topic Re: Defaulting on Sallie Mae private student loans in Student Loans

Defaulting on Sallie Mae private student loans

Anonymous — Wed, 18 Feb 2009 00:39:35 GMT

I'm married, unemployed and deeply in debt. Between my wife's income and my unemployment, we are barely able to make ends meet. Besides 25K+ in high interest credit cards, I have approx. 90K in outstanding SallieMae private loans and no savings. I know the consequences of defaulting on the SallieMaes are dire (wage garnishment, unrelenting harassment by collections people, and possible lawsuit), but things are so dire, we may have no choice. We need to purchase a used car, as ours is a 1991 with 173K mileage. All my deferments and forebearances have already been exhausted. Maybe we should consider relocating to France until the SOL runs out, as she has family there (just kidding). So far, we've kept current with Sallie Mae, but at $700/month, her grandparents are telling us they can't help us with this much longer. We've already approached SallieMae about restructuring/lowering the payments, but in vain.

Any suggestions, or do we say, "Bon Voyage" to our friends and family and go underground to France for many years?

C-Baby

Re: Defaulting on Sallie Mae private student loans

LynnInMN — Wed, 18 Feb 2009 01:04:02 GMT

Actually leaving the country would toll the SOL clock from my understanding, so that will not help.

Re: Defaulting on Sallie Mae private student loans

Anonymous — Tue, 03 Mar 2009 00:42:00 GMT

You could try the threat of default--not sure if you have already mentioned that when you tried to get SM to reduce your payments. You should also try that with your credit cards--tell them that you may have to file for bankruptcy if they don't work with you. And maybe you should file--the student loans won't be included, but you'd be cleared of all your other debts.