Possible Involuntary Default on Student Loan?
Hi Everyone
Hope you can help answer my question. What's the worse that can happen if you default on a student loan or can't pay right away or can only pay less for awhile? Prior to July 2005 there was a big push on consolidating loans to lock in good rates. I had numerous student loans thru Citibank both subsidized and unsubsidized that paid for both undergrad and grad school. Unfortunately right now my Masters is not commanding the $$ I both need and desire that's why I need to file Bk. Needless to say I consolidated thousands of $$ through Nelnet Loan Svcs. They broken down my loans into 2 groups. Group A is about 23,200 and Group B is about 25,574 totalling $48,951. The interest rate is 02.875% and I am suppose to pay it over 300 months. One payment is for 120 and the other is 110 (I am convinced that this orig amt was $50) anyway this is $230 a month. I have deferred 2 times already because I was out of work and the first payment is due in 2 months which I will not be able to pay this entire amount not in my present situation. I calculated $230 a month times 300 months and this comes to $69,000 that's an extra $20,049 tacked onto to this loan - is this possible to be paying all of this interest? I divided this 20k by the 300 months and it seems that I will be paying $67 in interest a month for 300 months. Is this right? Does anyone know how to calculate loans over a period of time in order to know that they are not getting the shaft? $48,951 @ 02.875% for 300 months (25 years)
When I file bk (I would like to do so before this SL is due) will the SL be held up until I receive a discharge? Will I get bills afterward? If the SL is not in repayment yet how would it be listed on the bk petition/paperwork?
Any exp w/ SL's pre/post Bk would be helpful
sbb
Hope you can help answer my question. What's the worse that can happen if you default on a student loan or can't pay right away or can only pay less for awhile? Prior to July 2005 there was a big push on consolidating loans to lock in good rates. I had numerous student loans thru Citibank both subsidized and unsubsidized that paid for both undergrad and grad school. Unfortunately right now my Masters is not commanding the $$ I both need and desire that's why I need to file Bk. Needless to say I consolidated thousands of $$ through Nelnet Loan Svcs. They broken down my loans into 2 groups. Group A is about 23,200 and Group B is about 25,574 totalling $48,951. The interest rate is 02.875% and I am suppose to pay it over 300 months. One payment is for 120 and the other is 110 (I am convinced that this orig amt was $50) anyway this is $230 a month. I have deferred 2 times already because I was out of work and the first payment is due in 2 months which I will not be able to pay this entire amount not in my present situation. I calculated $230 a month times 300 months and this comes to $69,000 that's an extra $20,049 tacked onto to this loan - is this possible to be paying all of this interest? I divided this 20k by the 300 months and it seems that I will be paying $67 in interest a month for 300 months. Is this right? Does anyone know how to calculate loans over a period of time in order to know that they are not getting the shaft? $48,951 @ 02.875% for 300 months (25 years)
When I file bk (I would like to do so before this SL is due) will the SL be held up until I receive a discharge? Will I get bills afterward? If the SL is not in repayment yet how would it be listed on the bk petition/paperwork?
Any exp w/ SL's pre/post Bk would be helpful
sbb
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