Is it even possible
Posted by rjcamping@reddit | studentloandefaulters | View on Reddit | 7 comments
My IDRP monthly payment is less than my monthly interest accrual amount. Made consecutive payments for years on auto-pay and I owe more now than I did after grad school. 760 credit score, own home and assets. How damaging would it be defaulting on these? Any suggestions?
escondido311@reddit
Generally it’s not a good idea to default on federal loans. They don’t have to get a judgement to garnish wages, they will just start garnishing. I’m planning to pay as little as possible on my federal loans and going for IDR forgiveness. Saving up along the way best I can for the tax bomb I’ll be getting when those are forgiven. My balance has gone up over time as well, but I will still end up paying less overall than I would on a standard repayment plan paying the whole thing off.
Little_fut_Long_fut@reddit
There was no tax bomb when they discharged my loan two years ago.
Reasonable-Judge-655@reddit
Great timing! Student loan amounts discharged between 2020-2026 are temporarily excluded from income
The_PA_Guide@reddit
Attempt to pay down the three loans with lowest balance to just alleviate some of your payment. You have a $600 dollar one in there.
Are you aiming for forgiveness or debt freedom? If the latter then pay down everything under 6k by pulling extra shifts and hopefully that reduces your payment/ get you on the track to forgiveness if you happen to change your mind down the road.
Little_fut_Long_fut@reddit
If you’ve been kept your loan in good standing and in “repayment” for 20/25 years (depending on which repayment program…I was IBR) you may be eligible for forgiveness. I got mine forgiven a couple years ago after 23 years (ballooned to 6 digits) and I was with Mohela. Call them and interrogate them (they don’t seem to give up that information freely…you have to almost pry it out of them).
I’m not promising anything. But it’s worth a shot.
Putrid_Factor_2660@reddit
What is your loan servicer?
rjcamping@reddit (OP)
Mohela