So, when I took out $175,000 in student loans to get through lawschool, pay back didn't seem like it would be a problem. However, I have graduated to a bad market and with substantial health issues. Now the choice is feed the kids or try to keep the loans out of default. Forebearance thus far has pushed the loans near $190,000. Anyone got a plan that does not involve moving to South Africa? Oh, and FYI- you can't bankrupt student loans absent exceptional circumstance. Thanks in advance.
2006-08-30 16:20:43 · 15 answers · asked by Jessica 1 in Business & Finance ➔ Credit
Wow,...and I am sweating like crazy over 28 grand!
Could you move to secure better employment? There is no easy way out of this one,...unless, like you said you leave the country.
2006-08-30 16:25:04 · answer #1 · answered by ? 4 · 0⤊ 1⤋
If you are struggling to repay your student loans then you most certainly are not alone. Many times students and graduates that hold student loans look to refinance in order to lower their monthly payments.
Refinancing student loans can be a good idea under certain circumstances, but not always. As of late, interest rates have been low but they are in fact rising and most economists agree that they will continue to rise. Most student loans are based on a variable interest rate and will not be locked-in until you refinance or get a loan consolidation.
The option to refinance is only available to those individuals who have established good credit by paying their loans back on time. If you have missed payments or have been late then you can pretty much forget about it. As a rule, refinancing rates are usually offered at 1 or 2 points below what your current rate is. This is to make the loan more attractive, but you must take caution.
It is tempting to pay less per month but oftentimes what was a 5 year loan turns into a 15 year loan. You can, and I highly recommend that you do, avoid this by paying off as much of the principal as possible. This will shorten the life of the loan and the amount of interest that you pay. This is of course ideal in the best of circumstances but in those times when money is tight you can cut back on your payments, even to the minimum.
Student loans are like every other type of bank loan that you receive in the sense that you borrowed the principal upfront and now the true cost of the loan can only be calculated after all of the principal and interest has been paid back in full. That is probably where a great many students find themselves having difficulties. Far too many treat their student loans as if they were free money. No doubt a great many do the same with credit cards as well but that is a subject for a different day.
Student loans are godsend in assisting millions to get their education. They are an integral part of our society and play a huge role in bettering ourselves and the world we live in through education. If you hold a student loan then you owe it to yourself to know exactly where you stand with it and make the proper adjustments if need be.
2006-08-30 17:43:15 · answer #2 · answered by darnellscottdebt 1 · 1⤊ 0⤋
I don't know of an easy answer for that one. Obviously, if relinquishing the debt is not an option, then the only real option is to work in a field or own a profitable enough business or investments that do significantly more than just cover your living expenses-which of course, would have to be kept to a minimum to pay off that kind of debt in your own lifetime.
My best suggestion is to work in a field or start a profitable business that provides residual income-such as the financial services industry or multi-level marketing perhaps. Another option could be an aggressive investment strategy as long as you have the risk tolerance.
I do wish you the best. There are opportunities out there, but I wouldn't look for an easy or quick solution, short of just plain luck with investments or the lottery.
2006-08-30 16:33:54 · answer #3 · answered by Leroy 5 · 1⤊ 0⤋
You could try transferring your loan to a different institution to get a lower interest rate (assuming that option is open to you). Other than that, you may have to pull a part-time job or something on top of your regular employment (as it sounds like you have) and use your $$ from that job strictly for paying off your loans. Or both transferring and 2nd-jobbing. Whatever you do is gonna suck - kids and a monster set o' loans: neither is a good thing to ignore.
2006-08-30 16:30:13 · answer #4 · answered by Anonymous · 1⤊ 0⤋
I have THE SOLUTION to your needs
Option 1 = Join a Network Marketing Company and become an executive level performer and earn over $500,000/yr
Option 2 = Pay a comfortable set amount every month regardless what it is, keep your receits, this will show good payment history.
Option 3 = Sue the school for $200,000 and settle out of court.
2006-08-30 18:12:49 · answer #5 · answered by TNA Ambassador 6 · 0⤊ 1⤋
You took out $175,000 in student loans to get through law school, and You didn't study how to escape without paying the loan.Here is point, You should able to file this case at court,and you tell the court I took the loan to study,which I didn't, then why should I payback the loan.
What kind of law will you practice?
2006-08-30 16:44:09 · answer #6 · answered by laksh 3 · 0⤊ 1⤋
In the state of Georgia, your student loan is equivalent to almost TWO 1400 square feet ranch homes in a good county.
Feed the kids comes first, but I don't even know where to begin because you bit off way more than you can chew.
My rule is to never take out more in loans than what you can make your first year graduating from school.
That means you were done somewhere around $80,000 to $100,000.
2006-08-30 19:58:09 · answer #7 · answered by DaMan 5 · 0⤊ 1⤋
Two words - practice law. Practicing law earns income which can be used to repay $175,000+ in loans.
If you have health issues - disability law is a hot field. Represent people in social security disability cases.
All of this assumes that you have passed the bar in your state or some other state.
2006-08-30 18:00:51 · answer #8 · answered by Anonymous · 0⤊ 0⤋
no one is going to assist you to refinance for better than what the home is properly worth. the only way that must be attainable is to refinance, THEN take out an fairness very own loan (assuming which you have better than $40k in fairness) to repay the student very own loan. They arenot going to easily hand you extra money to repay money owed unrelated to the residing house.
2016-10-01 02:54:21 · answer #9 · answered by ? 4 · 0⤊ 0⤋
Get a job in the government for they have the best health insurance in dealing with substantial health issues.
2006-08-30 17:08:14 · answer #10 · answered by SweetBrunette 5 · 1⤊ 0⤋