Post # 1
I need some help or advice if anyone has any.
So I went to college for four years. I took out 15k each year from Sallie Mae, since the interest calculated while I was in school I came out owing 100k.
Since they are private and not federal every month this year my loans have increased at least $75 per month, I have an adjustable rate loan. In January my payment was 500 and in April it is already up to 800. I can’t keep up with it. I don’t know what to do except cry every day. I am in so deep over my head that I just bought a house and with these increasing loan payments I won’t be able to pay my mortgage or put food on the table.
Does anyone have any advice for private loans?
Post # 3
can you apply for deferment or forbearance?
my loans were federal so i’m not sure if the same applies, but i thought it was for all student loans in general.
if you have account access online it should be a fairly easy process of applying for forbearance, i asked for 12 months due to financial hardship… i just can’t keep up with wedding payments and the loans…
Post # 4
I can but the interest will continue to tack on and in a year I will be completly under water.
Post # 5
I’m so sorry that you are dealing with this! I have a private loan from one of my years at school and it makes me so sad to see how little of a dent I have made in it even over 4 years of paying it off. My best advice would be to call Sallie Mae and see if there is anything that you can do to make the payments more manageable. It doesn’t do them any good to force you into a position where you are completely unable to pay. I also got a call the other day from Wells Fargo (where my private loan is from) asking me to call if I was interested in private loan consolidation. I don’t know if this is increasingly becoming an option, but maybe you could look into consolidating them into a non-adjustable rate loan?
Hang in there!
Post # 6
With private loans, you can look into practically any bank (loan center) to have your loans consolidated with a lower interest rate. Try Chase or Wells Fargo. Now is a great time because of the low rates. I tried to do that, but who knew Federal Loans couldn’t be taken over by banks? Not me, I learned the hard way. But private loans can easily be bought, and you may get a lower interest rate this way. Give them a call or go to the websites to look into it online.
Post # 7
I can’t really offer any help other than to let you know you’re not alone… I’m graduating with $80,000 in loans and have no idea how I’m paying them either. However, since you took out your loans from Sallie Mae you might be eligible for the new student loan reform that Obama passed as part of health care. It basically has the government buying the loans then caps your monthly payment at 10% of your income and forgives all loans after 20 years- put it only applies to some people. If you google it you can find news stories about it, here is one I just found real quick if you want more information.
Post # 8
I think the issue is the amount of money I have. No bank will give me more than 30k and they want it paid off in 10 years. Right now my payments are so high and this is over a 30 yr period. I don’t know how I could manage to pay 100k off in 10 years.
Also, I am not in the public sector and make a decent salary and Obama’s loan program is only for Federal loans.
Thanks for the ideas girls I do appreciate the support.
Post # 9
Can you get your mortgage refinanced? Either way, one of those payments have to go down in order for you to be able to afford them. Maybe you can move to a 40 yr loan or something….I know it’s not an ideal situation cuz you’ll pay more in interest over the years but if you can’t pay your loans with what you make right now, I’d imagine they could take your home.
Post # 10
I hear you. Both my fiance and I have high debt loads from undergrad, and its only going to get worse once he gets into medical school and I start grad school. In my experience, it has been fairly easy to get my monthly payments adjusted, so I’d definitely call Sallie Mae and see what they can do for you. It sucks because lowering the payments means it’ll take longer to pay off and you’ll pay more interest…but its better to do that then start defaulting on your payments. I’m on an income sensitive payment plan and have pretty low monthly payments.
Post # 11
I totally feel your pain. My husband has about 90K in loan debt through Sallie Mae also. They are awful to deal with. Our payment just for his loans is $1100 a month and I have an additional 30k in student loans. My loans are through Wachovia and my interest rate is pretty low. I know that you said that no bank will give you a loan but have you tried with a cosigner? Like a parent? It seems like maybe you have already tried that but if not you should consider calling around and seeing what the banks recommend for you. Good luck. I know how frustrating it is.
Post # 12
Additionally, I know how frustrating it is to see the plan that Obama put in to place and have it not help you at all. My husband works for the government and it stinks that if his loans were federal he would be eligible for loan forgivness in a few years. You also might want to ask them what the terms on the loan are because I assume that your interest rate is based off of prime so it is strange that it has increased since prime hasn’t increased in months. So, you might just want to call them and ask why your interest rate went up.
Post # 13
I agree with what mkat said… give Sallie Mae a call and try to find out what’s going on with your interest rate. The adjustable interest rates on my private student loans went down quite a while ago and haven’t gone up since. If they raised your rate because of a late payment or something like that, you may be able to negotiate it back down.
Good luck! I originally had my federal loans through Sallie Mae and had such a horrible time dealing with them… thankfully I consolidated with a different company and don’t have to mess with them anymore!
Post # 14
sorry i have no advice – but really quick can someone give me the rundown on that new bill? I have 2 student loans – one is federal ($16,000 left to pay off, orig. $20,000) and the private is still around $19k…
luckily I got locked in at a rediculously low interest rate and pay $65/month for now and that will only go up to about $100 in a few years…my fed loan, however, is $215/month.
I realllly hope you find something that works! CAN you refinance your loans to get a better rate at all?
Post # 15
Call Sallie Mae and explain your situation. There are several things they can do.
- They can allow your fiance to co-sign your loan which will reduce the interest rate.
- You can also ask to switch to a graduated repayment plan, which makes your payments smaller now and larger later.
- You can inquire about consolidation – they will send you a letter stating what their proposed interest rate is for your consoliated loan, and then you can either decline or accept, so there is no risk in asking. Additionally, compare the consolidation rate to the rate for each loan. You are not required to consolidate ALL of your loans. If you have one or two with low rates, just leave those out and consolidate only the onles with high rates.
Post # 16
@mkat88- Do you have a fixed interest rate with Wachovia? I am looking into them now since they will refinace up to 150k, but if the rate isn’t fixed I will have the same problem as I am having with Sallie Mae.
@Junebride- Can I ask who your private loans are with? Just curious to see if that lender is offering any refinancing since it seems as though there rates may be lower.
@snmcdowell- The thing about Sallie Mae is I can’t even seem to get a person who speaks English. Every time I call them I just end up crying and being even more frustrated. My mother is my co-signer, I am on a graduated repayment plan for 30 years but the payment details seem to change every day with the interest rate. I have nothing to consolidate I have one loan and it’s with them. But since there is no fixed rates on private loans (even though I am determined to find one) then how can they send me a proposed interest rate? I did this all three years ago so I may have missed something that could help.