Can anybody help with student loans gone astronomically out of control?

Question

The debt is at $141,000 and growing, I can't even pay the interest, I just pay what I can. I would appreciate any sincere help.

Answer 1

See if you can get it consolidated to a lower interest rate. There are new rules going into effect where it will be fixed at a much higher rate if you don't get it consolidated (in fact, they may have already gone into effect, I'm not sure exactly when it was supposed to happen). If you can talk to your lender and work something out, do that. Other than that, you may have to cut back on your lifestyle. I'm not saying you're living luxuriously already, but look for anything you can do to save money. Look into using public transportation if you don't already, or ride a bike for transportation if you can. Cut out as many bills as you can, including possibly television and internet. If you're not under a contract, look for the cheapest phone service you can get. Find a roommate to move in with you, or move in with someone else to help cut down on how much you pay in rent and utilities. Do anything you can to get extra income as well. Sell your junk on ebay, sell your blood, mow lawns in your free time. In short, do everything you can to reduce how much money you're spending and do everything you can to increase how much money is coming in. With $141,000 in loans, nothing you do will make it go away quickly. You have a long road ahead of you, and over time, every little thing you do will add up and will help you in the long run. Good luck.

Answer 2

I have used both the loan deferment and the forbearance options. I also just recently consolidated my loans w/the Dept. of Education which fixed the interest at the current rate. You also have the option to have your payments be based on your income. You can select this option at any time by giving the Dept. permission to view your income tax returns.

Answer 3

Call the Department of Education (the number will be on one of your bills. Tell them you need a "Loan Forbearance" and you can get an "Unemployment Deferment Request", too, if you need it. They should be very nice and helpful. Have them explain these 2 things to you and they will "walk" you through this.

Answer 4

You need to call your servicer ASAP and see if they can work out a payment plan with you. I have done this in the past - and it helped me out while I got back on my feet and managed to earn more money.

Call them, be honest about your situation, and see what they can do to help. And always pay something each month, no matter how small!