Over 80k in loans, I want to default or find other options. I have co-signers, I am at a loss and need advice.
Posted by glaucouswing@reddit | studentloandefaulters | View on Reddit | 7 comments
I found this reddit group about a year ago and have beben studying it like mad. I am 24 and I graduated from university in 2022. Like most, I took out private loans as an 18 and 19 year old to pay for school. My first loan was through Wells Fargo, now Firstmark, my second loan was actually through CommonBond-Firstmark. Both loans are under different accounts and companies, essentially. I have co-signers for both loans, and I know neither of these people would be willing to deal with the calls and letters begging for payment. I am desperate at this rate. I have $0 savings, I have a shitty car, I rent and I still have no money left over after shelling out monthly payments to these companies. My federal loans are on forbearance right now, I'm not super worried about those because of the income plans and options for repayment. Plus, those are so much less than my private loans. Both private loans are nearly $30k, I made some payments in school while I had a stable job to try to get to it quick. I have a stable job now but I barely make $2,400 a month which covers rent and then all my loan payments. I'm left with nothing each month. I want to go to grad school, I want kids someday, and I want to just LIVE MY LIFE without these sharks coming at me. I've considered strategic default, but I am scared about my co-signers and what would happen to them. I am at a loss and I feel alone. I need any advice. Should I get a lawyer? Should I see a financial advisor? I live in WA state by the way, and I currently work for the state (Dept of Ecology). I worry about wage garnishing, credit score, etc. I feel like I have nothing going for me and I don't feel smart enough to figure this out on my own. I've researched the debt collective and so many other resources but I don't feel like I am coming yo any solutions. Anything would help.
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 loan.
Was wondering how your situation has panned out after this post a year ago, 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.
glaucouswing@reddit (OP)
Hey! I am still on reddit. No problem. Unfortunately, I am still in the same position as I was. I'm extremely worried about defaulting with the co-signers and the job I have. I've just been paying them off each month... I wish they were out of my life but they aren't. I've been looking into consolidating my loans with a better company but Firstmark doesn't answer my emails nor do they seem to care about any paperwork I've submitted to try to do so. I'm still kind of at a loss so I'm sorry I couldn't be more help. Would be happy to talk more about it, however I don't have many solutions... just empathy.
Aggravating_Storm493@reddit
You’ve been a help! I truly appreciate that you even responded. And I hope I can be of any help to you too, we all are in this together.
Firstmark customer device is honestly a joke. I had called them before defaulting, pleading with them for help, and they said the had no options for me. The only options they had for me would only be available after defaulting. Can you believe that? Insane.
They’ve also never responded to my emails either. This is the number for their post default department that also seems to have more knowledge in general than the regular number, if you are interested in calling them : 855 819 7144
I’ll be honest, they called twice since I defaulted (I talked to them before I defaulted) and I admit they were super super nice. I’ll give them that even though I didn’t take it sincerely. So maybe you can see if calling their post default department number might help though they might end up telling you what they told me : they don’t have options for people who aren’t yet default and admit that there aren’t many options for people who aren’t default. Which is such BS!
I think if you’re paying monthly, you might be able to refinance to take your co-signer off the loan. And then in that case, you could default - do you work in financial services where they would care about a default? Because I feel you, I am worried all the time about this, but also I just… can’t afford the loan. I just can’t. So in your case, it seems like you’re living really tightly and in bad shape like me, so maybe if you’re able to get the co-signer off in refinance, you can go default then. Just throwing out some ideas in case they can help
Feel free to DM, everyone here could use more empathy and support even if we don’t have many solutions
martapap@reddit
You are very young. Speaking from experience of dealing with loans now for 20 plus years. Personally I would just get a second job for five years and use all of that money to pay it it off. Starting with private first. That way you will be student loan free before you are thirty.
justcrazytalk@reddit
As others have said, the co-signers are the problem. If you choose to ignore the loans, your co-signers will either have to pay them or have their credit ruined.
My brother is in the same situation. He co-signed for his daughter, and she lost her job about a month ago. He was barely affording his mortgage (and those effing HOA payments) as it was. He wanted to be able to refinance when the rates go down. If he doesn’t come up with money for the loans, his credit will be destroyed. Eff these loan people.
timberwolfeh@reddit
Other comment nailed it, but to add:
My commonbond-firstmark loans had a forbearance option for in-school deferment, do yours? Maybe you'll get lucky and both do. Mine is 36 months, so it won't be forever, but you could look at pursuing the Grad Plus Loan transfer method.
Attend a remote school with the biggest difference between cost of attendance and tuition at the least amount of hours needed to trigger the deferral, take out the max amount of grad plus loans, use the money to pay off the private loans while they're in deferment. This essentially "transfers" the loans to federal (and without your cosigners).
This sub has more info via search, but feel free to DM for details re: school, loan amounts, best major for least amount of time/effort, etc.
mikeypralines@reddit
So sorry to hear the desperation in your post. You have come to the right sub for understanding and empathy. Solutions hopefully too.
Positive stuff first. Washington DOE has a nationwide reputation in the environmental science community. Not sure if that's what your degree was in, or what you want to pursue in grad school. But you have a degree and work experience from a government employer with an excellent reputation in the field. Those two factors are key to building the future you want.
The co-signer situation is what is really limiting your options. Sounds like (a) you care about what happens to them, (b) they are not the kind of people willing to ignore/avoid lender harassment, and (c) maybe they have easily discoverable assets. If all three of those are true -- the co-signers are like hostages. Private lenders will harass them to get to you.
I don't think a lawyer could assist unless and until you strategically default, and either you/co-signers are threatened with collection actions. If the co-signers were willing to ignore all calls and credit-proof their assets, it would be different.....
Likewise a financial advisor would tell you -- what? The problem is you don't make enough scratch...not that your investment portfolio is unbalanced. I have to think a Dave Ramsey-style lecture on how you should work four jobs and eat ramen until your guts shut down from gluten poisoning would only leave you feeling worse.....
IF co-signers were NOT a consideration -- I would tell you to apply for graduate schools outside the U.S. in a heartbeat. Google "FAFSA International Schools List". Look at the number of schools on that list in Canada that are fully "ELIGIBLE" for federal loans. Under the current Grad Plus system, you could (a) get admitted to the "ELIGIBLE" grad program of your choice, (b) use Grad Plus to borrow full international student tuition plus living expenses, (c) apply for a post-study work permit when grad school was done, and (d) stay in Canada for work thereafter. You can earn US$120,000/year in a foreign country and report a zero "adjusted gross income" to the IRS. Zero AGI = $0 loan payments on any income-contingent plan. Live abroad for 20 years, work in your chosen field, and your federal loans would be forgiven (again under the current system). No so with private loans. There's that "hostage problem" again....
Do your private lenders offer forebearance while you're enrolled in a grad program? Maybe you could kick the can down the road while you got the grad degree you wanted outside the U.S....and then re-evaluate. Come back to the U.S. with decent foreign grad degree and make more money? Work abroad post-grad, pay nothing legally on the fed loans and direct your focus back on saving the "hostages" by paying down the private debt?
With interest accruing, there may be no good option to spare your co-signers some discomfort, someday. But you have a degree and a job with a well-respected agency. You should be able to parlay that into either a way to make more than $2400/mo doing what you like, or residency in a place outside the U.S. where the bastards can't get at you (at least), or maybe a mix of both.
Like the kitten on the poster says, hang in there. You have some big things going for you (education + work experience). I wish you all the best.