AES Doesn't Care That I Am in School

[blueberrygirl]

My question involves collection proceedings in the State of: MO

I recently graduated from a private university in NY with my B.A. and my family doesn't have any money to really help me, so I took out loans to pay for my education. A lot of loans. I have federal loans, a loan with Sallie Mae and my gigantic loan that covered that majority of my education expenses is through AES (a private lon company). I just finished my first year of graduate school. I am in a PhD program, so I plan on being in school for another 4 years. I have not had too many problems with Sallie Mae and the federal loans thus far as I contacted them and told them I was attending graduate school. They deferred my loans. However, AES informed my graduate school is not a valid reason for deferment or forbearance and they want regular payment from here on out (over $650/month). Being a Graduate TA, I make LESS THAN $820 a month and have all the other expenses I need to think about like rent, food, gas, insurance, and so on. I have exhausted my deferments and forbearances, tried to negotiate (in fact I had them agree to a $70/month payment when a collect was on the line also but my payments just skyrocketed again and they just apologized for the "misunderstanding"-WTF), and now they are threatening to close my grandparents bank accounts if I don't make these payments (they are my co-signers). They don't really have this money either. What can I do---I feel like this isn't fair. I am still is school DAMNIT!!

Any advice in truly appreciated

[CourtClerk]

First, you can watch your language.

Pull out the contracts you signed and agreed to when you took out the loans and read what it says about repayment. There are some loans which you don't have to pay off until 6 months after you finish school, there are others where you start paying the minute you receive your degree. If you agreed to it, then I don't know why you are complaining now. You borrowed their money under certain terms and they want their money back. Go read your contracts.

[blueberrygirl]

I am sorry I used the D word; I was ranting and upset (I also didn't think that word would upset anyone). As much as I do appreciate help and assistance, you could stand to be a bit more understanding. I did a lot of this on my own, -looked up info about loans on my own and contacted the companies. I thought I was getting the best deal. Being a young 18 year old I didn't know the fine details of what I should have been reading these contracts for or all the right questions to ask. I wanted to go to college and was excited when a company offered me money to allow me to do that.
In addition to anyone who can offer advice, is anyone in the same position?

[Rosalynn200]

For the next 4 years, your expected payments are about $8,000/year or $32,000 total. Does this represent interest only or principle and interest?

As co-signors, your grandparents are secondarily liable on your private loan debt. This means that if you cannot fulfill your loan obligations, the loan company has an absolute right to go after your grandparents for the full amount and then your grandparents can go after you. Why did your grandparents agree to be co-signors in the first place? Did they plan on gifting you $32,000 so that you could continue your studies or did they really believe that you would graduate and start paying the debt and that co-signing was a small risk they would undertake to help you get a smaller interest rate? Could you have borrowed without a co-signor and if so, why didn't you go that route? I am always amazed that co-signors do not believe they are on the hook for a debt they signed--especially when they are adults.

My advice? If your grandparents are not willing to gift you $32,000 so that you can receive your PhD, then you should immediately drop out of the program and get a job to pay off your debts and begin using the BA for which you already paid dearly. Surely you can get a job that nets at least $1,600 per month ( plus your gov't loan payments) in the "real" world?

Without the support of your parents and/or grandparents, you simply cannot afford higher education at this time. The fact that you are getting free tuition and an $800/month stipend shows that you have obvious potential, but there are many PhDs who only make $40,000 per year and would have a difficult time paying $700/month in student loans.

[blueberrygirl]

I am not worried about making enough once I get a job. PhD's in my field usually start out making 60+ and within 5-7 years can easily reach six figures. Many students also start working sometime in their third year (and I just finished my first). If I could pull this off (hey--this economy has to improve sometime, right-, but seriously most students in my program have not had a problem finding employment in their third year) than I really only have to worry about getting through my second year and part of third year. I am so close----. I understand what you are saying about my grandparents, but they just wanted to do whatever they could to help me and were not well versed in the language of private loans. We both realize what we did was ignorant and we jumped the gun--just to be clear. I was the first person in my family (from either side) to go to college, so we may have been a little too excited.
I think I am just going to pay whatever I can and ask them to help me however they can. I just wish I could take them off as cosigners so AES would leave them alone.

[Rosalynn200]

If your loan payments are more than 15-25% of $60,000 (garnishment), you cannot afford graduate school. The so-called "deferments" that you received--are they free interest or is interest capitalized? I know a lot of PhDs that received substantial undergraduate scholarships, but they came from incredibly poor backgrounds. If you are middle class and your parents do not fulfill the "expected family contribution" requirement, you are in a tough boat.

Your grandparents just wanting to "help you" is not an excuse. What really did they intend when they signed? A contract to borrow money is a contract. You are not accusing the student loan company of deception in their terms, you are just stating that you cannot afford private college. "Doing whatever they can" by co-signing a loan that they have no intention of honoring? Is that really what you are saying?

Since you were the first person in your family to go to college, you may not be as wordly when it comes to the "industry" of higher education. When a school says the "average" salary of "starting" graduates, what they really mean is the "average" of the top 10% or the pool that answers the survey. If you really believe in the pay-off, then honor your debts. By the post, "AES Doesn't Care" you imply that others should be caring or otherwise watching out after you. Not in this world, honey, sorry to say. Don't forget that a negative credit score will most likely affect your employment prospects.


When you say, "I think I am just going to pay whatever I can and ask them to help me however they can," that really is no plan and shows a lack of maturity. If you truly believe in what you are doing, then have a plan to honor your contracts. If you don't believe that what you hoped will pan out will in fact pan out, then jump ship. No harm in that. Life is a big oyster.


When you say, "I just wish I could take them off as cosigners so AES would leave them alone," you are regressing. Why should they be "left alone" when they undertook the responsibility to be a co-signor? What are you really saying?

[Immo]

Try dropping the TA job, and getting a "real job." Sure the hours are not as nice for going to school, but I promise you, the pay is much better. You might need to drop your grad school class load, but it beats dropping out (friggin morons who suggested that!)
As for your gramp's nothing you can do for them, as has been stated, they entered into a legal agreement and they are stuck. Often grad school full time is lower than undergrad and you might be able to continue your federal loans and whatnot while taking a slightly reduced course load.
Good luck, and get used to the world not being fair.
(Oh and I would think it was the WTF not the Damn that annoyed Court. Damn is in the bible, it's good to go in most everything, and if it was the Damn, well then, I guess I'm in trouble too .)

[blueberrygirl]

Immo--
I am relieved you replied. I thought I was the only sane one left for a sec (seeing as how finishing my degree would practically quadruple my earning potential-dropping out DOES seem the best plan

I hear what you are saying about the outside job and think that is the best option. I may need to do that sooner than I planned. Thanks for your advice--

If your loan payments are more than 15-25% of $60,000 (garnishment), you cannot afford graduate school. The so-called "deferments" that you received--are they free interest or is interest capitalized? I know a lot of PhDs that received substantial undergraduate scholarships, but they came from incredibly poor backgrounds. If you are middle class and your parents do not fulfill the "expected family contribution" requirement, you are in a tough boat.

Your grandparents just wanting to "help you" is not an excuse. What really did they intend when they signed? A contract to borrow money is a contract. You are not accusing the student loan company of deception in their terms, you are just stating that you cannot afford private college. "Doing whatever they can" by co-signing a loan that they have no intention of honoring? Is that really what you are saying?

Since you were the first person in your family to go to college, you may not be as wordly when it comes to the "industry" of higher education. When a school says the "average" salary of "starting" graduates, what they really mean is the "average" of the top 10% or the pool that answers the survey. If you really believe in the pay-off, then honor your debts. By the post, "AES Doesn't Care" you imply that others should be caring or otherwise watching out after you. Not in this world, honey, sorry to say. Don't forget that a negative credit score will most likely affect your employment prospects.


When you say, "I think I am just going to pay whatever I can and ask them to help me however they can," that really is no plan and shows a lack of maturity. If you truly believe in what you are doing, then have a plan to honor your contracts. If you don't believe that what you hoped will pan out will in fact pan out, then jump ship. No harm in that. Life is a big oyster.


When you say, "I just wish I could take them off as cosigners so AES would leave them alone," you are regressing. Why should they be "left alone" when they undertook the responsibility to be a co-signor? What are you really saying?

Ok--Lets try this again. My grandparents were trying to help me and I admit and they admit, we were ignorant in the situation. I am not trying to use an excuse. I am not sure what is hard to understand about that. They understand they have entered into a contract. Now, when I said I wish I could take them off as cosigners it is not b/c I am "regressing", it is because I care more about them than I do about myself and I don't like seeing them go through this. They don't deserve it. They made a mistake, but are good people.
I also find judgments such as "lack of maturity" unhelpful. I asked for advice, not judgmental reflections of my situation when, frankly, you don't know me.

[mmmagique]

Ok.

Well...since they did sign the contract that guarantees they will pay if you don't...make sure *you* do.

That's all you can do at this point.

The purpose of a co-signer is to make sure that someone with decent credit has promised to make sure the loan is payed back. It would be incredibly stupid of any company to require a co-signer, but later, when the original debtor was having trouble paying to let the co-signer off the hook just because the original debtor can't pay. (convoluted I know...but, you know what I mean, hopefully)

Good luck!!

[ashman165]

Since you were the first person in your family to go to college, you may not be as wordly when it comes to the "industry" of higher education. When a school says the "average" salary of "starting" graduates, what they really mean is the "average" of the top 10% or the pool that answers the survey.

This is, simply put, a complete lie. Indeed, it's an argument from extreme stupidity - the inference being that schools of higher learning are completely devoid of intellect, or if possessed of it, they lack any intellectual honesty.

Indeed, this ignores the fact that there are a great many science students who are graduated therefrom. Are we really to believe that these scientists somehow can mastery high school level statistics?

Do yourself a favor and stick to things which are actually true, or at the very least, things which aren't so obviously false.

Incidentally, if you're going to argue that you're actually correct, do spend a few seconds compiling data to support your claim. I'll be more than happy to vivisect it.

OP, it's unfortunate, but Courtclerk is correct. You need to carefully read your contracts to see what the repayment schedules look like. If you signed a contract agreeing to repay them under x circumstances without y exception, and we're not living in that x circumstance and y is true, then there's not a lot you can do. Except forgo repayment and let your grandparents foot the bill. After all, they cosigned, so they must have been fully prepared to pay for your college education outright.

Or, you can do what many people do: work and go to school all at the same time.