Need HELP: My Credit May Tank Due To School Loans...

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Dylan1982
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Need HELP: My Credit May Tank Due To School Loans...

Postby Dylan1982 » Mon Mar 04, 2013 8:56 pm

So I took out student loans when I was in college back in 2002. I started paying my loans back, but then the monthly payments started getting ridiculous at like ~$250+/month payments.


I was able to lower the monthly payments down for a little bit. Then as time went on I wasn't able to make payments so therefore I put my students loans in forbearance.


Will my time is up with my forbearance, I need to start paying my loans back. I called today to see again if I could extend them, apparently I have to fill out some paper work and write them a letter.

The reason that I cannot pay them back is b/c I just got done with a divorce, I owe my lawyer ~$12k dollars. And now I have to pay $530/month in child support. I just cannot afford to repay my student loans at this time.

Will student loans impact my credit? I want to pay them, but I just do not have the money to pay them back.


Anyone have any advice to give me? What about the letter that I have to write, any advice on what to write about my crappy situation? :(
Chase Freedom - $12,500 (2/2013)
GM Card - $7,700 (7/2002)
CitiBank (Thank You Preferred) - $6,400 (6/2012)
CitiBank (Diamond Preferred) - $4,600 (6/2012)
Rogers & Hollands - $3,300 (3/2006)
Target REDcard - $3,000 (11/2014)
BestBuy - $1,600 (9/2003)
Discount Tires - $1,000 (2/2004)
Kohl's - $300 (4/2012)


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djrez4
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Postby djrez4 » Mon Mar 04, 2013 10:34 pm

Get on an IBR plan. Payments are capped at 10% (or is it 15%?) of your income after allowing for living expenses. It should account for court-ordered payments as well.

Also, $250 a month is ridiculous? Sounds low to me.
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Dylan1982
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Postby Dylan1982 » Wed Mar 06, 2013 12:30 am

djrez4 wrote:Get on an IBR plan. Payments are capped at 10% (or is it 15%?) of your income after allowing for living expenses. It should account for court-ordered payments as well.

Also, $250 a month is ridiculous? Sounds low to me.

What is an IBR Plan? My payments now are ~$190/month. I really don't want this to mess up my credit :(
Chase Freedom - $12,500 (2/2013)
GM Card - $7,700 (7/2002)
CitiBank (Thank You Preferred) - $6,400 (6/2012)
CitiBank (Diamond Preferred) - $4,600 (6/2012)
Rogers & Hollands - $3,300 (3/2006)
Target REDcard - $3,000 (11/2014)
BestBuy - $1,600 (9/2003)
Discount Tires - $1,000 (2/2004)
Kohl's - $300 (4/2012)

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djrez4
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Postby djrez4 » Wed Mar 06, 2013 6:27 am

IBR = income-based repayment.
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Bksuper
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Postby Bksuper » Wed Mar 06, 2013 6:25 pm

Id suggest making student loan payments the top priority, as they can't be absolved in bankruptcy and stay on the report. Perhaps you can negotiate reduced/deferred payments with the lawyer instead?
Sole Ownership Cards:
1st Financial Bank Platinum Student Visa, $500 CL, Open Since 3/2012
Citi Forward Student Visa, $6k CL, Open Since 10/2012
Costco TrueEarnings Amex, $6k CL, Backdates to 1/2012
SallieMae Rewards Barclay Mastercard, $2.5k CL, Open Since 4/2013
Jointly Owned Cards (co-owner with mom, not AU, used and paid only by me):
Chase Amazon Rewards Visa Signature, $2k CL, Open Since 8/2012
US Bank Cash+ Visa Signature, $13.5k CL, Open Since 10/2012
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Rina
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Postby Rina » Wed Mar 20, 2013 4:03 pm

Agreed. Cut corners elsewhere, because even social security disability payments can be garnished to repay student loan debt.
Charge & Credit Cards: 121.8K+ (AmEx Platinum: NPSL; Bank of America Cash Rewards: 50k; PenFed Platinum Cash Rewards: 28.8k; PenFed Pomise 21k; Chase Marriott Rewards: 13.5k; Citi Simplicity 5k; Chase Slate: 3.5k)

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