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In Default

I was making the payments and then put the loans in forbearance several times when I was working because I had money troubles already.

Then I lost my job and once again did the financial hardship thing but eventually my money started to run out and I had to pay bills and rent.  I know of no one that has the money to help me so now I am in default and I still don't have a job.

I've totally ruined myself by trying to go back to school which was supposed to be to better myself.  I couldn't even finish school because of health problems at the time.

Purehope Purehope 41-45, F 7 Responses Aug 13, 2009

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I was in trouble with payday loan and don't know what to do but my brother in law told me about a payday loan consolidation company called Be Free Financial, I gave them a call and talk to Will he assisted me and explained how the program works, now i'm saving 100's per month on my payments. Call 407-949-0305

To make sure that my kids don't go through this, I have already set aside the money for their college education. The $2000/year limit on contributions per child is too low, but there is a way for me to save a lot more because I became a father quite late in life: a Roth IRA is a perfect college saving vehicle, if your kids will be in college after your 59th birthday.



Here in New Zealand, student loans owe no interest as long as the borrower remains in the country. Your creditor is the govt. The collection agency is the income tax department. Having a student loan means you 10% of your income in excess of $26K/year. It's an income tax surtax. If you have no visible income, or work part for odds and ends, or live on the dole, you owe nothing on your student loans. Complaints about the student loan system have died down.

@emdee4566, I certainly hope things get better for you too.

You're right, it is bad. I've heard that from many people, that you have to have a skill or talent.

They actually were trying to negotiate with me but when I was still working, I was barely getting by because I had other bills too so at times, I had to stop paying the loans in order to live. Obviously, they and other debt collectors didn't like that and some reps would try to tell me that it was better to pay them rather than my bills to live. Then after I lost my job I tried to stay afloat on unemployment so I was in the same situation but even worse because I got less money. I eventually had to move back in with my mom and then my unemployment ended.

If I were to start paying off my student loan,I'd be paying over $2000/month, and there's NO WAY to negotiate with these people. But, on the other hand, the MOST they can take from you is 15% of your visible income.



My suggestion is to face facts... we're all SCREWED... the U.S. wants overly-educated people,but you're f^cking yourself over if you don't have a SKILL, no matter what level of intelligence or education it takes. I have an MBA;my husband has a Ph.D,and we could BOTH make more money as truck-drivers with no high-school ldiploma... pathetic, isn't it?

Childless people should be able to cope with the 15% rule. And 15% of nothing is nothing.

I'm TOTALLY okay with the government taking 15% of my pathetic income... but they always try to snag my husband's(and my) tax returns!

I almost went into default because Sallie Mae conveniently forgot to tell me they sold some of my loans, and I had no clue until I was three months delinquent on those payments.



I was forced to go to college, but it was to better myself and to learn a skill, I guess. What it did was get me a degree in a field no one is getting hired in anymore (graphic design) and a crapload of debt that will have almost doubled by the time I get it paid off. And I have been forced into grad school recently, meaning several tens of thousands deeper into debt I will plunge.



In trying to make a better life for myself (against my will), I'm drowning in an insane amount of debt at the age of 23. I haven't even put a dent in what I owe because of the interest rates; in fact, my payments have increased, not to mention that because my income is SO pitiful, I actually have to pay the IRS $300 a year when everyone else is getting a tax return. My only hope now is to die, move overseas, or win the lottery. There is absolutely no way to escape the burden of student debts otherwise...not even through bankruptcy. You can lose everything to your name, but your lender will still expect you to pony up several hundred bucks a month.

Amen to that! Grad school will only get you so far, unless you're in a discipline that's in high demand, and hopefully, always will be!

I am sorry..I went into Default once and they took my Federal tax return. I also had to pay them 500.00 a month for 4 months to get out of default. I now call them if I have issues.

They won't TAKE my phone calls!... They just refer me to a collection company.