I owe $125,000 in private student loans to one institution. How to get them to settle?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Which of our politicians allowed this crime? They should be named.

Why is it a politician's responsibility, or really anyone else's responsibility, that a person takes out hundreds of thousands of student loans when they are fully aware that their career choice will never have a salary that can pay off these loans?

Life is all about choices, and there is no shame about going to a state school if that is all you can afford or if the tuition there is the maximum that your degree of choice can support.

No state school would have accepted a GED graduated into a NURSING PROGRAM. MY private college did - and I proved to them that I could succeed. Do you not THINK that I didn't apply to cheaper schools?? Even community colleges?? I fucking had a GED - schools see that and - the buck stops there. But yet - I graduated with honors from my BSN. They only way I was able to do that was pay through the asshole for private education.

I am totally sympathetic to you, but I do think there might have been a cheaper route via community college.

[Anonymous]

Anonymous wrote:http://studentaid.ed.gov/repay-loans/forgiveness-cancellation/charts/public-service

Once again: OP has PRIVATE student loans, and cannot use these forgiveness programs. OP - did you not even get Pell grants? Was this a for-profit college? Why did they not offer you federal student loans?

PLEASE write to the CFPB to tell your story and include the name of the school. You got really screwed by your school financial aid office, which never should have let you take out all prvvate loans. I am so sorry. http://www.consumerfinance.gov/complaint/

[Anonymous]

I see people talking about statute of limitations regarding student loans. Please note that there is no longer a statute of limitations period for collecting student loans. They removed the limitations period in the early 1990s. Defaulting is a horrible option because the interest continues to run.

With out knowing more about the types of loans the OP has, I can't offer any useful advice. The first step is to figure out who owns the loans and then check those holders for programs they might have for payment plans, etc.

[Anonymous]

mappingyourfuture

A good place to start. OP, check to confirm who owns the loans, they may not be privately held at this point.

[Anonymous]

Anonymous wrote:Neither federal student loans nor private student loans are dischargable in bankruptcy. I'm not aware of any statute of limitations on collections on defaulted private student loans.

Do you have guaranteed Federal student loans (federally backed loans issued by a private lender, often with a fixed interest rate), or truly private student loans with no Federal backing (not through the FAFSA, often variable rate)? If the former, please look into income based repayment. If the latter, you have few options other than negotiating with the company. But I don't think its a lost cause -- they'd rather get something easily now than something later through costly bankruptcy proceedings.

If truly private, what company offered you unsecured loans at 17 without a cosigner, and when? I'm genuninely curious.

You can discharge federal and private student loans in bankruptcy, but only if you meet the standard of "undue hardship," which is difficult, but not impossible to show. Info: http://www.studentloanborrowerassistance.org/bankruptcy/

You're right that there are very few private student loan lenders now who would offer loans to a 17 year old without a cosigner, but back before 2008 there were plenty. Also, at some for-profit colleges, they offer private student loans as way to get around certain regulatory requirements that limit how much they can receive in federal loans. Since the federal loan profits are so high for them, they don't care if they make some portion of crappy private loans that default.

OP's best bet (assuming she can't show "undue hardship" for bankruptcy) is probably to just bite the bullet and default sooner rather than later. Private student loans are covered by state statute of limitations, just like any other private credit. After 4-7 years they won't be able to come after her.

[Anonymous]

Anonymous wrote:I see people talking about statute of limitations regarding student loans. Please note that there is no longer a statute of limitations period for collecting student loans. They removed the limitations period in the early 1990s. Defaulting is a horrible option because the interest continues to run.

With out knowing more about the types of loans the OP has, I can't offer any useful advice. The first step is to figure out who owns the loans and then check those holders for programs they might have for payment plans, etc.

For FEDERAL loans there is no statute of limitations - they government can collect forever. But if you default, they are required to work out a "reasonable and affordable" repayment plan. For PRIVATE student loans there IS still a statute of limitations, so defaulting might be the only practical option somebody who simply can't pay has. Info: http://www.nolo.com/legal-encyclopedia/is-statute-limitations-private-student-loans.html

[Anonymous]

Agree with PPs abut defaulting on private student loans. That may be your best option and there is a statute of limitation on private student loans. More importantly however, its only once you've defaulted that they will be willing to negotiate with you. Just remember that once you default/stop paying the clock for the statute of limitations starts. If you enter into agreement with them and/or send in any payment - then the clock resets and you start all over again. So figure out your strategy first and be prepared to stick with it through thick and thin. Also research the statue of limitations in your state (DC/VA or MD) or wherever you are so you know if you are dealing with three years or 6 years.

[Anonymous]

Anonymous wrote:Agree with PPs abut defaulting on private student loans. That may be your best option and there is a statute of limitation on private student loans. More importantly however, its only once you've defaulted that they will be willing to negotiate with you. Just remember that once you default/stop paying the clock for the statute of limitations starts. If you enter into agreement with them and/or send in any payment - then the clock resets and you start all over again. So figure out your strategy first and be prepared to stick with it through thick and thin. Also research the statue of limitations in your state (DC/VA or MD) or wherever you are so you know if you are dealing with three years or 6 years.

Excellent advice.

[Anonymous]

To people advising that she defaults, she has a full-time job, they will just sue her and garnish her wages

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Which of our politicians allowed this crime? They should be named.

Why is it a politician's responsibility, or really anyone else's responsibility, that a person takes out hundreds of thousands of student loans when they are fully aware that their career choice will never have a salary that can pay off these loans?

Life is all about choices, and there is no shame about going to a state school if that is all you can afford or if the tuition there is the maximum that your degree of choice can support.

No state school would have accepted a GED graduated into a NURSING PROGRAM. MY private college did - and I proved to them that I could succeed. Do you not THINK that I didn't apply to cheaper schools?? Even community colleges?? I fucking had a GED - schools see that and - the buck stops there. But yet - I graduated with honors from my BSN. They only way I was able to do that was pay through the asshole for private education.

Community colleges take a GED. You get an Associates and then transfer to state school to finish. To be honest, that you didn't know that or couldn't find that option through a little bit of research makes me nervous that you are a nurse. Doesn't sound like you have very good critical thinking skills. I mean if you really believed that your only option was over priced private school and it never occurred to you to check out other options....

+1. I was a major slacker and after HS, despite good grades and honors, etc., just went to community college for 2 years and transferred to state U. Ended up going to law school and now work in biglaw. I could have done the same if I had been a dropout with a GED. However, no need to beat OP up for this. I think she did make some bad decisions, but I feel for her b/c she is in a very fucked up financial situation.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Which of our politicians allowed this crime? They should be named.

Why is it a politician's responsibility, or really anyone else's responsibility, that a person takes out hundreds of thousands of student loans when they are fully aware that their career choice will never have a salary that can pay off these loans?

Life is all about choices, and there is no shame about going to a state school if that is all you can afford or if the tuition there is the maximum that your degree of choice can support.

No state school would have accepted a GED graduated into a NURSING PROGRAM. MY private college did - and I proved to them that I could succeed. Do you not THINK that I didn't apply to cheaper schools?? Even community colleges?? I fucking had a GED - schools see that and - the buck stops there. But yet - I graduated with honors from my BSN. They only way I was able to do that was pay through the asshole for private education.

To be accurate, YOU didn't pay for the private education. Your lenders did. And now, you're looking for a way to duck paying them back - in effect, you want to not pay for your nursing degree. So let's stop with the righteous indignation - you don't occupy the moral high ground here (not that the lenders do, but come on, OP, get off your high horse.) for it.

[Anonymous]

Anonymous wrote:To people advising that she defaults, she has a full-time job, they will just sue her and garnish her wages

and qualify for welfare

[Anonymous]

Anonymous wrote:OMG People, give this woman a break. Are you freaking serious? Do you know how hard it is to be a single mom and go to school and be 17? I am a single mother, I am 30, I tried taking classes online for my job and I couldn’t do it, I had to withdraw. Thank God I had my degrees before being a mother! Do you guys remember what it’s like being 17 with zero guidance??? This woman was put out of her house and had probably never been on her own before, found herself with a baby and ZERO guidance about wht to do, of course she will fall for the first person telling her, just sign here and you will get an education. At 17, I had my parents guidance while choosing a college, a major, everything and I probably would have made poor choices if I were completely on my own with a baby! Yes, she did not understand at 17 the implications of these loans, I am pretty sure if she had, she would not have taken them. Kuddos to her for turning her life around and trying to better herself, and you know what, she might freaking save your life one day while you’re laying in some ER, the horror
Op, i don't have much advice but negotiation? Is there a way you can call the companies and tell them you need to drop the monthly payments because you can not afford them? There has to be some sort of payment they offer to people who can not afford a high payment of $1800 a month. Try to contact some nonprofits who help people with debt repayment programs, they also might be able to guide you or at least call these companies and get a lower payment on your behalf. Good luck to you

I agree with all of this. And yet, I can't find in here one single reason she should not have to repay her loans.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Which of our politicians allowed this crime? They should be named.

Why is it a politician's responsibility, or really anyone else's responsibility, that a person takes out hundreds of thousands of student loans when they are fully aware that their career choice will never have a salary that can pay off these loans?

Life is all about choices, and there is no shame about going to a state school if that is all you can afford or if the tuition there is the maximum that your degree of choice can support.

No state school would have accepted a GED graduated into a NURSING PROGRAM. MY private college did - and I proved to them that I could succeed. Do you not THINK that I didn't apply to cheaper schools?? Even community colleges?? I fucking had a GED - schools see that and - the buck stops there. But yet - I graduated with honors from my BSN. They only way I was able to do that was pay through the asshole for private education.

To be accurate, YOU didn't pay for the private education. Your lenders did. And now, you're looking for a way to duck paying them back - in effect, you want to not pay for your nursing degree. So let's stop with the righteous indignation - you don't occupy the moral high ground here (not that the lenders do, but come on, OP, get off your high horse.) for it.

This is what bothers me a bit about OP as well.

[Anonymous]

Create an additional source of income in your spare time. Use your time wisely to create the backup plan for your future and your young family.

It's working for me and it may work for you, rather than getting into any other legal complications.

Choice is yours so choose wisely.