In 1993 I borrowed $12 in private loans through SallieMafia. Due to a medical emergency with my wife, I was forced to leave school and enter the workforce. My loan went into forbearance three times over three years and the interest began to accumulate. I began paying my loan back at the very minimum, as that is all we could afford.. Interest ballooned. The loan peaked at $32,000! I have now been making payments for ten years and the balance is now down to $17,000.
In 1997 we went through a consumer credit debt reduction program. The only debt they would not touch was.. Student loans..hence the interest continued to accumulate. SallieMafia is currently my only outstanding debt. I am 46 yrs old and have no assets to speak of..
My wife has now been diagnosed with liver and pancreatic cancer. She has been unable to work for the past ten years. Although I make a good salary by SallieMafia's standards, we live paycheck to paycheck. Its a struggle just to get shoes on my daughters feet.
SallieMafia just increased my payments to $300/month. There is no way I can afford this level of payment. The only option I see is to negotiate a lower monthly payment, which will result in more accumulated interest, more debt added on and a longer repayment. I am aw wits end...
I wish I knew 17,000 people, I would ask them each for a buck..
Anyone have any ideas/recommendations?
If 15% of your income would be less than 300$, you could just stop making payments and force them to garnish your wages, as that is the maximum amount they could take. It may also be possible that you could, with your special circumstances, meet the undue hardship provision under bankruptcy law to have the debt canceled. What a terrible system we live under...
Well, if allowing them to garnish wouldn't create payments less than 300$, than just pay 100$ a month or whatever you can better afford--if they accept the checks, than it counts legally as a payment plan and they can't do much to you.
As an update, I posted my situation directly on the SallieMae facebook page. I of course was contacted almost immediately by a representative who said they would do anything to help me. I was stunned but cautious. The representative arranged for me to have a phone discussion with a loan officer who listedned to my story, reviewed my account and the offered to lower my payments to interest only!!! This is the very plan that I was put on many years ago that exasperated the situation in the first place. Of course I turned down the offer. The last thing I need is to be committed to yet another situation that prevents my principle from shriking.
It is now May. My wife has been hospitalized since Feb 16th. I am in financial ruin with hospital debt despite insurance. It is obvious she will never work again, let alone drive. There has to be some sort of special program out there somewhere that provides relief in this type of situation.