money. Im just afraid they will throw me in jail?? Can that happen, no one has mentioned it so i wanst sure, i heard they cannot…. but that scares me…i gues liek my husband says screw them adn do your best thats all we can do. im just tryign to live my life day by day adn not let it kill me, with anxiety.
March 23rd, 2009 | #
Hello Amanda,
I am very sorry to hear of your situation. Please know you can not be placed in jail for the inability to repay your loans, student loans or otherwise. If that were the case half the country would be behind bars right now.
As far as your loans go, all you can do is the best you can. Sometimes speaking with the lender directly is helpful in seeing if you can get an income sensitive payment plan. Doing this before you go into default is critical. Of course deferment possibilities exist as well, but that only delays the inevitable.
It sounds to me like you want to do the responsible thing, so I would not advise relocating to another country, although others have done that. I would start with your lender when your payments become due and see what they can do for you before considering Chapter 7 or 13.
March 24th, 2009 | #
Thank you so much for putting out the information that you did! I was beginning to think that I was the only person here who was fighting the same battles! It feels like a group place to come and talk and gripe and at least feel better to know that there are other people out there who are just like you!
I don’t know what I am going to do for myself and my student loans… After graduating college, I am in about 60K worth of private student loans debt. I inititally wanted Federal loans, but the government said my family made too much money for a federal loan, basically saying we should be able to afford college with no help…Unfortunately, my Dad and his checkbook said I’m sorry I really can’t… so, I thought I would try and then I found out that I was not old enough to be considered by myself and still young enough to be considered with my Dad’s income… PRIVATE LOANS HERE I COME! I felt like it was the only option I had, because I did want so badly to graduate from school. Not only would I be one of two graduates in my family, but also because my husband of a little over 2 1/2 years left me for someone else and told me that I couldn’t do anything without him… but I wanted to prove that I could… I wanted to still graduate! So, I did, and now where am I? Up to my eye balls in student loan debt with a life insurance policy taken out on myself so that if I die, my family isn’t stuck with it!! 
It makes me so sad to know that right after graduation from college, this huge goal that meant so much to me for a long time, I am here crying, changing numbers, pushing numbers in every scenario and I still can’t find a way to make it work or find someone who can give me any suggestions… everything always leads back to “You will still have to pay back that student loan…” I feel like my arms and legs could fall off, but if my head could still do a job, they’d ask for a payment from that part of me to!! It’s so frustrating!!! I just want someone to work with me to make easier payments, not even necessarily forgive it all, but I can’t even find that!
April 1st, 2009 | #
So many of us are in this boat — the question I have is what to do when they start the legal process against you? Can I still work something out with them w/o a court judgment? Would filing for Ch 13 or even 7 bankruptcy at least give me a manageable payment plan? How do I avoid my wages being garnished???
April 6th, 2009 | #
Brandi, I don’t know what your degree is in but you sound young enough to join the military. If you do, then your interest rate goes to 6% and the military will give you bonus money to pay your loans with. I am considering it now but have health problems that may exclude me. Good Luck. Since Congress is so concerned about Big Banks not losing their money and we can’t get anything done, maybe we can organize that no one pay thier student loans for at least a year and let these banks go to Congress for the money. I shouldn’t have to pay the taxes to pay the Banks and then also have to pay the banks.
April 8th, 2009 | #
UPDATE
Sallie Mae isn’t offering forbearance anymore. The CSR told me that you either pay or don’t. I’m not paying. I’ll just have them take my income tax returns and take out the allowed percentage out of my paychecks for the rest of my life. Better than making yourself sick over it.
April 13th, 2009 | #
UPDATE
Sallie Mae isn’t offering forbearance anymore. The CSR told me that you either pay or don’t. I’m not paying. I’ll just have them take my income tax returns and take out the allowed percentage out of my paychecks for the rest of my life. Better than making yourself sick over it.
SO WHAT DO I DO…. I OWE 100K AND UNEMPLOYED TEACHER.. NO TEACHING JOBS IN NJ… WHAT DO I DO?! I DONT WANT TO GO INTO DEFAULT I DONT WANT TO RUIN MY CREDIT. I WANT TO PAY MONEY EACH MONTH BUT CANT PAY WHAT I DONT HAVE WHAT DO I DOOO… WHY IS MY LIFE OVER BEFORE IT STARTS!?
April 17th, 2009 | #
Hmmmm. Let’s see what happens in the next five weeks. There me be hope for us yet. At least now the student loan issue is making the news. As Joe stated, many people are still paying back their student loans. That’s good news for those of us in trouble. Bankruptcy is for people in serious trouble and (by the way, Nick) requires that you qualify to be able to do it. Ie: be broke, unemployed, etc. This is not something you just graduate from school, look for a job for one year and then say, oops, I guess I’ll have to declare bankrutpcy. That’s ridiculous – to even think that’s what people on here are talking about is ridiculous as well, Nick et al. Obviously, some of us blue skied ourselves or were blue skied by the former economy and job market when people were earning more and more and jobs were available. Loans were given out like candy. Money is a lot like candy, actually, it’s rare that people turn it down. Which is how and why people rack up so much credit card debt. I didn’t do that. I just wanted to go to school and better myself and climb to the top of the heap… didn’t work out so far and I’m about 7 years out of grad school and a mother of small children, so the outlook isn’t great. Anyway, I am on here to tell you all about the FACEBOOK groups — Student Loan Justice.org and another one I can’t think of.. but the outcry is growing – JOIN IT! Write to your representatives and if you see an article – as in the NY Times recently, for example, send your story to the journalist. The topic rising to the surface. Now is the time. Draft your story, edit it and send it in! (and please forgive me for not editing this entry, I have a 2 year old o attend to, thanks!)
April 23rd, 2009 | #
I wanted to post in case anyone reads this. It took me a 1/2 hour and I asked to speak with a supervisor. I did get a frobearance but for only 2 months.
After that there really is no forbearance though.
They did offer me a program called “Next Step” which cut my payments from over $500 a month to $268 a month. Ask for that.
Has anyone been able to successfully write of their private loans in a chapter 7 bankruptcy? I’d love to hear a story about how that was accomplished.
April 27th, 2009 | #
Oregon Education Panel Proposes In-State Tuition for Illegal Aliens
I can’t help think about how much easier it would have been to find work if the illegal workforce was not present.
At the link below it says this:
“Are you guys affected by this? I live in a town where its like 80% or more mexican. It is very obvious a lot of them are new to the country because so many of them dont even speak english. I have been applying everywhere for the past month, and I seriously still cannot get a job”.
Article IV section 4 of the United States constitution gauranteed protection from invasion. I fail to see how we were protected, how our job source was protected. I see bipartisan collusion with the illegal job seeker. I see a collusion with the illegal student loan applicant.
My town isn’t 80% illegal aliens but it is and was a fruit and lumber based economy. Most work I found I physically could not do. The last job I had didn’t pay me enough to pay my student loans and everything else I needed to live.
April 27th, 2009 | #
To Mike, who posted on April 27, 2009:
Are you serious? I’m sorry but illegals have NOTHING to do with your student loan problems. So typical, you get into a problem, blame an illegal? I’m glad the majority of people that posted in here doesn’t share the same opinion as you (or at least they haven’t mentioned it). Do you think someone would be able to pay their 800 bucks a month loan payment while cleaning the floor at a mcdonalds? The jobs illegal people take are generally the ones that NO ONE wants, or they are way too cheap and require no higher degree of education. If you didn’t have that, you wouldn’t be in this webpage, would you?
ANYWAYS, people: If you can’t pay the whole amount per month that a loan wants you to pay, I’d suggest you default it. When they garnish your wages, they can only take , MAXIMUM, 15% of your monthly disposable income. This is good for people that pay for the loan more than that of their disp income (like me, 60% of mine goes to the stupid loan). Yes, it’ll probably take you forever to pay it back BUT I’d rather pay only 15% and take longer to pay it than use 60% of my income to pay for it, and live poorly for years and years to come. Hopefully sometime in the future they’ll change the laws regarding bankruptcy for student loans. Oh and yes, your credit will be screwed, but I think it’s worth it. Oh and you can even talk to the judge who has your case (if you get your wages garnished) and they , in some cases, can lower the amount from 15% to 10%. it’s worth to try it. Ironically enough, I work with garnishments so I know how all of this works. (no I’m not a collector, the court/collection companies send my company an order telling us that we have to take money from the employee and if not, they’ll penalize the company). Unfortunately, of all the garns I see, 60% or so are student loans and of course they are in the 60ks or so. It’s horrible. I really do hope the law changes soon but with this economy, it seems like more and more people are defaulting. When my contract ends ,in a couple of months, I’m going to default and live happily ever after.
May 5th, 2009 | #
Ok everyone!!! I don’t know if your in school or not but I have been stressing my self I am a mom of 4 and my husband is a school teacher with 80,000 worth of debt in private school loans. I think that the world needs to make a stance and get a group going near a local college and have every student or person that is around stand a Petition
started. HAVE EVERYONE YOU KNOW and pass the word around and then send it in to the right place let our congress men and all the head honchos know that this is a big problem. It is way to easy to get these loans and there are not grants no support or no WAY OUT.. What assistanct or support can they give us Americans that need it. STUDENTS HAVE COMMITED SUICIDE over it. But to me its just money and there has to be a way out. Lets get something started in each COLLEGE let locals know about it threw radio to meet and get something started. Federal money is still out there they are still giving grant money away to students why not private loans.
May 8th, 2009 | #
It is a relief to know that I’m not the only one facing the student loan crisis. I graduated with a Master’s Degree and am just making a little above poverty level (after taxes and benefits). The job I’m at now does require a Master’s Degree. My total loan repayments are equal to about $2000 a month. I am consulting with a bankruptcy attorney for my credit cards and am most likely going to foreclose on my home. I figured I would begin working on my MBA this summer and use my “refund checks” to help offset the interest on my current loans as I try and pay down some of the principal. Hopefully, I still have a shot at living a decent life in the near future. I never thought in my wildest dreams that I would attempt to earn my MBA. It’s amazing what we set out to accomplish when we’ve lost everything. I figure what doesn’t kill us will make us stronger and smarter. Good luck to all of us.
May 9th, 2009 | #
Author: Lara says:
Comment:
To Mike, who posted on April 27, 2009:
Are you serious? I’m sorry but illegals have NOTHING to do with your student loan problems. So typical, you get into a problem, blame an illegal? I’m glad the majority of people that posted in here doesn’t share the same opinion as you (or at least they haven’t mentioned it). Do you think someone would be able to pay their 800 bucks a month loan payment while cleaning the floor at a mcdonalds? The jobs illegal people take are generally the ones that NO ONE wants, or they are way too cheap and require no higher degree of education. If you didn’t have that, you wouldn’t be in this webpage, would you?
I ask laura who wouldn’t want one of the jobs described in the following?
http://www.ice.gov/pi/news/newsreleases/articles/infra052005.htm
http://24ahead.com/blog/archives/003880.html
http://www.foxnews.com/story/0,2933,153288,00.html
http://www.msnbc.msn.com/id/12208467/
the list is huge and if I’m between jobs why wouldn’t I filp burgers for Mickey Dees while I continued my job search eh?
May 16th, 2009 | #
The editorial found at the following link states:
http://www.topix.com/forum/houston/TGN8GP2CE2CV826EQ
The Bush Administration is now trying to allow illegal
aliens the privilege of obtaining drivers’ licenses.
This would allow illegal aliens to take the jobs of US
drivers of tractor-trailers, taxis, etc.
Etc. covers just about every job description under our sun I think. And we only know about the illegal worker after they have been caught. Does anyone have clue as to how many have yet to be caught out of 20 million eh? I would only have needed a few good jobs to bring enough money in to repay my loan.
If illegals weren’t here working crops jobs would reappear and Americas drug cartel problems would go away.
I don’t suppose anyone could use $458,000 to pay for college right now? If you do here is how to get it.
I got this story from a local newspaper and I‘m certain there are more like it.
An article from the Mail Tribune: http://www.mailtribune.com/archive/98/feb98/21198n3.htm
Anna Maria Tovar, a volunteer from Sacred Heart Catholic Church in Medford, visits with Valeriano Aguirre at Hearthstone, a nursing and rehabilitation home. Aguirre has been learning about his own care and how to help his family learn to care for him.
Disabled man gets widespread aid. Returns today to family in Mexico.
By VICKI GUARINO
He crept across the border nine months ago to pick crops and send money back to his poor farming family in southern Mexico. He goes back today in a wheelchair, permanently disabled as a result of injuries he suffered in a car wreck in September that killed another migrant worker.
And while Valeriano Aguirre arrived in stealth and subterfuge, he departs with U.S. senators, Mexican consulate officials and the International Red Cross looking over his shoulder.
Rogue Valley Medical Center staff worked for months with a slew of agencies to get this patient home.
Aguirre, 25, permanently injured his upper spinal cord in a roll-over accident on Interstate 5 on September 21. The driver was killed. Another passenger had only minor injuries.
Aguirre didn’t even know their names; he had been hitchhiking from central California to Eugene and they picked him up.
Aguirre had very nearly been the second fatality. He remained in intensive care at RVMC for weeks and needed a respirator to breathe for three months.
As he slowly recovered, hospital social workers began what turned out to be the painstaking task of repatriation. RVMC social worker Denise Cheek said that because he is an illegal immigrant here, and gravely disabled, the Mexican consulate officials in Portland produced a ream of documents for filing.
Most of the documentation difficulties involved getting Aguirre into Mexico’s social security system and into appropriate care. Cheek began repatriation efforts about a week after the accident.
As time passed, RVMC staff enlisted the aid of Oregon’s two senators, who urged the consulate to act quickly.
Consular acceptance didn’t come through, however, until Aguirre was fully medically stable.
“At this point he can go home,” says Cheek. “That’s why we’re sending him to his family.”
For Aguirre, return will be bittersweet. Through an interpreter, he says he is looking forward to seeing his children — ages 6, 3, and 2 — again, but he is apprehensive about how they’ll react to his disability.
There is only one long-distance telephone in the town, so communication has been scant.
Aguirre also is concerned about supporting his family. His wife and children share a dirt-floor home without running water in a small town with Aguirre’s parents and brother.
He says he’s been thinking of trying to run a newsstand, something his children might be able to help him with.
Aguirre has limited use of his hands and arms. His family will have to provide his daily care.
To help them, staff at Hearthstone nursing home, where Aguirre has spent several weeks, have trained Aguirre in how to provide care and they shot a video to show the family. The family lives without plumbing, but they do have a VCR, Cheek says.
Also assisting the family are Sacred Heart Catholic Church parishioners. They raised money for Aguirre and have pledged to continue supporting the family with donations for weeks to come.
The hospital, its nursing home and other agencies also have chipped in with medical supplies and two wheelchairs, one of them motorized.
And the International Red Cross will transport Aguirre from the airport in Mexico City to his home two hours to the south.
The strongest support has come from the local medical community. Aguirre’s medical expenses have exceeded $400,000. They will be borne mostly by the local medical community — and mostly by RVMC. Only a $58,000 portion may be reimbursed by a special federal program for emergency care for illegal migrants.
Call families reporter Vicki Guarino at 776-4476.
http://www.mailtribune.com/archive/98/feb98/21198n3.htm
May 16th, 2009 | #
Lara,
Let’s clear things up a bit, shall we? The illegal aliens have everything to do with someone who cannot pay back their student loan because they cannot get a job. Mike makes a great point. Americans should not have to compete against illegal aliens to get jobs in AMERICA.
By the way, there isn’t a job Americans will not do. I guarantee that I could get Barack Obama to mow my lawn next week: all we have to do is agree on a price. It might take $500,000, but the point is that it’s a matter of what the wage is.
To that point, the reason the illegal aliens are performing these jobs is that they are the only ones that will take the job for the artificially low wage that is being offered. Why is it artificially low? Because the employers have been spoiled for years by non-enforcement of illegal labor laws forcing the wages down. The illegal alien are also the ones who won’t complain about low wages because they have no right to be here!
To look at the student loan issue myopically is foolish because it assumes no other influences on the causes of hardship that Americans are facing right now. Who wouldn’t want more jobs at higher wages so that Americans can enjoy a better standard of living and assume responsibility for their loans at the same time?
May 17th, 2009 | #
To Lara, May 5, 2009
Thank you for your comments. Please tell me, does your company put pressure (to quit) on folks whose wages are garnished?
As a teacher, to make a long story short, if I default on my loans, I’ll lose my certification. Once I lose my certification, I’ll lose my teaching job. With No-Child-Left-Behind, although I have a master’s degree in special education, without the state certification, I will no longer be considered “highly qualified” to remain in the classroom. It’s a catch-22.
I have both Stafford and private loans totaling more than $160,000 and growing (due to compounding interest). It is certainly a challenge to make the monthly payments. Stafford is currently in forebearance and the private loans are in “interest only” payments.
May 17th, 2009 | #
I wrote my story back in October of 2008. Since then I found out that there is a push in Congress from two representatives for making private student loans included as a dischargeable debt in bankruptcy.
I do not know if we are allowed to post links here, but I will leave it anyway and you all can go read about it. (http://www.progressillinois.com/2009/5/13/durbin-davis-student-loan-fight). For now it is a start, so let us be thankful for these two representatives in their due diligence to bring about this change in bankruptcy reform.
Thank You
June 3rd, 2009 | #
Jim,
This is terrific news. I hadn’t heard about them doing this. Hopefully their connection to Obama will help them pass this legislation. Everyone keep your fingers crossed.
What we need to do is find out what the name of this legislation will be. Then, we can email our congressmen and ask them to support it.
June 4th, 2009 | #
Jim. Thank you for your posting. It is heartening to see that there are some politicians who understand our plight. And this website remains an encouragement.
June 5th, 2009 | #
I am so relieved to see others in the same predicament. I am scared to death about my private education loan debt. I am an RN finishing my Masters and I have a huge private education loan debt. I am trying to find reosurces to pay back loans. Nurse, teachers, social workers, doctors can have loans repaid for mandated years of service with state, HHS dept and some employers. The military is also an option. I am doing everything possible to find ways to reduce my debt load. I am baffled by how Congress has been reluctant to change this despicable policy.
July 1st, 2009 | #
I have a question that maybe someone here can answer. I’m in the same situation as alot of you are. I have 40k in private loans, and I was originally dealing with AES. Two years ago, my boyfriend at the the time lost his job, so I had to take on the rent and all the bills, which left me unable to pay my huge payments to AES. They wouldn’t work with me at all, and my loan went into default. I then started being contacted by First Marblehead in regards to the loan, who then sent it to a collection agency. I just called the collection agency to find out my options, and was told the loan was recalled by First Marblehead. They claimed to not know why, except that it was probably because I hadn’t made any payments to the collection agency. The guy at the collection agency told me they could contact First Marblehead to get the loan back, and then talk to me about arranging payments. I told him to hold off because I wanted to talk with First Marblehead first. I called First Marblehead, who told me that they couldn’t find any information about me or the loan in the system?!? They transferred me to their dept. that deals with defaulted loans and I left a message and never got a return call. Then I get a call back from the collection agency guy this morning, who left me a message saying they got the loan back and to give him a call to make arrangements.
I have NO idea what’s going on here, and I want a better understanding before I make any agreements. I obviously would like to avoid being sued and getting my paychecks garnished, but I’m not really sure if that was the purpose of recalling the loan. Would that make sense? I can’t make huge payments, and I don’t possibly see how a collection agency would accept small payments on a loan that will take me decades to pay off. Could I still be sued while making payments? Should I try and make arrangements with the collection agency? I don’t want to pay all this money into a collection agency and then end up getting screwed in the end anyways. Anyone have any ideas or advice on this matter? I can’t figure out anyone to talk to about this and know I’m getting the truth!
Thanks!
July 7th, 2009 | #
I am absolutely about to get screwed by Sallie Mae. They got Pioneer collections to get some other company to try to garnish the little wages I have. I can’t even dispute their illegal collection practices.
Obama needs to get congress/senate to reverse the bankruptcy law. Its absolute crap. These predatory loan companies need to be put out of business.
July 19th, 2009 | #
I just met with another bankruptcy attorney and was told, once again,to FORGET about EVER being able to include my private student loans in bankruptcy… I wonder each time if these lawyers don’t bother to research anything about private student loans or if they just have a better understanding of how impossible it is to get things changed back? Either way, my federal loans give me plenty of options. My private loans never did and never will give me many options. Even after this whold financial crisis and after those banks were bailed out by the government they can’t even offer us a second year of “financial hardship deferment or forebearance.” Therefore, despite my attempts to keep my last private loan out of default with Sallie Mae, they can’t do ANYTHING for me and it will go into default unless I find someone else to pay it… and so it goes. I have years of wage,tax and social security garnishment to look forward to. And the lawyer told me today that they can get 25% to 40% of your wages??!! Yeah, my education was an investment. An investment in my – and my family’s demise. I’d be happy to return the MA sheepskin for a full refund from NYU, please. It’s not worth the paper it’s printed on as far as the hardship it has caused in my life – not to mention the fact that I have never and probably will never work in my field.
July 20th, 2009 | #
Since falling on hard times (unable to find work I could do in my condition) I’ve followed the Student Loan law. Correct me if I’m wrong something changed since 2003 but I thought I read that your SSDI was un garnishable until you recieved $850/monthly and even then only 15%. I have never recieved $850 a month ever and I’m getting whacked to the toon of $36.10 a month. Meanwhile I’ve noticed the disabilty terms of discharge have been revised to the point of being silly.
To qualify for this discharge (except for certain veterans as explained below), a physician must certify in Section 4 of this form that you are unable to work and earn money because of a condition that is expected to continue indefinitely or result in death.
>>>>>This means that you must be unable to work in any capacity in any field of work. If you are able to work and earn money in any capacity in any field of work at the time your physician signs this form, even if only on a limited basis, you are not eligible for this discharge.<<<<<<<
This disability standard may differ from disability standards used by other federal agencies (for example, the Social Security Administration) or state agencies. Except as noted below for certain veterans, a disability
determination by another federal or state agency does not establish your eligibility for this discharge.
My question is this: If a physician claims you are capabable of work and you have lived with significant physical challenges from 7 days before your second birthday. You next go out and ram your car into a bridge fom the stress of it all commiting suicide to end the torture. I would gladly submit to waterboarding just to see it go away for a day.Isn’t that the equivalent to physician assisted suicide?
July 21st, 2009 | #
“If the applicant is able to work and earn money in any capacity in any field of work, even if only on a limited basis, you should not complete this form.”
If you can get paid to lick envelopes? Or stamps? Or watch a tin cup on a sidewalk? I wonder how many are forced to work underground to eek a living by this law and attitude US Department of Education. Your as insideous as the Taliban terrorist that make up their own radical law instead of living by laws already on the books. Squashing the crap out those so badly already in need of help.
I appologize to my fellow student loan borrowers for my outburst but I felt a need to yell a bit.
July 21st, 2009 | #
Just to let you know, I am in the same boat as everyone else here. I pay over a grand a month in private and federal loans. Sallie Mae alone is $610.39. I can no longer pay it. I am starting to fall behind and now am only going to start paying them half. What will happen….I am not sure of. I will find out. Kind of scary though. I would rather pay my mortgage, put food on the table and pay for my car. I have a 2 year old daughter and married. My family comes first.
The Davis Amendment thing that was talked about…he was trying to get banruptcy back. I researched more on the topic and found a site stating that it was declined. Financial institutions and creditors didn’t approve of it so they declined. Hopefully they are still pushing for it.
I wish everyone good luck with everything. I will keep checking to see if anything changes!
August 4th, 2009 | #
Are there any updates regarding the status of the removal of student loan debt from that of something equal to a murderer (ie: no statute of limitations). . . I did find something about an organization called The Student Loan Borrower Assistance Project (SLBA). I read a brief called: Equity for Government Student Loan Borrowers: Restore a Fair and Reasonable Statute of Limitations
September 4th, 2009 | #
We need student loan reform!!! We all need together, go out on the streets and protest! We don’t have to put up with this slavery of student loans anymore! I also made the huge mistake to take out a private loan of $50,000 to get my BS Degree. Private Student Loans are a death sentence and the worst of all. With capitalized interest and with 30 yrs of repayment, I will pay back nearly $150,000 on than loan!!! This is insane! Sallie Mae are a bunch of greedy and evil financial terrorists who want us to be their slaves for the rest of our lives! Where is the American freedom our ancestors fought for! Sallie Mae paid money to congress to make Private Student Loans not eligible for bankruptcy discharge in 2005. I lost my job in October 2008 and sadly had a lot of medical problems as well. I simply cannot pay back that loan anymore. Lawmakers are suppose to work for the citizens, not for big corporations! I’m going to fight Sallie Mae with all my strength to the end!!! YES I AM MAD AS HELL!!! I’ll make sure those bankruptcy laws are changed! We all need to join forces to bring those predatory lenders down!!!
October 8th, 2009 | #
I just did a bankruptcy evaluation and I have a net value of -87k. I graduated into a faltering economy in 2007 and had no choice but to go back to get another degree or default on my loans. I will probably have 100k worth of debt by the time it is said and done. Seriously consider jumping to another country like Singapore.
October 13th, 2009 | #
its time to change the leadership and direction of the united states congress on the next election. private student loan debt is the worst of the worst of all kinds of debt. also, federal student loans need to be reformed as a matter of promoting the general welfare so individuals and families like all of us here who share the same burden can maintain a standard of living. the reality is that student loan creditors do not care if you have to put food on the table, or if you lost your job, or if you need to put clothes on your children, or buy the pampers and milk, or pay your rent. the student loan creditors just want you to pay what you owe with no regard to your living or family living. All of you here know i am not talking bullshit or making stuff up. Its time for change and reform. lets make it better not just for ourselves but for others who need help like we do.
October 14th, 2009 | #
I’m so glad I found this site. I’m sorry that all of us are going through the same thing.
I had no idea what I was getting into when I took out PRIVATE Student Loans. I was told by the University I was attending that I could not get any more federal loans – so I HAD to get Private loans.
I graduated college in 2008. I haven’t been able to find a steady job since. I worked in a factory to make ends meet and got laid off along with millions of other Americans back in January. I’ve been on unemployment since.
I hate the situation I am in. I apply for jobs everyday – even s**t jobs…When I interview for the s**t jobs, I get told that I am “too over qualified” for that job so they won’t hire me. This is the worst time of my life.
One of the MAJOR stressors is SALLIE MAE!!! I cannot afford the $979 a month for my loans right now. I have options for my Federal loans but they offer me NOTHING when it comes to my Private loans.
I get VERY harassing phone calls from SALLIE MAE’s reps. I’m surprised that they are even allowed to harass people like that. They are like THE MOB of student loans. One rep called me and I mentioned that I was on unemployment and the economy is horrible…blahh blahh….Well, the rep started YELLING at me; saying that he didn’t want to HEAR about the economy and that I needed to start paying in full….
Seriously, I could go on and on about the harassment from Sallie Mae. It’s UNETHICAL!!! I’m NOT trying to get OUT of paying my college loans – but A little HELP during this rough time would be greatly appreciated!! These lenders don’t give a flying screw!!! This is very unfair!
WHERE’S MY BAILOUT OBAMA???
November 5th, 2009 | #
FYI- If student loan collectors are calling and harrassing you, ask what their fax number is and send a fax telling them you want to receive all future correspondence through mail, not phone. They HAVE to stop calling you at that point. Its the law. I did it a year ago and have not received a call since.
November 6th, 2009 | #
I’m from Michigan and just heard how so many of us with a college education are leaving Michigan to find work elsewhere and how this is furthering the depression/recession in Michigan. We’re leaving because our student loans are burying us and we’re getting no help or incentive to stay from our government. They’re helping people buy houses and bailing out big business’ but are ignoring those of us who have invested in our future and could potentially help revive the economy.
I think we all need to write our leaders on local, state and national levels. “We need help.”
Sorry if this is random but my wife and are so frustrated (like you) with the lack of help from OUR government.
Best of luck to everyone.
November 6th, 2009 | #
I have a niece that went through her first quarter at the local community college. She graduated from her high school with a 3.8. Several Hispanic students graduated with 3.0 the Mexican students received scholarships my niece got nothing. She holds a job is paying for her car while trying to become a CNA. She was to young and lacked the ability to sign for a Sallie Mae loan so she asked grandma to sign. I learned about this and left Alan Collinge’s book out for grandma to read which she did. After grandma had a talk with the bank she took out a personal loan to help my niece get through the next quarter. Leaving Sally Mae to go suck eggs.
I can’t of anything I can do more than get the word out. When registration time comes around take pamphlets, wear a shirt with our cause emblazoned across it. The more we get the word out the better.
November 9th, 2009 | #