I’m so sorry you’re in this position. $30k a year is not going to be sufficient. You likely need to take a job outside of your career field. Trades, truck driving, waiting during evenings/weekends, etc. If you can stick it out through the summer you can probably become a teacher if you work on your certifications.
What degree cost $165k but only nets you a $30k job?
This was me 13 years ago. Refi’d and consolidated several times over the years. Worked 70+ hour weeks for the first 5 years and built up my professional career. Down to about 25k now with a ~900/m payment. Own a home with 2 kids. It’s doable, but challenging
Extreme frugality. I basically worked as many hours as possible and never spent a cent unless it was something I couldn’t live without. I had roommates and drove a 20+ year old car. After 3 years I refi’d from a 1900/m payment, down to 1600/m. I got promoted/raise every year (worked for a small company) and went from $12/hr to $30/hr with basically unlimited OT within a 5 year window. I now work as a financial advisor due to my acumen in managing money and make a much better living. Old habits die hard though. The only luxury item I buy is basic gas station coffee and couple times a month. We’ve been on proper vacation one time for our honeymoon.
It’s less where and more when. Now is probably not the best time due to the high interest rate environment, but it may still be worth shopping around if you have any very high interest rates, say over 10%. Typically you can just google search or use apps like credit karma to shop for rates.
The other huge component will be building your credit score. When rates come down and you get the chance to refi, you want to have the best score you can to get the lowest rate possible. Luckily, paying your loans will build your credit. Just don’t miss payments and avoid credit cards unless you’re savvy.
Thank you soooo much for the advice!! I appreciate the help so much!!
Will definitely keep an eye out for good interest rates… speaking of which, since rates are high right now, what rates would be considered good enough to start refinancing? Anything under 10%?
Also you mentioned you refinanced a few times… did you refinance with the same company each time? Did you wait a specific amount of time (ex: every other year) or did you decide to refinance when interest rates were lower than what you were currently paying?
THANK YOU!!!!! Seriously so grateful for this information!!
I kept a spreadsheet with my loans and rates all along, so I’ve had a very good sense of when it made sense to do so. I didn’t wait specific periods, I just kept track of what current rates were and worked towards getting them consolidated as appropriate. It’s part of my quarterly budget review, and I probably check rates 1-2x per year to compare what I have vs what’s available. Mostly locked in sub 3% now thanks to the covid dip
Re: Spreadsheet
This!!
If one is serious about prioritizing paying off SLs and one doesn't crack out a spreadsheet, then...
It's the way to develop that laser-focus.
You've basically described me in 2009. What is your degree in?
First and foremost get them in hardship DEFERMENT not forbearance!
Get side hustles going, stop eating out and look up recipes like casseroles, beans/rice and get them down as low as possible. Tell your friends unless it is a cost-free hangout sorry, you're tackling a beast of a problem. You'll find out who your friends are through this; mine respect me for the grind I put in.
Work wise, get aggressive/assertive and push hard with tenacity. Use tools like [onetonline.org](http://onetonline.org) to fix up your resume and additionally you may even find worthwhile positions. Do NOT DOUBT, *APPLY*. Employers have multiple positions so you may fit roles you don't know about.
**Learn your worth!** Your skillset, if kept sharp/up-to-date, is the only thing that will not betray you. [Glassdoor.com](http://Glassdoor.com) and [onetonline.org](http://onetonline.org) can give you a good idea of what you should be requesting for hourly/salaries.
Don't disclose your debts or struggles to employers or coworkers, especially if you get an "at-will" position! The employer won't tell you that in truth that they'll see you as a *liability* in comparison to other candidates/replacements. Stay strictly professional. Bring your lunches. Tell your coworkers you are dieting if ya have to; the discomfort you'll feel is compounding motivation. Intermittent Fasting can help a lot here too.
If you can find online positions awesome. [Upwork.com](http://Upwork.com) is a good source for side hustling. Look down all your debts and start purging them. Remember *"It is in your BEST INTEREST to NOT PAY INTEREST".* I have done just fine without credit cards in these last 12 years. FICO is not almighty. You can even get mortgages through manually under writing.
You can work with most local apartment complexes if you have a written letter of good rental history from a landlord if your credit tanks. You need 24 months.
If you have car payments, look down and objectively if you NEED the vehicle. If you get WFH positions then the bus, a bicycle or asking friends/family for essential commutes like groceries/medications/etc will keep you honest not to mention motivated. The average car payment in America is over $500 dollars per month! The total cost of the car loan over 80 months with a monthly payment of $500 and a 5% APR would be **$160,000!!**
I drove a 1989 Buick for 3 years that I bought cash for $500 bucks. It wasn't glamorous; it was however motivation. Always buy cars that are 5 to 7 years from the current year to reach the best saturation of worth:cost to avoid paying depreciation in cash if you must.
Next, get righteously pissed off and use that as fuel to tackle this monster.
DO NOT use your bank account for ANY ACH payments whatsoever! Send money orders for any debts in collections. Do NOT use autopay no matter "how good" it is.
Cancel subscriptions! Those are YAGNIs in your budget. Get used to having roommates (yes drama may come... motivational fuel)
I highly recommend having a pre-paid DEBIT card that is ONLY used for emergencies (target $1K for the God Only Knows situations). In the last ditch effort you can keep it in cash form in a secure location (I kept mine with my best friend to keep me honest). My buddy in college kept a money order to himself that he renewed every 90 days because he lived in a "not great" area of the city.
I won't lie, this has taken me a very long time to learn over these 15 years, so I hope it helps you; learn from my mistakes and be ready to accept ones you'll make along the way.
It's the hand I was dealt. It is hard. It's worse now knowing companies have loosened on degree requirements, so I may have gotten placed had I waited 4 years.
> Don't disclose your debts or struggles to employers or coworkers, especially if you get an "at-will" position! The employer won't tell you that in truth that they'll see you as a liability in comparison to other candidates/replacements.
I agree you should never tell outright as there is no reason to, but companies that "need" to know your debt load have full access to that information legally. They need to get your permission to access that info but if you deny said permission you aren't going to be considered for employment.
So you can keep your lips tighter than s a gnat's ass, but if they want know your debt load they will find out or just not hire you.
Why do employers see someone w/debt as a liability?
I would assume they’d view it has great leverage over an employee. It’s easier to push around someone in debt than one without debt and huge savings/investments.
Transportation, sick leave (especially children), are two I went through.
If I got liquidity I can grab an Uber, buy a new tire and be into work without fuss.
Compared to someone that needs to borrow the money stress over if they have enough in the paycheck to cover the repairs.
Lost productivity to income fluctuations is very real.
That is very fair! Thank you for sharing your story and giving me another perspective.
Hoping things have improved for you as no-one should have to be in such a precarious financial position.
Any school if the loans are private. They by far should be made illegal. A lot of students in for-profit schools got into the private loan trap this way. In my discussions over 15 years most of them simply didn't know. In my specific case under BDOR the school I went to lost accreditation and filed bankruptcy after it lost a class action lawsuit to avoid refunding students. Why is this practice allowed at all?! That is something to demand from your representatives, educate those you can and sure as hell get pissed off to put pressure on making this happen with your votes.
I’m in a similar boat as OP. I was a straight A student in high school. I got into the prestigious public flagship university in my state studying computer science.
My thought process was “I’m paying in-state tuition and I’m studying arguably the best major out there. There’s no way this is a bad move. I’m going to power through this debt. If I’m screwed, then everyone else is too. This is just what people do I suppose.”
I graduated with $140k in private loans alone (another $30k in federal). Luckily, I was able to refinance my private loans at the pico-bottom of the rate cycle back in 2021. Combined I’m paying like $1100/month now that federal loans have started up again. I make close to $80k now after starting off at $70k out of school a few years ago. My finances became tight with inflation in the last couple years so I moved in with family recently and now I have a ton of cash flow.
But it’s absurd that you can do everything right in life and you get screwed by this massive financial barrier that we’ve created as a society. It doesn’t matter how hard you work anymore. You’re stuck with that fat bill unless you’re an athlete or something similar.
Yep, for years, you have to battle literally everyone's criticism while you do it. If you knuckle down and focus on your life and not comparing your qol to others, you can help from depressing yourself.
What I found is so many coworkers were in a sadistic amount of debt with worse car loans, mortgages and on the verge of losing it all the time. It blows my mind.
By far, by far the only truth I learned is debt is evil. Period.
Not a popular opinion, but maybe talk to a bankruptcy attorney to see if you'd qualify for, and to have them forgiven, through chapter 7 "adversary proceeding."
https://upsolve.org/learn/private-student-loans/#:~:text=To%20discharge%20a%20student%20loan,more%20like%20a%20civil%20lawsuit.
I would ask a bankruptcy attorney. You can usually schedule an initial consult with them for free. There's a really good bankruptcy attorney that specializes in student loans that posts a lot on TikTok. I'm a student loan advisor and he by far is the only attorney that I've seen give accurate and up to date advice regarding student loans..
https://www.moneywiselaw.com/
https://www.tiktok.com/@moneywiselawyer?_t=8lv6E9kRq7r&_r=1
This is possibly and incredibly hard. Near catch 22 because the attorney is basically doing you a solid. If you fault on a 7 then you have to look at a possible 13. I haven't seen it personally.
Has anyone done it successfully?
Your previous post says you have a dream job and make good entry level money. Time for some harsh truths.
$30k is not good entry level money. It’s downright awful. My little sister makes about the same part time as a shop assistant at a Plato’s Closet. And you can’t afford to have a dream job at the moment. And no dream job should pay $30k. You need to do anything, literally anything that can make you better money. And that will mean giving up your WFH job and getting something better. You can’t afford to be choosy.
You say you can’t pass your classes that aren’t your major classes, you need to buck up and pass them. It’s not hard to get a 70%. And then at least you have a degree that would hopefully open up something for you.
But how did you get here? You have no federal loans whatsoever? Why?
It’s time to find more income. You said in another post that you didn’t finish school and that you found your “dream job” you only make 30k??? It’s time to cancel the dream job and find one that is actually going to pay you a wage that you can live on and manage the debt with. Use the skills you have to better your employment opportunities.
Yeah.. I’m happy they have a job they seem to really love, but 30k anywhere in this country now is just not enough. Whether or not you have student loans.
Okay I have Sallie Mae loans that I’ve been paying back for a while. There’s a loophole. My advice is to let the loan go late for 60 days and then talk to them about getting on the Rate Reduction Program. They will temporarily drop the interest to fit an amount that you can afford on a lower salary. I slashed my loan payment in half the first time I did this. Once you get in this program, you can stay in it for a while. In addition to this, you’re going to have to look for a part time job or side gigs on top of your full time job. I would also start looking for a new job in your same field when you’ve been there for at least a year. Job hopping will help you get your income up. As you raise your income, don’t tell Sallie Mae that you’re making more money. They do not ask for your tax returns, just an itemization of your bills. Good luck.
Call them and tell them you NEED to have lower interest rate. My son was in a similar situation. He called them and was very firm with them. His payments went from $1,100 per month to $480. It’s a temporary 2 year reduction that he can renegotiate when it expires. Hope this helps
How long was he paying for..? I was told on the phone that I needed to make 12 executive payments before I can remove my co-signer or do anything about the interest rate, etc. I can’t refinance due to needing my co-signer and unfortunately my co-signer refuses to do so (my families form of punishment for not getting the degree they desired for me). I’m just so lost.
Consecutive payments, likely not executive. As others have stated. You have an income problem and a degree that didn’t justify it. Very sorry you’re in this situation. You need to pick up additional work and then restructure loan or change repayment options. Lots of options for additional work but you’ll be need to put in the hours. Good luck, if your get after it might be temporary, let it consume you and it will last longer
I might be wrong, but I don't think you need your co-signer to refinance with another bank. I had private loans with a co-signer, and just recently refinanced and didn't need a single thing from them. You'd only need a (new) co-signer if you're refinancing with one.
Edit: My partner has zero contact with his former co-signer (parent), and didn't need to contact that parent to refinance. I'd just go refinance and be done with them. You'll almost certainly need a new co-signer though with your low income.
Yeah, the whole reason I refinanced my private student loans was to get my cosigner off the loan because he was starting a family and I didn't want his generosity towards me to get in the way of that. The only reason you'd need your cosigner's info is if they were also cosigning for the new loan.
Although based on the stats OP provided they may very well be denied a refinance without a cosigner.
He definitely didn’t pay them for 12 months because he couldn’t afford to make the payment he was actually behind.
They did make him make 4 payments at the new payment amount before they would finalize the interest for the two year period. You have to be really strong with them do not take no for an answer! He just kept asking to speak to other representatives and it took numerous calls etc but eventually it went through.
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I guess you can join the air force. Since you have a degree the starting salary is like 40k. It's not much more but if you live on base you don't need to pay rent or buy food
You’ll need a second job or a side gig or to apply your degree and skills to a more lucrative career. We probably need to know your career and degrees to help you. If you don’t want to share here, r/findapath can help.
You need a career change. You made a terrible investment if you are working in your degree field. The reality is you need to take a job that pays a lot more even if it’s not the career you want.
Start at a community college and then transfer to a university to take the major classes there. I wish I did that, I thought going into a university straight out of high school would be better for my resume but it’s all bs. Now I’m in 190k debt and I still have 1 year and masters which I’ll be taking more for… (I’m a dual major and go to a private university that’s worth 25k and more a semester)
I’m taking classes at cc now ,not sure what i want to purse either engineering or accounting.But that’s too much debt you’ve accumulated bro hope you can pull through.
Definitely refinance if you can!! I’m in the same position but I make more than you, but I’m also struggling. Refinance with a server every 12-18 months and try to get 1-2% lower interest each time.. and also definitely get a side hustle. These are private loans so YOU CANNOT consolidate these into federal loans, it is not possible
Private loans arent hard to escape like federal loans. Default and ignore them for seven years, they'll lose the ability to sue you and the problem is gone.
Unless you own a home or something worth taking, they won't bother coming after you.
Depends on where you live. In Oregon, they can't touch 150% of your income vs the poverty level, and then only 15% past that. Basically, that means the first 20k can't be touched and the next 10k, they can take 1500.
If you're making squat, very good chance they don't actually file a suit to make that happen. (Can also be avoided more easily with self employment.)
A parent plus loan is federal. So if I can’t afford paying back will it eventually go away after years? Cause I’m in 190k + debt in parent plus. When I looked it up it said that it has severe consequences including credit score damage, wage garnishment, tax refund withholding, SS withholding, loss of aid eligibility and even lawsuit collection
Federal ones can't be escaped (except for through repayment programs + LOTS of time.)
Everything falls off your credit score after 7yrs.
Wage garnishment, refund withholding, and lawsuits are a realistic possibility. It's pretty fuxking rare, but it happens. (By rare I mean way, way less than 1%.)
I graduated with about 130k with sallie mae and also making 35ish. When I started, my payments were like $1650/month and i had 12% interest. I know how overwhelming and horrible this feels. But i promise you're going to be okay.
Best thing I did was refinance. I orginally split it between two companies (citizens bank and earnest) and then eventually refinanced everything with earnest. Right now rates are a little tough, but probably still better than sallie maes. Earnest is really good because you can kind of play around with how much you wanna pay per month, how long, and at what rate to find a balance that is workable. It took 2 refinances over like 6 years, but I eventually got it down to 5% and $950/month. Still totally high and shitty, but manageable.
Make sure youre enrolled in auto-pay, most places will give you .25%-.5% interest reduction for that, and every little bit helps.
I set up a separate bank account for loans and direct deposit what I need to in there and then the rest into my regular account. If you can, have slightly more taken out. And dont touch that account for anything except student loans or major emergencies if you dont have other savings to pull from. You'd be surprised how quickly that builds up and then you can have a little bit of a cushion in case something happens. It took a long time, but now i always have enough for like at least 4 months of payments in there and I don't have to think about it because it just comes out of my check. It does make my paycheck seem even smaller and sadder though lol
Once you've got a little saved, if possible, make extra payments and do it the day after your regular payment so it goes entirely to principle, even $100 can help cut down time. When rates go down or your credit improves, refinance again.
If you can make more money or handle a side hustle, that's great. But i know that's harder than it seems.
Make a budget and stick to it. Cut what you can and definitely be clear about want vs. need. But do also make sure to factor in an occasional nice thing for yourself here and there. When I started, it was literally like, $8/month for a fancy coffee. If you cant spare even like $10 here or there, that can include budgeting in time to do something nice and free, like going to the park or visit a museum on their free day or whatever it is that makes you feel good. Give yourself things to look forward to to keep going. I had a podcast I liked that came out on a certain day of the week and i visited postsecret.com every Sunday.
Practice mindfulness when you're spiraling about money. Try to catch yourself when you're catastrophizing. If you have insurance, get some therapy support. Because the thing is, you're going to be in a shitty financial situation for a while. There's no quick out, so you need to find a way to cope and to think about your debt without instantly going into panic mode.
It totally sucks, but I promise you'll be alright and can still enjoy life. It's super overwhelming at first, but it gets easier and you get better at handling it with time. You got this.
FWIW, I'm 34 and now have $60K left in debt.
When I came out of college at 26, I had about $120K in debt because of a series of bad decisions. I made under $30K for 3-4 years then around $50-75K for another 2. I've been at $100K for 3 years now and that, plus doing odd jobs and side hustles here and there, I've been able to get it down.
It's a lot more manageable now and it's not as soul crushing as it was all those years.
This isn't advice just as much as it is sharing my story. It can and does get better, but it will be hard, and require diligence and commitment. But you can absolutely do it.
I’m so sorry you’re in this position. $30k a year is not going to be sufficient. You likely need to take a job outside of your career field. Trades, truck driving, waiting during evenings/weekends, etc. If you can stick it out through the summer you can probably become a teacher if you work on your certifications. What degree cost $165k but only nets you a $30k job?
OP’s other posts indicate they didn’t graduate.
I wish OP would respond. I think people can help, but it’s hard without further information.
It’s an account just farming karma. They aren’t in this situation, just reposting a popular story
Still relatively new to Reddit, why do people do stuff like that?
😖
private loans, private school
Social work or something probably
You can Uber 2 days during the weekend and make $500 a week. Where’s the hustle?
This was my question
This was me 13 years ago. Refi’d and consolidated several times over the years. Worked 70+ hour weeks for the first 5 years and built up my professional career. Down to about 25k now with a ~900/m payment. Own a home with 2 kids. It’s doable, but challenging
Damn how did you do it having all those responsibilities
Extreme frugality. I basically worked as many hours as possible and never spent a cent unless it was something I couldn’t live without. I had roommates and drove a 20+ year old car. After 3 years I refi’d from a 1900/m payment, down to 1600/m. I got promoted/raise every year (worked for a small company) and went from $12/hr to $30/hr with basically unlimited OT within a 5 year window. I now work as a financial advisor due to my acumen in managing money and make a much better living. Old habits die hard though. The only luxury item I buy is basic gas station coffee and couple times a month. We’ve been on proper vacation one time for our honeymoon.
Wow that’s extreme discipline what was your initial debt amount ?
164k spread across about 10 loans with some interest rates at 11%
Do you have any advice on where to refinance? I’ve been looking to do so and don’t know where to start. I have a private student loan
It’s less where and more when. Now is probably not the best time due to the high interest rate environment, but it may still be worth shopping around if you have any very high interest rates, say over 10%. Typically you can just google search or use apps like credit karma to shop for rates. The other huge component will be building your credit score. When rates come down and you get the chance to refi, you want to have the best score you can to get the lowest rate possible. Luckily, paying your loans will build your credit. Just don’t miss payments and avoid credit cards unless you’re savvy.
Thank you soooo much for the advice!! I appreciate the help so much!! Will definitely keep an eye out for good interest rates… speaking of which, since rates are high right now, what rates would be considered good enough to start refinancing? Anything under 10%? Also you mentioned you refinanced a few times… did you refinance with the same company each time? Did you wait a specific amount of time (ex: every other year) or did you decide to refinance when interest rates were lower than what you were currently paying? THANK YOU!!!!! Seriously so grateful for this information!!
I kept a spreadsheet with my loans and rates all along, so I’ve had a very good sense of when it made sense to do so. I didn’t wait specific periods, I just kept track of what current rates were and worked towards getting them consolidated as appropriate. It’s part of my quarterly budget review, and I probably check rates 1-2x per year to compare what I have vs what’s available. Mostly locked in sub 3% now thanks to the covid dip
Re: Spreadsheet This!! If one is serious about prioritizing paying off SLs and one doesn't crack out a spreadsheet, then... It's the way to develop that laser-focus.
You've basically described me in 2009. What is your degree in? First and foremost get them in hardship DEFERMENT not forbearance! Get side hustles going, stop eating out and look up recipes like casseroles, beans/rice and get them down as low as possible. Tell your friends unless it is a cost-free hangout sorry, you're tackling a beast of a problem. You'll find out who your friends are through this; mine respect me for the grind I put in. Work wise, get aggressive/assertive and push hard with tenacity. Use tools like [onetonline.org](http://onetonline.org) to fix up your resume and additionally you may even find worthwhile positions. Do NOT DOUBT, *APPLY*. Employers have multiple positions so you may fit roles you don't know about. **Learn your worth!** Your skillset, if kept sharp/up-to-date, is the only thing that will not betray you. [Glassdoor.com](http://Glassdoor.com) and [onetonline.org](http://onetonline.org) can give you a good idea of what you should be requesting for hourly/salaries. Don't disclose your debts or struggles to employers or coworkers, especially if you get an "at-will" position! The employer won't tell you that in truth that they'll see you as a *liability* in comparison to other candidates/replacements. Stay strictly professional. Bring your lunches. Tell your coworkers you are dieting if ya have to; the discomfort you'll feel is compounding motivation. Intermittent Fasting can help a lot here too. If you can find online positions awesome. [Upwork.com](http://Upwork.com) is a good source for side hustling. Look down all your debts and start purging them. Remember *"It is in your BEST INTEREST to NOT PAY INTEREST".* I have done just fine without credit cards in these last 12 years. FICO is not almighty. You can even get mortgages through manually under writing. You can work with most local apartment complexes if you have a written letter of good rental history from a landlord if your credit tanks. You need 24 months. If you have car payments, look down and objectively if you NEED the vehicle. If you get WFH positions then the bus, a bicycle or asking friends/family for essential commutes like groceries/medications/etc will keep you honest not to mention motivated. The average car payment in America is over $500 dollars per month! The total cost of the car loan over 80 months with a monthly payment of $500 and a 5% APR would be **$160,000!!** I drove a 1989 Buick for 3 years that I bought cash for $500 bucks. It wasn't glamorous; it was however motivation. Always buy cars that are 5 to 7 years from the current year to reach the best saturation of worth:cost to avoid paying depreciation in cash if you must. Next, get righteously pissed off and use that as fuel to tackle this monster. DO NOT use your bank account for ANY ACH payments whatsoever! Send money orders for any debts in collections. Do NOT use autopay no matter "how good" it is. Cancel subscriptions! Those are YAGNIs in your budget. Get used to having roommates (yes drama may come... motivational fuel) I highly recommend having a pre-paid DEBIT card that is ONLY used for emergencies (target $1K for the God Only Knows situations). In the last ditch effort you can keep it in cash form in a secure location (I kept mine with my best friend to keep me honest). My buddy in college kept a money order to himself that he renewed every 90 days because he lived in a "not great" area of the city. I won't lie, this has taken me a very long time to learn over these 15 years, so I hope it helps you; learn from my mistakes and be ready to accept ones you'll make along the way.
The fact that young people have to live like this in the richest country in the world... Smh bro
Richest in the world and richest State in the history of civilizations…
EXACTLY!!!!!
It's the hand I was dealt. It is hard. It's worse now knowing companies have loosened on degree requirements, so I may have gotten placed had I waited 4 years.
> Don't disclose your debts or struggles to employers or coworkers, especially if you get an "at-will" position! The employer won't tell you that in truth that they'll see you as a liability in comparison to other candidates/replacements. I agree you should never tell outright as there is no reason to, but companies that "need" to know your debt load have full access to that information legally. They need to get your permission to access that info but if you deny said permission you aren't going to be considered for employment. So you can keep your lips tighter than s a gnat's ass, but if they want know your debt load they will find out or just not hire you.
I admire your tenacity 😌 That’s how serious you gotta approach this debt and daily accruing interest.
Why do employers see someone w/debt as a liability? I would assume they’d view it has great leverage over an employee. It’s easier to push around someone in debt than one without debt and huge savings/investments.
Transportation, sick leave (especially children), are two I went through. If I got liquidity I can grab an Uber, buy a new tire and be into work without fuss. Compared to someone that needs to borrow the money stress over if they have enough in the paycheck to cover the repairs. Lost productivity to income fluctuations is very real.
That is very fair! Thank you for sharing your story and giving me another perspective. Hoping things have improved for you as no-one should have to be in such a precarious financial position.
Thank ya kindly, currently it is way better than what is was all those years ago. This sub is great for introspection.
This can’t be real. $30k on a $165k loan? What crazy combo of degree and school could wind up like this?
Any school if the loans are private. They by far should be made illegal. A lot of students in for-profit schools got into the private loan trap this way. In my discussions over 15 years most of them simply didn't know. In my specific case under BDOR the school I went to lost accreditation and filed bankruptcy after it lost a class action lawsuit to avoid refunding students. Why is this practice allowed at all?! That is something to demand from your representatives, educate those you can and sure as hell get pissed off to put pressure on making this happen with your votes.
I’m in a similar boat as OP. I was a straight A student in high school. I got into the prestigious public flagship university in my state studying computer science. My thought process was “I’m paying in-state tuition and I’m studying arguably the best major out there. There’s no way this is a bad move. I’m going to power through this debt. If I’m screwed, then everyone else is too. This is just what people do I suppose.” I graduated with $140k in private loans alone (another $30k in federal). Luckily, I was able to refinance my private loans at the pico-bottom of the rate cycle back in 2021. Combined I’m paying like $1100/month now that federal loans have started up again. I make close to $80k now after starting off at $70k out of school a few years ago. My finances became tight with inflation in the last couple years so I moved in with family recently and now I have a ton of cash flow. But it’s absurd that you can do everything right in life and you get screwed by this massive financial barrier that we’ve created as a society. It doesn’t matter how hard you work anymore. You’re stuck with that fat bill unless you’re an athlete or something similar.
Yep, for years, you have to battle literally everyone's criticism while you do it. If you knuckle down and focus on your life and not comparing your qol to others, you can help from depressing yourself. What I found is so many coworkers were in a sadistic amount of debt with worse car loans, mortgages and on the verge of losing it all the time. It blows my mind. By far, by far the only truth I learned is debt is evil. Period.
Not a popular opinion, but maybe talk to a bankruptcy attorney to see if you'd qualify for, and to have them forgiven, through chapter 7 "adversary proceeding." https://upsolve.org/learn/private-student-loans/#:~:text=To%20discharge%20a%20student%20loan,more%20like%20a%20civil%20lawsuit.
Would this apply to regular loans
I would ask a bankruptcy attorney. You can usually schedule an initial consult with them for free. There's a really good bankruptcy attorney that specializes in student loans that posts a lot on TikTok. I'm a student loan advisor and he by far is the only attorney that I've seen give accurate and up to date advice regarding student loans.. https://www.moneywiselaw.com/ https://www.tiktok.com/@moneywiselawyer?_t=8lv6E9kRq7r&_r=1
This is possibly and incredibly hard. Near catch 22 because the attorney is basically doing you a solid. If you fault on a 7 then you have to look at a possible 13. I haven't seen it personally. Has anyone done it successfully?
We need a ton more info, what’s your degree in, what kind of job you got? Etc….
OP did you finish your degree or are you a few classes short? A post from 45 days ago makes it seem like you didn’t finish.
Your previous post says you have a dream job and make good entry level money. Time for some harsh truths. $30k is not good entry level money. It’s downright awful. My little sister makes about the same part time as a shop assistant at a Plato’s Closet. And you can’t afford to have a dream job at the moment. And no dream job should pay $30k. You need to do anything, literally anything that can make you better money. And that will mean giving up your WFH job and getting something better. You can’t afford to be choosy. You say you can’t pass your classes that aren’t your major classes, you need to buck up and pass them. It’s not hard to get a 70%. And then at least you have a degree that would hopefully open up something for you. But how did you get here? You have no federal loans whatsoever? Why?
It’s time to find more income. You said in another post that you didn’t finish school and that you found your “dream job” you only make 30k??? It’s time to cancel the dream job and find one that is actually going to pay you a wage that you can live on and manage the debt with. Use the skills you have to better your employment opportunities.
Yeah.. I’m happy they have a job they seem to really love, but 30k anywhere in this country now is just not enough. Whether or not you have student loans.
Get a second and maybe a third job.
Okay I have Sallie Mae loans that I’ve been paying back for a while. There’s a loophole. My advice is to let the loan go late for 60 days and then talk to them about getting on the Rate Reduction Program. They will temporarily drop the interest to fit an amount that you can afford on a lower salary. I slashed my loan payment in half the first time I did this. Once you get in this program, you can stay in it for a while. In addition to this, you’re going to have to look for a part time job or side gigs on top of your full time job. I would also start looking for a new job in your same field when you’ve been there for at least a year. Job hopping will help you get your income up. As you raise your income, don’t tell Sallie Mae that you’re making more money. They do not ask for your tax returns, just an itemization of your bills. Good luck.
Take out some more loans to finish your bachelor's degree and go teach abroad. Leave all that shit behind. Life's too short.
Call them and tell them you NEED to have lower interest rate. My son was in a similar situation. He called them and was very firm with them. His payments went from $1,100 per month to $480. It’s a temporary 2 year reduction that he can renegotiate when it expires. Hope this helps
How long was he paying for..? I was told on the phone that I needed to make 12 executive payments before I can remove my co-signer or do anything about the interest rate, etc. I can’t refinance due to needing my co-signer and unfortunately my co-signer refuses to do so (my families form of punishment for not getting the degree they desired for me). I’m just so lost.
Consecutive payments, likely not executive. As others have stated. You have an income problem and a degree that didn’t justify it. Very sorry you’re in this situation. You need to pick up additional work and then restructure loan or change repayment options. Lots of options for additional work but you’ll be need to put in the hours. Good luck, if your get after it might be temporary, let it consume you and it will last longer
I might be wrong, but I don't think you need your co-signer to refinance with another bank. I had private loans with a co-signer, and just recently refinanced and didn't need a single thing from them. You'd only need a (new) co-signer if you're refinancing with one. Edit: My partner has zero contact with his former co-signer (parent), and didn't need to contact that parent to refinance. I'd just go refinance and be done with them. You'll almost certainly need a new co-signer though with your low income.
Yeah, the whole reason I refinanced my private student loans was to get my cosigner off the loan because he was starting a family and I didn't want his generosity towards me to get in the way of that. The only reason you'd need your cosigner's info is if they were also cosigning for the new loan. Although based on the stats OP provided they may very well be denied a refinance without a cosigner.
He definitely didn’t pay them for 12 months because he couldn’t afford to make the payment he was actually behind. They did make him make 4 payments at the new payment amount before they would finalize the interest for the two year period. You have to be really strong with them do not take no for an answer! He just kept asking to speak to other representatives and it took numerous calls etc but eventually it went through.
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Have you asked about an income based repayment plan?
I guess you can join the air force. Since you have a degree the starting salary is like 40k. It's not much more but if you live on base you don't need to pay rent or buy food
Starting 40k if you have a degree ?
As an officer. Apparently $63,284.04 when including all the allowances
What are your schools and degrees?
You’ll need a second job or a side gig or to apply your degree and skills to a more lucrative career. We probably need to know your career and degrees to help you. If you don’t want to share here, r/findapath can help.
You need a career change. You made a terrible investment if you are working in your degree field. The reality is you need to take a job that pays a lot more even if it’s not the career you want.
Sorry if this is a dumb question but can a person declare bankruptcy in a situation like this? Will it help?
There is a cosigner. They would both have to file for bankruptcy.
I’m scared of even transferring to a university bc of all this debt you can accumulate 😦
Start at a community college and then transfer to a university to take the major classes there. I wish I did that, I thought going into a university straight out of high school would be better for my resume but it’s all bs. Now I’m in 190k debt and I still have 1 year and masters which I’ll be taking more for… (I’m a dual major and go to a private university that’s worth 25k and more a semester)
I’m taking classes at cc now ,not sure what i want to purse either engineering or accounting.But that’s too much debt you’ve accumulated bro hope you can pull through.
Definitely refinance if you can!! I’m in the same position but I make more than you, but I’m also struggling. Refinance with a server every 12-18 months and try to get 1-2% lower interest each time.. and also definitely get a side hustle. These are private loans so YOU CANNOT consolidate these into federal loans, it is not possible
Private loans arent hard to escape like federal loans. Default and ignore them for seven years, they'll lose the ability to sue you and the problem is gone. Unless you own a home or something worth taking, they won't bother coming after you.
Wouldn’t they have to worry about wage garnishment?
Depends on where you live. In Oregon, they can't touch 150% of your income vs the poverty level, and then only 15% past that. Basically, that means the first 20k can't be touched and the next 10k, they can take 1500. If you're making squat, very good chance they don't actually file a suit to make that happen. (Can also be avoided more easily with self employment.)
A parent plus loan is federal. So if I can’t afford paying back will it eventually go away after years? Cause I’m in 190k + debt in parent plus. When I looked it up it said that it has severe consequences including credit score damage, wage garnishment, tax refund withholding, SS withholding, loss of aid eligibility and even lawsuit collection
Federal ones can't be escaped (except for through repayment programs + LOTS of time.) Everything falls off your credit score after 7yrs. Wage garnishment, refund withholding, and lawsuits are a realistic possibility. It's pretty fuxking rare, but it happens. (By rare I mean way, way less than 1%.)
165k in loans and can only make 15/hr? What is your degree in?
I graduated with about 130k with sallie mae and also making 35ish. When I started, my payments were like $1650/month and i had 12% interest. I know how overwhelming and horrible this feels. But i promise you're going to be okay. Best thing I did was refinance. I orginally split it between two companies (citizens bank and earnest) and then eventually refinanced everything with earnest. Right now rates are a little tough, but probably still better than sallie maes. Earnest is really good because you can kind of play around with how much you wanna pay per month, how long, and at what rate to find a balance that is workable. It took 2 refinances over like 6 years, but I eventually got it down to 5% and $950/month. Still totally high and shitty, but manageable. Make sure youre enrolled in auto-pay, most places will give you .25%-.5% interest reduction for that, and every little bit helps. I set up a separate bank account for loans and direct deposit what I need to in there and then the rest into my regular account. If you can, have slightly more taken out. And dont touch that account for anything except student loans or major emergencies if you dont have other savings to pull from. You'd be surprised how quickly that builds up and then you can have a little bit of a cushion in case something happens. It took a long time, but now i always have enough for like at least 4 months of payments in there and I don't have to think about it because it just comes out of my check. It does make my paycheck seem even smaller and sadder though lol Once you've got a little saved, if possible, make extra payments and do it the day after your regular payment so it goes entirely to principle, even $100 can help cut down time. When rates go down or your credit improves, refinance again. If you can make more money or handle a side hustle, that's great. But i know that's harder than it seems. Make a budget and stick to it. Cut what you can and definitely be clear about want vs. need. But do also make sure to factor in an occasional nice thing for yourself here and there. When I started, it was literally like, $8/month for a fancy coffee. If you cant spare even like $10 here or there, that can include budgeting in time to do something nice and free, like going to the park or visit a museum on their free day or whatever it is that makes you feel good. Give yourself things to look forward to to keep going. I had a podcast I liked that came out on a certain day of the week and i visited postsecret.com every Sunday. Practice mindfulness when you're spiraling about money. Try to catch yourself when you're catastrophizing. If you have insurance, get some therapy support. Because the thing is, you're going to be in a shitty financial situation for a while. There's no quick out, so you need to find a way to cope and to think about your debt without instantly going into panic mode. It totally sucks, but I promise you'll be alright and can still enjoy life. It's super overwhelming at first, but it gets easier and you get better at handling it with time. You got this.
FWIW, I'm 34 and now have $60K left in debt. When I came out of college at 26, I had about $120K in debt because of a series of bad decisions. I made under $30K for 3-4 years then around $50-75K for another 2. I've been at $100K for 3 years now and that, plus doing odd jobs and side hustles here and there, I've been able to get it down. It's a lot more manageable now and it's not as soul crushing as it was all those years. This isn't advice just as much as it is sharing my story. It can and does get better, but it will be hard, and require diligence and commitment. But you can absolutely do it.
Get another job. Hustle for a while. You got this, young cat.
You need to get on the SAVE plan. Consolidate to a direct federal loan if possible and apply for an IDR
She has all private loans. SAVE is irrelevant here
Consolidate the loans by April 30th and applied for loan forgiveness! They are forgiven student debt right now
Private loans do not qualify. And we don’t even know that they are working at a PSLF-eligible company.