Comments on: What Do You Do When You Can’t Afford Your Student Loan Payments? http://cashmoneylife.com/2009/05/08/cant-afford-student-loan-payments/ Money Management, Small Business, Career Fri, 20 Nov 2009 20:44:55 -0500 http://wordpress.org/?v=2.8.6 hourly 1 By: Patrick http://cashmoneylife.com/2009/05/08/cant-afford-student-loan-payments/comment-page-1/#comment-18283 Patrick Sat, 23 May 2009 18:41:04 +0000 http://cashmoneylife.com/?p=1587#comment-18283 Becky, I don't know what to say, other than to continue working hard on trying to find additional sources of income, or to consider taking a job that will help you pay back your student loans. There are quite a few state and national government jobs that offer to pay back some student loans. I recommend looking around. Becky, I don’t know what to say, other than to continue working hard on trying to find additional sources of income, or to consider taking a job that will help you pay back your student loans. There are quite a few state and national government jobs that offer to pay back some student loans. I recommend looking around.

]]> By: Becky http://cashmoneylife.com/2009/05/08/cant-afford-student-loan-payments/comment-page-1/#comment-18145 Becky Thu, 14 May 2009 17:14:49 +0000 http://cashmoneylife.com/?p=1587#comment-18145 I am in a similar boat as well. I have a BFA, went back to grad school thinking that a high paying career was in my future, currently making 38K. My original loan monthly payment was $796, I did a forbearance on my first loan but the second loan cannot be put into forbearance. I am now paying $569 a month(which is still astronomical). I don't have any splurges such as gym membership, magazine subscription, cable, go out to eat etc. I tried getting a part time job, so far no call backs, anything harder than trying to get a job is trying to get a 2nd job. The only other choice I have come up with is the Peace Corp or AmeriCorps, b/c they have 20% loan reimbursement. This is an extreme solution seeing as I would have to turn my life upside down. Really is there no other solution? HELP I am in a similar boat as well. I have a BFA, went back to grad school thinking that a high paying career was in my future, currently making 38K. My original loan monthly payment was $796, I did a forbearance on my first loan but the second loan cannot be put into forbearance. I am now paying $569 a month(which is still astronomical). I don’t have any splurges such as gym membership, magazine subscription, cable, go out to eat etc. I tried getting a part time job, so far no call backs, anything harder than trying to get a job is trying to get a 2nd job. The only other choice I have come up with is the Peace Corp or AmeriCorps, b/c they have 20% loan reimbursement. This is an extreme solution seeing as I would have to turn my life upside down. Really is there no other solution? HELP

]]> By: Patrick http://cashmoneylife.com/2009/05/08/cant-afford-student-loan-payments/comment-page-1/#comment-18107 Patrick Tue, 12 May 2009 20:26:32 +0000 http://cashmoneylife.com/?p=1587#comment-18107 <strong>Doctor S.:</strong>A credit score can be affected without a loan going into collections - a few missed payments can affect a score, but won't necessarily end up in collections. And collections are definitely worse on the score than a couple missed payments. It's best to avoid defaulting on a loan and entering into collections. Doctor S.:A credit score can be affected without a loan going into collections – a few missed payments can affect a score, but won’t necessarily end up in collections. And collections are definitely worse on the score than a couple missed payments. It’s best to avoid defaulting on a loan and entering into collections.

]]> By: Doctor S http://cashmoneylife.com/2009/05/08/cant-afford-student-loan-payments/comment-page-1/#comment-18106 Doctor S Tue, 12 May 2009 20:17:47 +0000 http://cashmoneylife.com/?p=1587#comment-18106 Forbearance is possible for every student loan and is definitely the best option in this situation. I agree w/ some of the other voices above in that you should try and find a way to generate some more income to cover that $100. You really do not have many options if you are at the point that you can not afford such a payment. Then again, if his credit score is affected, won't an agency come after him to recoup the money? If that is the case I am sure he can negotiate something with that collectino agency. Forbearance is possible for every student loan and is definitely the best option in this situation. I agree w/ some of the other voices above in that you should try and find a way to generate some more income to cover that $100. You really do not have many options if you are at the point that you can not afford such a payment. Then again, if his credit score is affected, won’t an agency come after him to recoup the money? If that is the case I am sure he can negotiate something with that collectino agency.

]]> By: DDFD at DivorcedDadFrugalDad http://cashmoneylife.com/2009/05/08/cant-afford-student-loan-payments/comment-page-1/#comment-18093 DDFD at DivorcedDadFrugalDad Tue, 12 May 2009 01:13:35 +0000 http://cashmoneylife.com/?p=1587#comment-18093 Go back to school-- gets you a deferrment if I am not mistaken. Or just ask the lender for an extension-- they seem to have more leaway with student loans. Go back to school– gets you a deferrment if I am not mistaken. Or just ask the lender for an extension– they seem to have more leaway with student loans.

]]> By: Patrick http://cashmoneylife.com/2009/05/08/cant-afford-student-loan-payments/comment-page-1/#comment-18068 Patrick Sat, 09 May 2009 17:11:31 +0000 http://cashmoneylife.com/?p=1587#comment-18068 Excellent way to manage your situation, Reed. There are always opportunities out there if you know where to look. Thanks for sharing! :-) Excellent way to manage your situation, Reed. There are always opportunities out there if you know where to look. Thanks for sharing! :-)

]]> By: Reed http://cashmoneylife.com/2009/05/08/cant-afford-student-loan-payments/comment-page-1/#comment-18067 Reed Sat, 09 May 2009 16:44:36 +0000 http://cashmoneylife.com/?p=1587#comment-18067 Hello, I graduated in 2005 with 8500.00 in stafford loans, no private loans ever. Living with my girlfriend in a studio apartment she paid 325 a month including utilities (average for area was 650.00). Many people do not know that loan companies base re-payment from individual income. With my girlfriend paying the rent I took an entire year off working (I am a master frugalist of course). Taking this year off allowed me to defer my payments but also gave me time to learn how I could payoff my loans fast. I decided to take employment as a resident manager of a 30 unit apartment building. The deal was this: Free two bed including utilities, free high speed internet and free cell phone. This alone saved my girlfriend and I aroung 900.00 a month in expenses. My salary was 500.00 a month plus 15 an hour for fixing problems with the units I managed. So I managed this building for a year and was able to defer my loans a second time because rent credits are not comsidered income (giant loophole anyone?). This allowed me to save for an entire year while maintaining a low income tax status. On Janruary 2009 I began paying back my student loans before the payment begin date. It took me three months to pay 7700.00, now I live debt free. Its not how much we make, but how much we spend. About me: I do not own a car as I bicycle commute. I have my living expenses pegged at 800 a month (included food fun and a little room for eating out). I save a minimum of 500.00 a month. I am learning to create passive income so that I may become free of the rat race someday. My suggestion is to radically reduce your expenses and pay minimum 1000.0 a month to your student loans. Though my girlfriend paid our rent for over a year her investment into me, allowed me to find free rent. She hasn't paid rent in over 20 months now (return on her investment). I learned debt free can be possible but its very counter culture to do so. Hello,
I graduated in 2005 with 8500.00 in stafford loans, no private loans ever. Living with my girlfriend in a studio apartment she paid 325 a month including utilities (average for area was 650.00). Many people do not know that loan companies base re-payment from individual income. With my girlfriend paying the rent I took an entire year off working (I am a master frugalist of course). Taking this year off allowed me to defer my payments but also gave me time to learn how I could payoff my loans fast. I decided to take employment as a resident manager of a 30 unit apartment building. The deal was this: Free two bed including utilities, free high speed internet and free cell phone. This alone saved my girlfriend and I aroung 900.00 a month in expenses. My salary was 500.00 a month plus 15 an hour for fixing problems with the units I managed. So I managed this building for a year and was able to defer my loans a second time because rent credits are not comsidered income (giant loophole anyone?). This allowed me to save for an entire year while maintaining a low income tax status. On Janruary 2009 I began paying back my student loans before the payment begin date. It took me three months to pay 7700.00, now I live debt free. Its not how much we make, but how much we spend. About me: I do not own a car as I bicycle commute. I have my living expenses pegged at 800 a month (included food fun and a little room for eating out). I save a minimum of 500.00 a month. I am learning to create passive income so that I may become free of the rat race someday. My suggestion is to radically reduce your expenses and pay minimum 1000.0 a month to your student loans. Though my girlfriend paid our rent for over a year her investment into me, allowed me to find free rent. She hasn’t paid rent in over 20 months now (return on her investment). I learned debt free can be possible but its very counter culture to do so.

]]> By: Patrick http://cashmoneylife.com/2009/05/08/cant-afford-student-loan-payments/comment-page-1/#comment-18062 Patrick Sat, 09 May 2009 04:47:19 +0000 http://cashmoneylife.com/?p=1587#comment-18062 Thanks for the info, Alan. I hope you are able to get the extension and get things going again soon! :-) Thanks for the info, Alan. I hope you are able to get the extension and get things going again soon! :-)

]]> By: Alan @ Saving For Serenity http://cashmoneylife.com/2009/05/08/cant-afford-student-loan-payments/comment-page-1/#comment-18061 Alan @ Saving For Serenity Sat, 09 May 2009 04:43:52 +0000 http://cashmoneylife.com/?p=1587#comment-18061 I also can't afford to pay back my student loan. However, I have applied for (and received) a 6 month temporary interest relief. Of course, that has just run out so I am re-applying, and hopefully I can get another 6 months. They grant it depending on your income. So it is possible, especially if your income has changed. The best part about it is that if I do happen to make a payment on the loan, the entire payment goes directly to the principle. I also can’t afford to pay back my student loan. However, I have applied for (and received) a 6 month temporary interest relief. Of course, that has just run out so I am re-applying, and hopefully I can get another 6 months. They grant it depending on your income. So it is possible, especially if your income has changed.

The best part about it is that if I do happen to make a payment on the loan, the entire payment goes directly to the principle.

]]> By: Curious Cat Investing Blog http://cashmoneylife.com/2009/05/08/cant-afford-student-loan-payments/comment-page-1/#comment-18051 Curious Cat Investing Blog Fri, 08 May 2009 16:42:40 +0000 http://cashmoneylife.com/?p=1587#comment-18051 I would try to get another job (or supplement my current-part-time-job with a part-time job). I agree completely with having multiple sources of income and a 6 month emergency fund in cash. I would try to get another job (or supplement my current-part-time-job with a part-time job). I agree completely with having multiple sources of income and a 6 month emergency fund in cash.

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