Anonymous
Post 01/03/2014 17:48     Subject: Re:I owe $125,000 in private student loans to one institution. How to get them to settle?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Her loan payment is $1800/month, she works full time, and has a child. She probably physically cannot repay her loans. So it's really on the school/lender because they were the ones who made these unrepayable loans to her. I have NO problem with the lender being hurt here. I'm sure that people like OP would love to have their loans restructred to an affordable level - they don't WANT to be deadbeats - but she looks like she doesn't have any other option.


This is exactly the argument that was made about home loans during the housing crisis. It drove me nuts then, and it drives me nuts now.

First off, they are not unrepayable.

Second, why should the lender suffer, and not OP? OP has already said she is proud of herself (and she should be, so far) and she never could have gotten this job without the loans. Assuming that's true (and there's no point in going back and second-guessing her decisions, what's done is done), she has gotten a significant benefit from those loans. She wouldn't be a nurse otherwise. So why shouldn't she have to pay for it?

Third - your post suggests that you think OP shouldn't have gotten the loans. Is that correct? Would she be better off if she hadn't been able to get the loans, and had to find whatever job she could with her GED? OP, would that have been preferable? I'm guessing it wouldn't. So . . . if you don't regret the education, and the job that followed, you really have no justification for defaulting on the loans.

PP, what you seem to be saying is that OP got the benefit from the loans, but you know, it's HARD to pay them back, and she has a kid, so she shouldn't have to. But she absolutely should take advantage of the benefits of the education she got. That makes no sense at all.

I am a lefty, lefty liberal, about as far from a right-winger as you can get in this country. But there has to be a modicum of personal responsibility.


the risk of default is already priced in the loan. I advise my clients to make strategic defaults all the time. It is not a big deal provided the contract is fair, has penalties and recourse. OP should study the agreement and know what happens if she defaults. If she is ok with those risks, who are you to say she cannot? Shut your piehole.


OP here - can you talk to me more about defaulting? According to what I've read online, they can garnish my wages. How do I avoid this?

I've tried all of the above to try to get the lender to lower my payments. They will not extend the repayment terms, they will not restructure the monthly payment amounts to allow me to pay less - I am stuck with this amount that I just cannot pay.

And yes, looking back, those loans were the stupidest mistake I ever made...it's not worth it to have a degree if I'm still going to end up in the poor house because I can't pay the loans back.


So sorry, OP. You should find an experienced lawyer to advise you. A private student loan creditor cannot directly garnish your wages, the way the federal government could do. They would have to actually sue you in court and then win a judgment, and then get your wages attached. Depending on the state you are in, you will be able to protect certain assets and income. It's also possible that once the lender actually sues you (which could take a while), they would be willing to work out a reasonable settlement plan.


This.

You have to start acting like an adult now OP and not like a 17 yr old with no idea what's going on. I will guess that this is why you got nowhere with the loan company. NO one cares about your single mama drama. Maybe you need to siphon off some of the loan to lower interest short term personal loans. They might be more willing to work with you once you actually make some dent in the debt.
Anonymous
Post 01/03/2014 15:36     Subject: I owe $125,000 in private student loans to one institution. How to get them to settle?
OP, before you listen to all these people telling you to default you need to look at your loan agreement. Many of these agreements contain provisions for penalties, fees, etc. that will be added to the amount you owe if you default.

It's possible they'll be willing to settle if they resort to suing you (even more likely if they sell the debt to a collection agency) but usually creditors want to cash out (i.e. one or a small number of lump sum payments rather than a drawn out obligation) which it doesn't sound like you'll be able to do.

Also, I assume you're a licensed nurse so it will be very easy for them to find you.

You said there were several loans with varying APRs, it might be helpful if you list them out along with the amounts outstanding to see if you can prioritize paying down the high ones. Alternatively, you may also want to talk to a bankruptcy lawyer, many offer free consults.
Anonymous
Post 01/03/2014 15:14     Subject: Re:I owe $125,000 in private student loans to one institution. How to get them to settle?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Her loan payment is $1800/month, she works full time, and has a child. She probably physically cannot repay her loans. So it's really on the school/lender because they were the ones who made these unrepayable loans to her. I have NO problem with the lender being hurt here. I'm sure that people like OP would love to have their loans restructred to an affordable level - they don't WANT to be deadbeats - but she looks like she doesn't have any other option.


This is exactly the argument that was made about home loans during the housing crisis. It drove me nuts then, and it drives me nuts now.

First off, they are not unrepayable.

Second, why should the lender suffer, and not OP? OP has already said she is proud of herself (and she should be, so far) and she never could have gotten this job without the loans. Assuming that's true (and there's no point in going back and second-guessing her decisions, what's done is done), she has gotten a significant benefit from those loans. She wouldn't be a nurse otherwise. So why shouldn't she have to pay for it?

Third - your post suggests that you think OP shouldn't have gotten the loans. Is that correct? Would she be better off if she hadn't been able to get the loans, and had to find whatever job she could with her GED? OP, would that have been preferable? I'm guessing it wouldn't. So . . . if you don't regret the education, and the job that followed, you really have no justification for defaulting on the loans.

PP, what you seem to be saying is that OP got the benefit from the loans, but you know, it's HARD to pay them back, and she has a kid, so she shouldn't have to. But she absolutely should take advantage of the benefits of the education she got. That makes no sense at all.

I am a lefty, lefty liberal, about as far from a right-winger as you can get in this country. But there has to be a modicum of personal responsibility.


the risk of default is already priced in the loan. I advise my clients to make strategic defaults all the time. It is not a big deal provided the contract is fair, has penalties and recourse. OP should study the agreement and know what happens if she defaults. If she is ok with those risks, who are you to say she cannot? Shut your piehole.


OP here - can you talk to me more about defaulting? According to what I've read online, they can garnish my wages. How do I avoid this?

I've tried all of the above to try to get the lender to lower my payments. They will not extend the repayment terms, they will not restructure the monthly payment amounts to allow me to pay less - I am stuck with this amount that I just cannot pay.

And yes, looking back, those loans were the stupidest mistake I ever made...it's not worth it to have a degree if I'm still going to end up in the poor house because I can't pay the loans back.


So sorry, OP. You should find an experienced lawyer to advise you. A private student loan creditor cannot directly garnish your wages, the way the federal government could do. They would have to actually sue you in court and then win a judgment, and then get your wages attached. Depending on the state you are in, you will be able to protect certain assets and income. It's also possible that once the lender actually sues you (which could take a while), they would be willing to work out a reasonable settlement plan.
Anonymous
Post 01/03/2014 15:14     Subject: I owe $125,000 in private student loans to one institution. How to get them to settle?
Op, I understand the first loan to get the associates degree. At that point you could have worked to pay that off before taking on another loan to get your BSc. Did you take out a loan for your Masters as well? How much of your other loans had you paid off before you went back to graduate school?

What were the financial decisions that you made when you were older and wiser and already employed (aka - getting the BScN and the Masters). Did you just do them all on loans figuring you would find a way to default later?


Anonymous
Post 01/03/2014 15:12     Subject: I owe $125,000 in private student loans to one institution. How to get them to settle?
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.


Because politicians make the laws that provide the framework within which private contracts can operate.

We would not make it legal for a 17 year old to sign over their kidney in exchange for a year's tuition. Nor should we make it legal for teenagers to sign up to live in penury for a degree that isn't worth it.

I don't think she should be able to duck out of her obligations. But I believe the courts should offer bankruptcy protection such that her debts are reduced to affordable levels. The problem is that the loan sharks bought congress and got legislation that makes it almost impossible for people in OP's situation.

If I were her I would leave the country and start again with a new name. Or immolate myself in front of Congress to force some action out of the bastards.
Anonymous
Post 01/03/2014 15:06     Subject: Re:I owe $125,000 in private student loans to one institution. How to get them to settle?
Anonymous wrote:
Anonymous wrote:
Her loan payment is $1800/month, she works full time, and has a child. She probably physically cannot repay her loans. So it's really on the school/lender because they were the ones who made these unrepayable loans to her. I have NO problem with the lender being hurt here. I'm sure that people like OP would love to have their loans restructred to an affordable level - they don't WANT to be deadbeats - but she looks like she doesn't have any other option.


This is exactly the argument that was made about home loans during the housing crisis. It drove me nuts then, and it drives me nuts now.

First off, they are not unrepayable.

Second, why should the lender suffer, and not OP? OP has already said she is proud of herself (and she should be, so far) and she never could have gotten this job without the loans. Assuming that's true (and there's no point in going back and second-guessing her decisions, what's done is done), she has gotten a significant benefit from those loans. She wouldn't be a nurse otherwise. So why shouldn't she have to pay for it?

Third - your post suggests that you think OP shouldn't have gotten the loans. Is that correct? Would she be better off if she hadn't been able to get the loans, and had to find whatever job she could with her GED? OP, would that have been preferable? I'm guessing it wouldn't. So . . . if you don't regret the education, and the job that followed, you really have no justification for defaulting on the loans.

PP, what you seem to be saying is that OP got the benefit from the loans, but you know, it's HARD to pay them back, and she has a kid, so she shouldn't have to. But she absolutely should take advantage of the benefits of the education she got. That makes no sense at all.

I am a lefty, lefty liberal, about as far from a right-winger as you can get in this country. But there has to be a modicum of personal responsibility.


the risk of default is already priced in the loan. I advise my clients to make strategic defaults all the time. It is not a big deal provided the contract is fair, has penalties and recourse. OP should study the agreement and know what happens if she defaults. If she is ok with those risks, who are you to say she cannot? Shut your piehole.


OP here - can you talk to me more about defaulting? According to what I've read online, they can garnish my wages. How do I avoid this?

I've tried all of the above to try to get the lender to lower my payments. They will not extend the repayment terms, they will not restructure the monthly payment amounts to allow me to pay less - I am stuck with this amount that I just cannot pay.

And yes, looking back, those loans were the stupidest mistake I ever made...it's not worth it to have a degree if I'm still going to end up in the poor house because I can't pay the loans back.
Anonymous
Post 01/03/2014 14:57     Subject: Re:I owe $125,000 in private student loans to one institution. How to get them to settle?
Anonymous wrote:
Anonymous wrote:
Her loan payment is $1800/month, she works full time, and has a child. She probably physically cannot repay her loans. So it's really on the school/lender because they were the ones who made these unrepayable loans to her. I have NO problem with the lender being hurt here. I'm sure that people like OP would love to have their loans restructred to an affordable level - they don't WANT to be deadbeats - but she looks like she doesn't have any other option.


This is exactly the argument that was made about home loans during the housing crisis. It drove me nuts then, and it drives me nuts now.

First off, they are not unrepayable.

Second, why should the lender suffer, and not OP? OP has already said she is proud of herself (and she should be, so far) and she never could have gotten this job without the loans. Assuming that's true (and there's no point in going back and second-guessing her decisions, what's done is done), she has gotten a significant benefit from those loans. She wouldn't be a nurse otherwise. So why shouldn't she have to pay for it?

Third - your post suggests that you think OP shouldn't have gotten the loans. Is that correct? Would she be better off if she hadn't been able to get the loans, and had to find whatever job she could with her GED? OP, would that have been preferable? I'm guessing it wouldn't. So . . . if you don't regret the education, and the job that followed, you really have no justification for defaulting on the loans.

PP, what you seem to be saying is that OP got the benefit from the loans, but you know, it's HARD to pay them back, and she has a kid, so she shouldn't have to. But she absolutely should take advantage of the benefits of the education she got. That makes no sense at all.

I am a lefty, lefty liberal, about as far from a right-winger as you can get in this country. But there has to be a modicum of personal responsibility.


the risk of default is already priced in the loan. I advise my clients to make strategic defaults all the time. It is not a big deal provided the contract is fair, has penalties and recourse. OP should study the agreement and know what happens if she defaults. If she is ok with those risks, who are you to say she cannot? Shut your piehole.


Yes, exactly! Also, if the OP simply cannot pay the loans, all this talk about her moral obligation is really pointless. The lender and the borrower would be better off if she got a repayment plan, but if the loan was securitized that may not be happening (just like with mortgages).

As for the question about whether she should have gotten the loans in the first place ... no, people should not get loans they can't repay. Making a loan requiring $1800/month payments to somebody with prospects for a $70k income shouldn't happen, in most cases. If these were federal loans, at least she would have the right to some kind of income-based repayment plan. But these are private loans, so she doesn't have that.






Anonymous
Post 01/03/2014 14:56     Subject: Re:I owe $125,000 in private student loans to one institution. How to get them to settle?
Anonymous wrote:
Anonymous wrote:
Her loan payment is $1800/month, she works full time, and has a child. She probably physically cannot repay her loans. So it's really on the school/lender because they were the ones who made these unrepayable loans to her. I have NO problem with the lender being hurt here. I'm sure that people like OP would love to have their loans restructred to an affordable level - they don't WANT to be deadbeats - but she looks like she doesn't have any other option.


This is exactly the argument that was made about home loans during the housing crisis. It drove me nuts then, and it drives me nuts now.

First off, they are not unrepayable.

Second, why should the lender suffer, and not OP? OP has already said she is proud of herself (and she should be, so far) and she never could have gotten this job without the loans. Assuming that's true (and there's no point in going back and second-guessing her decisions, what's done is done), she has gotten a significant benefit from those loans. She wouldn't be a nurse otherwise. So why shouldn't she have to pay for it?

Third - your post suggests that you think OP shouldn't have gotten the loans. Is that correct? Would she be better off if she hadn't been able to get the loans, and had to find whatever job she could with her GED? OP, would that have been preferable? I'm guessing it wouldn't. So . . . if you don't regret the education, and the job that followed, you really have no justification for defaulting on the loans.

PP, what you seem to be saying is that OP got the benefit from the loans, but you know, it's HARD to pay them back, and she has a kid, so she shouldn't have to. But she absolutely should take advantage of the benefits of the education she got. That makes no sense at all.

I am a lefty, lefty liberal, about as far from a right-winger as you can get in this country. But there has to be a modicum of personal responsibility.


Very well written post. Thank you.


+1
Anonymous
Post 01/03/2014 14:54     Subject: Re:I owe $125,000 in private student loans to one institution. How to get them to settle?
Anonymous wrote:
Her loan payment is $1800/month, she works full time, and has a child. She probably physically cannot repay her loans. So it's really on the school/lender because they were the ones who made these unrepayable loans to her. I have NO problem with the lender being hurt here. I'm sure that people like OP would love to have their loans restructred to an affordable level - they don't WANT to be deadbeats - but she looks like she doesn't have any other option.


This is exactly the argument that was made about home loans during the housing crisis. It drove me nuts then, and it drives me nuts now.

First off, they are not unrepayable.

Second, why should the lender suffer, and not OP? OP has already said she is proud of herself (and she should be, so far) and she never could have gotten this job without the loans. Assuming that's true (and there's no point in going back and second-guessing her decisions, what's done is done), she has gotten a significant benefit from those loans. She wouldn't be a nurse otherwise. So why shouldn't she have to pay for it?

Third - your post suggests that you think OP shouldn't have gotten the loans. Is that correct? Would she be better off if she hadn't been able to get the loans, and had to find whatever job she could with her GED? OP, would that have been preferable? I'm guessing it wouldn't. So . . . if you don't regret the education, and the job that followed, you really have no justification for defaulting on the loans.

PP, what you seem to be saying is that OP got the benefit from the loans, but you know, it's HARD to pay them back, and she has a kid, so she shouldn't have to. But she absolutely should take advantage of the benefits of the education she got. That makes no sense at all.

I am a lefty, lefty liberal, about as far from a right-winger as you can get in this country. But there has to be a modicum of personal responsibility.


Very well written post. Thank you.
Anonymous
Post 01/03/2014 14:51     Subject: I owe $125,000 in private student loans to one institution. How to get them to settle?
I think your choices are:

1) to default on the loans or
2) refinance so that you can extend the repayment term. You will need to talk to your lender about this and whether they will allow it.

I too had $120k of loans (mostly federal). I consolidated them and extended them out over 30 years. My payments dropped to about $575.

I also echo the comments above about getting into the military or fed government to take advantage of the loan forgiveness. I really think this is your best bet for financial freedom at some point.

Anonymous
Post 01/03/2014 14:42     Subject: Re:I owe $125,000 in private student loans to one institution. How to get them to settle?
Anonymous wrote:
Her loan payment is $1800/month, she works full time, and has a child. She probably physically cannot repay her loans. So it's really on the school/lender because they were the ones who made these unrepayable loans to her. I have NO problem with the lender being hurt here. I'm sure that people like OP would love to have their loans restructred to an affordable level - they don't WANT to be deadbeats - but she looks like she doesn't have any other option.


This is exactly the argument that was made about home loans during the housing crisis. It drove me nuts then, and it drives me nuts now.

First off, they are not unrepayable.

Second, why should the lender suffer, and not OP? OP has already said she is proud of herself (and she should be, so far) and she never could have gotten this job without the loans. Assuming that's true (and there's no point in going back and second-guessing her decisions, what's done is done), she has gotten a significant benefit from those loans. She wouldn't be a nurse otherwise. So why shouldn't she have to pay for it?

Third - your post suggests that you think OP shouldn't have gotten the loans. Is that correct? Would she be better off if she hadn't been able to get the loans, and had to find whatever job she could with her GED? OP, would that have been preferable? I'm guessing it wouldn't. So . . . if you don't regret the education, and the job that followed, you really have no justification for defaulting on the loans.

PP, what you seem to be saying is that OP got the benefit from the loans, but you know, it's HARD to pay them back, and she has a kid, so she shouldn't have to. But she absolutely should take advantage of the benefits of the education she got. That makes no sense at all.

I am a lefty, lefty liberal, about as far from a right-winger as you can get in this country. But there has to be a modicum of personal responsibility.


the risk of default is already priced in the loan. I advise my clients to make strategic defaults all the time. It is not a big deal provided the contract is fair, has penalties and recourse. OP should study the agreement and know what happens if she defaults. If she is ok with those risks, who are you to say she cannot? Shut your piehole.
Anonymous
Post 01/03/2014 14:23     Subject: Re:I owe $125,000 in private student loans to one institution. How to get them to settle?
Her loan payment is $1800/month, she works full time, and has a child. She probably physically cannot repay her loans. So it's really on the school/lender because they were the ones who made these unrepayable loans to her. I have NO problem with the lender being hurt here. I'm sure that people like OP would love to have their loans restructred to an affordable level - they don't WANT to be deadbeats - but she looks like she doesn't have any other option.


This is exactly the argument that was made about home loans during the housing crisis. It drove me nuts then, and it drives me nuts now.

First off, they are not unrepayable.

Second, why should the lender suffer, and not OP? OP has already said she is proud of herself (and she should be, so far) and she never could have gotten this job without the loans. Assuming that's true (and there's no point in going back and second-guessing her decisions, what's done is done), she has gotten a significant benefit from those loans. She wouldn't be a nurse otherwise. So why shouldn't she have to pay for it?

Third - your post suggests that you think OP shouldn't have gotten the loans. Is that correct? Would she be better off if she hadn't been able to get the loans, and had to find whatever job she could with her GED? OP, would that have been preferable? I'm guessing it wouldn't. So . . . if you don't regret the education, and the job that followed, you really have no justification for defaulting on the loans.

PP, what you seem to be saying is that OP got the benefit from the loans, but you know, it's HARD to pay them back, and she has a kid, so she shouldn't have to. But she absolutely should take advantage of the benefits of the education she got. That makes no sense at all.

I am a lefty, lefty liberal, about as far from a right-winger as you can get in this country. But there has to be a modicum of personal responsibility.
Anonymous
Post 01/03/2014 14:20     Subject: I owe $125,000 in private student loans to one institution. How to get them to settle?
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.


One could make the precise same point about people who took out mortgages that they could not afford. And yet, besides foreclosures and short sales, there are all kinds of programs to enable preferential refis and other mechanisms for dealing with the fallout of the subprime crisis. Why is it OK to relieve an otherwise responsible person of some irresponsible housing debt, but not okay to relieve an otherwise responsible person of some irresponsible educational debt?

And don't kid yourself, the financial industry has done well from student loans, and has lobbied hard to prevent changes to the system.
Anonymous
Post 01/03/2014 14:10     Subject: I owe $125,000 in private student loans to one institution. How to get them to settle?
Besides the military (which is a great option - they really need nurses - you go in as an officer and the quality of life isn't much different than civilian nurses if you can avoid deployment), you need to start applying to higher paying jobs. There's really no other way around this. Defaulting is not an option for you. You've worked too hard.
Anonymous
Post 01/03/2014 13:52     Subject: Re:I owe $125,000 in private student loans to one institution. How to get them to settle?
Anonymous wrote:
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.


Her loan payment is $1800/month, she works full time, and has a child. She probably physically cannot repay her loans. So it's really on the school/lender because they were the ones who made these unrepayable loans to her. I have NO problem with the lender being hurt here. I'm sure that people like OP would love to have their loans restructred to an affordable level - they don't WANT to be deadbeats - but she looks like she doesn't have any other option.