SLs while unemployed

[Anonymous]

Hi....

I currently have the student lonas on hold b/c of the unemployment. The problem is, this will only last until August, and I don't believe I can pay $20k in 5 mos.

I would like to get this debt paid off asap, b/c I would love to improve my credit in hopes to go to grad school.

Would it be an awful idea to declare bakruptcy to get rid of the CA loan?? I heard it could take 7 years to have my credit improved, but if I continue to make payments on my student loans would this help improve it faster??

[llecs]

OP, I split your post to form a new one here. I had to edit the title, but changed nothing else. If you'd like to change the title, click "Options" and then "Edit Message".

[natasjlp]

Hi Gloria! "gap123 is my sister Gloria, that the previous thread was about:

http://ficoforums.myfico.com/t5/Student-Loans/Help-for-my-mother-and-sister-personal-loan-for-school...

Any help will be much appreciated!

[hapagrrl]

Hi, Gloria --

So, does that mean that the CA loan you're talking about is a staight personal loan - and not a student loan?  I'll have to go back to your brother's original post to see if there's anything else I can say that might be helpful...

I don't know anything about bankruptcy -- hopefully someone else here will be able to answer that question for you.

As for grad school, you don't necessarily need to have good credit scores for that   You can still do a student loan for grad school -- just *make sure* you officially have your undergrad loans deferred! I went to grad school without deferring the undergrad loans and I'm still paying for that mistake..

[laz98]

hi

maybe i misunderstood the original thread.....why do you only have 5 months to pay off $20k?

[ficofreaks]

Exactly, I was under the impression that you make monthly installments with student loans.  And if it's a student loan from the government, like Sallie Mae, you won't be able to include that in BK.

[natasjlp]

I think she means she did put the school loans on hold when she became unemployed already and it's only good until August. So if she started making payments on the personal loan based on the fact that she now has the SLs on hold, that would only give her 5 months... is that right Gloria?

[laz98]

i thought that meant she had until then before she had to start making payments........not that she had to have them paid off by then.

[Anonymous]

Hi, Sorry for the confusion.

I am saying 5 months to pay off the 20K$ (this is a personal loan in collections) because I have my student loans deferred until the end of August.   By that time, even when I am employed, it will be awfully difficult to pay for both.

I guess bankruptcy isn't really the way to go. They did say I can pay a lump sum of $14,000, but because of my credit, I can't take out another personal loan to do so.

any ideas on how that can be accomplished?

[hapagrrl]

Hi,

Are you absolutely sure that the CA won't work with you to make payments (in an amount you can manage per month)? It sounds like you can pay neither the full amount or the lower amount they're offering ($14K) right now - and it'd be unreasonable to think you can, considering you're unemployed right now, i.e., it makes sense to assume that you don't have that kind of cash available.  I really hope you didn't get a god-awful CA that threatens you, practically, and won't work with you to come to reasonable terms. If they're a decent CA (I know - that was an oxymoron!), you should be able to work *something* out. Most folks are happy to get *something* from you, even if it's just a little bit right now, and then more, as you become more gainfully employed. Unfortunately, it'll mean you'll have to live with the collections hit on your credit report - for now.

The only other option I can think of  is to try and get a loan from a family member or friend -- is that even a remote possibility?

Also, have you looked into consolidating your student loans (i.e., through Direct Loans)?