Drowning in Education Loan Debt

[1602roumfort]

I have what I consider to be a fairly common problem. MySocial Worker daughter has a huge Sallie Mae ediucational loan requiring a montly payment of over $650.00 per month. Given her salary, she is struggling financially. Will Sallie Mae renegotiate to lower the monthly payment and extend the loan. She is not asking for forgiveness of her debt. She simply needs to lower the monthly.

Thanks,

Retired Dad

[InvincibleSummer3]

Is this a private loan or federal loan? If it's the latter, she could call Sallie Mae and see about an IBR (income-based repayment) or ICR (income-contingent repayment) plan.

The first thing to do is to start with getting in touch with the lender.

[1602roumfort]

Thanks very much......I'm not sure whether thr loan is from a private lender or the feds but will check. Thanks again for your response

[kjel]

Additionally, if the loans are federal student loans your daughter might qualify for the 10 year public service debt forgiveness program if she works for local, state or federal government, a non-profit organization, or tax-exempt organization. 10 years worth of on time qualifying payments must be made, however a number of the reduced/extended payment options do qualify. More info --> http://studentaid.ed.gov/sites/default/files/public-service-loan-forgiveness.pdf

First things first, figure out the nature of the loans and who is servicing them.