I'm about to default on my private student loan. HELP!
Posted by Alpal2510@reddit | studentloandefaulters | View on Reddit | 8 comments
First off, so thankful I found this sub as I am currently dealing with a potential default. Currently set to default on 11/17. I originally got my loans through Wells Fargo, they sold them to Firstmark when they decided to leave the student loan business & I thought Wells Fargo was awful but Firstmark has to be 10000x worse. My original loan balance was $29,140.63 & now it is sitting at $30,259.11 which just makes me sick to my stomach because I have been paying on these for almost 10 years.
I'm a single parent on only my income and I haven't been able to handle the minimum payment for quite some time, but due to my mom being my co-signer I have done my best to avoid default until this point but I have been circling the drain all year and it's starting to really affect my mental health. However, my mom is NOT on board with this at all. But she also can't help with my payments, so what can I do? I don't foresee myself being able to get caught up at all as I am currently well over 90 days past due. I can't refinance because my debt to income ratio is too high, and I am not sure I would ever be able to remove my mom as a cosigner. I also filed bankruptcy in 2020 due to a lot of medical debt and other things but they told me at that time my loans were not eligible to be included in the bankruptcy....
Is the damage to both of our credit scores already done? How much worse can it get after default? I should also add I am not in a place where I can be "on the run" moving from state to state to avoid collections/potential lawsuit. My mom is currently trying to put fear in my heart that they will garnish all my wages immediately after default but I know they have to get a judgement first, right? I don't want this to continue to hang over my head like a dark cloud but just not sure what to do.
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.
Was wondering how your situation is panning out, 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.
Alpal2510@reddit (OP)
Hey thanks for you comment! I actually ended up filing for bankruptcy & my loans with firstmark are currently in forbearance for the next 5 years because of it. I pay a set amount to a trustee every month and a small chunk goes to them. Unfortunately in 5 years my loans will still very much be there and probably even more because of interest, but hopefully I am in a better place with my credit so I can refinance them,.. for now I have a weight off my shoulders and am glad I have a break from them.
I really hope things work out well for you with them! They are such an evil company I hate it.
Aggravating_Storm493@reddit
Thank you so so so much for sharing this with me, I really appreciate the help. I have a few more follow up questions if you don’t mind, but of course no worries if you don’t want to respond!
Did you do a chapter 7 or 13? I can’t recall if it’s chapter 7 or 13 that stops these creditors/lenders from coming after you for X number of years. I filed a chapter 7 actually, and now FM is back on my and my co-signers tail. I’m protected a little more but it’s still unsettling to me and my lawyer that FM has come back with a vengeance like this.
How has your credit score fared? I admit I don’t care about my credit score and thankfully my co-signer doesn’t care about theirs, neither of us are going to be buying cars or homes etc any time soon. Or in my case, ever, given how life is going. I’m just curious because while my co-signer says they don’t care, it makes me feel horrible that I’ve tanked their credit score over this loan.
And finally, have you thought about doing a settlement with FM once your forbearance is done? I’ve seen decent looking numbers floating around, from 10-50 percent of the loan to settle, and that’s the route my co-signer and I are planning to go. We hope that we can get a decent settlement given the student loan landscape is : so many more people will be defaulting eventually thanks to current events. The fact is, if we can’t get a decent settlement, it’s not like I can pay the whole thing anyway and the old monthly payment was just life ruinous high. So it sucks that my only egg in the basket is getting settlement, but that’s where I am at right now.
Anyway, I am wishing you nothing but the best over the next several years. I truly hope your FM nightmare ends peacefully. And I am really glad that you are doing ok right now - the weight of student loans is really something else, isn’t it. I have had so many sleepless nights over this over the last many many years. So I’m glad the weight is off your shoulders for now!
Thanks again, and no pressure to respond again! I’m grateful you even responded at all so no worries at all.
illeniumloverr@reddit
Is this why you’re such a hater? Cause you’re a single parent with no money who has to take out loans? And you can’t stand seeing women on social media make money? lol
OkProtection427@reddit
Might want to not scroll and harrass someone for past posts, when one your past posts is asking if you can drink energy drinks while pregnant 🤡 tf
Solid-Fill6348@reddit
First mark is actually just a servicer. WF reputedly sold their entire portfolio to a private equity company, I've heard rumors its BlackRock.
DisembarkEmbargo@reddit
Who said this? Did they tell you why? While it is uncommon private student loans can be discharged when the borrower proves that the debt is causing undue hardship. You have been paying this loan for 10 years, you have medical debt, you have a child, and there is no family member or spouse that can help you with payments. You should talk to your CPA/lawyer again about removing with debt using bankruptcy. You could also spend a little time searching for court records from your county and if any debt had been removed for undue hardship.
Ok_Broccoli7332@reddit
Don’t know which state you’re in, but here is a list of states that prohibit wage garnishment. If your state is not one of the states that disallow garnishment, then other states follow the federal law; which is only about $2.50 - $5 per week depending on your state.
Also, wage garnishment only goes into affect if you make a certain amount. If you live under poverty, have kids, are a single parent, all of that is factored in. Judge probably won’t even grant a wage garnishment just for that.