10-14-2013 05:23 PM
so - I'm at a stand still with my SallieMae private student loans. I've come to terms with the fact that I can not pay them what they're asking for - they are by far the most unflexible lender I've ever had the displeasure of working with. This question only applies to private student loans - so please don't suggest going on the income based repayment or anything that doesn't apply to Private Loans. I know my credit score is going to tank, but will my credit cards end up closing on me because I can't pay my private student loan with sallie mae? Essentially this would be the only account in bad standing, I'm current on everything else. Trust me, it's not a matter of not wanting to pay it back - I've tried offering them what I can afford and the representative told me it's basically all or nothing - they don't want partial payments, i'll still fall further and further behind. The monthly interest alone is over 400 dollars. It's just insane - I'm seriously never going to get anywhere with it. It depresss me extremely and makes me want to just end it all becuase I'll never amount to anything. here's the situation. I'm going through some seriously expensive medical problems right now and I would much rather take care of myself then to send all of my money to Sallie Mae. I can't focus on getting a higher paying job right now until I get this medical problem figured out - I need the insurance and cannot afford even a 1 day lapse in health coverage. Anyone out there default on a private student loan and just stop answering the phone? I have heard of a few people who have done this and never got sued. I'm just afraid it's going to cause my credit cards to close, which I'm using to pay for my portion of the medical expenses. gosh, I just don't know what to do. Any advice would be greatly appreciated. Thanks..
10-14-2013 08:03 PM
I'm sorry to hear about your situation, it sounds like you're in a tough spot.
Unfortunately, you may well see negative actions from your credit card lenders based on your score decreasing and negative remarks appearing on your report. Keeping a low utilitization and staying current on all of your credit cards will probably reduce the chance of that. It all depends on what threshhold that particular lender has for taking adverse action on someone in your situation with that card and limit.
It is very hard to get out from under private student loans, and if you stop paying, you run the risk of being sued and having wages garnished or other action taken to collect the debt. At this point, if you truly have no other options, you may just have to take your chances with ignoring them and then to go court if you are sued and see if the judge is willing to give you a workable judgment and accept that you may have your wages garnished at that point in time.
Given the severity of your situation, it may also be a good idea to reach out to a legal aid society in your state to see if you can get some free advice on any other legal options, they may also be able to refer you to sources for Medicaid or other medical assistance.
10-20-2013 09:54 AM
10-21-2013 01:21 PM
I'm sure it depends on the loan, but my husband has received both deferment and forbearance on his private SLs. I have three different private loans as well, and while I have never needed to use it, deferment and forbearance are options on my private loans as well. That said, it's also possible that the rules have changed since we took out our loans 8+ years ago. (Also, at least one of my private loans has multiple repayment options).
While I'm sure all of this varies by lender and type of private loan, it's worth calling and asking about. DH deferred his private loans on two separate occurrences and it was pretty easy. That said, I remember them telling us that there is a limit on deferments - I think it was two years over the entire life of loan for his private SLs. Both companies told us pretty similar information.
10-26-2013 04:14 PM
I negotiated a settlement on Sallie Mae private loans for a client that was under 50%, but the client had some funds to settle and I had to jump through a lot of hoops. It might be an option if you can afford to do it.