100K+ in Student Loans... Advice?

Anonymous · ‎04-05-2018

I owe approx 110k in student loans and just received my discharge for chapter 7 in the mail today. I know Navient will put those lovely loans back in repayment oh-so-soon and I simply cannot afford the montly payment ($850/mo). I am recently divorced and therefore while I previously could afford to make the payments, my financial situation has changed. I applied for IBR and somehow didn't qualify (I still don't understand that).

Do I have any options? I really, really don't want to default - after chapter 7, my credit has obviously already taken a dramatic hit (was 750 prior to chapter 7... darn divorce.) I've already lowered all of my monthly bills and expenses, no car payments, no frills such as cable or anything like that - just supporting myself and my daughter on my salary is quite difficult. Not sure how to pay my loans and afford to live and trying very hard to avoid defaulting.

Any insight is much appreciated!

PS. I don't not own a home or anything beyond my vehicle. No one to co-sign to refi or put up anything as collateral for a refi.

Anonymous · ‎04-06-2018

If you do not qualify for IBR perhaps you qualify for another income based plan - there is more than one. Here is a link where you can explore them:

https://studentaid.ed.gov/sa/repay-loans/understand/plans/income-driven

Anonymous · ‎04-09-2018

Is your repayment at 30 yrs? It sounds like you should be able to do ibr, did they use old tax return or new one post divorce?

Anonymous · ‎04-19-2018

Income-based repayment is a specific income-driven plan. Personally I find the plans confusing with all the changes but the great news is that when you fill out the IDR application, instead of marking a specific repayment plan, you can just check the box for them to select the income-driven plan with the lowest payment. If it were me, I would reapply. They often make mistakes.
A tip is to always use the lowest income you can. Sometimes this is using the IRS upload tool. Sometimes this is filling in a PDF application and sending paystubs. Send in the lowest one within the time frame that they will accept. This will cement the lowest possible payment for the next 12 months, even if your income is or becomes higher.
There are also other options for government loans such as a hardship deferment if you haven't used them yet.
Sometimes it's most helpful to just call them because they can tell you what they can explain what your options are. Hope this helps!