Anyone here default on a large balance?
Posted by brokeboii94@reddit | studentloandefaulters | View on Reddit | 24 comments
So I have about 170k in Sallie Mae loans from grad school. That’s not the original amount but it’s been adding up due to interest. They gave me the loans when I had no income without a co-signer. The balance is so large because I paid out of state tuition my first semester of grad school and had to withdraw due to health issues and re enrolled the next year. I earned my masters degree in May of 2025. I reached out to them a few months ago and all they would give me is a 6 month forbearance which ends next month. I feel so ashamed of myself. I was in a really bad place when I took these loans out during COVID with literally zero job opportunities after undergrad living with an abusive ex and my parents. I live on my own now and have a job but I take home 3600 a month and they want me to pay them 2500 which simply isn’t possible. I cannot pay that. I want to pay back what I owe but I don’t know how or know what to do besides going into default. I feel like a criminal.
milliich@reddit
Hey, don’t feel bad about it, OP... you’re not a criminal or anything. I mean, it was kinda silly for them to give those loans without checking your income or having a co-signer. We’re all in this together, struggling in our own ways...
fredrows@reddit
Wow, I totally get where you're coming from... I was in a rough spot myself when Sallie Mae lent me 100k and I was legally homeless. I ended up defaulting on a similar amount a few years back, too. It’s crazy, sometimes you just gotta do what you can to survive, right?
Classic-Walk7968@reddit
That’s rough, man... I can’t believe they’d give you those loans without a co-signer and when you had no income. It’s like they just didn’t care, you know? Just remember, you’re not alone in this we’re all struggling together...
Commercial_Money_557@reddit
Relatable! I was legally homeless when Sallie Mae loaned me 100k to attend school. I Paid them 1,500 a month for a year after graduating (on my first year teachers salary lol) then refinanced and removed my co-signer. Earnest took over my loans and I’ve paid them over 50k but still owe like 85k. Unfortunately my kiddo had a stroke and that put me out of work for awhile so I’ve defaulted. As far as I can tell if you don’t own anything they can’t take anything. If I were you I’d do my research but just know there’s a lot of us out here and most of us didn’t end up with the scary consequences we thought we would.
Limp_Leg3323@reddit
Totally get where you're coming from... I was in a super tough spot too when they gave me 100k for school while I was legally homeless. I was paying like 1,500 a month for a year!
brokeboii94@reddit (OP)
That’s the same amount I took out around 100k but my credit score was high enough that they didn’t require a co signer. The only trade off is the insanely high interest rate like 15.6%.
Hidden_Striker886@reddit
Hey, don’t feel ashamed, OP... you're definitely not a criminal. We’re all in this together, struggling with our own huge debts. Just know that things can get better, and you’re not alone in this fight!
MoodOnly2307@reddit
I totally feel ya, I defaulted on a similar amount a couple years ago too... was just teaching one course then, but now I’m up to three. It’s tough out there, and you're definitely not alone in this – it's wild how they just give out loans like that without checking if you can pay it back!
domweis@reddit
Just recently defaulted in September 2025 on 200k private with Sallie Mae. Two original loans with a co-signer were for 40k each in 2012 and 2013. I didn’t initially graduate so couldn’t refinance and paid on them for about 18 months while waitressing after college. I decided to go back to school to defer them, which they only allow you to do for four years. Ended up graduating from my first program, and they came due in May 2021. The payment then was about $1,500/month, which was not possible. I ended up filing bankruptcy in October 2021 cause I had credit card debt, but my student loans weren’t included and didn’t get discharged. That finished in January 2025, so they came knocking again in May 2025. Payment was $2,400 a month and that’s still not even close to doable, so I defaulted. They called me and my co-signer (mom) everyday for a while, plus my siblings and fiancée. I was notified in October that they were sold to a debt buyer and I’m now being sued for non-payment. I’ve got a lawyer who is working to help me settle with them, but outcome tbd.
If you’re financially able, taking 6 credits per semester would defer them for some time so you can get yourself more settled. It sounds like you might not ever be able to pay them so that would just be delaying the inevitable, but it’s an option. In my state, to even have the court consider discharging student loans, you have to file an adversary preceding on top of the actual bankruptcy case, and my attorney told me it’s next to impossible to accomplish that, so I didn’t even bother. Bankruptcy did help with my cc debt though.
You are not a criminal. When I got my lawsuit paperwork, my name was one on a huge list of other names that they also bought debt for, so there are tons of other people in the same boat as us. You have nothing to be ashamed of for investing in yourself through education. I often go through the mental spiral of “did I ruin my life forever with this decision I made at 18”, and I have to remember that it’s very possible that I wouldn’t be where I am today had I not made the decisions I did. It all sounds cheesy, but life is quite literally way too short to not appreciate it, so I would do it the exact same if I had to. Keep your head up, OP.
brokeboii94@reddit (OP)
So the original amount I borrowed was around 105k but since all 4 loans have a 15% interest rate, now it’s ballooned to the 173k. That was the trade off with no co signer
domweis@reddit
My interest rate was 9-10% for a long time (it was better to do variable at the time), and then at the end it was 12%. My estimated payoff timeline was 2046 at $2,400/month. It was honestly such a relief to default, knowing that worst case scenario is a garnishment that’s only 1/3 of the monthly payment. It would be a blow to my income, but I could still function. I’m hopeful that my attorney can negotiate a settlement. I’ll come back and update you when the time comes. Just try and stay positive, it’ll come to a head one way or another.
ThrowRCrowdSourcing@reddit
Honestly from all the stories Ive read you’re in a “better” position to default. Insane unmanageable balance, no co-signer, low income (compared to your monthly payment). They’ll probably threaten to sue you because that’s a big balance but ultimately how the fuck do they expect anyone living with an average salary to pay that… it’s insane and THEY are the criminals as far as I’m concerned.
Lopsided_Key_9121@reddit
I defaulted on a similar amount a couple of years ago... I was just teaching one course back then, but now I’m up to three. It’s a tough situation for sure, but you're not alone in this!
Fantastic-Outside-82@reddit
I stopped paying on $90k in private loans about 7 months ago~ not as large but I also have hundreds of thousands in fed loan debt. I was in grad school for 8 years, making $2k a month, and paying Sallie Mae $580/month in interest-only payments for years cause that’s all I could afford and that’s all they would offer me. Had to finally stop when I graduated and was unemployed. My credit score has dropped from the mid-700s to the mid-500s and I’m getting threatening letters and calls. I now have a job and I’m saving up for legal fees. The only thing I’m really worried about is how to move if I need to with this low of a credit score (I rent).
nickjayyymes@reddit
Defaulted on 70k from Navient. They harassed me a little and said they’ll sue if I don’t settle, but after I told them “look my finances are in the toilet, I’m unemployed, and my car just got totaled. You have nothing to gain from me,” they stopped calling.
MoooooveOva@reddit
Similar boat, but never answered phone after defaulting. They worked w me for over a year prior, but life is expensive and loan bills are not top priority. Was sued, case thrown out. Idk what happens next before the 6 yr statute
morbie5@reddit
How did that happen?!
MoooooveOva@reddit
Didnt explain enough. It was Sallie Mae loans refinanced into one private loan no cosigner. Paid for 3-4 yrs no lates, lost job, moved, etc. Finances came crashing down and i eventually defaulted
morbie5@reddit
That is some good luck
green_hobblin@reddit
Is 80k large? If so, yes. Paid 2 off once I was able to deal with debt collectors and I'm waiting on the other loan to get sent to a debt collector.
hlaiie@reddit
Don’t be ashamed OP. You’re not a criminal. All of us here are going through the same thing. We will make it through.
morbie5@reddit
That was really stupid on their part. I'd default if I were you. You might even consider bankruptcy, it is possible for student loans. You need to find out how much of your wages they can garnish in your state
TravelingDebt@reddit
Yes you can read my previous post. Over 200k for me.
HunterSpecial1549@reddit
I defaulted on a similar amount a couple years ago. I was only teaching one course at the time. Now I'm teaching three courses per semester and I could pay a little but I haven't heard from them. I'm not saying I'll be scot free forever but for now I'm not getting my wages garnished or anything. I don't know what happens next.