Student loan...drowning in Debt :(

Well i say apply for the forbearance loan. It basically give you more time. However, you need to get your families finances together. What can you afford?? I dont know what you have or what priorities are but my hubby and I were in that situation at one time. The best advice I can give you is to STOP digging a bigger hole. Stand up and get out of debt. If your mortgage costs more than 1 weeks worth of income you are living beyond your means. You knew this education loan was out there, so you will need to pay it off. However in the interum, apply for the time extender loan, get your finances together and start building a future not only for you, but your kids. If this means you going back to work, then go. OR watch 1 or 2 kids at your house so you can make an extra 4-600 per month.

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Forebearance usually means you pay only the interest that accrues each month, no principal. Your loan balance won't go down, but you also won't be going more in the hole, or ruining your credit. Since school loans are usually very low interest, it may be a good option. Then when you get back on your feet, you can start paying the regular payments. You don't want to be delinquent on this and then not be able to get back up to date. From what I have been told (been where you are), school loans cannot be erased with a bankruptcy, and if you are delinquent, it can affect your childrens' ability to get school loans when they need them.

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I have been there before! After years, we just finally finished paying mine and that is only because we had the new house tax credit. I have to agree with the first mom's answer. Most places just want their money and they don't really care how they get it. The $200 a month is probably a number they got with a generic payment generator that they use for everyone. I'm fairly certain if you call them and tell them that you want to pay but can't afford that payment at this time, they will work with you and lower the required monthly payment. Generally places are just glad to hear from you. So many people who can't afford it just don't pay. Any place would be stupid not to take any money you are offering. Good luck! I hope it works out!

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I went through Dept of Education... Edfund, and my loan is $9.90 a month...completly reasoable... I might not ever pay it off at that rate but at least I am not in default and my credit isn't being hurt.

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I just had a forebearance granted on my loan just this week. A forebearance is usually granted if you are unable to make your scheduled payments and don't qualify for a deferment...you may be able to temporarily stop making payments as long as you still intend to repay your loan. One of the reasons it could be granted includes experiencing temporary financial hardship. During that time, the interest still accrues, but you are permitted to temporarily delay or reduce your payments. I would take the forebearance!

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I'm in the same situation. My deferment period is over and now my loans are under forbearance until March. I am also a stay at home mom and my husband is a mechanic and full time student so he makes very little. In the fall I will be working at a Mothers Day Out. It is 2 days a week and my 2 kids can come. I only have to pay half of their tuition and it leaves me with just enough to pay my loans back each month ($184). So, my kids get a little school and my loans are getting paid for. Good luck!!!

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If you can't afford the $200 right now, when will you be able to aford it? When will you be returning to work?
What can you afford at this time? Ask yourself these questions, and once you know the answers, you'll know how you should proceed. Your best bet is to call them, explain your situation, and find out what your options are.

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Right now, with the economy being what it is, they are looking for any sort of payback at all. If you call them and talk to them about your situation, they will work with you. Most of the time if you just explain your situation and tell them that you haven't been able to get a job in your field and are still trying to, they will help you out. Have some numbers ready before you call them. If you can't afford the $200 per month, let them know what you can do. They really will work with you, especially if you show initiative and let them know what you can afford.
If you don't mind my asking, what field did you go for?

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forbearance is like deferrment with the accrual of interest- you can also talk to them about lowering your payments. just explain you are sahm and have no personal income. they will work with you to bring your payments down which will either extend the term of your repayment, or will make your later term payments higher. Just talk to them and explain your situation.

Best luck!

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have you checked out any of Dave Ramsey's books? he really speaks to the every day person (As he considers himself one) and can give some really good tips as to how to begin to get out of debt.
best of luck

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Call them and explain the situation. Mine worked with me to where all I paid was the interest + $10 or something. My payment was only like $25/month. Any time I got a tax return or a profit sharing from work, I put a ton of money down to knock the balance down, but they kept me on that payment plan still. My issue was that I got a divorce and cut income in half, but not necessarily bills in half. The people that I talked to were very nice and accommidating.

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I didn't realize there was a deferment limit. A forbearance is very similar to a deferment, but in forbearance the loan still accrues interest, in a deferment it does not. At least that's the way the guy explained it to me. I am ashamed to say that I let my student loans go into default. It was a mixture of no money and some excessively bad choices. Do NOT let it happen. It kills your credit. After a lot of hard work, scrimping and saving, I finally got them out of default. I don't know how much you owe, but I would call them and ask if you can get your payment reduced. It will take longer but at least you'll have a plan. They are pretty good about working with you.

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Definitely call them and see what your options are. They will work with you and base your payment on your income and your other debt levels. It can be really hard to get ahold of a real person, but just keep working at it. They will be glad that you are being proactive about it. I think you can also find the information somewhere on their website, though I don't remember where exactly. Good luck!

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The answer is going to depend on what type of student loan you have, and what the current terms of the loan are. If you received Stafford loans, they are often the most flexible to deal with. I'm assuming you have more than one loan, if you have not yet done so, the first step is to consolidate the loans into one lump payment. Both my husband and I use Nelnet (nelnet.com)- we've used them since our graduation in 2003, and they have always been more than helpful. Unfortunately, interest rates are not as low as they used to be, but you are likely to get the best overall fixed rate through consolidation. After consolidation, because you are not working, you should qualify for a forbearance. A forbearance is simply an inability to pay the debt due to lack of income. The face that your husband is working is inconsequential. It all falls to your personal income. You will have to fill out paperwork to attest to your personal financial income, and they will grant you the forbearance. You do need to know, however, that the interest will continue to accrue, even though it is in forbearance. Most of the time, a forbearance will be for one year, but you can do them for shorter periods of time. I hope this helps - if you have any other questions, please let me know. I have a TON of experience with student loans - I went to a private school and then to grad school for a bit, so I've been there!!

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My husband and I had one car, I got my hair cut 2 times a year and we paid back out student loans. We kept getting mail from the old tenant of the house we rented at the time that were letters trying to track him down to pay his student loans AND also reminder post cards that his BMW was due for a tune up. It wasn't easy for us to get out from the debt but we made it a priority. I work part time in the evenings so I can be a SAHM, my degree hasn't paid for itself either, it's crazy frustrating.

Have you looked into a financial planner? Forclosure counselors are free and can help you find money in your budget that you can use to pay off your debt. They can actually do a lot more for you BEFORE you default than after. The same goes for forbearances etc.

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I would check out Dave Ramsey's advice. I'm sure he has covered this. He has a book called Total Money Makeover, which is so helpful. Just google him.

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I'm a SAHM with college loans to pay, too. I was able to negotiate my payments after nearly going into default, but they are still around $200/month. I don't have any better insights into the system than the other responses you received, but I think being able to pay your loans, even if you aren't able to get them reduced, would help.
I help people work their way out of debt and into savings. I'm sure you'd like to have your loans paid off before your children hit college, as I would! I work from home around my family's schedule and I'm able to save money on everyday things while earning money to pay off all our debt, including our mortgage. There's going to be a big celebration at my house when we do! If you'd like to learn more about what I do and how I do it, please message me here.

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Apply for the forbearance. If you don't know what that is, ask SallieMae or who ever has your loan to explain it to you.

The following is from:
http://dictionary.reference.com/browse/forbearance

Financial Dictionary

Forbearance definition

A postponement of loan payments, granted by a lender or creditor, for a temporary period of time. This is done to give the borrower time to make up for overdue payments.

Investopedia Commentary

Basically, forbearance allows the borrower to put a temporary hold on his or her monthly payments, usually for up to one year. Forbearance is common for unemployed people with outstanding student loans.

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if you are unable to pay, go for the forebearance. They will work with you. My husband has been unemployed almost 2 years now and they have been working with us since we cannot pay them right now. We have not gone into default. As long as you talk to them, you won't. They will help you. :)
Good luck, I know this is a daunting situation :(

Also, you might look into a direct sales type business like The Pampered Chef or Avon or something. They are a good way for you to work, as much or little as you need to, to help get a little extra income a month. I know PC only requires $150 a month to stay active. Which isn't really that hard to do. You might look in to something like that as well, I did and I'm loving it! It's got so much potential. :)

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I can't really answer your direct question, but if you're looking to try to save money (to pay off debt or for whatever reason), I would suggest checking out The Tightwad Gazette. It's a book filled with thousands of ways to save money (from little ways to big ways), and is an easy and enjoyable read. Maybe with some deeper frugality, you can start making headway on your loans..... good luck!

1 mom found this helpful

most loan programs will have an income contingent payment plan. that means you pay depending on how much your income is. being married it would also take into account your husband's income. but i know being a single mom with a low income, i had to pay 0. and after 25 years if your loan isn't paid off the rest of the loan will be forgiven. you might want to look into that.

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Look into different payment plans. There's one called "Income Based Repayment" and it basically calculates a percentage of your income that you can afford to pay and that's how much you pay. Whatever you have left after 25 years of paying gets forgiven by the government (this is only for federal loans).

If you google IBR calculator, you'll be able to estimate what your monthly payment would be. If your spouse don't make that much, it could be as low as $10!

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