STUDENT LOANS...?'s, HELP! (NBR)

jpbling · August 2011

I am panicking at the moment, so please forgive me if I am ranting. I am SO overwhelmed with student loans. I am regretting even going to college at all. I was dumb about it, started in 2003 and JUST graduated this past spring. I started at an out of state school, where I racked up half of my debt. I then transferred in state to a different school where I spent a few years and changed majors twice. I then transferred again and changed majors once more. Each transfer wouldn't accept certain credits so I retook courses, etc.

Needless to say, I now have almost 60,000 in student loan debt. My husband has something like 20,000. We just recently took over payments for his loans, his parents had been paying. Mine are coming due after deferment in a couple of months. We are barely making ends meet NOW with the credit card debt and mortgage payment we have. I honestly do not know how we will do this!

The problem is that our income is decent. It's just with all of our expenses and payments, we are barely making ends meet right now, before even worrying about student loans. I am worried if we do the income based repayment, they will see that our income is decent, and not take all of our expenses and payments. Does anyone know how this works?

I am trying to consolidate the federal loans, but I have quite a few private ones that couldn't consolidate with the federal ones. Does anyone know the best option for consolidating private loans?

Also, we haven't had to worry about daycare, but will start LO in daycare in september. This is another huge expense for us! I honestly don't know what to do, I am panicking.

Any suggestions? Tips? I will be calling the companies on monday, I am just so overwhelmed right now and thought I would see if you ladies had any advice.

THANK YOU so much!

shaw · August 2011

Have you tried the department of education? They seem to be one of the few doing consolidations. You could stretch it out over 20 years. Don't stress. I think they will work with you. Just call now and get on top of months before your first payment is due.

honkytonk_kid · August 2011

Definitely a good idea to call the companies. They will probably be willing to work something out with you- another deferment, income based payments, or just lower payments. Before you call, figure out exactly how much you CAN pay each month, and tell them straight out- "I can pay $X a month, every month. Will that work?" Yes, loan companies are businesses and they want the money you owe them, but they do not want the hassle/uncertainty of you defaulting on your loans. A steady payment, even if lower, is favorable for them compared to nothing or erratic payments.

As far as consolidating your private loans, you might try a local credit union. You're more likely to be able to sit down and talk with someone about your options, and you might be able to get a lower interest rate. Also, it's easier and more convenient to make one payment a month as opposed to several payments to different companies.

You can do this!

jpbling · August 2011

Thank you guys for your input! THe federal loans I am not as worried about, I have already submitted my application to consolidate those. It is the private ones that make me squirm, half of the debt (or about $27,000) are private loans. STUPID!!! I really need to try to find a way to consolidate those. I like your suggestion about going through a local bank. However, I am worried they will not lend to me, my credit score is not stellar, and when they look at my income and expenses, I have a feeling it will be a big, fat, NO! But I will try. I also wanted to try and refinance the house, but that's another mess, because when we bought it 3 years ago, we didn't put any money down and financed 100 percent. So we have barely any equity and the 2 companies I have talked to have said that it will all depend on whether the house appraises at a certain amount, which I really don't know that it will to be honest. Also, I would have to pay fees for that which I doubt we could even afford. But if it did go through, our mortage payments could go down a couple hundred dollars a month.

Ughhhh! I hate financial stress!

Thanks for your input ladies

honkytonk_kid · August 2011

deanandjenny:

Ughhhh! I hate financial stress!

I know what you mean. Stressful and overwhelming!

Have you ever heard of Clark Howard? H and I are kinda geeky, and H's latest interest (coughobsessioncough) is personal finance. Clark Howard has a radio show about personal finances, money issues, etc. Here's the website: https://www.clarkhoward.com/s/help-advice/ You can either search for info on consolidating loans, or there's a number you can call for info/advice.

principessa81 · August 2011

I can't offer any suggestions on the student loan end, but you could probably get some great feedback if you post this on the Money Matters board. Those ladies are great at giving financial advice. My brother was in a similar situation a few years ago (not with student loans, but he racked up a ton of credit card debt). He ended up calling the credit card companies and asked them to lower his interest rate, because he was trying very hard to pay off the debt as soon as possible, but the high interest rates were making it difficult. They actually agreed to lower the interest rate on his cc, so that's definitely worth a shot.

jpbling · August 2011

Wow, thanks guys! I appreciate the links and advice. I also like the suggestion to try to get the CC companies to lower our interest rates. We have come a long way in paying them off but could go so much farther with lower interest rates. Thank you!

OhSewCrafty · August 2011

Be careful, the minute you consolidate your loans, repayment starts regardless of where you are in the grace period!

Good luck!!! Student loans suck!

jax63081 · August 2011

I totally hear you on feeling overwhelmed. We are pretty much in the same boat and are living paycheck to paycheck at this point. The only difference is that we have been paying our student loans for 10 years now and only have like 5 left. My DH is planning on calling the credit card companies tomorrow to see about lowering interest rates. As far as consolidating private loans, I know I couldn't when i got out of college. So I consolidated the ones i could and got the best interest rate on those that i could. Child care definitely hit us hard. It was that one thing that we weren't really paying for before he was born(we get a lot of help from our parents with all the other baby items). We are also trying to stick to a budget which is hard for my husband cuz he works on the road and eats out a lot. Sorry if this wasn't much help. Good Luck!!