100k with firstmark and i just stopped - but im scared
Posted by Brilliant-Cabinet382@reddit | studentloandefaulters | View on Reddit | 3 comments
I went to college almost years ago and was paying my loans consistently until covid. And now the loans are up to almost 100k.
The monthly payment on those is around 800$ a month which i dont have I contacted firstmark to see if there were other repayment options but they just said to defer which really doesnt help me because I wont have an extra 800 a month then either. So ive just stopped paying.
- ive heard of buying off your loans, when should I start looking into that?
- my parents did cosign, am i screwed out of being able to buy off the loan because of that?
- when can they start garnishments and how much? (i live in CO but got my loans in SC)
anything else i should be doing?
I basically have no other debt- like 3k in credit cards and 1k in medical, which is great but that means things like bankruptcy wont help me
atarchived@reddit
Hey there! So sorry to hear about how distressing this is. You aren’t alone! Here’s some answers to your questions.
They won’t start wage garnishment right away. First, they need to sue you, win that lawsuit and get awarded a judgement to collect wages. BEFORE any of that happens they will start harassing you and your co-signers (in this case your parents). Anyone who is on the loan, you and your parents, will be affected. Your credit scores will all drop, you’ll probably get harassed by debt collectors. Before this happens, it’s important that all of you are on the same page.
Some considerations: - Do you want to strategically default and try surpassing the SOL? Colorado is 6 years, SC is 3 years. Not sure which would apply here. - Do you want to settle at a lower rate? Will your parents help you settle? The negotiations for this will start later. They may offer that you pay them a 1 time lump sum to clear the debt.
I would immediately tell your parents what’s happening, and then I would consult a student loan/bankruptcy attorney. They can walk you through what to expect.
If you decide with your rents that you’ll try to do a full strategic default, the most important thing is to deny that the debt is yours. HOWEVER, if you get sued you MUST reply or they will automatically win and get awarded a judgement to garnish wages.
atarchived@reddit
Adding that I would recommend reading this guide and sharing it with your parents so you can get a good understanding of what is to come and what your options are.
https://www.reddit.com/r/studentloandefaulters/s/Lo33jHK5TB
brotatochip4u@reddit
I'm sorry that you are going through this. After about 120 days you are going to be in default. They are going to be coming after you then your cosigner hardcore. It's going to affect your credit score and your cosigner's credit score. Honestly what I'm doing is waiting for a court date then I will call to negotiate 20 to 30% of the loan value as a settlement. Good luck!