Do you have a student loan horror story to tell? Use this forum to share your stories.
I am the parent of three college graduates. At one point in time, all three were in some version of higher education - undergraduate, graduate school and medical school. As a single parent, I couldn't come close to footing that bill, so all three have sizable student loans. And, as a teacher, resident and botanist, none of them are pulling down huge incomes. And, although it has been discussed, none of them are close to buying a house. They range in age from 26 to 32. Marriage may double income, but it also doubles student loan debt. Every major purchase is balanced against the student loan payment, which at 6.5% and up is no great bargain in today's loan market. And the incomes in the job market they are facing do not provide sufficient disposable income to allow for saving a down payment or taking on another loan.
It has occurred to me and many of my compatriots that when we were the age of these young adults, we all owned houses or were well on our way to saving sufficient down payment to buy one. None of our children own houses, except for one that was inherited from a grandmother. This nation has a severely depressed housing market. I would posit that the demographic that in the past provided buyers is now so swamped with student loans that they are postponing the purchase of a house indefinitely, and that the market therefore has no fuel to recover.
I have read statements from economists and professors saying there is no correlation between the burden of student loans and the ability to purchase a home, but I don't see any reference to actual studies proving that. I don't know if anyone has undertaken such an effort - I couldn't find one. And it would seem that those benefiting from student spending have a self-interest in promoting the acceptability of student loans. An independent study might have major impact on the current attitude. Anyone out there need a Master's or PhD thesis topic???
Perhaps the government should consider tying some loan forgiveness, payment reduction, or other relief to a commitment to purchasing a home and help every facet of the situation.
As of this writing I am 52 years old -- the tail end of the baby boomers.
College was never a topic of discussion growing up in my family and no one in my family had ever gone to college.
During my early adult life I did exactly what I had learned to do, I married and became a homemaker. I was entirely oblivious to the big wide world of education, finance, politics, domestic violence, etc….
It was not until I was 30 that I made the decision to go to college. I was scared out of my mind, but determined.
Not having gone to high school it took some time at community college to reach the point of being able to work at college level.
So I began at my local community college in 1990 where I obtained my AA transfer degree, on to a State University for my BA and then a Private University for my MA where I graduated in 1999. Total amount borrowed was $50,939.
Upon graduation I began making my student loan payments to Sallie Mae and quickly realized it would be impossible to keep up on the high total of the individual payments for these separate loans. I consolidated.
During my time in college my husband was simultaneously supporter and saboteur. Eventually I found myself the victim of domestic violence. In 2001 I filed for divorce. It took 2 years to finalize. The entire 2 year ordeal had all the makings of a Lifetime movie primed for sequels. I lost everything I owned. I was forced into Chapter 13 bankruptcy. For my own safety I moved out of state, changed my name and cut ties with everyone but my family.
I was unable to use my previous licensing without returning to college to meet my new States requirements. I had no money for college and was unwilling to rack up more debt. Even if I met these new requirements I did not want to obtain a credential of public record enabling my ex-husband to more easily locate me. I left my previous life and career behind.
During this 4 year Chapter 13, my student loans were under court-ordered deferment.
Once the Chapter 13 closed it was time again to make my student loan payments which were now nearly $800 a month. Up until this point I was only able to find PT work and unable to make these high payments. I began making Income Contingent payments and never missed one, no matter what the personal cost.
In 2006 I found FT work but did not earn enough to make the full payment and still had to make Income Contingent payments. The highest salary I have earned since graduation is $49,000.
In January 2011 I was laid off. I have yet to find work and my loans are on Unemployment Deferment. My student loan balance continues to grow. As of today that balance is $104,726.
Overview of my loans (not actual costs):
1990-1994
* AA-Community College: $4,466
* Not having graduated from high school it took nearly 4 years at Community College to both get up to college level and graduate with A.A. transfer degree
* Worked PT to supplement
1994 to 1996
* BA-State University: $15,973
* Worked PT to supplement costs
1996 to 1999
* MA-Private University: $34,100
* Internship with small salary helped to supplement
1999
* Total Amount Borrowed: $50,939
2000
* I consolidated all but one loan for $3600. This loan had a very low interest rate so it made sense to pay it separately. I have paid it off.
* Remaining loans of $47,339 were consolidated at 7.625%.
2011
* As of today the balance on consolidated loans are $104,726. I cannot possibly make the full monthly payment on this inflated amount, more than half of which is interest.
I have applied twice to Sallie Mae for IBR. It seems futile. I meet the qualifying criteria but they magically lose my supporting documentation even thought it is mailed in the same envelope as the application, or all transmitted in the same fax.
I have had so much trouble with Sallie Mae over the years. I know I'm not the only one with complaints against them and that for each of mine there may be many who have worse, nevertheless here are a few highlights from my personal experience...
* When I divorced I changed my name. I have submitted a name change form and supporting documentation countless times over the past 10 years and it was just last month (Dec 2011) that they correctly updated my account.
* They have been notorious for losing paperwork of all kinds; IBR application, Income Contingent Payment application, Unemployment Deferral application, Name Change Form and supporting documentation all mysteriously "lost". It doesn't matter if I send it by regular mail, fax or certified mail, its always the same story, either they did not receive the application or they did not receive the supporting documentaion. Not knowing what their records show, I always include my correct AND incorrect name and my account number on each page of every correspondence.
* On several occasions, for periods of up to 10 days at a time, I've been hounded by phone up to 12 times a day being told I'm late on a payment although I've never missed making a payment. After an enormous amount of time, effort and stress on my part I finally got to the bottom of this. It's always the same...I discovered that they did not receive my Income Contingent paperwork. Without this form being received and processed my payment went from the Income Contingent amount back to the full amount and I was therefore delinquent on the difference. Each time this happens they want me to take a deferment or forbearance to cover the "in-between" time.
* In all these years the only thing I have received from them by mail are delinquent notices or payment coupons. Never a form. Never a statement. Never anything else they claim to have mailed to me.
* My Sallie Mae online account became locked and no one would resolve it. I had no access to my account information or online forms for nearly two years. I called many times to request they mail me what I could not access online, they said they would them but never did.
* They sent a letter to a total stranger in my previous city/state of residence (it was not a previous address for me), asking him for my current contact information. To this stranger they provided my name, address and phone number (not safe!). He called me using the phone number Sallie Mae provided him to let me know he received this letter! Each time I talk with Sallie Mae my contact information is confirmed, it's been conformed more times than I can recall. If they don't ask me I make it a point to confirm it with them. It has not changed in 6 years.
* They have sent several letters to my father asking him for my contact information. My father sent these letters to me so I could see with my own eyes that they already showed my current contact information.
* I have contacted the designated Sallie Mae Ombudsman for assistance when I could get nowhere with the phone reps. He talked a good game but did not follow through on most of the items discussed, contact info, name change, sending me the forms I needed, unlocking my online account, etc…
* It seems the entire process is designed to force deferments until they run out and drive me into default. It's like going to Vegas and hoping you can beat the house. The odds are against us.
I always intended to pay what I borrowed. I paid off one small loan, consolidated the others to make them more manageable...then life happened, and it happened in a way I could never have prepared for.
Although I continue trying I will never be free of this debt because I will never earn the kind of money needed to pay it off and because the balance will continue to grow.
With it's usurious practices, including capitalized interest and irresponsible communication, student loans have become noose around my neck. Just think of how much students could spend, contributing to our economy, if we did not have these loans driving us into inescapable poverty.
It's unnerving to listen to the media reports about these loans approaching $1 trillion dollars, and how no one reports on how much of that number is actual money borrowed and how much is the unbelievable interest this industry is allowed to charge!
We also never hear about people my age, and older. Sure we hear a little about older returning students, but that's all. There are many who have, either for their own education or as co-signers for their children, struggled for decades just to make ends meet. They are not buying homes and the other things that drive our economy, they are paying interest upon interest.
There are so many things wrong with this system that I hardly know where to begin. What I do know is this…
* I did not know about capitalized interest until I saw my student loan balance begin to grow. Had I understood capitalized interest I likely would have made a different choice about taking out student loans.
* Short of winning the lottery I will never be able to pay this ever-growing balance.
* Even if/when Sallie Mae gets it together and approves my IBR application I will be in my late 70's when the remaining balance is forgiven. At that point, with capitalized interest over the next 25 years, the balance may be around $400,000. That forgiven balance will become taxable income. I will be living on a monthly Social Security check that will be garnished up to 15% to pay taxes. In effect, my debt will shift from Sallie Mae to the IRS. And Sallie Mae is already being paid by the Federal Government!
I strongly believe we need some form of true student loan forgiveness. How to structure that forgiveness will no doubt be the topic of great controversy...but really, are we going to be a country that hounds our Senior Citizens for debts that can never be collected, driving us into poverty or worse?
Here are a few suggestions:
1. Amend the current IBR program to retroactively begin the year the student started making payments instead of starting the clock from the day they are approved.
2. Forgive based on an age. Age 60 seems reasonable as would give us at least a chance of making small strides toward a late retirement.
3. Change the current tax law regarding forgiven student loan debt so that it is truly "forgiven" rather than paying taxes on that forgiven balance. In the 111th session Rep. Sandy Levin, MI introduced H.R. 2492 which proposed exactly this. It never went anywhere.
At the very least we need the restoration of consumer protections for student loans (both Federal and Private). As it stands, someone can go into excessive debt because of gambling and have those debts discharged in bankruptcy. At the same time, those of us who have worked hard for a better life and made continual and sincere efforts to make good on these loans are treated like second class citizens by not affording us the relief afforded to any other kind of debt.
It has taken nearly 10 years of extremely hard work, on so many levels, to get back on my feet and to restore my credit. I am not thrilled at the prospect of filing bankruptcy again. But I am even less thrilled with the prospect of living in abject poverty as a Senior Citizen.
I know that many will not consider this option palatable, feasible, or even remotely possible, but I thought i'd take a moment to share my own personal sacrifice/success story.
Here's a little background:
* 1998 I embarked on very costly Professional Pilot training, incurring more than $35K in student loans
* 2001 I changed my major from Professional Pilot to Aerospace (9/11 was part of the reason as pilots were being laid off in droves.) Incurred another $15K in loans to obtain the BS in Aerospace degree
* 2005 I enrolled in a Master's degree program, incurring another $30K in loans.
Although my educational path was not exactly straight, I have enjoyed what I consider to be a successful career in aviation so far. My salary has been in the $60-70K area for about 4 years now and all indicators point to continued growth. Accordingly, I have been able to pay my monthly student loans (never late, never defaulted), as well as my other living expenditures and loans. That's not to say that times weren't tight occasionally, but I have managed to stay above water.
However, with that amount of debt, I grew mentally anxious knowing that i'd be making monthly SL payments for a large chunk of my working years. This of course on top of a house that i'd like to buy at some point in the near future. All of this got me to thinking "how can I pay this debt off faster?" Aside from imposing a severe austerity plan on myself, the options were very limited.
Here's what I did: I went to Iraq to work for a year as a civilian contractor.
Like I said earlier, this may not be palatable or even feasible for many (or most), but I decided that a one year sacrifice far outweighed the 15 years (or more) that I would be paying on my loans. Those 15+ years didn't seem all that appealing to me if the end result was to hamper my ability to buy a house, raise a family, buy a car, go on vacation, etc.
To be honest, it's the best decision I have ever made. Even though I resigned from a good paying, upwardly progressive position, the fact that I am now debt free makes that good job seem completely irrelevant in the grand scheme.
I didn't go there to build my resume, I went there to make money. But I did find my way into a management position in my field of aviation. This was a very welcome surprise and excellent opportunity. My salary was $180K, including all hazardous pay uplifts. Also, the first $91,500 was tax-free, which is what put me over the top in paying my student loans off.
Here's what I experienced: It was extremely hot there. I lived in a CHU (containerized housing unit) with A/C and a small bathroom/shower. Management CHU's get a bathroom, non-managment CHU's did not have a bathroom and shared a community bathroom of 10+ showers and toilets. Sharing a bathroom is not as bad as it sounds. Consider it no different then going to the showers/bathroom at your local gym. Nothing a person can't handle. I was fed 3 full meals daily at an all you can eat dining facility. The work hours were long......I worked 84 hour weeks (12 hours X 7 days per week), but you put yourself in a work mindset and its not as bad as it sounds. It was literally the fastest year of my life. It came and went in a blink it feels like.
Why am I posting this? Because I know what it feels like to be under the crushing weight of student loans. Those loans were an obligation I took upon myself, and I feel like I have benefited out of the education that they provided. But more importantly, I just wanted to provide my experience and maybe help out someone who may not have even given this option a thought.
Is it right for everyone? No, absolutely not. But if you have a solid work ethic and are willing to sacrifice a year out of your life to free yourself from crushing student loan debt, I personally think it is an option worth looking into. I'm personally glad I made the decision to go to Iraq, as I am now 100% debt free.
PS....I have no vested interest in prodding people to work in Iraq, Afghanistan, or any other foreign locale. This is my experience only. Maybe it will help someone.
During college I made an enormous mistake: I accumulated $83,786 in student loan debt. I left school in 1998,consolidated my loans at 7% interest, and paid from $200-300 a month for 5 years on an income sensitive repayment plan through Sallie Mae. Currently my loans are held by American Education Services/ISM (sub and unsub) and total a staggering $140,000. My debt has increased because I have not been able to pay enough per month to even keep up with the interest that is accruing. IBR (Income-based) payments have helped greatly in that I pay a percentage of my income, and I am not in default, but it doesn’t allow me to make any headway on my debt. I re-consolidated during a brief time where the law allowed it, at the advice of the Student Loan Relief Organization (to whom I paid $1,000 for their advice) and the College Debt Corp., but that only helped in that it bought me some time. My current interest rate is fixed at 7.625%. I DO NOT intend to default on my student loans. I DO plan to pay them back. I understand that I will likely be paying on this the rest of my life, well into retirement. I have no other blemishes at all on my credit history. I am not past due. I have little likelihood of a windfall or other dramatic means of paying this off ahead of schedule, or even to make the regular payments of $1,000+ per month. I have a B.S. in Music & Psychology and a Master of Music in Voice, so it is not likely my income will increase dramatically over my lifetime. I currently make roughly $50,000/year working for a large non-profit (I am terrified my employer will learn of this debt), soI WILL be paying this back well into retirement (I am now 46 years old). In my current circumstances, I cannot pay $1,000 or more per month. I know that I got myself into this situation,but it distresses me that my horrible judgment during one period of my life is likely to impact my life negatively forever. It was SHOCKINGLY EASY to borrow enormous amounts in student loans. I don't plan to have kids, and thank god this loan will not pass on to anyone when I die. If I could get my/any lender to lower my interest rate, or stop charging interest, and just let me pay off the principal with a monthly payment I can handle, I could gain some ground, rather than continuing to increase my debt load year after year. However, I'm not aware of any way that this can be done. I am very fearful of living the rest of my life with this hanging over my head,not knowing what the possible consequences could be. Thank you for letting me share my story. I definitely believe the federal student loan program needs reform. We need to help keep other students from getting into this situation. Thank you so much for your efforts to help protect students and families.
I hope I'm not violating any TOSes with cross posting, but here goes.
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I took off to aim at medical school in 1998. In 2000, my husband decided to take off with a photographer. My major was Neuroscience (a BS, but not meaning bu*l$h|t) degree, and we all know they're out there. I went to a state university) .
Since I no longer had a shot at medical school (another 120K of loans), I graduated with a BS in Psychology, and 42K in loans in 2002.
I did have skills to fall back on, but finding and keeping a job was difficult. I was layed off four times in 2003 (two of the companies simply closed their doors), and was underemployed - making at most $12 an hour, part time, which amounted to about 16K a year at the most between 2003 and 2010.
Q4 2010, I caught a break. Two months into a decent job, I phoned "the student loan people". I say that because the loans when into collections, and about twelve calls later, I found the agency who now holds my loans. *I* made the choice to call them and work out a payment plan. They refused to accept the $200 a month I offered (while my income was $1500 a month) and demanded $375.
Ten days after accepting my new job, I was pulled over at a traffic stop. I did not have insurance at the time, and found out at that time my license had been suspended (due to no insurance, it's the law here). To make a *very* long story short, I caved into the demands of the collection agency, and paid them (BECAUSE they threatened garnishment, and I was at a brand-new job) , instead of meeting my responsibilities so I could drive to work. Two days later, an officer was behind me in traffic, ran my tag, found out I was driving on a suspended license, and arrested me. After all THAT was done (after having borrowed another $4000 from family and friends and having every payday consumed with this legal matter), I found my wages garnished.
The collection agency wouldn't listen. In fact, when I told them that I made a payment to them that I could not afford, that resulted in my being arrested, they seemed to escalate their garnishment proceedings, which took less than six months from the initial payment.
I know I should pay back the amount I borrowed, no matter what the circumstances were that kept me from attaining the degree I was pursuing. However, after the collectors were told that I had just barely been working for seven years, made threats for garnishment after I had been at a full time job less than 90 days. However, I had no legal recourse, because the law states that I had to have been involuntarily terminated from a full time job within two years prior. I don't qualify because I hadn't had a full time job (one that put me over the income threshold) since 1996.
This has resulted in embarrassment (I run my name through Google and a mugshot appears!), and financial hardship, all for the sake of their "all or nothing" attitude.
Also, my 42K loan is now stated at 60K... with 10K of fees for the collection agency. Would you believe the SAME COLLECTION AGENCY calls me, at least twice a week? They tell me they have no record of a garnishment.
Those are the facts. Their snotty attitudes and snide remarks are a completely DIFFERENT story.
You might ask, "What took you so long to find a decent job?" It was luck. An old friend who knows my skills and work ethic just happened to have a opening (after two years of asking). I am an anomaly. I know people who have been out of work for five or more years that don't have such opportunities, and a similar story. What about them?
Being a single mother of 2, I decided to return to school as a full-time student in the medical field to provide a better living for my growing family. In the beginning, I thought it would be ideal to not have to live paycheck to paycheck and to be able enjoy the finer things in life for me and my family, but I was wrong. I admit that I do owe some of the $50,000 + in student loans but the interest rate is really really to high. How can you owe this much when you were only borrowing $2520 a school semester . I have been searching for a job in my field of study only to find that it doesn't pay as much as expected in the state where I live and furthermore, you have to continue on in the medical field to be able to repay the high cost of the education. How can you possibly repay that huge amount of a loan on an income that pays less than the amount that is owed on the loan? With the economy the way it is today, it will take some people a life-time to repay their loan especially when the accrued interest is forever rising because it is taking them longer to repay.
I have been teaching in high poverty public schools since 1999. My first student loan is dated 1997 so I don't qualify for the teacher loan forgiveness program. I have a B.A. in child development and a M.A. in early childhood education.
My husband is principal in high poverty public schools and has been in education since mid 1990s. He has a B.A, two masters degrees with one from Harvard University and a doctorates degree. His first wife was also a high poverty public school teacher with a B.A. and M.A. While married, They consolidated their student loans. He inheirited all student loan debt with their divorce.
Therefore, as of December 2011 my husband and I still have between $150K-$160K student loan debt remaining even though we have been paying for more than a decade. We don't qualify for any loan forgiveness and our jobs in public school education don't afford us the option to pay off or even get ahead.
All these education degrees, and one from Harvard... wow.
You two should be at the top of the heap for *total* forgiveness consideration.
You have my admiration and complete respect,
MiM
As a poster cogently points out (see “Flip side”), it is absolutely necessary that the borrower be responsible for all aspects of the terms of the loan, before and after, and be ready to work hard. It is highly probable that not all borrowers are scrupulous. However, one thing no one seems to be mentioning is the systemic problem in our society, that is, overwhelming disadvantages endured, despite the rhetoric of affirmative action, by minorities of diverse kinds, regardless of their competence in any specific field. Intangible, discrimination disadvantages minorities who are likely to have a harder time procuring a job, if at all, commensurable with his/her academic achievements, which means that they will struggle more to reimburse the loan. In addition to an individual responsibility – a naturalized American ideal, we also need to look critically at society and its invisible systemic injustices. For those who fail to obtain a (decent) job with a college degree plus, which would allow them to pay back their loan, the responsibility is not entirely their own, but unfair, exclusionary and arbitrary hiring practices that go unchallenged throughout the American society. It is easier to blame the individual in a “dream” land of opportunities, which makes us complacent about our “just” society while turning a blind eye to its “real” functioning. Therefore, when we examine the student loan debt “crisis,” both the government and the lending institutions will be well-advised to take into consideration the systemic, societal injustices which affect a certain portion of the American population disproportionately.
In 2004 I was recently divorced and moving to New York to attend graduate school. At this time I was unfamiliar with the debacle of student loans as I had enough scholarships, work study and help from family to thankfully get through my BA without any debt. When I was accepted and turned in my financial aid paperwork I assumed that with zero financial assets I would receive some financial aid at least. I desperately needed to go and I was making a giant leap of faith. NYU sent me a letter saying that they recommended that I take 26, 000 in loans for my tuition from citibank, as all of their students had been so pleased with their services. Let it be known that NYU has been found guilty in court for receiving 1.4 million dollars in kickbacks from Citibank in conjunction with these student loan recommendations. I was accepted to the art therapy program, which means that I make less than a social worker.
I never received any financial aid, despite the fact that I requested it and applied for the small need based scholarships through NYU at a time when I occasionally had to pay my rent with a credit card. I took out extra money from government loans to help pay expenses while I worked for free at my internships, worked extra days to make money, went to class and wrote papers overnight. I had no problem with the workload. I knew I was going to take on a big challenge and I was happy to put in all the effort that I could.
Upon graduating I began working full time at a hospital for 30,000 a year. This gave me two paychecks a month for about 900 after taxes. My student loan bills for the month were about 850$. I found another position that paid about 40,000 and managed to pay my loans consistently for about 4 years. The payments were reduced to about 650 a month due to variable interest. The budget was extremely tight. I went one winter in NYC without any heat. I eat simply, I entertain myself. I read a lot of hand me down books, I find good second hand deals on most things.
Trying to capitalize on my professional skills and create more opportunities for myself and others I co founded a small arts non profit. I cut some of the hours at my regular job to put in more time to build the organization. Eventually, as I had ethical issues with my partner's behavior I chose to resign from this organization. Since then I have been working only 3 days a week at my regular position and making a few extra dollars through painting or freelance work.
In October 2011 I began missing payments. The government loan was happy to offer deferment as they will continuously add interest. Citibank was another story entirely. After just one month missed I began receiving multiple phone calls a day, harassing and bullying were par for the course, though one or two agents did advise me to just ignore the calls until I had a solution. One agent claimed that Citibank was legally obligated to contact all co signers should I go even 30 days past the due date. I contested this and asked him to name a co signer on my loan, because I did not have one. Still I was terrified that they would go after my family. Whatever consequences that came to me were mine to handle, but my parents will retire soon. Soon I found out that they were only trying to frighten me. As I had nothing to pay them with at all, the story continued.
In December they called in the loan and asked me to pay them 45, 000. I explained that if I didn't have 400$ I clearly did not have 45,000. I offered to pay 100$ a month as I thought I could reasonably make that promise. They did not accept my offer, nor did they make a counter offer, I requested mediation through the Better Business Bureau and received a response saying that I should pay them immediately. I left messages with volunteer lawyer services and never received a return call. I contacted the financial services through 311 ( a city informational service in NYC), but it was clear that they can only provide the most basic advise, such as "put your money in a bank and save it", not how to make money, invest money, or protect your money from unaccountable thieves.
My loans defaulted shortly after this. I wondered why it was more profitable for them to turn the loan over to collectors than it was to take a smaller amount from me? How do they profit from such a fast default? With negotiations I could have paid them something. I offered to make some payment every time I spoke with a citibank official, but the answer was always the same, pay everything now or pay nothing. Despite my repeated effort at negotiations they claimed that I was unwilling to pay. When the "customer service" agent told me I had to pay 45,000 now or else and I explained that I didn't even make that in a year, she said, "Well, that is your choice." It is certainly not my choice. It's just basic math. If I sold everything I own it wouldn't add up to 45, 000 dollars!
Then of course the debt collectors began calling, repeatedly, lying, threatening, bullying, also unwilling to accept a payment amount that I could afford. They also labeled me as "unwilling to pay" though I repeatedly told them I could pay 100$ a month. Eventually someone called me and said he would accept 100$ if I immediately gave him my account information and set up an automatic payment. Warily, I looked through all the consumer protection information on student loans as fast as I could. They all advised against this, stating that the debt collectors often take out exorbitant fees without warning you. With my budget so tight, this could cause my other payments to bounce. When I spoke to the agent again and asked for a contract in writing, he refused. He berated me for not paying. I said I would be happy to pay if there was a written contract. He continued to berate me and refused any written contract. I find it very strange that they cannot accept my money when I offer it with a request for a fair agreement.
More research showed that I could write some complaints, but there was little chance that there would be any action against their company. I no longer speak to them and so far my family has no idea what is going. Thankfully no one else is legally tied to this loan. I am the only one they can go after. I still am not able to pay. I did read some newspaper articles about a Citibank VP being put on trial for human trafficking last year. This doesn't make me feel bad for not paying them. If I thought that my inability to pay might actually be a message to them that the system isn't working and the market needs to correct itself, I wouldn't mind so much. I have a feeling though that they are really profiting off this debt. Somewhere they are making more money from defaulting us than they would by changing their tactics.
I wish lots of hope and courage to everyone who is going through this. I know at times I have been very frightened. I do sometimes consider leaving the country, though I don't have money at the moment to start a new life somewhere. I do know that when I have been at the end of my rope, encouragement comes. Hang in there.
I actually found myself arrested because I had a choice to either pay the full $375 they demanded, or take care of my insurance and traffic trouble (which amounted to $350). After a threat of garnishment, I paid the shysters, and was arrested, which cost me more cash... because they refused to take $175 less a month than what they demanded.
You hang in there too. There has to be a silver lining someplace.
I am the youngest of seven children born in San Antonio, Texas. Growing up, what we lacked in finances my mother overcame with love and my father with his wit. My father would always tell me “the most important thing in life is your education and no one can take that away from you.” So at an early age I was determined to go to college. Despite the fact my parents had no money and no one in my family had attempted it before, I was going to do it. That was easier said than done. There were many times when I was another statistic. I was in a violent dating relationship while in high school and my life was in danger every day. I was the pregnant 16 year old Latina but luckily didn’t drop out of school.
I rose above and finished high school and applied to college. I had no idea how I was going to pay for my higher education so I did what I knew best. I WORKED. I worked several jobs while at UW-Madison but still had to take out student loans. Now going to college sounded like a great idea but in actuality was one of the toughest times in my life. I was alone; away from home, family, and friends and experienced the pain and humiliation of discrimination. I graduated in 2003 and the following year decided to pursue my graduate degree. Again, I had no idea how I was going to pay for it but was determined to just do it. I worked several jobs while in graduate school but had to take out more student loans. I graduated in 2006 with my MSW, the first in my family to have a graduate degree (a good statistic) but with over $60,000 in student loan debt (bad statistic). A family member told me taking out that much money was the dumbest idea they had ever heard and laughed at me.
At the time, I figured it was the price I had to pay in order to live the good life. My husband and I moved to Austin, TX in December 2010 and I was excited to be close to home. I turned 30 and was looking forward to starting a family. However, my dreams were put on hold. I was unemployed for over six months and desperate for work. I managed to find part time work but it was not nearly enough to pay my student loans. I had become a sad statistic, “American with a college degree unable to find work during the recession.” I read an advertisement in a newspaper about a contract social work position overseas and applied. I never thought I would get it and did not want to leave my husband. But after weighing my other options, I decided this was the best move for me financially. I want to be debt free before I have a family.
Here I am now sitting alone in Germany, over 5,000 miles away from my husband, family and friend. As many of you know working as a social worker does not pay well. Someone close to me once said “you’re a drain on society.” Meaning my work was paid by government dollars and did not turn a profit. I would like to believe that all my work with domestic violence survivors, violent men, troubled youth and military families is not in vain. This was my choice and I am doing the responsible thing by paying my debt. Another family member told me this was the most selfish thing they had ever heard…moving across the globe for money. That hurt. I just want some respect for what I have chosen to do with my life. Here I am, riddled with student loan debt, ridiculed by some, alone in a foreign country and unable to start a family all for the “American Dream” but I still have courage. It is a high cost to pay and I’m sure I am not the only one.
by: Selena Anguiano
Damn! They want me to
pay back dough I don’t have, with
some job they can’t make.
Well I know that me amount is small compared to others. Well I started school to get a Business degree and did achieve that and have over 30,000 in loans for that. Some reason I have 2 loans from ACS and 2 from Sallie Mae and all have a seperated payment and interest building up on them. This is something I am unsure why and am afraid it is going to be a problem. Well in realizing getting a job with that degree was not easy I went back and became a nurse and payed for that education with credit cards. Well now the time has come and I do not have the money to pay loans and living expenses. I hace a son with autism and that requires my wife to be home and not work because nobody has daycare for a child like that that dose not cost an arm and a leg. I have had to file bankruptcy on my credit cards because I could not pay those back at the amount and as far behind as I got during school. Unable to buy a house because credit issues, rent to high can not pay loans, and wife unable to work for family reasons. I do not know what to do. Go to collections agian and have worse credit.
I have an advanced degree (doctorate) in a healthcare field and my significant other has a BS in computer engineering and an MBA. Combined our student loans exceed $175,000. We have well-paying jobs in our field (at least well enough that it's not worth it to use IBR and that we won't benefit from Obama's student loan plan), and are very lucky to be able to pay more than the minimum amount on one of our loans almost every month. That said, we are unable to afford a house or have children because any extra money we have is going to pay off our loans. I am not necessarily asking for my loans to be repaid in full, although though I understand why others do wish for this to happen, but would certainly like for our interest rates to be reduced. I know you can get a mortgage with a much lower interest rate than my graduate school loans from 5 years ago. Interest is killing and preventing us from taking vacations, buying a car and a house, or having children. I think that a lot of other people would also be able to pay their loans if they weren't paying $200-400 of interest a month or more. At least then we could get out of "the hole" that is the minimum monthly payment.
I graduated with a Master Degree in Public Administration and went into a job that paid $30,000 a year. My debt was 80,000 total. I could not afford the large payment after consolidation so,through Sallie Mae, entered into the income based repayment plan. What the councilor did not tell me and what I didn't realize at the time is that the balance grows during the time of income based repayment. Within a few years I entered into the regular payment plan only to go onto the income based plan one more time, which was two years ago during a time of furloughs due to lack of funding at the government agency in which I work. Long story short..I now pay the $500.00 a month payment, work full time and make $58,000 a year and am eligible to retire in four years. Guess what the balance of my student loan is..$80,000. This is after 13 years of faithful payments and only 4 years having to rely on the income based plan. I have never gone into default and have never missed a payment. To add it all up...After faithfully making payments for several years I have paid 70,500 to an original $80,000 loan and still owe $80,000. And that's the part I have a hard time understanding...but who wouldn't?
I was a 16 year old honor student and ward of the State when I entered college in 1995. I was encouraged by the Department of Children's Services to "divorce" my parents because they refused to sign working papers or complete financial aid information for me to go to school when I graduated 2 years early from college. I received some Pell Grants and other small scholarships,but mostly took out loans to become a mental health counselor.
Through school I worked full time when I could (bartender, preschool teacher), but did not get paid for internships (2 years total-BS and MA). My BA is in art education, but in NY at the time, all teachers had to have a Master's Degree within 10 years or they lost their teaching licence. So I went right from undergrad to grad school and got a Master's in Art Therapy. I took an additional 15 hours at the PhD level to meet qualifications for my Counseling Licence (LPC-MHSP).
I had accrued $100,000 in debt before I was old enough to drink. I have worked as a contract therapist for 10 years helping the needy: rape victims, children in foster care, etc. Student loan debt repayment is about half my income, sometimes more. This is madness. I have a husband and 2 children and we are struggling. I do not see how I could possibly work any harder than I am, and cannot get ahead of this debt; in fact, it's getting worse, with interest and graduated repayment.
Thank you all for fighting for this cause, and helping me realize that I am not alone.
I am a 27-year-old BFA holding graduate from a for-profit university. I work an hourly paid job for a corporate regional bank that barely pays my expenses, and thatʼs with my partner paying our rent. But I do pay all my bills each month. I see people every day who insult and scream at me because they mis-manage their finances, refuse to monitor their accounts, and spend all their SSI money at Wal-Mart and Mc Donald's. I donʼt respect them. Iʼve worked for my money since I was 14 because my parents had trouble providing for me. I had little familial support when I was younger, and a very bad high school guidance counselor who told me, at 17 years old, that I would amount to nothing unless I went to a 4 year school. She told me this because part of her job evaluation is based on graduate statistics. She didnʼt care about my future, my education, and didnʼt counsel me about debt. She said educational debt is “good debt.”
No one told me what a for-profit university was, including the for-profit university. (This information was available to me, but in 2004, provided very little insight on what a “for profit” school means for its attendees.) No one told me that my for-profit university was lying to me about the quality of the faculty, that they were misleading incoming students, or that they were accepting students who could barely read. (This information was not available to me before I decided to enroll.) No one warned me they would get put on academic probation or come under a class action lawsuit while I was a student, and already $40,000 in debt. (I couldnʼt have discovered that on my own before I enrolled, because it hadnʼt happened yet.)
I got my degree anyway, in an industry that is forever linked to real estate. By the time I graduated with this degree in 2007, the market had crashed and my degree was useless. The market crashed because of banks giving out loans to people who didnʼt qualify for them. “No Income, No Asset” loans crashed my industry and so many others. This frustrated me.
The people who applied for and got those loans were told by bankers and brokers that they were good loans for them to have. Those were lies.
I was abandoned by my parents, misled by school counselors, and lied to by university staff. I have stooped to low levels to make money. I was a stripper for a year just so I could pay my bills. I havenʼt defaulted. I even filed taxes the year that I was stripping. I donate my time to a non-profit. Over 100 hours a year. I resent the banks for their greed, my university for their lies, my counselors for their lack of counsel, and the government for not monitoring schools like mine and making education a right, not a thing you buy. I resent my employer for not protecting me against belligerent customers who have thrown objects at my face and called me a b*tch because of bank fees. Even with the bankʼs bad behavior, I donʼt understand why the customers I serve are so rude, entitled, bad tempered and abusive. People need to behave themselves in public. Iʼm human, just like they are.
I work for a bank, and will continue to work there as long as I need to. I love the arts, contribute to them, and do not want to see their grants taken away. I think education is poorly monitored and overpriced in this country, and that students have the right to any and all information pertaining to the value of the education they are receiving. I think I should get my money back, not because I signed the paper ignorantly, but because I didnʼt get what I paid for. I have a piece of paper, not an education. I was duped to make other people rich. If I had the opportunity to give back my degree in exchange for wiping out my debt, I would do it. I think certain people need to stop getting handouts, including irresponsible welfare parents and CEOs. I think everyone should pay their taxes, including bartenders, strippers, big business and millionaires. I think the lifestyles of certain members of our government could be likened to royalty; this sickens me. I was deceived and feel that those who lied should be brought down, not bailed out.
Iʼm not sure if Iʼm a percentage. But if I am, I am the percentage that wants justice.
********** I have turned this statement into a JPG that I would love to share with others. However, I would like to do so anonymously. I welcome other users on this site to share the image and show how dire some people's situations are, what we are stooping to to pay out debt, and how we got there in the first place. You can find the image at http://25.media.tumblr.com/tumblr_ltugg8vKnG1r5caieo1_500.jpg. Copy directly from there, download to your hard drive and re-upload, I don't care. You have my permission as long as you don't alter the image or the message. **********
Robert
We need to put pressure on Congress. Not because they will do something, but to show that they are not willing to and put them in a corner from which they will need to respond.
Also, here is a great video you might want to share since it is so spot on in October 2011.
http://www.youtube.com/watch?v=wV1lZMTCqf8&feature=related
Thanks for all you do and if I can help let me know.
Patricia
So, I went to college in 2001 thinking, well this is only going to help my for my future since I'm going to be making all kinds of money with a college degree. Well $100k later, all I have is a very expensive piece of paper that looks nice in a frame. I have a job, yes, but having a degree sure didn't help me get it and after paying my $900/mth student loan payments I have very little discretionary income. What woman will want to marry a guy with this kind of debt that takes 30 years to pay off. I say this because, how in the world am I going to be able to afford a house payment when my student loan payments are so high, as well as other expenses ie. insurance, FOOD, GAS, KIDS, ugh. How am I to help the economy by spending money I don't have? I must say I was not very smart going into college thinking getting student loans was in my best interest, but I was told so by so many people that this was the "best" debt to have. Ya Right! What kind of bank is willing to lend an 18 year old kid $18,000 these days. And this is just one loan, it was so easy to get, I got another one, and another one. Now Obama comes out with this new plan which may help some, but will do very little to help me. A majority of my loans are from private lenders, meaning apparently there's nothing that can be done with those loans and I have already maxed out my forbearance and deferments so I'm stuck with finding ways to pay these loans. I've worked 3 jobs at a time before to help make ends meet, but am I going to be able to do this for 30 years? I don't think so. Let's look at trying to fix long term problems, not a temporary fix. I don't mind paying back debt that I owe, I mind when my payments are $900 and $800 of it is going to interest. I believe one thing that could help would be to pay back the balance of the loan with no INTEREST. I would be more comfortable knowing my balance is actually going down with the payments I'm making. The debt would go away much quicker, and the banks have already made a godly amount of money off these loans. Everyone is happy? Maybe. I like knowing I'm not the only one with this burden and I feel for everyone on here, I just wish something more can be done that what Obama is proposing. It's like a slap in the face to save $10/mth. Oh and by the way, when your income increases and you no longer qualify for IBR, then you go back to paying your original amount so you will be stuck regardless. That's the way I see it? Well I have rambled enough, feel free to comment or give any feedback to my post. Thanks
When one child started at Art Institute, I was working full-time, and able to keep up with payments for parent plus loans. Five and half years later, another child started at Motorcycle Mechanics Institute, and we had to sign parent plus loans for this child to stay enrolled at MMI.
After second child graduated from MMI, three months later, I was on social security disability with assessment for the disability. My disability is permanent, prevents me from working substantially gainfully, and the Department of Education refuses to accept the assessment for disability. I have a letter telling me that Congress is the only place to get the interest rate reduced, loan forgiveness rules changed, and Congress is saying the responsibility belongs with Department of Education.
I have the first sets of parent plus loans through AES, which I thought was part of Department of Education. Only after learning about this group, I'm learning it is a private company, probably owned by senior members in Congress, Department of Education, and other government agencies.
The second set of parent plus loans are now with Department of Education, in deferment, with an interest rate more than double the first parent plus loans, with additional interest piling on while it is in deferment status for long-term unemployment. I waited until my long-term unemployment benefits ran out to apply for this deferment.
I'm struggling to find a way to have a doctor be able to fill out the paperwork with the appropriate medical evidence. What a lot of people do not realize is the rules were made stricter for doctors filling out the paperwork for loan discharge, and this adds to the stress for both patient and doctor.
Both children have private loans which were required by the education facilities to finish the last sections of their degree program. So, we have two useless degrees, both children ended up going to different schools for additional education to find work in the career field they chose in the beginning.
Both children have public loans which were supposed to cover what scholarships and grants did NOT cover. In the end, we have the experience we would not wish on anyone, all three types of loans, and I will stand up with everyone to force Congress and Department of Education to do what is right for everyone in the program.
Thank you!
I grew up in a dysfunctional family with parents who never talked to us about college or gave us any guidance. They divorced when I was 18 and shortly thereafter, as I ran around trying to figure out who I was and tried to find answers to all of the questions I couldn't ask my parents, I ended up pregnant. I thought I was doing the right thing when I got married. I thought maybe the boy that I was having a baby with would change. Surprise! That didn't happen, and by the time the baby was 4 months old I got divorced - likely just in time to save my life. But what sort of a life would me and my little boy have? I knew I needed to go to college. I needed to get an education so that I could take care of us.
I had never taken SAT's because I didn't think I would ever go to college. A friend told me that I could get grants to go to school and I had always been a great student, so I went to the local Junior College and took placement testing. I tested straight in with no remedial classes needed and at the office of financial assistance I found out that I could apply for all sorts of funding to pay for college. Wow! Was I ever excited!
I took 18 credit hours a semester while caring for my baby and cleaning houses to make extra money. I stayed up many a night writing a paper or cramming for a test, but it was so worth it because I was going to be somebody! I was going to be able to support myself and my baby!
I got my Associate's in a little under 2 years and was Phi Theta Kappa - International Honorary of the Two Year College (grade point average in the top 1/2 of 1% in the Nation). Blazed through the next year and a half and was 2 semesters away from my Bachelor's when I got pregnant again. This time by my live-in boyfriend and due to a faulty birth control product that was later recalled. Regardless of how I felt I continued my studies, determined to get my degree and get a great job.
When I was four months pregnant my boyfriend freaked out and left the country, stating that he was not "up for this sort of responsibility". I could barely make ends meet and began receiving food stamps and housing assistance.
With the government assistance to help me make the bills, I attended classes all the way up until I went into labor in class. I went back to school 8 days after the baby was born and I took her to classes with me. After 3 weeks I could not handle it anymore and needed a break. I took incompletes for my classes and vowed to come back the next semester. When I went back I received notification that it was time to pay my student loans. I requested a forbearance and was denied as I did not have a reason that fit the criteria. But I was in school! They (the student loan collection powers that be) told me that I was not currently on the register and therefore must begin making payments. I collected statements from every one of my instructors to prove that I was IN SCHOOL, but they were not accepted and I was forced out of college and into a dead end, minimum wage job. With my new job I lost my benefits. I tried to make payments that I could afford but was informed that the smallest acceptable payment was $100 per month (this was in 1998 when I was earning minumum wage to support myself and my 2 children). I could not afford it and was left with no choice but to let the loans go into default.
Burned and furious that the goverment would push a hard working, motivated student who had the possibilty of a promising career out of college and into the working world without the education necessary to make it, I have never made a student loan payment. Sure, my wages have been garnished and yes, my income taxes were taken several times, but I have not willingly made a payment. Do I owe the money? Sure I do! I am not a person that does not pay my debts either and am NEVER ever late on any payment whatsoever. I feel that I have been ruined by the same system that promised me an opportunity. I have no career and the money that has been taken over the years has only paid for some of the interest. My loans are still exactly as much as they were in 1998 (if not more)! If only I could have received the forbearance needed to finish college and start a real career maybe I would have been able to pay my student loan debt. I suppose the government was too busy trying to collect student loans from poor people who were never given a chance to make it before having to pay off the loans and using that money to fund some of the big banks that have in turn devastated our economy. What a shame.
So, student loans they suck. Why? Well at the age of 17 if you told me I was going to owe $55,000 to some slut named Sallie Mae I would have slapped you in the face and walked away. That’s a lie, I would never slap someone in the face and I’m not a violent person. That’s not the important part of the lie. I probably would pay that ridiculous amount of money for “higher education.” Why? Because what the hell does a 17 year old know about paying off student loans. 500 bones a month, that’s what I owe Sallie or she breaks my legs. She won’t really break my legs, she’ll just take the money from my mother and if she doesn’t pay up I’ll go to jail. AWESOME! Fuck you Sallie. You may think well $500 that isn’t too bad. You’re right it isn’t. But I’m not living with mom and pops no mo.’ I’m living with my wonderful wife. Bam; $400-rent, $115-car insurance, $150-cc payments, $100-health insurance. That’s $1,265 a month. I don’t even have a car payment. Okay, so I can’t totally blame other people for this predicament I’m in. I probably should have gone to a state school. I probably should have gotten something other than a degree in English. My GPA didn’t suck. I did fairly well. I left school and taught English for a while in a foreign country. My life seemed to be on an alright track. I got married to the love of my life. I lived in the Caribbean for a while working on sailboats. Life was pretty sweet. Although something seemed to really suck. Student loans. They sucked the green right out of my bank account. Six months out of school I started paying back my loans. How the hell are you supposed to amass enough money to start paying off loans in six months? People are going sixteen months without jobs in this economy and that isn’t out of the norm. I’m not talking about uneducated people. I’m talking adults with years and years of experience. How in the hell is a 26 year old with a couple years of teaching and sailing experience supposed to compete with adults who have decades of experience on them. Not very easily that’s how. This was all a bit of rambling to explain my predicament. Time to lay down the real shit.
In all honestly who really has enough money to take on a $500 monthly payment? I’ll fucking tell you. A 40 year old who has had 18 years to save some money. Breathing room. That’s all I am asking for. What did six months get me? One last gulp before the room was full of water. What does a 40 year old adult have versus a 22 year old kid? Well, fucking real life experience. I’m 26 and I know a whole hell of a lot more than I did when I was 22. For that I’m sure. I’m pretty excited to see the 40 year old me. 26 and even without my student loans I’m paying a shit load of money to live. Knowing that in 14 years I would have to add another $500 a month would get my ass saving. I would live a life of less stress, be able to take pleasures in the day to day without worrying about living month to month. Expand in personal areas that may potentially lead to a rewarding profession. What do I have now? A stagnant job. With no room to advance, and I’m one of the blessed. I can still tread water.
There are a tons of reasons why letting someone wait 18 years to pay off a loan is a bad idea. They could die. Leave the country. The loan agency will be waiting painfully long to see their money. True. I understand this, but I’m so stressed with the day to day that a young death is inevitable. I’m planning on leaving the country anyway and doing my best to not pay off my loans for as long as possible. I’m just proposing an idea of what might help.
In all honesty what I really needed before I went to college. A fucking asterisk in all the college brochures that broke down the payments I would owe after college and a little story about how that might make life a little harder. Just a little heads up.
For those of you who had mom or dad pay for school after High School, you lucky fucks. Those of you who got full rides, well done, but we aren’t all that smart.
When I was in high school and beginning my college applications, I had two options: 1) go to school for psychology, have a more stable life doing something that only kind of interested me. 2) go to school for film, which is my passion even though it takes a while to catch that "big break" if you even do get it. All of my teachers encouraged me to go to school for what I love instead of just something that only kind of interested me.
I had to go to a private school because that's where all of the good film schools are (unless you're lucky enough to be a resident of California). Now like I said, that so called "big break" takes years to get to, but all through college I was told don't worry, in the mean time there are jobs you can still work and you can still live. My college also said there was something like a 95% of getting a job after I graduated. I was always at the top of my class (both in high school and college). I graduated college with a 3.8, always busted my ass, always made an impression on my professors, was always told I'm going to make it.
Well, I've been out of college for a year and a half now and I'm still unemployed. I've even applied for part time jobs that I could have worked in high school and I still can't get a job. None of my professors helped me get a job, no one from my college helped me get a job and far less than 95% of my graduating class is employed. So now I ask the question, why did I bother putting myself $150,000 in the hole? Everyone has this notion that you can do whatever you want, but really you can't anymore. You can't follow your dream and go to film school or go to school to be a writer or an artist or a musician. At this point you need to go to a state school and keep your costs down to a minimum and do something you're actually going to be able to get a job with (if you're even that lucky).
So here I am, up to my knees in debt, with a useless degree, unable to get a job. Awesome.
When I was in high school and beginning my college applications, I had two options: 1) go to school for psychology, have a more stable life doing something that only kind of interested me. 2) go to school for film, which is my passion even though it takes a while to catch that "big break" if you even do get it. All of my teachers encouraged me to go to school for what I love instead of just something that only kind of interested me.
I had to go to a private school because that's where all of the good film schools are (unless you're lucky enough to be a resident of California). Now like I said, that so called "big break" takes years to get to, but all through college I was told don't worry, in the mean time there are jobs you can still work and you can still live. My college also said there was something like a 95% of getting a job after I graduated. I was always at the top of my class (both in high school and college). I graduated college with a 3.8, always busted my ass, always made an impression on my professors, was always told I'm going to make it.
Well, I've been out of college for a year and a half now and I'm still unemployed. I've even applied for part time jobs that I could have worked in high school and I still can't get a job. None of my professors helped me get a job, no one from my college helped me get a job and far less than 95% of my graduating class is employed. So now I ask the question, why did I bother putting myself $150,000 in the hole? Everyone has this notion that you can do whatever you want, but really you can't anymore. You can't follow your dream and go to film school or go to school to be a writer or an artist or a musician. At this point you need to go to a state school and keep your costs down to a minimum and do something you're actually going to be able to get a job with (if you're even that lucky).
So here I am, up to my knees in debt, with a useless degree, unable to get a job. Awesome.
Over the past year Sallie Mae has taken something from me. They have taken my view of the world and people and put it into a blender. I have been called a Bitch, A spoiled brat, rude, irresponsible and dumb by the people at Sallie Mae. People who don't know me or my life. They simply call and harass me. Not to mention that they all have a different story or threat or a way to manipulate me AND my mother. We have paid them and they have LOST the payments we have set up payments and they have lost the paperwork. This leaves me helpless and in tears curled up in a ball every time.
I was the first in my family to go to college and I will never forget receiving my degree and the joy that I felt. But six months later I wish I had NEVER gone to college, signing those papers RUINED my life and I can't handle the harassment and the fact that my credit score is plummeting because every time they call me they pull it even though I TOLD THEM TO STOP. These people don't care and I am HELPLESS I am cornered and I see no way out.
I was fortunate enough to have a very giving family who was able to pay for my first two years of college. Even with this incredible gift, I obtained over $25,000 in debt to earn my BA in graphics design. After four years of hard work, I walked into the world hoping to find the highly sought after "grown up" job. To my dismay, I encountered hardships immediately. I currently work full time doing web design, and I make less now with a bachelors degree in tow, then I did before graduating. I come in well below the national poverty line, and with a now hefty hospital bill resting on my shoulders it has become almost impossible to get by. My monthly paycheck is $1,600, but after you deduct rent, bills, and student loan payments, I am lucky to have enough to break even. Often times I have to leave bills unpaid that have the least negative effect on my credit.
Now my credit is down the drain, I am have looming student loan debt, I often wonder if this hefty degree was worth it in the end...
My story goes back to the 2005 calendar year when my Mom had to stop working because she needed two complete knee replacements which ended up going bad and still till today she cant work or even walk. She is undergoing her fifth knee surgery come up this fall. This was the beginning of my first year at Lawrence Tech which is a private school that was highly recommended for the positives which advertised that 98% of graduates will have a job within 2 months of graduation in their given field. The high cost of school which was close to 40,000 a year before books, supplies and other college expense forced me to take out private student loans. My supplies cost alot due to the fact I was an Architecture/Construction Management degree. When applying for these loans I was always approved, but I guess that I never took into effect how I would be in debt for a lifetime after graduation. In 2008 my dad lost his job and I also lost my internship which now left me graduating with little to none in the experience category. I am now 26 years old and finally found a job in my field which was almost 2 years after graduation. I make around 2000 a month after taxes which covers all my bills (apartment, gas, insurance, heat, phone, etc). My student loan debt is around 240,000 and the monthly bill for all the loans is roughly 2,500 which is more then I make. I have cut every corner possible to try and save money but it is nearly impossible. I even tried to move back home which is hard because my parents lost their house and leave in a 2 bedroom apartment for 4 people not counting me. My girlfriends parents live 4 hours away which makes that very hard. So saving money on the apartment is out of the picture and another thing which is the BEST NEWS IN THE WORLD is I am GOING TO BE A DAD. If this student loan forgiveness passes this will be the best solution for me and my family which will allow us to live the AMERICAN DREAM and PURCHASE A HOUSE and RAISE A FAMILY
I am 26, married, and owe nearly $1,300/month in student loan payments. My salary is $33,000/year, but much of my living expenses are covered by my husband because after my loan payments and taxes I have less than $1,000 left each month. $1,000/mo is less than I was making as a waitress before I put myself through college. Because of my financial situation we will not be buying a home or starting a family anytime soon despite the fact that we both have full-time employment - a huge success in the current economy. We currently live with my mother in law.
I have tried to consolodate, but my credit is terrible because of all of my student debt (nearly $150,000 for my Bachelors degree). I have dificulty making the 10+ different loan payments on time and in full every month, especially when certain servicers will not cooperate with my online bill-pay and instead insist that I use their separate website, let them link DIRECTLY to my checking account or send a check by mail. Only 1 of my 6 or so lenders has cooperated in changing my due date to occur AFTER I am paid each month. Chase actually has 4 different due dates for my student loan payments, and will not let me consolidate the 4 loans I have with them or even change all the due dates to the same day of the month.
Almost all of my student loans are private, so they are not eligible for income based repayment. I have searched the internet exhaustively, but I have not found any advise that is truly helpful. I don't know which sources to trust and which are just another scam.
I'm a classic story of a person not knowing what I've gotten myself into. I attended a state school and graduated with my bachelor's degree in December of 2008, the thick of the economic meltdown. I was the first of my family to go to college, so my family and I really had no knowledge going in of how the system worked. I think it would be really valuable to teach a course about the finances and consequences of student loan debt in high school, maybe it would help people think it over before they take out these massive loans. Anyways, I wans't worried about what I taking out, because my school promised that I would have a career that could easily pay it off. I fed into the bs completely. I started to get worried my final semester, when I saw the economy collasping, so I went into my guidance counselor's office and asked if I would still when I graduated make 60000 out the gate like they promised. They said yes. They were wrong. I sent out over 500 job applications when I graduated, finally landing a job eight months later at a law firm. Starting pay? 24000. I had 75000 in student loan debt, most private, as my family made too much to qualify for the federals (my parents make 60000 a year combined). I held off the sharks by pushing the loans back with forbearances. I was getting afraid, they kept telling me I could do a graduate repayment plan for three years until I made more money. Finally, in December of 2010, I ran out of forbearance time. I called regarding the graduated repayment plan. Their response? They had phased out that program and now only do a full repayment schedule. Nineteen years of payments of 481.12 a month, and thats only for my private loans, discounting my federals. I also had credit card debt and medical debt. In October of 2010, my husband and I filed for bankruptcy from the credit cards and medical bills, in the hopes that I could pay the insane student loan bills that were coming with the extra money. It worked, however at 24 years old, I am bankrupt and financially ruined due to these loan companies lies and saying that they would work with you, and in reality, they could careless about working with you. All they want is what they consider is fair, and screw the outside world and how difficult it is starting out in such a bad economy. I'm thankful everyday my husband did not attend college. I can't imagine that much more debt hanging over our heads. By the way, he has more dispoable income than me working at Best Buy, because he has no debt besides a car payment now. I never imagined that I wouldn't see what this degree can do for me until I'm 39 years old. This debt burden has pushed back all of my plans to have children and start anew chapter in my life. I will start paying the federal loans back next July, which will raise my monthly payments for student loans to about 750. Enough for a mortgage. If I had to do it all over again, I would have NEVER stepped foot into a school unless I had someone else footing the bill. If this post can save anyone from the hell I had to overcome, I have done my job. Wall street and banks got their bailout...what about us?
I'm not asking for forgiveness. Just some justice. Sallie Mae, AES and friends are just as bad as Fannie Mae and all those involved in predatory mortgage lending.
When the laws changed in 2005 private student loan lenders sought out and exploited everyone they could. Little did i know, they were contacting my mother and much to my surprise years later, she had taken out loans in my name. Now, and remember this, it was not her fault. She was only trying to help- she was supporting me going to a private school while living in one of the most expensive states in the country. They would actually CALL her and ask if she needed more money. I have about 230k in loans for undergrad, and only 8k of that is federal. ALL of that was taken out between 2005 and 2007. I am not saying we are not to blame, I should have been paying attention to exactly how my education was being financed, and she should have been more careful about who she borrowed from and how much she borrowed (and told me she was doing it). But, here we are 300k later. She lost her job because the state she lives in is also having economic hardship, and is filing bankruptcy to get rid of any debt she has so that she can help me pay the private loans and make things right. I finally landed a job in this crappy economy, making 35k at a non-profit. My payments easily exceed my monthly income and if it wasn't for the help from my parents, I would likely die with this debt.
My point is, this type of risky lending never should have been allowed.
We are told to go to college to make something of our lives.. that we will find better jobs and receive higher pay than those who don't... but at what cost to our future? Times have changed.
I have a horror story. I borrowed roughly $16,000 to pay for school. I had to have deferments at various times which always adds to the balance. At some point, the payments became too much and I simply did not pay. Then, recently, I was contacted by a representative of the DOE (or some company hired by them) and set up a plan with a fixed rate and a do-able payment. I went for it as I wanted this now $21,000 loan to be taken care of. I made my first 2 payments only to have the payments double, which was not in my budget. I was told there was nothing I could do. So my payments were forced to stop. This has resulted in another $15,000 in penalties being assessed. So now my $16,000 is over $36,000. This was supposed to rehabilitate my loan and was supposed to be an Income Based Repayment (IBR). I am soooo glad I tried to "fix" my problem.
Well, I read a story a couple of days ago about this vet stud who owe $400,000 in student loan. I can't believe how she was able to get that type of loan for studying her major since vet students are only allowed $30,000 in student loan. I felt even if she finishes her studies, how would she be able to pay back that debt. She would probably needed to work 24 hours a day, seven days a week just to be able to pay off. And together with that, she won't be able to get married, have kids and the life she should have because of the debt she owes. Have you seen this great article about the calculated value of your college education yet, minus the cost of your student loan? This is also a great article about those who have one.
Just like everyone else posting here - had a variable loan, did not realize it was variable (my fault) nor did the fine folks at US Dept of EDU inform me when the rates shot up past 8.5%, nor did they inform me of the fluctuations causing my alternative minimum payment to actually increase my principal.
I took some forbearance and deferment during the worst times when the rates were over 8%, and understand that increases total debt and increases repayment, but to sit here and think that I borrowed $27,000 in 1995 and over the last 15 years have paid over $23,000 and now actually owe MORE than I borrowed is heartbreaking.
Sure was nice of the Govt to mandate all federal loans be fixed rate after 06, wish that had been the case when I was in school.
I carry no credit card debt, no car loan - the only debt I have is this ridiculous student loan. Of course it is now at 3% as the prime rate is at historic lows, but with all that I have paid to date, my actual APR over the 15 years has been closer to 7.5%.
The worst part is that no one at the US Dept of EDU bothers to tell you or inform you, or help you realize that your monthly payments are not reducing principal at all. I had this payment on automatic deduction from my bank and did not think much beyond that - again, my fault, but they know what they were doing, hiding and making it impossible to learn what your APR actually is and repayment schedules and how much interest will/has been incurred.
Seems like my generation got taken for a ride with CC and student loans. What choice do I have but to keep paying this loan. I estimate, with a higher payment per month, this will still take me 10 more years to pay off and at that rate I will have paid over $30,000 in interest on a $27,000 loan. Oh, and of course, I have a masters degree which I do not use, even if I did work in that field I would not be compensated as well.
Drew
I graduated from a state school in 2002. After that I had to go back to school to obtain my teaching certificate. Because I had already graduated, the school I attended required that I pay graduate tuition even though I was not in a graduate program. This resulted in $30K of debt in 3 years.
I got my teaching certificate, but quickly found out that there was no way I could afford the $1000.00 a month payment towards my student loans on the puny teacher salary that I am now making (the payment was more than my rent!). So now my loan is in default. I should've been paying something, but I have had horrid experiences with debt collectors and was afraid to talk to anyone about lowering my payments.
Because my loans are in default, I realized not too long ago that they are probably not going to let me renew my teaching certificate. So soon I probably will not even have a job, so I won't have a chance in hell of paying to get out of default.
I also have not been able buy a house or a car since I have graduated. I am currently engaged to someone. I am now living at my parent's house because I cannot afford to live on my own. I have been suffering from major depression as well. Sometimes suicide feels like a better option for me since I probably will not be able to have a decent life as I owe money and will have no means of earning any money to pay off the loans.
Fast forward, we are now divorced, we have faced long term illnesses and extended periods of unemployment. Our original loan of approximately $100K has ballooned to almost $300K in a period of thirteen years. My ex-husband has been out of work three different times and I was told by Sallie Mae that I did not qualify for any type of deferment because we "both had to qualify" so instead I was forced into forbearances. At no point was it disclosed to us that we had an option to take an economic hardship instead of a forbearance. In 2005 when I was in and out of the hospital with multiple surgeries it was the same thing. I have no deferment or forbearances left, the payments are at $2K a month, and I can’t get him to commit to helping me make payments.
Desperate to not default and ruin my career, I reached out to SMSLC and TGSLC in July 2010; the results, it was recommended to me that I attempt to consolidate and assume the full debt. I hadn’t heard of such a thing but at that point I figured it was my last hope; at least if I applied and was approved the payments would be based solely off my income and I could make payments without fear of default. Problem is that neither representative knew what they were talking about and I was denied. Department of Education won’t touch Spousal Consolidation loans apparently.
After finally convincing my ex-husband that our loans were going to default I finally convinced him to submit the paperwork for Income Based Repayment (IBR) in September. That didn’t work either. On my third phone call to SMSLC today I found out that SMSLC didn’t process our IBR. I’m still struggling trying to understand what happened. The following details the highlight of my conversation with the SMSLC Representative (Rep):
Rep states that loan is 254 days past due
Borrower questions Rep how the loan can be 254 days past due when in phone call to SMSLC in September 2010 borrower was told that forbearance had been granted while SMSLC processed the application for Income Based Repayment (IBR). Borrower questions Rep, asking if borrower had been intentionally mislead in September.
Rep confirms that forbearance was granted on the account for “September – November.” Rep cannot comment or provide explanation as to why Borrower did not receive in writing that the forbearance was granted or disclosure as to the terms of the forbearance (fees, interest accrual, etc.)
Borrower asked Rep what date the first payment was scheduled following the forbearance. Rep states the due date was January 19th. Borrower asked Rep to confirm date, January 19, 2010, or, 2011? Rep states that the first date of repayment was January 19, 2010. Borrower questions why a payment was not scheduled with a November or December 2010 due date following the expiration of the forbearance. Rep states that the delinquency was reinstated to the account on November 12, 2010.
Borrower questions Rep, asking if it was standard business practice for SMSLC to “reinstate” delinquencies following periods of forbearance. Borrower has received other forbearances without delinquencies being reinstated and questions the arbitrary nature of how and why delinquency was reinstated. Rep could not provide explanation as to why the delinquency was reinstated. Rep would not comment on the standard business practice of SMSLC concerning the reinstatement of delinquencies.
Borrow questions why SMSLC did not notify borrower in writing that the delinquency was being reinstated. Rep could not provide explanation and would not comment on why notification was not received.
Rep states that IBR was processed in September and that payments had been reduced from $2245.39 to $1919.67. Borrower confronted the Rep with the fact that every calculator on the web, including the calculator on the website for the Department of Education, estimated the IBR payment to be approximately $1200. Borrower asked Rep for documentation in writing as to how payment amount was calculated. Rep RETRACTS statement that the IBR was processed stating that the account was on a Graduated Payment Plan.
Borrower asked Rep why account was on a Graduated Payment Plan when that is not what the Borrower had applied for. Rep was unable to comment or provide explanation as to why account was on a Graduated Payment Plan.
Borrower asked Rep if it was standard business practice for SMSLC to place accounts on Payment Plans without Borrower consent or knowledge and with no disclosure of terms. Rep would not comment on the standard business practice of SMSLC.
Borrower asked Rep the status of the IBR. Rep confirms that SMSLC received and began processing Income Repayment (IBR) Application in September 2010; however, the last comments on the account state that the IRS tax information was received September 20, 2010. Rep states no further notes were documented in the system as to the status of the IBR application. Rep could not provide status of IBR or provide explanation as to why Borrower has not received ANY documentation to the status of the IBR (acceptance, denial, or request for further information).
Borrower read notes back to Rep to confirm accuracy of notes. Rep was in agreement and no discrepancies were noted.
Borrower requested the following documentation from SMSLC:
o Payment/Coupon Book;
o Letter disclosing what Repayment Plan the account is on;
o Letter stating the status of the IBR application;
o Letter stating that the account was in forbearance from September – November 2010;
o Letter stating that SMSLC reinstated the delinquencies and the effective date.
Borrower asked Rep to read allowed the five items that borrower was requesting. Rep read the request back. No discrepancies were noted.
Borrower asked how long it would take to process request. Rep stated it would take 7-8 business days to process request.
Borrower questioned Rep, asking if Rep had any questions concerning the conversation or Borrowers intent if request was not completed in full. Rep had no questions and no discrepancies were noted.
Call concluded at 1020 hours.
I am by no means an accountant nor do I confess to understand the intricacies of how everything is formulated, but for the sake of argument let’s look at the math in its simplest form. The original loans that we consolidated came to right around $100,000. Today they are almost $300,000. That is a $200,000 GROWTH in thirteen years. $200,000 divided by 13 equals approximately $15,385 per year, or, $1282 per month. If my current financial situation does not change and the loans continue to grow at their current rate then would it be safe to assume that in another ten years the loans I will owe $453,850? That in twenty years I will owe $607,700? And that in thirty years, at the age of 70, I may owe $761550??? And if God should see me blessed to live to the age of 80, that I may owe $915,400.
Every time I call and speak to SMSLC at this point I have to hold back the laughter. My past due balance with interest is $21,000; how would I like to bring the account current… cash, check or charge??? Are you kidding me.
I don’t know what else to do. I am scheduled to default in December and I have nothing left. My career as a federal auditor will be over.
This is my story.
Blessings to all.
This is a repost I just wanted to see if anyone has any information or could help me? I am about ready to get a hold of the department of education and i am scared to death because i know i will not be able to pay them and i will have them after me all over again! But i am sick of not working because of fear of them taking my paycheck and not being able to pay my bills anyway.
OK here is my story I Went to college in 2003 one month after i graduated from high school. I nor my family had any idea what i was getting into! I went to a vo-tech school for food service was always interested in that career. Had like a college day thing or whatever and school reps came from all over, gave out my information got a call and was asked if i wanted to go to an interview type thing for the school a few towns away..Just thought i was going for information got there and found out it was to apply for the school so i was like whatever i will just apply i have always wanted to do this. I come from a low income family so i went there with like no money .. was told i needed 100 dollars i believe it was for the app.. so i called my gram and she gave them a check over the phone! I believe that was my biggest mistake if i could go back and do it all over i would in a heartbeat!
So like i said i had no idea what i was getting into what i was signing what was going on at all. I filled out the paper work and waited to see if i would be accepted or not. Few weeks later got a thing in the mail saying i was accepted and that i needed to go to the school for a financial aid thing. Went to it filled out whatever paper work i was gave. Filled out all the fasfa stuff and everything else.. the person who did my original app was assigned my finical aid rep. She worked threw what ever loans she could get me and i was set to go .. If she said it would pay for it i signed it cause i knew there was no other way i was going to get in, And like so many others i figured by the time i got out of college and did my extern-ship i would be able to pay back my loan payments. At first it was all good because i believe all i had to pay was this one loan i dont even know who it was threw but it was called the Chef loan. So i felt secure even tho like i said i had no idea what i was doing!
One thing i did not understand was at six months all my plans had to be revised and i needed to do my loans all over again I was not all that worried about it because of the chef loan so i thought it would all be ok. So i go to my meeting and i like the other of 100s of students there find out that the chef loan i was giving has now been discontinued and i was no longer to get money from them so they needed to get me another loan so i could stay in school.. That is where i believe Sallie Mae came into play! They got me the loans..i signed them yet again not even realizing what i was doing i just wanted to stay in school!
So i have new loans and everything is going fine. I get a letter for the finical aid person saying we need to have a meeting because they need more money. So i meet up with them they tell me the only way i can stay in school is if i sign for more loans of some sort and if i start a payment plan with them and pay the school itself 300 a month i believe it was.. if i did not i would be kicked out. So i signed and renewed my loans or whatever i needed to do so i could stay in school and set up payment arrangements with them.
Now i must admit i was not the best student. I got caught up in the college life a little bit to much and had alot of personal family issues happen in that year i was in college. So i ended up failing a few classes and i had to stay a few months longer to finish my classes i got put on academic probation or whatever and was told if i missed another class i would be dismissed for 3 months. Well i ended up failing another class.. thats a whole story in itself because i honestly believe i should have passed but anyways i failed so they told me I had to leave for 3 months but i could return.
Now i had just renewed all my loans and they told me that it would be fine that they could hold onto my money or if they sent it back it was alright and i could get it again when i go to go back so i did not question it at all left for the 3 months. I left state while i was gone i guess they mailed papers to my mom for the loans saying so much money was giving back and what i would owe. So i go back home and get ready to back to college talked to my new finical aid person it was a week before i was to go back to school and i get a call saying i could not come back unless i got more loans because the loans i had could not be returned to me and i could not get anymore and unless i had like 30,000 i could not come back to school, so they wanted me to get a co-signer but no one in my family could do it so i ended up telling them never mind i was not going back!
So here i was so far in debt i had no idea what to do. When it came time to pay them back I did what ever i could to stall it and not have to pay it back right away. When i ran out of options Sallie Mae wanted an insane amount of money a month and would not take no for an answer. I had no job and even if i did i would not have been able to afford it working for 5.15 an hour. I tried to work with them and told them ok well what if i can make 50 dollar a month payments and at least try and they said i could pay whatever i wanted but no matter what if the full minim amount due was not paid then i would be charged like a 75 dollar late fee or some crazy amount!
Now i will take blame for what I did..Yes i signed papers and yes i should have been aware of what i was signing but i was not even 19 yet when i first went to school i had no idea how to handle things and i should have never done it! They should not be able to just hand over money to kids just so they can get paid! I did what many have done and just refused to pay them would not take or return their calls and moved all around and did my best to avoid them!
I can not honestly even tell you what i owe and who i owe it too. All the papers i had got lost when my father lost his storage in 2005 so i have no idea about any of it and was not in a hurry to find out because i know there is no way i could even try to pay it!
Here we are close to 6 years later and i am married and moved out of state. About 2 months ago i started getting rude calls at work from someone saying they needed to speak to me and harassing my boss they said they wanted information on me and they wanted to garnish my wages to pay unpaid student loans so my boss said ok fax me a paper and then i will tell you more..so they faxed her a paper and it did not even have my social security number on it. They called back and my boss told them she was sorry but she did not have anyone there with that ssn so they said ok well tell me the number you do have and she told them no she was not giving them that information and for them to stop calling there and they said ok we will just deal with this some other way! So i had a feeling they were going to try and take my taxes and we just went to file them at H and R just like we have done the past 3 years and there is a hold on it so i call the 800 number and it says its been offset because of federal loans! I have only worked about 8 months this year at minim wage part time. I made a little over 4,000 dollars. My husband works full time and made about 20,000. So income together is less then even 25,000 dollars a year. We are only getting back like 1,200 in the first place but still we were looking forward to that money and now we are not going to get it. We live pay check to pay check thew pay day loans we could not squeeze another penny out if we wanted to. We get food by going to food banks and i have not even had the gas on in my house for the past 6 months i have no way of paying student loans. I no longer really have a job i am now just a temp call in and i never get called in and because i worked for a daycare threw a church i can not get unemployment.
Yes i know this is my fault for avoiding them but i really have had no other choice i tried to pay what i could and they would not except what i could give them. I know i signed everything and i am responsible for it all but i also know there is no way i could do it! I know my credit is crap and i will never have anything. My husband makes a joke about the freecreditreport thing and says look what he has married into but he knew about it all before but now i have no idea what i am even goin to do. I told him we could get a divorce because i don't want them doing this to him for the rest of his life. I love him and i really don't want to do that tho. I have even told him i could just kill myself and he could use the life insurance and just bury me in a wooden casket cause he would not even have enough for a funeral because honestly thats the only way they are ever going to get all of their money. Not saying i am going to do it ..just seems like the most efficient way to be debt free!
Sorry for this being so long and no where near perfectly written, but i just need to tell my story. And by reading other stories i now know about the IRB i never even know it existed so i am going to look into that after i guess i call the department of education and find out how much i owe and who i owe it too! So thank you guys for all your help and if you have any idea's let me know. Please dont be a hater and bash on me like i said i realize i am responsible for everything that has been done!
I have a loan since 1998! It's currently defaulted. I am trying to go back to school and finish my BA but because of the defaulted loan I have NO hopes of Financial Aid. Definitely 10 years ago I made very unthought and irrisponsible decisions. But now I am trying to go forward in life and complete unfinished goals... I am currently UNEMPLOYEED and have been for the past year 1/2 . . . Finishing school is a MUST for me right now but I am stuck! PLEASE someone help me on WHAT I can do...
I was a returning student at age 36 and a single mom making barely above minimum wage. I graduated in 1996 with a JD. At the time I graduated, the largest firm in Washington disbanded and sent over 100+ of the top lawyers in the state looking for jobs. The only way we could get a job was to either be in the top 5% of the class or hang your own shingle out. I hung my shingle out and worked in family law for over 10 years. Needless to say, the accounts receivables were really impressive - but the cash wasn't there. The market for attorneys was so bad that I could hire an associate attorney for $10 an hour in Washington. I couldn't pay my student loans for over 10 years and even went through a bankruptcy. Too bad you can't bankrupt those suckers - $98,000 is now over $240,000. I'm not in default and am current, yet every month I don't pay I get $1600 interest tacked on and interest upon interest continues to compound. I'm now 52 and there is no end or hope in sight. No house, no retirement, nothing.
I can't do IRB because the loan is too old. I can't qualify for a lot of the new "breaks" because I consolidated in 1997 right after graduation. If I can somehow manage to get on to one of the new deals, I'll be on the hook for 25 years (77 years old if I make it that long?)
If someone had had the talk with me back then - I'd have done something very different with my life. I had no idea that I'd be struggling the rest of my life as a result of higher education. Student loans are the best way to enslave people and the banks rule the fiefdoms. My life choices have been severely limited as a direct consequence of the student loans. They are like the ball and chain and are worse than being in a dark ages prison.
I am currently working with another attorney about trying to get the student loan people to deal like other creditors. The only ones that refuse to work with the debtors are those that hold student loans. Even the IRS will deal. The student loans are prime examples of predatory lending practices. The loans usually switch lenders so many times that after a decade, the federal government isn't the guarantor of the loans any more. I think that cracking this nut will be every bit as bad as the housing bubble bust. I'm not sure if you could file a class action suit, but it seems like the complicity of the government and the lack of accountability and outright fraudulent lending practices should sustain a claim.
I went to one of the Art Institutes in 2005 and by the time I graduated in 2009, I was about $74,000+ in debt. This is because I was ignorant about loans and just signed whatever my school handed to me since I figured they knew what they were doing. The end result was my borrowing of eleven loans, five of which are private. I initially was told that I'd owe about $800 a month until I called Sallie Mae and told them to put me on the lowest possible repayment plan, which I was told was around $389 a month. I was only making about $1400 a year due to lack of local jobs and depending on freelancing, but I figured I'd pay what I could. Then Sallie Mae found something else to charge me for and my monthly bill increased by $78, bringing my total to $467. Then, they sold some of my federal loans to the Department of Education without telling me, and I didn't know I had more to pay for until I was almost in default. That was an extra $88 a month, which means I pay about $555 a month on a four-figure income. And when I asked about consolidation, Sallie Mae and my school both told me that consolidating my loans would increase my monthly payment...as usual, Sallie Mae was trying to discourage me from saving money so they could get some more cash from me.
I loathe Sallie Mae with a passion because they are in no way concerned with arranging affordable payment plans for their customers - they want as much of their money as fast as possible, regardless of the borrower's financial status. I'm not unemployed, but I may as well be since I make so little. I'm going to be going to grad school very soon...why, I don't know, since it will not help me find a job any easier and it will just put me about $42,000 further into debt. But at least I'll get some relief from my loans via academic deferment.
I've no issue paying for my education, but I need to be able to actually afford the payments. If I go into default, Sallie Mae will go after my mother and put a lien on her house since she's my co-signer. I just wish there was an easier way for someone below the poverty line to repay loans...why can't there be the equivalent of scholarships for graduates? Why is it that students are that much more important than grads that they're the only ones who need money? And I loathe that private loans are not eligible for things like income-based repayment.
I grew up with one parent who was highly educated and one who wasn't. All I ever heard growing up was that I needed to think smart, work hard, do well in school, get into a good university, get a Master's Degree in Business, and that all the hard work would pay off. The reality is that I would be better off doing what my younger sisters have done...getting knocked up in high school and becoming a dependant of the government.
I did what I was told and got into one of the nation's most expensive schools. I was in class on 9/11 and before classes were cancelled for the day, each one of my professors said that it didn't matter what we as students did or how hard we worked, the economy would not recover from the attack for many, many years to come. They all said we should just focus on getting through our program and then enroll in graduate school. I thought that they must be over exaggerating and after graduating in May of 2003, went out looking for a job.
After a year of being unemployed and deferring my Sallie Mae Loans, I finally got a job but it required me to move from Texas to Nevada. I worked insane, long hours and after rent, utilities, and food, I was left with less than $300 to my name per month. Most of it was spent on gas and insurance for the van I inherited from my parents. The rest went to Sallie Mae.
After a year and a half in Nevada, I decided to relocate to Phoenix so I could attend graduate school. I enrolled in a program, took out another student loan, and worked full time in order to make ends meet. By moving, I took a significant cut in pay, but not in living expenses. I ended up donating my eggs in order to get extra money and lived off of that for a bit. Needless to say, I was able to defer my payments while in school, but once I was finished, I was being hounded and paying out almost $1000 a month to our good friend, Sallie Mae.
I met someone and we decided to pursue a relationship. However, he was British and lived in the UK. I participated in a graduate work exchange in the UK through BUNAC. I did this for both international work experience and the chance to see if the relationship was worth pursuing. After six months of working for national minimum wage, deferring student loan payments again, writing a lovely comparative paper on the benefits of doing things either the British or American way, and living in the same country as my boyfriend, we decided we wanted to get married.
So, I returned to the US to work as a temp for the six months my fiancé was in Afghanistan. We got married and began the immigration process in late October 2008. Since then, I have been unemployed because of the state of the economy and the fact that I am the last possible candidate to be considered for a job. This is because I am not from the UK or an EU country and companies are required to offer jobs to people who fit into those categories first. With 2.5 million people in the UK that are currently unemployed, I have no chance in hell of getting a job any time soon.
And believe me! I have tried. I have applied for any and every job listed. I have had interviews and even sought out jobs where none were advertised. I have had my resume reworked into the English preferred format and sent all of my savings to Sallie Mae. I no longer have any forbearance or deferment time left. I owe $57,000 to just Sallie Mae and $13,000 to the Federal Government. I have sold anything of value, cut out all frills, and completely emptied my savings. I even sold my wedding band and dress in an effort to find more money to send. My husband doesn't make a lot of money because the Brits don't pay their public servants anything. We've moved from a lovely flat into government housing. I got rid of my cell phone. I have basically downsized everything I can and have continued to look for any job that is available.
In the mean time, I am almost 3 months behind on my loan payments and have run out of options. This whole situation has taken it's toll on my marriage, my confidence, and my sanity. I don't mind paying what I owe. I am not looking for a free ride. I just want someone to hit the pause button long enough for me to get a job. But I am out of options and there is no end in site to this saga.
I understand that you say you "don't want a free ride," but really, they can't do anything to you now that you're living in the UK; so you have limitless options. You can decide that you are now on a payment plan of $20 per month, and they will have to accept it. They can't touch you anymore, so don't make things harder for yourself than they have to be. In the UK student loans have better terms...
I came out of the Marine Corps in 1989 and was in a classroom within two weeks.
I graduated with a bachelor's degree in 3 years with a 3.27 GPA. During my first year I paid everything myself then made the worst mistake in my life - applying for a student loan. I say my worst mistake because the debt will follow my ashes into the sea. Eleven years after graduate school I know it's a fiscal impossibility for me to repay all I owe unless my salary triples - even then I would have to pay over $700.00 per month for well over 20 years. But tripling my salary isn't going to happen.
To get to the end of this I'll spare everyone the details of Sallie Mae they already know. After it was all said and done, I completed two Master's programs, finished all my education with a 3.68 GPA, worked while in graduate school, and I now owe $180,000.00 plus change in student loans, the interest accruing with every word I type. Despite my grades - a 4.00 GPA for a number of semesters, the Dean's list, peer-reviewed publications prior to graduation, etc - I only had 18 months of tuition waivers and student teaching assistantships! I am thankful for those, however.
I'm not in default, I've alternated between paying monthly when I can and having to request a forebearence (they are more than happy to oblige), and I've been working as a biologist with a state agency for 10 years. You don't go into biology to make money, unless you're into biotechnology and sell out for the financial gain alone.
In short, because of student loans and the usury of these ebola viruses of the financial lending world, I will never own a home, a new car, or have any retirement to speak of whatsoever. I plan to leave this world owing only the meager possessions I may have, my near-empty bank account, and the clothes on my back. Congress doesn't want to take on the issue, so I'm taking my issue to them in the form of my debt and my organ-harvested, cold corpse.
-Alexander Hamilton
I am a college student, about to go for a 5th year of undergraduate.
I couldn't complete my degree on 4 years because I changed my majors after freshman yr. I started out as engineering major. But I had this passion to be an actor in high school. I transferred out and auditioned for the Acting program at my university. I was fed up with engineering. My grades were at a 3.0. I never wanted to do it.
I was accepted into the School of Theatre, 4 out of 70 auditions. I took this as sign to pursue my dream. They told I still need a full 4 years in the Acting program. So I said, sure why not! I'll be a successful actor someday!
HOW STUPID WAS I?
I went on for 3 years as an Actor. I loved every second of it. My GPA became a 3.4...
But I took out 24,000 in FEDERAL LOANS!!!!!!!!!!! 24,000!!!!
I still haven't graduated yet. Next May, I can graduate. But my debt will be $32,000. I have to decide. I regret my stupid decision. I COULD have pursued acting, without going to college! What was I thinking??? I was so afraid that I needed some real experience. Now I will have to pay for this for the rest omy life.
Someone, tell me. Should I go back to school and graduate with a BFA and 32,000 debt?
Or should I drop out with 24,000?
Both roads sound like a disaster to me. I am 21 years old. And I feel like my life is over. What should I do?
Yes, do graduate! You will be better off with the debt and a degree than with debt and no degree to show for it. Also, a BA is often a requirement for emigrating, should you decide to leave the country (which would also be a way out of the debt were it to become unmanageable.) I took out much more, and in private loans; I wasn't able to do my fourth (last) year due to the finances falling through, despite good grades...and it was quite terrible to be out there with nothing but bills. Do your last year and reach for any opportunities it can offer you.
WOW... I'm glad I stumbled across this site. I've been considering going to a for-profit art school to jump start a photography career, but with the massive amount of private loans I would need, I'm definitely reconsidering.
I'm conflicted about writing this post because I DON'T have mountains of student loan debt and I don't want to sound like I'm gloating because I'm not. I'm writing to plug AmeriCorps, a wonderful service program I participated in for 2 years. I graduated college with a $4k private loan and about $8700 in federal loans. I had no idea how fortunate I was at the time to get my bachelor's degree with so little debt... thanks to an academic scholarship and work-study. After college I signed up for AmeriCorps, not quite sure how to start my career. I got accepted and moved cross country to CA where I ended up serving two terms in the program. The experience first of all taught me how to live frugally on a living stipend, but also gave me valuable career experience and connections. And at the end of it all, I received over $9000 in federal education award money - $4725 for each term. (Yes, it's taxed. But it still helps.) I sent in $8700 to pay off my federal loans and cleared my balance completely and had a little bit left over to pay for some community college classes. Also, my loans were in forbearance the entire two years thanks to AmeriCorps. I write this to urge anyone who's never considered it to give it a thought at least. $4725 - $9000 might not seem like much when you've racked up $100k in debt, I realize. But for some people this could make a big difference AND could provide you with really great career experience.
I had over $53,000 in student loans. I came from a very poor family who could not help me out and I had to bear the whole weight of financing my education, car, clothes, food....just about anything I needed in life.
I graduated in December 2006, but didnt have any luck securing full-time work or anything stable....and with my last $1,500 I bought a ticket to Japan and got a job within 2 weeks of arrival. My life changed big time, I had a job teaching english for $2800 a month for 30 hours a week! I never had a job that paid me anything more than minimium wage back in the states. But sadly the good times would come to an end, the company I worked for (the biggest english school company in Japan) went into sudden bankruptcy in Oct. 2007 and 5,000 foreign english teachers were unemployed and left on the street...but I saved almost all my money...so I safe. I got another job, but that company went under a half-year later as well....this was at the start of the global recession at that time...and Japan was hit hard and hit fast. English schools were folding left and right and teachers were left on the street. I managed to survive from job to the next.
I scratched out a living working teaching gig wherever I could find them and did that for a couple of years. The employment market in Japan is in the dumps and people are flooding here daily from the US, Canada, UK, Australia...all looking for work that doesnt exist anymore.
I have been in Japan 3.5 years...I like it here, but its been a major struggle the last 2.5 years. My student loan was in default, as I couldnt afford to pay it when I was unemployed or between jobs in Japan, and I knew I could never return to the US and get a job and make a life for myself.
So, I turned to crime to pay off my student loan and got the $53,000 in 3 months and paid off my loan.
But I still cant return anytime soon...as the job market back in the US is in the dumps. Im stuck here...but at least I have a job and my student loan is paid off and my credit has been restored for the future if and when I do decide to return.
I wish the US government would change the laws and help those who are screwed with no jobs and saddled with student loans. I have spent countless days and nights worried about employment, my future, my dreams and my student loans. Without my student loan being paid off.....I had no hope of ever returning home to live a normal life. I was desperate and took a big risk and got the money I needed. I felt I had nothing to lose. A life of destituion and poverty is no way to live and I was tired of being hopeless.
Well, I grew up poor and my family never went to college. Of course, there was no $ for me to go to college. But I was smart, hard working, made good grades. Everyone I talked to (guidance counselors, college/career counselors, every adult I knew) told me that I HAD to go to college or I would never amount to anything. They said a student loan was a great investment in my future. They said I would be stupid not to take out student loans. It sounded like the right advice to me. I sailed through undergrad on loans with very good grades and applied to law school. I got in and thought I was going to be a "rich, succesful lawyer." And everyone said student loans were a smart investment in my future. No one told me that if anything went wrong and I couldn't pay them, that they could double what I owe them, garnish my wages for the rest of my life, destroy my credit, take my tax returns, and who knows what else. I never read about any of these powers in my "loan paperwork." None of this was mentioned and I certainly wasn't looking for something like that. The only thing that was said was "this is a smart investment in your future and you are a loser if you don't go to college." Also - "you will be a rich lawyer and these loans will be paid off in no time." And I heard, "don't ever let lack of $ stop you from going to college." So I took out $60k in private and federal loans, whatever they would give me, for tuition, books, and living expenses. However, I never became a "rich lawyer." I got married right after graduation and had a baby with extremely scary health problems. My career no longer mattered. My baby's life mattered. I took my baby to a hematologist who told me he had to be isolated to protect his immune system. There was no daycare for him. After some time, my son has made a recovery. But now, no one will hire me. I have a useless degree, bad credit, no $, my student loans have ballooned to what I think is over $100k. I used up all of my deferment/forbearance time when my son was so sick. I called them recently and the only option they offered me was to get current by paying them $10k. Of course, I can't do that. I'm bankrupt and I don't understand why the government won't let me declare bankruptcy and make a fresh start in my life. I'm not a deadbeat or a loser, I'm just someone who dared to aspire to be more than I thought I could be. Someone who believed that an education was important and would pay for itself. Things happened in my life that I didn't see coming. I didn't think I would have any problem paying back these student loans. But sometimes life is unpredictable. I didn't foresee this. Now, I don't want my worthless college education and would gladly give it back. And I'm tired of being called "irresponsible" and a "deadbeat." It's just not true. I'm sorry to vent for so long. I guess I just can't believe that this can be happening. I thought about trying to get a job just anywhere doing anything and sending them whatever I make but I would certainly never be able to make a dent in this debt at all. This just seems very heavily weighted against the student loan borrower and it seems like there should be something we all could do to make a difference and effect some kind of change.
We have a facebook page for all you new people.
http://www.facebook.com/pages/Robert-Applebaum/54158215949
Please come join us. It is a free group and we also have a link posted for a petition we would like you to sign. Come and share your stories there. We have almost 300,000 followers and growing.
We are all in this mess together, and feel the stronger our numbers are, the more impact we will make.
Thank you.
