thinking about defaulting on my student loans
Posted by paulzedwuz79@reddit | studentloandefaulters | View on Reddit | 24 comments
I’ve got over 200k in student loans hangin over my head. Half of it is private, half is federal. I’ve been juggling deferments, forbearances, income-based payments, you name it. And after all that? My balance just keeps going up. Like… what’s even the point anymore?
I was 18 when I signed those loan papers. They made it sound like it was no big deal, “just go to college, you’ll get a good job and pay it off.” Yeah… except nobody tells you that the interest is what’ll kill you, not the damn principal. It’s like quicksand every time I try to climb out, I just sink deeper.
Now I’m in my 30s, making decent money on paper, but between rent, car, food, and these dumbass loans, I’m broke every month. I’ve got dreams buying a house, starting a family, hell, just having a savings account but it feels like I’ll never get there while these loans are hangin around my neck like a damn anchor.
I’ve even thought about default. Like, just straight up stop paying and ride it out. I know people say “you borrowed it, you should pay it,” but I’m sorry these lenders ain’t saints. The system is rigged. They made billions off poor kids tryna escape poverty through college. And now they wanna act like I’m the bad guy?
I haven’t pulled the trigger on default yet ‘cause I got a cosigner and I ain’t tryna ruin their life too. But man, I’m tired. Tired of being scared of the mail. Tired of watching the balance go up no matter what I do. Tired of wondering if I’ll ever be free.
brotatochip4u@reddit
I wouldn't fuck with federal loans. They will garnish everything and anything. Private loans however....
avahowardx@reddit
Facts. Federal loans are like the IRS of debt once they’re on you it’s game over. They’ll take your tax return, garnish your paycheck, even come for Social Security later on. You can’t hide from ‘em.
Private loans are a whole other headache though. Less power legally, but they can still mess you up depending on the lender. Some will sue, some just blow up your phone and send shady third-party collectors after you. Kinda a toss-up honestly some folks stop paying and just take the credit hit, especially if they’re already deep in the hole.
But yeah I get why OP’s feeling stuck. System’s a trap and it’s wild how normalized it is to owe six figures just for trying to get an education. No one prepped us for this kinda debt when we were 18
EqualExtreme7876@reddit
does sallie mae sue? that’s who i have and i really don’t want to get sued
shirleyjezcwh85@reddit
Federal loans are a whole different animal once you default it’s like they got cheat codes. They don’t need to sue you or anything they’ll just start snatching tax returns, paychecks, even social security checks later on. No joke.
Private loans, yeah, they hit different. Still hella stressful, but they gotta jump through more hoops if they wanna come after you court stuff, collections, all that. Doesn’t mean it’s easy, but at least there’s a bit more space to breathe or even try to settle later on.
Only thing that complicates it is if there’s a cosigner. Then it’s like even if you’re ready to walk away, you don’t wanna drag someone else down with you. That part’s rough.
You’re right federal loans are not the ones to mess around with. They got the long arm of the law on their side
Dramatic-Ad-4763@reddit
I defaulted on my private 15 years ago simply couldn’t afford it. It was charged off then I got a letter last year that discover has forgiven them.
investor_guy05@reddit
Woah really? Did they just give up on collecting from you and write it off??
parseczero@reddit
Don’t screw your co-signer. Get them off your loan first. That’s a whole other subject a you should read about it; the loan servicing companies will LIE to you to keep you from doing it. After they’re off the loan, then get onto an income based repayment plan. If that’s not enough relief and you must default, save every dime you can for a settlement offer (and possibly a lawyer). In the meantime, study and deep-dive this subreddit and other student loan subreddits. You’ve got this.
Tap_itoutRTI@reddit
They will not allow a co-signer to be removed, unless you can qualify for the payments on your own, which apparently you cannot now. The co-signer is permanent. I do not understand all this default ?? When my student applied for his student loans I made him read everything and be very clear on his responsibilities afterwards. He also made an appointment with the college financial aid office so he could hear the same speech from someone other than me. He graduated and paid his federal loans within 15 months and he is debt free now. Yes, he put off buying a bunch of stuff and living the life, because he knew he had a responsibility. Sticking to a budget . I think the problem is that too may students are taking out loans for an education that will never pay off in the end. That is where the misconception begins. Long before you go to the financial aid office.
parseczero@reddit
You are misinformed…on many things.
Tap_itoutRTI@reddit
For example .............................................
paulzedwuz79@reddit (OP)
I’d never wanna screw over my cosigner. That’s honestly the main reason I haven’t hit the default button yet. I know it wouldn’t just mess me up it’d mess them up too, and that guilt would eat me alive.
I’ve tried lookin’ into getting them released but man… the loan servicers make it feel damn near impossible. Every time I call, it’s a new excuse or some “we don’t offer that” type of line. It’s shady as hell.
I’m already on an income-based plan for the federal loans, which helps a little, but it’s the private ones that are killin’ me. No forgiveness, no mercy just endless interest. Feels like I’m stuck in a loop: make a payment, watch the balance go up anyway.
I’ve been diving into this sub more lately and yeah there’s a lot of good info buried in here. It just gets overwhelming, you know? Like I’m already burnt out from the loans themselves, and now I gotta become a lawyer/accountant just to survive ‘em
Adventurous-Key-2524@reddit
Look into a student loan attorney. They specialize in cases such as this. There are now laws to protect you. A student loan attorney will be able to guide you on a plan of action. Even if you don’t obtain an attorney, many attorneys will talk to you and give you options or appoint you in a direction to get the help you need. Not to frighten you, but I will say if you default, they will sue to garnish wages. But that’s where an attorney can guide you in avoiding that or potentially throwing the loans out if it’s past statute of limitations in your state, or if they unlawfully did something. Look up the Sallie Mae Lawsuit.
FloraAL66@reddit
Can you post the link to the “Sallie Mae lawsuit” please ? Was this a recent case ?
peri_5xg@reddit
Do not default on federal loans. For your private loans, refinance and get your co-signer off before defaulting because that’s just not ethical otherwise
DapperGuess9700@reddit
You can't default on student loans. That debt will go with you to the grave. One way or another, the government will get their pound of flesh. The best you can do is try to defer or reduce payments. Even bankruptcy does not get rid of student loans.
TheToken_1@reddit
When it comes to your federal loan, just pay them. You’ll be way worse off if you don’t. But for your private, do the math and it may be a decent idea to default. You’ll have to think farther into the future and come up with a plan also though. And possibly be ready to file bankruptcy.
Intelligent-Fuel-641@reddit
Out of curiosity only, why is your loan total so high? Graduate school, private out-of-state schools?
BravePLTR@reddit
Hey I don't have any advice for you. I just want to let you know that you are not alone. I'm feeling the same way. And so are many others reading this.
Do whatever you need to do to keep your head above water, and hopefully it will get better.
Odd_Investigator_736@reddit
Defaulting should be a last resort when you've exhausted all other viable options. Not something to consider.
abbylynn2u@reddit
The current administration has made their position known regarding student loan defaults and pursuing the money.
Youll need to figure our a game plan to defer and pay. Up game your credit score to refinance.
HVT_1011@reddit
Have you applied for income base repayment possibly? I graduated and owed like 190k in student loans. I know the feeling. Look at your options; you don't want to mess with it and go into default because they garnish.
Scared_Crow_@reddit
I'm a similar age and in the same situation as you.
Definitely DO NOT default on federal loans. You may be able to get away with defaulting on private loans. That's what I did. In my case, saving up for negotiations or even a lawyer is far cheaper than what I owe in private loans. And that's if I can't run out the SOL.
julietjones74@reddit
They’ll garnish your wages by 20% or so. Look into what happens in your state.
digiorno@reddit
I won’t besmirch anyone for doing this but you might want to take some steps to protect yourself. Maybe move to another country, somewhere like Ireland or Canada. If America brings back debtors prisons it’ll be for people who couldn’t pay back student loans fast enough.