I'm about to call Sallie Mae tomorrow to ask for my private loans to go into forbearance. My interest payment alone is 628.97 (I borrowed a LOT from them b/c I was stupid in college), and that amount is slightly more than a third of my monthly income. I am not able to afford this every month, what with my other expenses. I will be going back into school next March and when I finish a year later, I will be able to make twice what I'm making now in my field, so I'll be able to afford it then. So, do they even OFFER forbearance on private student loans? (These loans are Signature Student Loans, specifically, which I don't think they even offer anymore). I REALLY hope they offer it, b/c if not, I'm screwed. I don't think the private loans are eligible for deferrment or IBR, right? Thanks in advance!
Student Loans is almost always a very slow board and especially on a weekend you're not likely to get much of response. Wait until tomoorow and someone will come along to help you.
From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782
"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".
I'm pretty sure you can do a voluntary forebearance, I think they charge you $150 or something like that and its up to 6 months. At least that's what they told me. The problem is that the interest keeps accruing like crazy while you're not making the payments...but on the bright side, it doesn't **bleep** up your credit?
wow, private loans CHARGE YOU for a forebearance??? that's crazy!!!
if you go back to school, your loans should go back into deferment, shouldn't they? then you wouldn't need a forebearance?
I know, it's crazy, right? Well, I just called them, and I was informed I have 21 months of forbearance left (I apparantly used 3 months back in '09, which I now vaguely remember, lol). So I requested 3 months of forbearance (you can only do 3 months at a time, but you can do them consecutively). So, when that's up, I'll request another 3, then another 3, for a total of 9, because I should probably be in school by that time, at which point, I can just defer. It's $50/loan up to a maximum of $150 (I have more than 3 loans), so I paid 150. A lot better than going into default. Sucks the interest will accrue, but I'll do what I can to pay off at least some of it. Thanks for the help, guys!
Beware of captalized interest when requesting a forbearance from Sallie Mae. I recently learned that SallieMae will capitalize the interest on an account regardless of the payment made during the forbearance. My loan payments are $80.06 per month (interest only). I pay SallieMae $100.00 per month. However, after the end of an administrative forbearance, SallieMae charged the account $15.71 in capitalized interest. Reason being, SallieMae received the payment before the monthly due date. Payment due on the 5th and you pay on the 3rd, SallieMae will capitalize the interest for the 4th and 5th, thus increasing principal. Their website is deceptive for it states that if you make payments during period of deferrment, forbearance or any period when loans are in non-pay status; you will avoid interest capitalization. A little known secret. With the increase in principal, your loan payments will increase over time.