Earnest?

Posted by deap_p@reddit | studentloandefaulters | View on Reddit | 5 comments

Has anyone on here had experience defaulting with Earnest? I know it’s not always recommended to default on loans, but I pay $1600 monthly and have watched my loans increase as I still make payments. We don’t even pay rent because we live with my in-laws & are still scraping by. I owe $181k in private loans. So, even if my wages were garnished, I would owe 10% (head of household in Missouri) which would SAVE me money STILL. Right? My fiance is on board and realizes that my credit might be shot for the next 10 years or so. He agreed to co-sign for future purchases, if needed. Not paying will set us so free… I’m in desperate need of a change. Am I making an ok choice? Will we/I be ok even in the worst case scenario?

For anyone wanting to make comments about budgeting, not buying coffee, looking for a better job, etc., please spare me. We pinch pennies & still can’t make it work.

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AutomaticFeeling5324@reddit

Default is the right way to go. The interest rate was meant to keep you in the hook forever. One tip to prepare is to get your credit cards in line. Keep those credit card available as you probably won't get any decent offer in the near future once you default. Another thing is to make sure you have a reliable vehicle that will last you the next 7 years at minimum. You don't want to have to shop for a new/use vehicle while your credit is bad. (another interest hook to get you overpaid for a car). Third tip is to make sure you don't plan on applying to any type of government jobs, because I want to believe they check your credit as part of the hiring process. (Someone can correct me if I am wrong)

Usukidoll@reddit

I think the last part about government jobs and background checks only applies to Federal student loans.

Stavy612@reddit

No. Any job requiring a security clearance. They will run your credit periodically throughout your employment.

What the heck? How would anyone hold a job then? Lots of us go through rough times which results in bad credit.

As long as you can explain why your credit has dings usually it’s okay and they give you time to fix. When you have a security clearance Uncle Sam doesn’t play.