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student loans fed/state taxes

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red259
Super Contributor

student loans fed/state taxes

I'm making necessary payments at this point, but god forbid something happen my largest costs outside of rent are back taxes going back to 2010 I owe and student loan payments both federal and private. I don't really have much credit card debt or any other debt, so those are the things that would put me under if I lose my income. My understanding is with the bankruptcy rules those are the things that are difficult and/or not possible to get discharged. What options do people have in that situation if they lose their income and lenders are unwilling to give them time?

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Starting Score: EQ: 714, TU 684
Current Score: EQ: 725 7/30/13, TU 684 6/2013, Exp 828 5/2018, Last App 8/5/17
Goal Score: 800 (Achieved!) In garden until Sepetember 2019
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bstone
Frequent Contributor

Re: student loans fed/state taxes

Your federal student loans have three years of deferment and three more years of forbearance available. Deferment is what you would use if out of work as less interest accrues.

Most private student loans have the same options, but they are not guaranteed and I've heard some charging a fee.

Taxes, well, they can't take what you don't have. So if they don't want to work with you then just tell them to get bent and you'll pay when you can.

Chapter 13 would be an option, but it's probably a 100% repayment and not worth the credit damage.
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6speed8
Regular Contributor

Re: student loans fed/state taxes

I only know what my fiance did. If you haven't looked into it already, see if you're eligible for consolidation and/or income based payments. Doing that, my fiance's payments are down to $130 a month - earned $10G less in 2014 than 2013 so dropped from $200+.

I think student loans are one of those things you can't get away from no matter your financial situation short of a disability discharge. I've read where people who walked away from their payments 20-30 years ago are now getting their social security or disability benefits levied for them. They never forget lol. There's only three things that can be levied against unemployment, social security or disability benefits.

1 - Back taxes.

2 - Child support.

3 - Student loans.

CH 7 Discharged 6/10/15
T/U - 643
EQ - 588
Ex - 647 as of 6/14/15
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