For:LynnInMN - Student Loan balance too high...

[3DCredit]

Hi, I can see from the forums that you have a solid understanding of the ins and outs!  Here's my dilemma:

My wife and I have almost $150,000.00 in Student Loan debt.  The thing is that due to forbearance's and collections (rehabbed 7 years ago) we've estimated that we owe about 3 times what we borrowed.  We don't "qualify" for income based payments to lower the payment, but we just don't have the $1,500 a month for payments.  We've managed to repair our credit (after a BK in 2003) but all that's going to change as soon as we fall behind again and that seems very likely.  Are there any programs that could help reduce the payment or maybe even remove some of the penalties and interest?

[LynnInMN]

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@3DCredit wrote:

Hi, I can see from the forums that you have a solid understanding of the ins and outs!  Here's my dilemma:

My wife and I have almost $150,000.00 in Student Loan debt.  The thing is that due to forbearance's and collections (rehabbed 7 years ago) we've estimated that we owe about 3 times what we borrowed.  We don't "qualify" for income based payments to lower the payment, but we just don't have the $1,500 a month for payments.  We've managed to repair our credit (after a BK in 2003) but all that's going to change as soon as we fall behind again and that seems very likely.  Are there any programs that could help reduce the payment or maybe even remove some of the penalties and interest?

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I am assuming these are all federal since you rehabbed.

Who are the loans currently with?  Have you consolidated since rehabbing?  By my calculations, $1500/month is a 10 year repayment.  Have you ask to extend it?

Your penalties and interest would already be capitalized into your balance and there are no programs to remove them.

[Anonymous]

It was suggested on another thread that perhaps you could pay off the loans using a credit card balance transfer (or several) then later on declare BK and get the credit cards discharged.  However, I don't know if that would work or not

[LynnInMN]

Not a good move......it is effectively fraud  because of the intent...and I did hear of several cases back firing and being disallowed by the BK courts.