Student Loans, 53, no job, soon to be homeless again

[Anonymous]

 "I think it's a shame the feds can bail out the banks, auto companies, mortgage holders, etc. but can't help with student loans. Our country stresses the importance of education, but then we can end up spending most of our adult lives paying for it."

That is such a brilliant statement right there. You are so spot on. I've becoming basically debt free with credit cards, auto etc., but have these student loans floating over my head. I feel as if I'll be paying forever...all the time while my hard earned money goes to bailing someone else out. When I was talking to Sallie Mae yesterday, I actually wished that I had not gone to university!

I agree with everyone here, sort out the credit later...you've got to have food and shelter first. It took me a good 8 years to bail out, but it is possible! 

Message Edited by Ducati_Rider on 12-18-2008 09:14 AM

[Mzpatient]

Starting Over

Consider some of these actions

1. Speak to your ex-husband about stopping the legal actions against you for the child support so that an incurring debt is not being held against you. Also discuss with him the possiblity of claiming your son this year on your taxes.

2. You are eligible to a hardship of 36months for your student loans but like others have said make some payments on the interests to defer the increase. Student loans are known for garnishing paychecks and income tax returns. So it is important that you don't ignore them or not keep in communication with them because they will garnish without warning.

3. Consider moving out of your apartment and look for a roommate or a place that allows you to rent a room to reduce your bills. Craigslist is always an option.

4. Create a small savings account immediately even if it is $10 every two weesk. Believe that money will be right time when you need it. Call creditors and work out a small payment plan to pay on one credit card at a time. Don't let them fool you. If you wrote them a check for a $1.00 believe me they will cash it. Don't let them dictate what you can or cannot pay.

Im sure you have cutted out on necessities but if there is anything that you are holding onto like a pet. Really reconsider that as well.

Consider looking at women's centers and shelter that does job training and rehabilitation centers. They usually keep a job bank for referrals for employment. Also consider temp agencies as well for parttime/fulltime employment. Consider subsitute teaching as well.

In some states being a foster parent includes a background check and looking into your finances is one of them. Plus foster care is an emotional battle that you should not engage unless you really desire to do that.

Good luck.

[Anonymous]

I am so sorry to hear of your plight... I, too, had major difficulties with my students loans.  Mine are about twice what yours are.  All I can recommend is that you defer as long as possible.  Or consider going back to school even if it is just part time because that too will place the loans in deferment.  Taking in a foster kid is not going to help and if your 'heart' isn't in it?  The person who left that comment is wacked.  Also there is no difference between private and federal student loans. They HAVE to be repaid.  Because they are "student loans" they are federally backed.  They will attach garnishments to your paycheck if you default.  I lucked out I finally got a good paying job.  I will be paying back after I retire. My advice is finish your degree but look for every grant possible.  Grants and scholarships are free but because you are in school your loan doesn't have to be repayed.  Don't forget that loans and interest payments are tax deductable too! 

[Anonymous]

If talking to ex-husband doesn't work on the child support you may want to call family division of your local court and ask how to do a pro se motion/petition to modify your support payments.  Many courts have self-help offices for litigants without lawyers.  You may be eligible for low-cost or pro bono (free) lawyers but this may add time onto what appears to be a time-sensitive situation.  A lay-off is certainly a material change in circumstances that would justify reducing your support.  If your petition is granted it would also permit wage garnishments to stop.  The court may inquire into your efforts to find a job so it would be good to have proof of your application, to keep a diary of your calls, etc.  I think it is commendable that you would be willing to sacrifice for the sake of your child(ren), however, in order to take care of them you must be able to care for yourself.

[anca21bi]

If I could make one suggestion, it would be to go back to school.

5 years ago to the day (and it is Christmas day) I was homeless.  I didn't have a car, job, money, or anything and I was a college dropout.  I lived in a homeless shelter for 3 months, and the only way I got out was going back to school. 

I used my left over grant and loan money to get a little $300 car and that helped me find a little apartment-since at the times the snow was knee deep...I then paid my rent up until I would get my next grants.

I also requested a work-study job and I was well on my way.

Today, I have a bachelors degree, and I'm half way through my M.Ed, but most of all I am very employable-so I will never be in that situation again. I would definately try school again to secure a degree and will also set back deferrment time a little longer.  It takes time, but sometimes that is all you have.

[arjames01]

I agree with you anca21bi. If you can get back into school for something or another, it might actually help you to get back on your feet!

Good Luck! You WILL get through this!  

[StartinOver]

Hey everyone, I am back. Thanks for all your comments. Here are the new facts:

I hopped a plane and moved across the US and left everything in storage. Right before coming I fell down cement stairs (new medical collections about $2,000) and it took about 3 months to recover, after I arrived where I am now. I limped around in snow and did job hunting. I lived in a homeless shelter for more than 6 months. I got a job in the state next to where I live and ride the bus 3 hours a day. No transportation, hard to get a second job on weekends, but will try soon. Just moved into an apartment, but finding it hard doing so before I was ready, yet had to leave shelter.

1)      My child support problem is not paying child support, but a zero balance lien that has been zero from the beginning. It hurts my credit score. My ex can’t get it off, only time can do so.

2)      I came here to rebuild a broken relationship with my son and don’t want to live anywhere else, or with anyone, it is just not worth it. After 1.5 years of no contact, my son finally talked to me a few minutes last week.

3)      I was considering foster care before I moved, but don’t think that would work here, now.

4)      Forgiveness does not apply to me, since I can’t get any of the jobs that are applicable.

5)      Can’t return to school unless I pay out of my pocket, don’t qualify for any loans, too much to explain.

6)      Don’t qualify for any deferment or forbearance.

7)      Talked to student loan holders today and did the extension, extending my loans to 25 years, lowering from $293 to $177 per month. Was late and just reported for 120 days.  They took the $1800 past due and tacked it on to the end of what is due. Hopefully I will find a way to start making payments one month from now.

8)      I don’t know of any job training that I need to get a job, it is a bad economy and there aren’t many in this town of about 40,000. I actually had 4 interviews lined up my 3rd week here, but accepted second interview before finishing, been there for 7 months now. I had no interviews for 10 months in the city of about 200,000 that I left. I interviewed this past week for an HR Admin Asst position and did not get it. I asked for pointers, and he gave me some. He did mention that my skills are dynamite.

So now my credit report is much worse than last fall, but I am going to following the suggestions I have read here on the forums. I will start with the hippa process and the DV letters, I think. 

One question before I later bombard everyone with tons of questions:

I recently did an all out effort to get a car, to no avail, I just put on tons of inquiries. Now I see on my credit report where one CRA has my current address to be at my ex’s house here in town, where I have not lived or had contact for 13 years. I have no idea how that got on there. What do I say to the CRA when I contact them? Do I ask how they got that address (maybe my nosey ex requested a report to check on me)? Then in my first correspondence address the issue of wrong address?

Thanks so much for everyone’s advice and caring. Now I need to go to bed, it is past 4 am and I get up at 7:30, lol.

[Anonymous]

Your life sounds so similar to mine. I noticed you haven't posted since 2009. I would love to know how you are doing?  I am $69,000 in debt student loans, $30,000 of it is interest. Dropped out my last semester of completing my B.S. Biology in 2003. I have an A.S. that hasn't helped me with anything. I only seem to qualify for minimum wage position's but rarely hired. My son is 19 and my child support ended but my ex husband is taking me to court to try to get the remainder that HE THINKS I owe to him.  I am almost 40 and wonder if this crap will ever end.  I also can't finish my last semester unless I pay out of pocket. Hoping to win a scratch off soon :-)   Hope all is well...