About to default on my private student loan

[Scream2Death]

this private loan(from Sallie Mae)*called Excel Loan - does not allow me to defer or forbear without a 50 dollar fee(which lasts every six months before you have to pay another 50 dollar fee)i don't have the resources to pay $70 dollars a month to continue paying the interest only. Nor do i want to pay 50 dollars every six months.

Many people have told me, I can still get federal stafford/perkins loans even if I default on my private student loan because it is 'private'

This private loan does not show up on my FAFSA records check, nor does it show up on my NY state financial aid check(called HESC)

[lrprn]

Scream, if you can't pay the student loans you have now, help me understand why you are asking about getting more student loans that would put you under even farther financially?

[AngelinaCatHub]

Scream, if you can't pay the student loans you have now, help me understand why you are asking about getting more student loans that would put you under even farther financially?

Right-on, 'lrprln'. It is my understanding that all student loans cannot be discharged in bk. Even if they are authorized at private institutions. Am I correct? 'Hub

[lrprn]

Right-on, 'lrprln'. It is my understanding that all student loans cannot be discharged in bk. Even if they are authorized at private institutions. Am I correct? 'Hub

99.9% of the time that is correct, Hub. Whether the loans are private or federal, if the filer filed after Oct 2005, then neither type of student loans are dischargeable except under very restrictive and rare circumstances.

[Scream2Death]

Scream, if you can't pay the student loans you have now, help me understand why you are asking about getting more student loans that would put you under even farther financially?

i really need to finish my education. i am currently attending a state university - which does have low tuition in contrast to other private universities. I am now 28 without a degree or skill in anything

i am investing the money and time in completing a health profession(4 year degree) that has job stability and a good starting salary.

I could go find a job now - working at Wal-Mart, etc. I rather finish my education in about 2-3 years, than work at Wal-Mart. My impending bankruptcy prevents me from working many civil/federal jobs that have better salary/benefits.

If anyone knows any information about whether defaulting on private school loans affect the federal stafford/perkins/grants, please inform me. Thanks!

[Scream2Death]

99.9% of the time that is correct, Hub. Whether the loans are private or federal, if the filer filed after Oct 2005, then neither type of student loans are dischargeable except under very restrictive and rare circumstances.

I am not looking to discharge any of my student loans. I do intend to repay them.

I have 5,000 in private loans(aforementioned, and currently about 20,000 in federal stafford loans. At this pace, when i finish school i could be around 60,000 in federal stafford loans.

It's just that this private loan does not allow me to stop payments during school - i have to 'pay' for deferment, or pay the monthly.

[Lindsay]

I work at a grocery store for $7.50 per hour because it is the only job I could find in my area. I've been looking for work and sending resumes out, but I haven't heard anything. I'm taking a civil service test on March 21 but that will take a while to find out whether this will result in a job. Take a job at Walmart for the time being. This will allow you to make the payment on the student loans. Its certainly not glamorous work, but you have to do what you have to do. Remember, its only temporary and you will get a better job later.

I have a college degree already(Associates), but I'm going back to school in the fall to obtain a bachelor. I'm in NY also and they are generous with the financial aid if you don't make much money. You have to fill out the FAFSA form online and after you apply for federal aid, it will give you a link to apply for NYS TAP aid. Depending on your income, this will pay all or most of the tuition for you. With a low income and not working, it should cover all the tuition at a state school. I didn't have to take out any student loans for my first two years at the community college. The TAP award should cover the whole tuition at the state university that I plan on attending in the fall. The books and fees should be completely covered by the federal PELL grant.

You can get a part-time job to pay for living expenses and possibly avoid getting any more student loans. Usually the local department stores and grocery stores are always hiring. These places usually have flexible hours and will work around your school schedule.

Good luck to you.

[Scream2Death]

I work at a grocery store for $7.50 per hour because it is the only job I could find in my area. I've been looking for work and sending resumes out, but I haven't heard anything. I'm taking a civil service test on March 21 but that will take a while to find out whether this will result in a job. Take a job at Walmart for the time being. This will allow you to make the payment on the student loans. Its certainly not glamorous work, but you have to do what you have to do. Remember, its only temporary and you will get a better job later.

I have a college degree already(Associates), but I'm going back to school in the fall to obtain a bachelor. I'm in NY also and they are generous with the financial aid if you don't make much money. You have to fill out the FAFSA form online and after you apply for federal aid, it will give you a link to apply for NYS TAP aid. Depending on your income, this will pay all or most of the tuition for you. With a low income and not working, it should cover all the tuition at a state school. I didn't have to take out any student loans for my first two years at the community college. The TAP award should cover the whole tuition at the state university that I plan on attending in the fall. The books and fees should be completely covered by the federal PELL grant.

You can get a part-time job to pay for living expenses and possibly avoid getting any more student loans. Usually the local department stores and grocery stores are always hiring. These places usually have flexible hours and will work around your school schedule.

Good luck to you.

thank you for you story and advice. But I, however, can not study and go to work even part time. I have tried that in the past and it totally affected my studies. (I know many do this without problems, but that is not me - I am not a quick learner, you can say)

I rather concentrate on my studies, than worry about paying a loan which i unwittedly took out. (not smart taking out private loan)

I am taking literally all courses in the sciences and math, 5 classes - I can barely keep up - if I worked I know I definitely can't.

[Lindsay]

thank you for you story and advice. But I, however, can not study and go to work even part time. I have tried that in the past and it totally affected my studies. (I know many do this without problems, but that is not me - I am not a quick learner, you can say)

I rather concentrate on my studies, than worry about paying a loan which i unwittedly took out. (not smart taking out private loan)

I am taking literally all courses in the sciences and math, 5 classes - I can barely keep up - if I worked I know I definitely can't.

I know what you mean; I hated my math classes, I had to study for that class four hours a night because its not a strong subject for me.

Its a shame that private student loans can't be deferred like federal ones. Its a lot of stress to have while you are studying.

I hope things get better and don't worry too much. You can still get a federal student loan and if you are already planning bankruptcy, its not like this private loan default is going to ding your credit much worse than it already is.

[CatsInTrouble]

of all the things to incur new debt for, I would say a bachelors degree is probably one of the things to let slide. Especially in health careers, which continue to be in demand. Yes, finish that degree. It will pay off, long term.