Page 1 of 3 123 LastLast
Results 1 to 10 of 22
  1. #1
    Join Date
    Apr 2009
    Location
    NJ
    Posts
    8

    Exclamation Owe 100,000k to Private Student Loans (Sallie Mae)

    My question involves collection proceedings in the State of: NJ.

    This is for my girlfriend- She wanted to go to college, her parents did not want her to. The parents made too much money so she could not get student loans. THe school (Montclair State University) tricked her into getting "private student loans" because she had no co-signer. She originally owed $64,000 for the 4 years of education. Little did she realize she was soon to pay a minimum of $1,300/month. This was absurd so I called the international Sallie Mae and tried to plea and negotiate a lower realistic payment. I got them down to $900/month for 30 Years... This is pretty much a life sentence. BTW, the loans are at a Non Fixed interest (Prime Rate of market) which fluctuates with the market. Not verry fair.. There are about 15 loans and each one has its own interest rate ranging from 8.5%-16%.

    With there being no teaching jobs in NJ and my girlfriend having a teaching degree, she is pretty much not going to be able to pay back this loan. We had visited a bankruptcy lawyer today and this is the info we got.

    You will need to stop paying the loans because you physcially cannot pay them. they will then send a judgement after her. THe lawyer said they can only garnish your wages at max of 10%... so if she made 50,000k a year she would only have to pay 5k per year to her debtor. Which is significantly less then 1,300/month /year. So this means that she can possible run up her credit card bills and then every number of years file for bankruptsy? The reason we are letting the loans default is becasue we do not know which loans are "gov't" or "private" this is how they give people the loans... if they are government then we cant get rid of them, if they are somehow private then the bkanrupsty will be fine.

    THe problem is... she will not be able to have any assets for the rest of her life and she needs to find people (possibly parents) who will let her put cars/assets under there name. SO pretty much she will be living almost like the underworld, like the immigrants, like an average American? All this girl wanted to do was become a teacher and teach kids, now she is in the worst shape of her life and her life didn't even start yet, shes 24.

    Does this mean we can just start abusing her CC's and then pay the monthly minimum and just live a happy life of debt but never be able to own assets? Never have a penny in the bank account?

    PLEASE HELP.. we need some advise.. this is killling us and our relationship and our ability to be happy kids and enjoy living... she speaks of suicide so often because of this... its a very serious problem.... please help!!

  2. #2
    Join Date
    Mar 2009
    Location
    Illinois
    Posts
    266

    Default Re: Owe 100,000k to Private Student Loans (Sallie Mae)

    Have you already tried to consolidate them into one fixed interest rate loan? I have about 50k in student loan debt and was able to consolidate all my loans into one loan with a 4.6% interest rate with Direct Loans. Maybe call them and see if they can give you an estimate payment however without a job its going to be hard to make any payment. Has she exhausted all of her forbearance and deferments?

  3. #3
    Join Date
    Apr 2009
    Location
    NJ
    Posts
    8

    Default Re: Owe 100,000k to Private Student Loans (Sallie Mae)

    Quote Quoting DonnyC
    View Post
    Have you already tried to consolidate them into one fixed interest rate loan? I have about 50k in student loan debt and was able to consolidate all my loans into one loan with a 4.6% interest rate with Direct Loans. Maybe call them and see if they can give you an estimate payment however without a job its going to be hard to make any payment. Has she exhausted all of her forbearance and deferments?
    they are NOT offering consolidation. I also have 70k of student loan debt, but i was able to consolidate. for some reason these "private student loans" are a little sketchy.

    she has not exhausted the forbearance and deferments yet but those will run out in 6 months.. so the inevitable is bound to happen.. which is default and become a member of the cash underworld... i guess... HELP!

  4. #4
    Join Date
    Mar 2009
    Location
    yeman
    Posts
    52

    Default notoreous

    SM is very well known for this greedy practice & we need to change the laws,

    they make it impossible for someone to pay it back..by charging such high intrest..

    this will keep happening until there is a class action lawsuit or they make a more reasonble payment plan

    I know of doctors that got loans & the payments were $5000/month & no job pays that much.. and if you do not pay the amount it grows like an uncontrollable cancer.

    In the meantime she needs to look into consolodation & fixed rate and maybe even a bank loan ( will be much more difficult) but the worst is to ignore. even if she pays something small like a few 100 month for the rest of her life it is better than acourt judgement...if she can only afford a few 100 month the loan will grow...but her credit will be good & she can own cars homes etc...

  5. #5
    Join Date
    Apr 2009
    Location
    NJ
    Posts
    8

    Default Re: notoreous

    Quote Quoting poppycat
    View Post
    SM is very well known for this greedy practice & we need to change the laws,

    they make it impossible for someone to pay it back..by charging such high intrest..

    this will keep happening until there is a class action lawsuit or they make a more reasonble payment plan

    I know of doctors that got loans & the payments were $5000/month & no job pays that much.. and if you do not pay the amount it grows like an uncontrollable cancer.

    In the meantime she needs to look into consolodation & fixed rate and maybe even a bank loan ( will be much more difficult) but the worst is to ignore. even if she pays something small like a few 100 month for the rest of her life it is better than acourt judgement...if she can only afford a few 100 month the loan will grow...but her credit will be good & she can own cars homes etc...

    sallie mae did not want to settle... i offered and begged to let her to pay a few hundred a month. the indian's said no. i wish i could actually speak to someone. i wish i could find someone to give me some real advise. i dont know what to do...

  6. #6
    Join Date
    Mar 2009
    Location
    Illinois
    Posts
    266

    Default Re: Owe 100,000k to Private Student Loans (Sallie Mae)

    Your getting advice rather you accept it or not thats up to you.

    Option 1- Consolidate the loans. YOU DONT HAVE TO DO THIS THROUGH SALLIE MAE. When you consolidate you should get a fixed rate lower interest rate.

    Option 2- Pay what you can per month this way they can't default your loan. ( A reasonable amount)

    Option 3- Do the bankruptcy and try to be one of the .02 percent that actually get their student loans discharged.

    Option 4- Let it default and live a life of great disaster.

  7. #7
    Join Date
    Apr 2009
    Location
    NJ
    Posts
    8

    Default Re: Owe 100,000k to Private Student Loans (Sallie Mae)

    Quote Quoting DonnyC
    View Post
    Your getting advice rather you accept it or not thats up to you.

    Option 1- Consolidate the loans. YOU DONT HAVE TO DO THIS THROUGH SALLIE MAE. When you consolidate you should get a fixed rate lower interest rate.

    Option 2- Pay what you can per month this way they can't default your loan. ( A reasonable amount)

    Option 3- Do the bankruptcy and try to be one of the .02 percent that actually get their student loans discharged.

    Option 4- Let it default and live a life of great disaster.
    option 1 - consolidate with a private bank? BOA? PNC? TD? In this economy they are going to want to buy her debt? Many some links.. i'll call and try.

    option 2 - she wants to repay it and is willing to at a reasonable amount. the problem is they aren't listening to us and giving us a reasonable amount. if she makes 2k a week, how can you afford to pay 1500 a month? that is UNREALISTIC? is it not?

    option 3 - we really don't want to go down this road, by any means.

    option 4 - we don't want this, this is not really even a realistic option. i want to figure things out and hope someone can help.. are there rich people who want to give money away to the less fortunate? all she wants to do is teach little kids and live a life like anyone else. she went to college to try to better herself and got burned.. (we feel like)

    another possible option- maybe go back to school? this counts as an automatic hold on the loans because she is furthering her education.

    help please - lost and confused.

  8. #8
    Join Date
    Apr 2009
    Posts
    2

    Default Re: Owe 100,000k to Private Student Loans (Sallie Mae)

    Why don't you visit the "Direct Loan website". You can apply for a loan consolidation through the government? Sallie Mae may be giving you false information. I've never heard of anything like "no consolidation allowed". Anyway, there are some loan programs happening in the next few months. But you have to have your loans in with the direct loan govt. service. Look at ibrinfo.org

    Good luck.

  9. #9
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    73,761

    Default Re: Owe 100,000k to Private Student Loans (Sallie Mae)

    Quote Quoting DonnyC
    View Post
    Option 2- Pay what you can per month this way they can't default your loan. ( A reasonable amount)
    On what planet can't you be found in default on a loan if you don't make your full payment?

  10. #10
    Join Date
    Apr 2009
    Location
    Atlanta, GA
    Posts
    3

    Default Re: Owe 100,000k to Private Student Loans (Sallie Mae)

    Im in the same situation. I just got off the phone with salliemae today, and my loan is consolidated with them. I owe them $120,000 and they want interest only payments of $854 a month. Im not even touching the principal! I cannot afford to make those payments at all. I only make $1200 bi-weekly and one check goes for rent. That does not include car payment, food, utilities, gas and my government loans that I am paying. Sallie mae will not negotiate! Now my credit has gone so far down that I cant even call another bank to try to refinance because I wont get approved. Its like why did we even go to school in the first place? You think you'd have a better life, but your life gets worst. Now they will eventually garnish my wage, I will have defaulted on my loan, and wont ever be able to get any credit. This makes no sense. I think there are toooo many of us with this problem, and we all need to get together somehow, and protest these student loans at Capitol Hill, we need to somehow get ahold of the media with this issue, or take it to congress. It HAS to be made a big deal for this to change. A change needs to happen! If you dont have rich parents, or do superbly well in high school where you qualified for scholarships, or have a low income family where you qualified for Financial Aid your pretty much F***D. How is this creating a better future for the students. And still they talk about increasing tuition. This is out of hand.

    1. Sponsored Links
       

Page 1 of 3 123 LastLast

Similar Threads

  1. Debt Collectors: Sallie Mae Private Loans
    By dturcott in forum Student Loans
    Replies: 1
    Last Post: 04-03-2011, 05:44 AM
  2. Cosigners: Cosigner Release for Private Student Loans with Sallie Mae
    By GoddessVirage in forum Student Loans
    Replies: 1
    Last Post: 10-19-2010, 12:47 PM
  3. Collection Lawsuits: Statute of Limitations on Sallie Mae Private Student Loans
    By wasteoftime in forum Student Loans
    Replies: 14
    Last Post: 06-24-2010, 05:29 AM
  4. Debt Collectors: Student Loans, Private Loans, Chapter 7, Post Nuptials
    By jedward in forum Student Loans
    Replies: 1
    Last Post: 05-01-2009, 05:30 AM
  5. Debt Collectors: Recovering Overpayment of Student Loans from Sallie Mae
    By helpme75 in forum Student Loans
    Replies: 1
    Last Post: 03-28-2007, 08:01 AM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
 
Forum Sponsor
Bankruptcy Lawyer
Recover From Your Debt. Free bankruptcy evaluation by a local attorney.




Untitled Document