No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
I have a Sallie Mae Student loan which is OUT OF CONTROL with all the fees and interests. It is $111,000. 75% of it is interest (8.5% RATE) and fees (could not afford the payments-too high). I have a large sum of money I an willing to pay if they will negotiate a pay off. I figure it is beter to do this and part with the money ($50,000) than be a slave to monthly payments.
I can also qualify for the Loan Forgiveness Program because I have been in public service all my life (but it doesn not seem like a real benefit). I can tolerate apayoff less than the amount for 7 years on my CR vs. paying for 10 years to a plan in which they will probably try to find a loop hole to not forgive any debt.
I have cleaned my cresit up tremendously and only have 4 major bills. 1. My Mortgage which is being paid off really fast now because of the loan I have 2. My Student Loan 3. One hav one CC $600.00 limit 4. A small Cap 1 loan for LASIK Surgery (48 mon 0% interest)...all my cars paid off and only have my monthly living expenses.)
What do you think? Do you think they will negotiate?
Federal loan not in default?? Then absolutely no. Federal loans are guaranteed by your guarantor....why would S M settle for less? Settlements only happen of defaults and they wont settle off on 50% of the balance. Plus you would be dealing with 24% in collection fees.
This is money I have in a retirement fund. I figure since the interest on my SM is growing in leaps and bounds compared to the little growth of my fund. I could do better with this out of my way and make up the difference.
I make pretty good money and have a big settlement coming through in 2009. I just want to be done with it it is a thorn in my side.
What actually happened is I borrowed $30,000 in 1989. I came from a poor family but went to a big expensive University. In short could not afford it. Well my loan was split up 12 times (partial sums of my loan sold and purchased.) Then everyuone wanted 200.00 a month. IMPOSSIBLE! It was absolutly crazy! I got nervouse and consolidated which then made my loans inelligible for forgiveness. So I had hardship deferremnts.....that $30,000 grew to what you see today. Clinton signed that bill which gave student loan companies the authority to charge APR from 4% all the way up to 8.5%..This loan last year was $65-70,000 last year and see where it is now?
This is CRAZY! I was in the credit dump for a bit when my wife got sick and we had a tremendous amount of medical bills and procedures to pay. If I could just get rid of this...I would be golden.
Not in default, but trying to find a way to eliminate this bad debt.
@Anonymous wrote:This is money I have in a retirement fund. I figure since the interest on my SM is growing in leaps and bounds compared to the little growth of my fund. I could do better with this out of my way and make up the difference.
Hmm. I would consider that a last resort if you want to retire comfortably If you pull out now after the market has taken such a beating, you may miss out a great recovery period. Even a few days of great gains can make a big difference. At worst, stop contributing to the retirement plan and re-direct the funds toward pay-off. If you have a settlement coming through next year, why not leave the retirement plan alone and just use the settlement to pay off the loans?
@Anonymous wrote:I got nervouse and consolidated which then made my loans inelligible for forgiveness. So I had hardship deferremnts.....that $30,000 grew to what you see today. .
Who did you consolidate with?? Sallie Mae I think.
Have you read the forgiveness regs??
http://www.finaid.org/loans/publicservice.phtml
Beginning on July 1, 2008, FFEL borrowers may obtain a Federal Direct Consolidation Loan in order to qualify for public service loan forgiveness even if they had previously consolidated in the FFEL program.
Hey LynnInMN! I consolidated with William D. Ford Federal Direct Student Loans and I believe they were bought out by S&M (LOL!)
I will most definitely apply for the forgiveness.....I will get back with you in the beginning of the year to let you know what is up.
The Direct Loan program was most definately NOT bought out by SM. Direct Loans is the USDOE...SM is a FFELP lender.
I really dont think you "apply" for forgiveness per se. I believe you still have to make the 10 years of payments starting Oct 2007 going forward.You need to qualify first.