I’m doing it. It’s happening. I’m defaulting and I’m scared.
Posted by NoMoment2937@reddit | studentloandefaulters | View on Reddit | 7 comments
After 11 years of paying back a $98,000 loan and still owing $92,000, I’ve decided to default. I set up a google phone number, set up a separate email acct, and am setting up a PO Box. I am nervous and although my partner and I don’t combine finances, she is nervous as well. The loan is through FirstMark Services and I have no co-signer. I make more money now then I ever have but it’s only about 65K. I live in Texas so the SOL is 4 years.I haven’t been able to keep up with bills and now with inflation, it’s just unimaginable. I’ve refinanced my student loan a few times so that I could stay on top. But I have a family now and I just can’t keep up. I don’t plan on buying a house in the next 3-5 years but will continue to try to work on my credit by paying down my tens of thousands in credit card debt and personal loans. I’m beating myself up that I’m in this position but I know I’m not alone. How could it get worse?? Just wanted to say thank you to this group. Finding you all was a life changer. I’m scared but also relieved. I’m sure as things come up I’ll continue to have questions. Here we go .
Aggravating_Storm493@reddit
Hey there. Sorry for responding to your old post. Don’t know if you’re still on Reddit. I’m dealing with Firstmark right now with a $47,000 student loan.
Was wondering how your situation has panned out 2 years later, if you’re willing to share. I’m trying to figure out my plan, but I can’t find that many people on the subreddit who’ve dealt with Firstmark.
Anyway, I hope you’re doing well and the loans are out of your life. No worries if you can’t respond.
NoMoment2937@reddit (OP)
Hey there! First off, I’m so sorry that you’re in this situation. I’m happy to answer any questions on my experience and glad you reached out! So after I stopped payments and made these changes, my credit score took a huge dip which gave me a worse APR on my credit cards and lowered the limit. It became harder for a bit. HOWEVER, once I realized bankruptcy was my best option to freedom, I worked with a lawyer who helped me file a chapter 7 bankruptcy and my credit cards and personal loans were eventually discharged. So all that to say, there will be some repercussions and times of uncertainty. As for first mark, I haven’t heard anything back yet and I’m still waiting out the SOL, I couldn’t discharge the student loans. Because my credit score was pretty good before bankruptcy, I was able to bounce back fairly quickly. I know your question wasn’t about bankruptcy but this was a direct consequence of stopping payments. I’d do it again if I had to. Things are much more manageable now
Aggravating_Storm493@reddit
Happy cake day first and foremost!! It seems like we’ve had slightly similar situations. I actually also did go through bankruptcy, and most of my loans were discharged which I’m extremely grateful for. This Firstmark loan is SUPPOSED to also be discharged so my lawyer is dealing with it.
But most urgently is : my parent is the co-signer on it, and we both knew they’d take a hit due to my bankruptcy. They fully said they didn’t care about the issues from defaulting and wanted to go both that route and the bankruptcy route for me, and I’m also grateful for that.
So while the loan is technically out of my name (and that’s why my lawyer is dealing with it, she has the court documents so Firstmark is not supposed to be contacting me, just my dad), it’s still under my co-signer’s name. And that’s why we chose to go the default route, because I’d be the one paying the settlement for them, and I don’t think we would ever get out from under this loan, since we paid what amounts to half of it but still haven’t made a chip thanks to interest rates.
Where I am, the SOL is more manageable but I don’t think it’s in me to wait it out, I’m already so anxious and it’s only been a few weeks. And I don’t want this mess on my co-signer any longer than it already is, the amount of guilt I have for putting them in this situation feels like it’s killing me.
Re: your bankruptcy, was your lawyer willing to do an adversary proceeding to get your student loans discharged? I’m reading a lot on this sub on how people weren’t able to get their student loans discharged in bankruptcy esp because their lawyers didn’t think it possible. Which is making me feel really lucky that I was able to get mine discharged, putting aside the one loan that Firstmark shouldn’t be coming after me for, only after my co-signer.
NoMoment2937@reddit (OP)
Sounds like you’re on the right track! Great that you have an awesome lawyer and support from your co-signer. Luckily I haven’t been bothered yet by FM but it’s long gone in collections now. My lawyer wasn’t sure of the process but told me to reach back out if they contact me and they’d help. For not I have to be patient and outrun the SOL. Best of luck to you bud
Aggravating_Storm493@reddit
Best of luck to you too! And thank you so much again for responding to my various comments. It’s honestly been helpful for my anxiety knowing we aren’t alone. I really hope FM continues to not bother you!
NoMoment2937@reddit (OP)
Keep me posted on how you’re doing as well ❤️
Aggravating_Storm493@reddit
You are the kindest! Will do, and please keep me updated on how you’re doing as well! Wishing the best for you!