Defaulting on student loan?

[Anonymous]

Alright, I am a perpetual worrier. My fiance has $100k in student loans. I make $40k, he makes $30k. We're in MA. He is in the medical field, not using his degree.
I think 10% of those loans are federal and the rest is Sallie Mae. He can't keep up with the payments. He has used all his forebearances. He will be late on a payment, get a zillion calls from them, somehow scrounge up the money, then the cycle continues. It's $600+/month that he just can't afford. I pay a higher portion of our rent/bills (because I make a little more and have less expenses than him), but not a huge difference.
He wants to go back to school (to be an NP or PA), in a year, which of course will require more loans.
It's hard to discuss with him because I don't really have any good advice for him, nor do I have the practical answer ($$$). Honestly, if I had the money, I would of course help him out until he got back on his feet (as I know he would with me).

Neither of us want him to default - especially if he'll need more loans in the future. I have excellent credit, no student loans- just a car loan w/ 2 years left.

What can I do? I know it's not technically my responsibility, but any advice? Any sites you can lead me to? I'd like to point him in a direction he hasn't explored yet.

Also, if he DID default- what does that even mean? What are the consequences?

[Anonymous]

The problem with student loans is you can never discharge them, even in bankruptcy.

[Anonymous]

You say this is your "fiance?" That means these loans are about to become very much your responsibility. You can't get out from under these, even in death. There's nothing you can do but make the payments. If he defaults they will trash his credit AND garnish future wages. There is no way out.

Think very carefully about more school/more debt. It had better be worth it financially.

[Anonymous]

Dump him, and find someone who has their head screwed on correctly.

[Anonymous]

"Also, if he DID default- what does that even mean? What are the consequences?"

The creditors will come after him 'till the day he dies.

Agree that this is a no way out situation. I know retired people who have had their Social Security retirement benefits and Federal pensions reduced to repay student loans. Do you want this for yourself and your children?

[Anonymous]

Ask him to pay it off before you marry. I'm assuming he's single without dependents, if he got a second job he could pay most of this off in six-seven years. What are the loans for theatre arts or something?

[Anonymous]

ok so once you default they have two years to harass you. They get removed from your credit report in 10 years...so really it is just like a bankruptcy. (Education 10 years, all others 7 years). After two years they can not call you anymore. The federal loan can garnish your wages. Your credit will be ruined for 10 years. but if you default make no effort to pay it back because it will not matter. Your credit is jacked at that point. So don't get married for 10 years, make sure your credit is great, the house will just be in your name, but he will never be able to get anything.

[Anonymous]

Assuming you guys don't have kids - he needs to get a second job, pronto. Weekends/nights.

[Anonymous]

You mean he got 90k in private loans? Why, and for what degree?

[Anonymous]

Anonymous wrote:ok so once you default they have two years to harass you. They get removed from your credit report in 10 years...so really it is just like a bankruptcy. (Education 10 years, all others 7 years). After two years they can not call you anymore. The federal loan can garnish your wages. Your credit will be ruined for 10 years. but if you default make no effort to pay it back because it will not matter. Your credit is jacked at that point. So don't get married for 10 years, make sure your credit is great, the house will just be in your name, but he will never be able to get anything.

defaulting means he will never get a car on credit, a house, a credit card...nothing.

some employers also look at your credit. Any apartment might just have to be in your name.

[Anonymous]

Anonymous wrote:ok so once you default they have two years to harass you. They get removed from your credit report in 10 years...so really it is just like a bankruptcy. (Education 10 years, all others 7 years). After two years they can not call you anymore. The federal loan can garnish your wages. Your credit will be ruined for 10 years. but if you default make no effort to pay it back because it will not matter. Your credit is jacked at that point. So don't get married for 10 years, make sure your credit is great, the house will just be in your name, but he will never be able to get anything.

This is not quite right. They can still sue you for the loans up to the statute of limitations, so it is not really like bankruptcy.

[Anonymous]

He needs to earn more money is the only answer.

[Anonymous]

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Agree that this is a no way out situation. I know retired people who have had their Social Security retirement benefits and Federal pensions reduced to repay student loans. Do you want this for yourself and your children?

I thought you could stop paying them at 65 or 70 and they forgive the balance?

[Anonymous]

Has he looked into income based repayment?

[Anonymous]

Anonymous wrote:

Anonymous wrote:ok so once you default they have two years to harass you. They get removed from your credit report in 10 years...so really it is just like a bankruptcy. (Education 10 years, all others 7 years). After two years they can not call you anymore. The federal loan can garnish your wages. Your credit will be ruined for 10 years. but if you default make no effort to pay it back because it will not matter. Your credit is jacked at that point. So don't get married for 10 years, make sure your credit is great, the house will just be in your name, but he will never be able to get anything.

This is not quite right. They can still sue you for the loans up to the statute of limitations, so it is not really like bankruptcy.

if they come after you. There is still a time frame and they have to be able to serve you.