Student Loan Nightmare!?

Question

I'm in a bit of a situation. I need to be able to defer my federal student loans for about a year because I currently cannot afford them. I need to defer payments so that I can afford to purchase health care for myself (about a year until I receive my teaching certification). I researched the criteria for deferment based on economic hardship, but I don't qualify because my income is too high. Also, I am on the lowest payment plan offered already, so am at a loss. Looks like I have to choose between having health care and not being delinquent. Does anyone know if there is anything I can do to temporarily defer these loan payments?

I am beginning to face a health issue and so this is crucial to figure out ASAP.

to answer the below, I have 2 jobs already, am paying a car loan, because I just got rid of a junky old car that cost me $5000 in repairs within 4 months. I am applying to go back to grad school, but the program I'm applying for requires me to have a teaching certificate, which I won't have for another year. In addition, I have $10,000 in credit debt due to college expenses financial aid won't cover. Finally, it is required by my job to have internet access. So, nothing much I can cut out...unless I want to lose my job or be sued by creditors.

to answer the below, I have 2 jobs already, am paying a car loan, because I just got rid of a junky old car that cost me $5000 in repairs within 4 months. I am applying to go back to grad school, but the program I'm applying for requires me to have a teaching certificate, which I won't have for another year. In addition, I have $10,000 in credit debt due to college expenses financial aid didn't cover. Finally, it is required by my job to have internet access. So, nothing much I can cut out...unless I want to lose my job or be sued by creditors.

Answer 1

yeah u do have to

Answer 2

You have two options most lenders do not tell you about:
1) Did you make less last year than you do this year?

If so, if you look at the Economic Hardship Deferment Request form
( https://www.wellsfargo.com/pdf/per/student/finaid/deferment/hrd99a.pdf )
You will notice in Section 5: Definitions, Monthly income is defined BY YOUR CHOICE of current monthly income OR last years adjusted gross income (found on your 2006 tax forms) divided by 12 (basically your monthly income from last year.)

Another thing they will not offer up to you:
2)How long is your loan financed for? Chances are, its more than 10 years. For example, the payment that you pay each month on a 30 year loan is NOT the payment amount that you use to calculate if you are eligible or not. Use a student loan calculator to figure out the monthly loan payments you SHOULD be reporting for the purposes of economic hardship. You can use the calculator below or search the net:
(https://www.mygreatlakes.com/borrower/staticForward.do?staticpath=/borrower/monthly_calculator.html&menuID=loancalc&selected=true)
Section 5: Definitions,states:
For any loan that my current repayment plan allows me a total of more than 10 years to repay, my payment amount will be adjusted to show the estimated monthly amount that I would owe if I were required to repay the loan in fixed installments within a 10-year repayment period.

So use the above two techniques to calculate if you are eligible for hardship.
1) Use tax return from last year...if it helps
2) Make sure you report you student loan payments that are adjusted for 10 year payment plan

Answer 3

i had the same delima...but it wasnt health ins....i have my loans thru fannie mae....i just called them, explained the situation and they defered mine. also, even though you make too much now, when you start making payments on your helth insurance, your expenses will go up, so that may help too. but, just call, explain the situatiuon, and more than likely they will help you. they would rather you be honest and responsible than not pay them back at all...as for the answer by "god"...goodness, im sure he has never had a hardship. as a college student, i know that you already suffer and lose out on doing a lot b/c of finances, so why should you have nothing at all?...and as a college student, internet is a must!
anyways...good luck and i hope this helps!

Answer 4

You didnt mention if you actually spoke to your lender. Call them immediately if not. They are there to help you. You may qualify for a forebearance. Interest will still accure but you can get a temporary break on making payments. Once you go back to school the payments will be deferred.

Answer 5

I cant believe you cant find a way to make your student loan payments and health insurance. Surely you have ways to cut your expenses. You obviosuly pay for internet access..you could get rid of that. You probably have cable tv, you could get rid of that. Are you paying for a car loan? You could get rid of that and pay cash for a really cheap car. There are ALWAYS way to figure out how to cut your expenses so you can pay your debt. Hell, you could even take a second part time job.

Other than that the only thing you can do is ask to defer your payments. If they say no...you are SOL.

Per your responce. Sorry, it sure looks to me like you are looking for excuses, not solutions. Desperate times call for desperate measures. You said it yourself, you have a car loan. When I got out of college, I had a ton in loans. I bought a crap car for 1500 bucks and a bicycle. I only drove my car if it was raining. I spent a lot of nights in the dark with no cable TV eating dollar store mac and cheese and top ramen. Not only did I pay off my loan, but I usually doubled my payments.
Here is the REALITY of your situation. YOU ARE NOT going to be able to defer your loans so you have a choice here. Either CUT your expenses drastically ( the smart choice) or just dont pay your loan and ruin your credit for many years. Personally, I would rather sit in a dark slummy apartment with no power, eating cheap food by candlelight than ruin my credit...but hey, that is just me. But dont try to feed us that bull that there are no solutions out of your problems. Millions of us have been in the same situation as you before and WE figured out a way out of it.

Answer 6

Have you talked with your student loan rep to inform them of your problem? Maybe you could qualify for a forbearance.

I found this info at :
http://www.studentaid.ed.gov/students/publications/repaying_loans/2003_2004/english/repayment-options-forbearance.htm

..............................................................
What is forbearance?

If you find you can’t meet your repayment schedule but you’re not eligible for a deferment, you might be granted forbearance for a limited and specified period. During forbearance, your payments are temporarily postponed or reduced. Unlike deferment, whether your loans are subsidized or unsubsidized, you’ll be charged interest during forbearance. If you don’t pay the interest as it accrues, it will be capitalized.

As is true with deferment, you aren’t just granted forbearance automatically;
you must formally request one from your loan holder. You might have to provide documentation to support your request. You might be granted forbearance if you are

* unable to pay due to poor health or other unforeseen personal problems.
* serving in a medical or dental internship or residency.
* serving in a position under the National Community Service Trust Act of 1993 (forbearance can be granted for this reason for a Direct or FFEL Stafford Loan, but not for a PLUS Loan).
* obligated to make payments on certain federal student loans that are equal to or greater than 20 percent of your monthly gross income.

This is not a complete list of conditions that might qualify you for forbearance.
For more information, contact your loan holder.

Unlike deferment, which you’re entitled to receive, the loan holder does not have to grant forbearance except in certain mandatory circumstances (check with your loan holder for details). In most cases, however, lenders are willing to work with you if you show you’re willing but temporarily unable to repay your debt.

Answer 7

a million - they fee plenty. determine you're analyzing in a sector you will like. 2 - ward off loans different than Stafford.... till you have not the different decision. 3 - in the previous going with a private lender or pupil mortgage corporation, attempt your financial business enterprise for a private mortgage. sturdy success !

Answer 8

you can only defer if you are continuing your education

the Federal Government will garnish wages ( you make too much for a hardship deferment?) keep income tax returns, post liens,
In general , make your life holy heck until the money is repaid in full

You knew this when you borrowed the $

pay up

Answer 9

my family has done with out health insurance for 8 years . . I personally would just do with out until I could afford both after all you already have the education that you have to pay for . . .

Answer 10

if you continue to go to school, then that will deffer payments.