Reducing student loans

Has anyone had success reducing their student loans? We don't even make by these days and I can't find a job for nothing. A lot of other issues as well but that is besides the point. I want to start making some type of payments but I don't know how to even start. If I should take to them first and try to set something up or a loan reducing company. Any advice would help. Thanks

Re: Reducing student loans

My monthly payment was affordable but I didn't feel like I was making a dent. I heard about the public service loan forgiveness program and called a couple years ago when I started to work at a non-profit and was told I still do not qualify...only certain loans and employers do...that it's pretty impossible for the average person to qualify.

Well, I started recently being solicited by these places that you pay a fee and they get you on track to loan forgiveness. Still sounded shady so I called my lender again and was told to go to the federal student loan site, apply for consolidation again and let the new lender know I want to do loan forgiveness.

The process took about 3 months but low and behold, it just went through.

I'm now on an income-based repayment plan and they also just let me use my and not my husband's income (otherwise it was more than twice what I was paying before and I couldn't afford).

I know this may not help everyone but it's definitely something to consider if you work at a lower-paying job and a non-profit In some kind of public service role.

In general though, I find the lenders easy to work with. Just let them know you want to make a smaller payment or even put your loans on hold until you find work.

Owing student loans is not the worst debt to have IMO.

It sucks to look at those numbers not going down, but from what I've seen too, it's not debt held against you as long as you are in good standing and working to pay it off or just not ignoring it if you can't afford right now (hence suggestion of forbearance).

ETA: I still have to make another 10 years of payments before I will hopefully qualify for the forgiveness. I was told they don't count your previous payment history, but I've also read on forums for my field, that if you get the right person on the phone, they may be able to credit those years to your payments (no, not give you the cash though ). I haven't had time to call yet to research this.

Message edited 9/24/2015 7:32:12 PM.

Reducing student loans

Talk to your lender if you are not working they will often work with you.

Re: Reducing student loans

If you have federal, not private loans, call your lender and ask about something called Ibr or income based repayment. Ask them to calculate your payment based upon your salary only. If you are not working, your payment may be zero. You have to call and reapply for this every year. Depending upon when you graduated, your balance may be forgiven. The issue with that is, at the end, what ever the amount forgiven will be considered taxable income to you for at year. So if you have 50,000 remaining, your taxes would look like your income plus the 50,000 that was forgiven. So this would result in a really big tax bill for that year. It would be in about twenty years. Of course, the government can change this program so, who knows how things will be handled in the future, but that is the issue, now.

Re: Reducing student loans

So you went through the federal student loans to consolidate your loans? I'm hoping I qualify. My husband is out of work a lot but we can take money from his funds for Morgage and taxes but it counts toward our income. I make nothing now as I'm not working but hoping to get a subbing position soon. Why did it take 3 months to go through? Did you have to make your regular payments during the process?

Re: Reducing student loans

Re: Reducing student loans

Just to piggyback a pp's comment: there really is no such thing as "good" or "bad" debt. We could not get a mortgage based on my husband's student loan amounts, and this was before he even graduated and had a payoff schedule! We ultimately had to get a mortgage solely in my name. Creditors don't really care if the debt is from student loans or another source,

Reducing student loans

Agreed we are buying a home now and have an astronomical amount of student loans. Anyway for private loans you may be able to consolidate and same goes for Stanford (the federal loans) combined we have both and yes we have consolidated both- it does take about 3 months. However just be aware you have to disclose your income and submit pay stubs to get the loan consolidation. If you can't show income there's absolutely no way they will consolidate them for you. I would call and put them into forbearance due to economic hardship. No bank will give you the loan. Once you guys are working again I would then apply for consolidation. If you have questions feel free to FM me. We just did ours back in March of this year.

Re: Reducing student loans

Re: Reducing student loans

For teachers there's a program that forgives ur loan if u work in certain schools for 5 consecutive yrs. I was actually working in one of those schools, worked for 3 yrs but then I got pregnant and became a SAHM. Now I'm just making my monthly payments which are not that bad.