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Freaking out

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Anonymous
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Freaking out

So I landed a part-time job along with the full time job I have, in efforts to pay my student loan debt.... not sure how much longer I will be able to stay at this part time job: they need me to do trainings which means taking off of  from my full time job. I explained upon hiring that is diffcult. 

 

Fed loan wont lower the payment... I don't know what to do...  I was hoping to get a mortgage latter on this year but this is going to stop everything. 

Message 1 of 7
6 REPLIES 6
SCF
Valued Contributor

Re: Freaking out

If you're having trouble making ends meet with your current student loan debt, taking on a mortgage might not be the best plan.

 

When you say "Fedloan won't lower the payment" do you mean that your application for an income-driven payment plan like IBR or PAYE was denied?  These programs are based on your income, so working two jobs might cause you to not qualify.  Being on an income-driven payment plan does reduce what you owe each month, but unless you plan to take advantage of loan forgiveness, it makes your loans take longer to pay off and cost you more in interest.

 

Sticking with standard repayment and directing as much as you can toward the loans to save on interest might make more sense in the long-term than worrying about reducing your payment.

Message 2 of 7
Anonymous
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Re: Freaking out

All my other bills are paid on time... wasnt expecting loan payment to be 800 a month. I have never heard paye nor ibr. So I never applied.

Message 3 of 7
Anonymous
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Re: Freaking out

What is your payback term, is it 10ur, 25 or 30yr?
Message 4 of 7
SCF
Valued Contributor

Re: Freaking out

This website from the Department of Education goes over the basics of repaying your federal student loans, including the different payment plans that are available.  You can also log on to http://studentloans.gov to get information specific to your situation.  Their repayment estimator is especially helpful because it can show you exact payment amounts for the different plans based on your income and loans.

 

You can also call your servicer and find quite a bit of information on their website.  If you have a payment coming up immediately that you can't afford, call and tell them that.  Let them know that you want to apply for another payment plan and ask for options to delay your payment and give you a chance to apply for one.  The most important thing with federal loans is to stay on top of them (make sure any deferments, forbearances or payment plans are applied when they are supposed to be) and to be aware of your options.

Message 5 of 7
Anonymous
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Re: Freaking out

Def check into IBR plans    They really helped me keep my student loans current...it was a lifesave for me.

Message 6 of 7
Anonymous
Not applicable

Re: Freaking out

Don't freak out.  Take a deep breath and pause.   As previous posters have advised go to the Depart. of Ed. website or contact your loan servicer for information about what your options are at this point.  Knowledge is power. 

 

You can apply for a deferment for up to a year while you apply for alternate payment plan.   Keep in mind the interest will continue to grow and capitalize each year so your balance will increase while you are on deferment.

 

Student Loans are very easy to change payment plans and go into deferment as long as you are in good standing with your loan servicer.  God forbid you default, there are programs to get back into their good graces and improve your credit score.

Because the loan holders know they have us over a barrel, only death or permanent full disability are the only ways you can get out of paying your loans unless you can pay them off.  Even death is not a sure thing cause your spouse could be on the hook to pay them off.

The main thing is as long as you let your loan servicer know what is going on financially, the loan servicer will work with you in modifying your student loans.

 

 

Message 7 of 7
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