What should i do? Over 100k in debt and jobless.
Posted by eyesoflazarus@reddit | studentloandefaulters | View on Reddit | 14 comments
Hi there! I made a post on r/studentloans explaining my situation, if anyone wants to take a look. But basically, i have about 85k in Sallie Mae loans and 35k in federal loans. My co-signer died while i was in college. I don’t have a job or any assets in my name. I live with my parents. What can I do? We are talking to attorneys to see if it’s possible to prove undue hardship or something like that. Otherwise, I’m lost. If i find a job, will my wages be garnished forever? Is it possible for me to just not pay these back and live in peace? Help🙃
LisaInSF@reddit
Federal loans: deferment or income-based repayment. You do not have to default on federal loans!
Private loans: you will default if you cannot make the payments that you agreed to make. This is the risk you took when you accepted private loan money. You are better off than some people since your default won’t impact anyone else.
Before wage garnishment can occur, the lender or assignee must sue you in state court and win the lawsuit. If you are sued, you must litigate the case and settle it in order to avoid a judgment.
If you are sued you will probably need an attorney (consumer debt defense). However, even if you cannot find one who’ll help you, you don’t have to accept the worst-case scenario.
eyesoflazarus@reddit (OP)
I’m already talking to attorneys, thank god, and there seems to be hope!! I appreciate your advice.
Mairhair@reddit
What kind of attorneys did you reach out to out of curiosity? I have a similar situation, though I'll be out of it in 4 years from the private loans, the public is significant so I'm wondering what my options are there. Bankruptcy isn't an option for me.
pinkdiamonds00@reddit
Like the above comment, try to get deferment or income based payments for your federal loans. Depending on the type of federal loan, it can be quite easy to defer for periods of time.
As for Sallie Mae, I’m about to default. My advice is read as much as you can from this sub and prepare yourself for the worst case scenario just to be prepared which would be being sued. A lawyer cab't do much now since no papers were served yet and Wage garnishment only occurs if they win a judgement against you in court and even then you would need to live in a state that allows that.
Your options in my pov are:
Default on Sallie Mae, save money in meantime and see if you are sued. And Call and speak with servicer for federal loans to see what programs they have.
Look into filing for bankruptcy. It’s an annoying option and not cheap but could be worth it for you, especially since you don’t have a cosignor.
eyesoflazarus@reddit (OP)
I talked to an attorney abt bankruptcy, and it actually looks like an option!!! I appreciate ur advice :)
pinkdiamonds00@reddit
Hope it all works out for u !! Sending good luck
Odd_Investigator_736@reddit
No, you're going to be fine, especially talking to an attorney who can help you before it gets out of control. Income based repayment for your federal loans will be your friend, even though that's the smaller debt. You would more than likely qualify for $0 repayment there.
Sallie Mae couldn't care less about your hardship for private loans, but you also have rights and protections against them if you default and likely won't have to pay back all $85k because settlements are often reached after people default. The only real catch with that is you have to pony up the money to settle, which can be difficult for most.
There are stories of people defaulting on their private student loans and running out their statutes of limitation in which they can no longer be sued, and end up never having to pay back that debt anymore. Though it's risky getting to that point, and I am noticing that happens to less people nowadays than it once did, and I see more people actually being sued. But, talking to a lawyer is helping you where he/she can likely help you come up with a viable option to settle your debt.
Whatever you do though, don't talk to Sallie Mae/Navient once you stop paying them because they are your enemy and are very predatory with their loans. It's like negotiating with terrorists, and that will only cost you and not at all help you.
eyesoflazarus@reddit (OP)
Thank you so much for your advice. I talked to two attorneys the other day. One said I may be able to get my private loans discharged. Another said I might qualify for disability discharge for the federal ones. We will see. I’m talking to two more soon.
Odd_Investigator_736@reddit
You're welcome. Just out of curiosity, did the first one say how your private loans could be discharged?
heckler_undt_cock@reddit
Question: why don’t you have any job? Like not an ideal job, but why don’t you have 1 or 2 to gap while landing preferred employment? If you have 100k in loans, you have a degree (or maybe don’t which is oof), you need to find something paying maybe $15 an hour, then get two of those while you search for a professional option….
eyesoflazarus@reddit (OP)
I do have a degree at least :)
eyesoflazarus@reddit (OP)
Partially because I’ve been very mentally ill for a while (a lot better now), and partially because I can’t find one in my home state, where I now live.
kenmlin@reddit
It was smart that your parents didn’t co-sign the loans.
eyesoflazarus@reddit (OP)
Yeah, they aren’t the best financially which is why my grandpa wanted to sign with me.