No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
I'll try to keep this short(ish). Basically my parents made too much money for me to qualify for federal loans when i was going to college. So they took private student loans out in the amount of around 76,000.00. Fast foward to now: they are in default (behind by about 48,000) and the total amount due is around 105,048.00. Rewind back to september 2016: the state of michigan intercepted my paycheck and put a lien on it because my student loans are now under the department of treasury or something kind of weird. SO, now i have a payment arrangement with the michigan department of treasury.
PROBLEM, they are still giving me 3 negative hits on my credit report every month. So my credit will never be able to recover. I contacted the Michigan Student Loan Program and was told that i do qualify to apply for rehabilitation. BUT that my monthly payment would be $978.48 is based on outstanding balance and interest rate. I know i can't pay almost 1,000.00/month on my student loan.
So I am considering attemptin to file for bankruptcy citing undue hardship which im pretty sure i can prove for various reasons including that this is the MINIMUM payment that I would be required to pay post-Rehab.
Has anyone been in a situation similar to this? I hate having the hits on my credit. I hate that i have to pay car payments twice as high as the sale sticker said because of these negative hits on my credit every month. I know rehab would be great, but they're private loans and I know i'd default again. there's absolutely no way.
Any one have any advice?
Sorry you're going through that, wish I had a suggestion. I do have some clarification questions that may help whomever does potentially have a suggestion for you. You said your parents took out student loans, but they are reporting on your credit reports? Did they co-sign? Are they also reporting on your parent's reports? Did you know about the loans? Were you paying on them before they went into default? Hopefully someone can help you out. Good luck!
i knew that the loans existed but had no clue about any of the details. It was kind of a "here, sign this document accepting your student loans."
They did not co-sign on the loans. They had my grandpa co-sign the loans. They made enough money to have provided some assistance (but too much for me to get federal aid) but they set me up so that theire hands are completely washed.(Whenever confronted about it they give this dumbfounded look like they have no clue what i'm talking about and why it may have anything to do with them).
i have been crunching some numbers and could possibly work some overtime in order to pay the post-rehabilitation payment. But i'm wondering if i'll be able to refinance them (since this account is 14 years old and with as long as it has been in default, those negative remarks disappearing will boost my credit score to 700 or more easily) and get my interest rate down subsequently getting the payment amount lower also.
You can't file bankruptcy on student loans.
You will need to do an income verification if you really need to get the payment down if you really can't afford it. What is your monthly salary before taxes? Who is the servicer on the loans?
Not being able to afford it and not wanting to afford it are two very different scenarios. It sucks to think of it that way, but that is the black & white.
$1,000 a month is crazy, but you would not be & are not the first person with a $1,000 a month loan payment.
Once you are in rehab they will stop reporting the delinquency to the CRBs