This question was submitted by member SexyAndy in our Ask Savvy group.
I am very concerned about starting to pay off my student loans (graduated May 08). It's not a federal loan, it's a private one. It can be seen as four loans since I took one for each school year...I owe an obscene amount of money now and cannot afford to make the minimum payments, which is about $1,200. So far what I've done is applied for a forbearance every three months and postponed payments, but I can't keep accumulating my debt. Please help!
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My husband is in the same boat. You can call your loan provider and ask that they lower your minimum payments (that's what my husband did). And while it's not a lot, we were able to shave off about $200 from his monthly payment. It'll take longer to pay off now, but we plan on increasing the amount as soon as we can afford it.
Good luck!
1I'm going to through the same issue but I'm currently unemployed. I know its stressful but what I do is save as much money in both checking and saving accounts during forbearance. This should help paying out bills.
2I'm sorry I don't know enough about the differences between private and federal loans, so my thoughts may be off base...
But were/are you able to get a consolidation loan? I am making some guesses here on your situation, but $1200 a month makes me think that your loans are due sooner than later. Also, you mentioned 4 separate loans... By grouping the loan amounts together, a consolidation loan would extend your payments out up to 30 years,depending on the total amount due. More interest, but lower payments.
3I had both federal and private loans upon graduation, and while my private loans could be seen as 4 separate loans, the monthly amount due was based on one lump sum. I remember there were multiple payment structures, and one of them was a smaller payment in the near term, and over the life of a loan the amount of the monthly payment would grow. This is based on the assumption that over time your salary will grow.
Also, you should try calling the loan provider and letting them know what you can pay per month and see how they can work with you. The information I was always given is that they would prefer to get something from you rather than nothing, so it's always a good starting point.
I owed twice as much money as what I made annually at my first job after I graduated college, so I know the feeling, but I made it through and paid them off. Good luck!
4I have federal and private loans as well, and owe the same amount monthly. And I too have trouble paying the full amount at the moment. I consolidated my private loans and federal loans separately, and currently put off my federal loans, and pay my private loans on a gradually increasing scale. It sucks
5i'm like others above - same boat and no solutions!
6I'll be in this boat later this year after graduation...I'm dreading it.
7Due to my current situation, I do not have a job and my husband filed for divorce, so my finances are really bad and I had to put off my student loans for a year and I will have to do it again for this year as well.
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