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Ritacatl
Posts: 1
Registered: ‎07-13-2014
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Over $180k private student loans, and I simply can't pay them. Not don't want to--Cant.

[ Edited ]

I made a similar mistake. When I was in school we got bombarded with private loan offers. I went to a private, specialty school. The curriculum cost 180k but the amt to live on was next to nothing. Wasn't able to work while in school since we were in class from 7am to 5pm and sometimes later than that depending on the quarter and boards. Anyways, I took out a few private loans to help pay for living expenses (I lived in a small cheap apt so don't think I used it to buy that giant flat-screen). I took out about 80k in privates (I was in school for 7yrs - got both my Masters and Doctorates). When I signed up for these loans, like you said, they offered low monthly payments ... I was young and stupid. Now, My privates are around 1100/mnth. I can't afford it at all. I called Sally Mae and they reduced my payment from 600+/mnth to 200/mnth.  They are pretty reasonable. They will try to work with you. AES, on the other hand don't. They do not offer any help, no reduced payments, no deferments ..... nothing. Their payment is 700+/mnth. I just can't do it. I called them multiple times, begging them to help me and they won't . So .... last time I tried I told them flat out that I can't afford that and that since they won't help me or work with me I will pay them what I can, and that's just what I do. I had no intention to go into default and so far I'm not. I have to survive too. I have my apt rent and also rent on my office. I can not fall behind my office rent b/c that's what is bringing in money (just started so not much money). I've asked AES to work with me, that in a few yrs I will be making more money and I'd like to pay my loans off but they don't want to hear it. Not to mention that my interest jumped to almost 10%. I spent most of last year stressing, crying, dealing with ulcers, insomnia ... I'm done with that. I'm tired of stressing and making myself sick. Life isn't all about the all mighty dollar. We shouldn't get penalized for trying. I'm not avoiding my responsibilities, I make payments, they're just payments I can afford now. If they go into default, then I deal with that. All I know is that I can not afford to pay my "minimum". Next year my federals will go into payment. I did consolidate those into the IBR plan. Too bad there isn't something like that for privates. What makes me mad is when the banks got their bailout, their interest was less than 1% .... and most of them didn't pay it back. I can't afford to buy a house, a car, go on vacations, have a family ..... yes I do blame myself for gettting involved with this but when you're young and you don't know how loans work,  ... and these companies do play on that ..... it's easy to get sucked in. I'm glad that ppl know now how these "predatory lenders" work but private loans were never spoken about when I was in school. All you got was a pamphlet with "easy, low payment options available'" on the cover and "can you use extra help paying your rent, for food, you car payment .... " splashed all over campus. I regret it and now use my experince to warn other student's starting school as well as teach their parents how bad private loans are. But I refuse to kill myself over money. I need to start living (and I'm not talking about vacations). I do work 2 jobs, one pays rents, the other pays loans. If I were you, I'd start looking for another job, one that allows you to work a side job. I was thinking of a small 3rd job but I'm too exhaused after working 2 jobs and overtime when I can. I am looking for a cheaper apt that's closer to my job so I can save on gas, my car is paid for, I try to cut back on utilites, I got rid of cable but do have internet. I cut my internet from 39/mnth to 14/mnth (Time Warner Cable offers it) and it works just as well as the expensive one. I shop at discount grocery chains and only buy what I need. I do not shop. I do noth go to the mall to buy things. I try to make due with what I have. If I gain wt and can't fit into something, I lose wt intead of buying new clothes. Once I wasn't under contract with my cell phone, I switched to straight talk, I don't have a land-line. At the office, instead of paying (a lot) fro an extra line for my fax (and an extra bill) I bought a magic-jack plus. I am making a lot of sacrifies, and I'm still struggling but I'm not as stressed anymore. I know I'm trying and if they (lenders) don't think it's good enough then too bad, I'm doing the best I can. 

 

OP,

I started a new thread for better exposure. ~Lexie

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SCF
Posts: 1,052
Registered: ‎06-09-2008
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Re: $160,000 private student loans, and I simply can't pay them. Not don't want to--Cant.

Welcome to the forums!  It sounds like you are doing a lot to try to pay back your loans, and I hope you'll be able to increase your income enough to start making a dent on them in the near future.  In the future, when you post, you may want to check the date on the original post (OP) - this one is from 2009 and it's likely that the author is no longer reading these forums.

 

I've asked the mods to put your post in its own thread so that other cans give you some ideas and support.

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Jazzzy
Posts: 2,679
Registered: ‎07-29-2009
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Re: Over $180k private student loans, and I simply can't pay them. Not don't want to--Cant.

What is your occupation?

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jd352
Posts: 286
Registered: ‎05-15-2013
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Re: Over $180k private student loans, and I simply can't pay them. Not don't want to--Cant.

It really sounds like you are doing all that you can possibly do to manage your debt. I am very close to having my paid off completely, but the idea of taking on more debt has also delayed my goals of going back to further my education. So, I have to give you a ton of respect for chasing your goals despite the roadblocks in cost. At this point, just try to keep your head up and hopefully you will one day see the light at the end of the tunnel.

There does need to be more regulation in student loans though. You know our country is doomed when you can finance a car at interest rates far below than what you can finance a higher education.


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mightdietryin
Posts: 182
Registered: ‎07-05-2014
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Re: Over $180k private student loans, and I simply can't pay them. Not don't want to--Cant.

I just wanted to say I feel your pain and I hope you are able to keep your head up and see your way clear one day.

At one point, I had $201k in student loans. They're now down to $150k and I will have them paid off in ten years by doing what you're doing. Work and not much else. Bare minimum existence. I pay $1600 a month and every bonus or extra cent I get.

Do you have the option of moving back in with your parents or taking in roommates to eliminate or reduce rent? That seems to be the biggest expense. Not ideal. And totally not what we signed up for. But maybe worth considering.

Hang in there and know that you are not alone.
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nachoslibres
Posts: 561
Registered: ‎04-24-2014
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Re: Over $180k private student loans, and I simply can't pay them. Not don't want to--Cant.

[ Edited ]

There's a lot of us who have dealt with what you are dealing with.  We had about $120k between myself and my wife in private school loans and we've paid them down to $30k.  It sucks.  I wish I had never gone to private school (even though I do have a great job now - it wasn't because I went to private school).

 

Because of my loans (and the fact when I first starting making good money 9 years ago I bought 2 new cars and shortly thereafter a house), even though we make $140k a year, we now drive cars that are 10 years old and 8 years old, and we rent (got burned in the real estate department as well with the housing burst).  Thankfully because of all this we have learned how to budget and to live off what we make, instead of financing every thing.

 

I remember having student loan payments of $1,200-$1,500 a month and not knowing sometimes how we would make it, so we had to cut up our credit cards, learn to live on what we made, and sold a bunch of stuff.  We now have a student loan payment of $200 a month on less than $30k in student loans, and I could almost pay that off now, if not for saving up for a downpayment for a house.  I say all this because it does get better, even though it will take a while and it does suck, but it is worth it.  Just take care of what you need to take care of (shelter, food, electricity, transportation) and if you can't pay the other things you can't pay the other things.  It will hurt your credit but it is only credit, just do what you can, budget as frugally as you can, and pay the people you can.  It will get better.

          
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Chris123nTx
Posts: 500
Registered: ‎05-11-2007
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Re: Over $180k private student loans, and I simply can't pay them. Not don't want to--Cant.


jd352 wrote:

It really sounds like you are doing all that you can possibly do to manage your debt. I am very close to having my paid off completely, but the idea of taking on more debt has also delayed my goals of going back to further my education. So, I have to give you a ton of respect for chasing your goals despite the roadblocks in cost. At this point, just try to keep your head up and hopefully you will one day see the light at the end of the tunnel.

There does need to be more regulation in student loans though. You know our country is doomed when you can finance a car at interest rates far below than what you can finance a higher education.


The problem with that is that the default rates on student loans is massive compared to the defualt rate on car loans - hence the much higher rates. 

Established Member
Tetraptych
Posts: 12
Registered: ‎09-25-2009
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Re: Over $180k private student loans, and I simply can't pay them. Not don't want to--Cant.

To be fair: student loans cannot be discharged in bankruptcy or by any means other than paying them off or using a loan forgiveness program.

 

School in the US is just way too expensive. It's one of the few reliable gateways into the middle class, but lots of grads face enough debt to keep them at a financial standstill for at least a decade while rising incomes largely end up going to scaling income-based payments.

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sean23
Posts: 72
Registered: ‎02-28-2014
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Re: Over $180k private student loans, and I simply can't pay them. Not don't want to--Cant.

[ Edited ]

Look for a job that enables loan forgiveness. After 10 years your loans are forgiven. If its going to take way longer than that to pay them off- might be a good idea.

 

edit* sorry didnt see you had Private Loans... that sucks!


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