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So my student loan company wants me to pay about $550 per month now....?!

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So my student loan company wants me to pay about $550 per month now....?!

Old 03-31-16, 12:40 PM
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So my student loan company wants me to pay about $550 per month now....?!

I have school loans through this piece of shit place called, Texas Higher Education Coordinating Board. I went to school in Texas and being the dumb kid I was, got loans through them. I have been paying them and am current and up to date. If I miss a payment (which was years ago) I got caught up asap. Now they went up this month and are telling me I can have them lowered with some income sensitive form. I sent that, and now they want $400 a month.

I am a federal employee with my dream job but I don't earn that much cash. I have rent and utilities that add up to about $900 a month, lots of gas because I commute 60 miles a day, insurance, cell phone bills, etc.

I cannot afford this at all. Before I was paying $238 a month and was barley scraping by. Anyone out there figured out a way to deal with this type of crap? I cannot be the only out there getting raped. Ugghhhh
Old 03-31-16, 12:42 PM
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Re: So my student loan company wants me to pay about $550 per month now....WTF?!

You gotta call them up and cancel the new terms and have you put back to what you had before.
Old 03-31-16, 12:52 PM
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Re: So my student loan company wants me to pay about $550 per month now....WTF?!

Why are the payments going up? Did you have an interest only loan?
Old 03-31-16, 12:56 PM
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Re: So my student loan company wants me to pay about $550 per month now....WTF?!

What kind of plan are you on? There are a lot of different kinds out there and finding the one that's right for you is up to you, but here's what I'm doing:

We're on the Income-Based Repayment (IBR) plan. Once a year, I enter all of my info on income documentation, family size, etc. and they calculate a monthly payment. Those payments are good for the year and a few months before the year is over, I reapply and they reassess and the payment goes up or down depending on if anything changed in our lives (income, more kids, etc.). If I reapply on time every year and make my monthly payments on time every time for 25 years, the rest of the balance is forgiven. You may have to reassess your plan to make sure it isn't doing balloon payments as the life of the loan goes on.

That's a long time and that's a lot of responsibility but it keeps the payments manageable because it's based on what I'm actually making and what our actual needs are for our family. Last year, the payments were pretty high, somewhere in your neighborhood. But this year a few things changed and it's been cut by over half. It will fluctuate every year but if I didn't have a repayment plan, the monthly payment would be ridiculous, like half my gross income, something insane like that.

If you don't have a repayment plan set up yet, I recommend going through FedLoan, looking at the options, and selecting one. You may need to go over the phone at some point. One nice thing is your loans to into a brief forbearance that's technically not supposed to count against you (interest still accrues, I suppose) while they process your application for 1-2 months. In that time, take that $1100 you would have spent on payments and save it. A financial person recently told me if you do this sort of thing to put it in something making 2% interest or something to beat the inflation rate (1% investments lose money when inflation is 1.4%) and keep it there in your back pocket.

Student loans are tough and you can make it, it's going to be okay. Good luck.
Old 03-31-16, 12:58 PM
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Re: So my student loan company wants me to pay about $550 per month now....WTF?!

You also might want to check w/ your bank about refinancing.
Old 03-31-16, 01:02 PM
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Re: So my student loan company wants me to pay about $550 per month now....WTF?!

I don't have any suggestions but was curious about the amount. The title says $550 a month but the actual post says $400. Either is one helluva increase and I don't blame ya for being upset. Hopefully you can get it back to where it was.
Old 03-31-16, 01:11 PM
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Re: So my student loan company wants me to pay about $550 per month now....WTF?!

This is the next big bubble to burst, I think. Bonds might, but I think that is later.
Old 03-31-16, 01:13 PM
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Re: So my student loan company wants me to pay about $550 per month now....WTF?!

Originally Posted by nemein View Post
You also might want to check w/ your bank about refinancing.
I didn't think about that, are these loans private or federal? Federal interest rates aren't terrible and can be negotiated a little, and private ones can be tricky. I was glad to get all of those private ones from undergrad done asap.
Old 03-31-16, 01:20 PM
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Re: So my student loan company wants me to pay about $550 per month now....WTF?!

Best I can help you with is refer you to a company whose ads I've been seeing in the subway.

https://commonbond.co/faqs/refinance
Old 03-31-16, 01:28 PM
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Re: So my student loan company wants me to pay about $550 per month now....WTF?!

Originally Posted by Ravenous View Post
I have school loans through this piece of shit place called, Texas Higher Education Coordinating Board. I went to school in Texas and being the dumb kid I was, got loans through them. I have been paying them and am current and up to date. If I miss a payment (which was years ago) I got caught up asap. Now they went up this month and are telling me I can have them lowered with some income sensitive form. I sent that, and now they want $400 a month.

I am a federal employee with my dream job but I don't earn that much cash. I have rent and utilities that add up to about $900 a month, lots of gas because I commute 60 miles a day, insurance, cell phone bills, etc.

I cannot afford this at all. Before I was paying $238 a month and was barley scraping by. Anyone out there figured out a way to deal with this type of crap? I cannot be the only out there getting raped. Ugghhhh
Since you're Fed, there are possibly some options to get a reduced amount taken out of your paycheck via Federal Loan deductions---but I'm not entirely sure as this may not be a government backed loan.

I think the best alternative for now is to try and get a loan from a bank.

Did you ask them why your payments WENT UP when you filed a financial hardship form?
Old 03-31-16, 04:01 PM
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Re: So my student loan company wants me to pay about $550 per month now....WTF?!

When anybody can't make loan payments, there are pretty much only a few options:

- Extend the loan term
- Lower the interest rate
- Ask for deferment
- Cry to mommy for help
- Default

Not sure what other magical solutions you were hoping to receive.
Old 03-31-16, 04:59 PM
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Re: So my student loan company wants me to pay about $550 per month now....WTF?!

Originally Posted by SuperJim88 View Post
When anybody can't make loan payments, there are pretty much only a few options:

- Extend the loan term
- Lower the interest rate
- Ask for deferment
- Cry to mommy for help
- Default

Not sure what other magical solutions you were hoping to receive.
You forgot:

- Change name
- Move to Mexico
- Begin life anew as a mota farmer
Old 03-31-16, 06:28 PM
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Re: So my student loan company wants me to pay about $550 per month now....WTF?!

This isn't as good an option nowadays (because school is so expensive) but you forgot my old favorite, enroll at Community College just enough so you don't have to pay for a bit.

That said, if at all possible for you to pay it, just pay it. Even if it sucks. When I used to get these, people would refinance to 30 years, then they couldn't get deferments, and they're paying the damn thing in their 50s.

Default was a good option in the 70s, but then started going after people and garnishing wages and all that crap, much better to find a way to pay it.
Old 03-31-16, 07:49 PM
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Re: So my student loan company wants me to pay about $550 per month now....WTF?!

Originally Posted by kvrdave View Post
This is the next big bubble to burst, I think. Bonds might, but I think that is later.
Yup'. I don't know what it entails. But I think the whole "dumbed down college" thing (including the ridiculous loans and funding they hand out) is going to come to an end.
Old 03-31-16, 10:04 PM
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Re: So my student loan company wants me to pay about $550 per month now....WTF?!

I wouldn't refinance a federal loan--or at least check to make sure doing that doesn't limit your payment options. I don't think you could do an income based or pay as you earn plan on a refinanced loan, but maybe someone here knows for sure.

The income based options have forgiveness at 20-25 years, 10 years for public and nonprofit employees. The write off is currently taxable for people who are on the longer plan so you could end up with a huge tax bill if they write off a lot. But, if you're a federal employee, maybe you'd qualify for forgiveness at 10 years with no tax on it.
Old 04-01-16, 09:56 AM
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Re: So my student loan company wants me to pay about $550 per month now....WTF?!

I'm scared of loans so I only got the federal ones and worked my ass to pay for the rest of my classes. Fuck getting loans from anyone but the federal ones.
Old 04-04-16, 10:55 AM
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Re: So my student loan company wants me to pay about $550 per month now....WTF?!

Ok, sorry for going absent all of a sudden but lost internet for a bit. First off this loan is private. I have heard about a "loan forgiveness" plan when I became a federal employee, but those are for fed loans, this one doesn't apply. Also turns out, I was on some payment plan (My parents helped me with all this stuff back in the day and I just paid the man) that went for a few years, now its at the "actual" cost of $550 per month. I than contacted them and sent a pay stub so they lowered it to $387 per month. However they are going off my income. They are not accounting for my gas, rent, utilities, cell phone, insurance, etc. After all that, I truly am scraping by.

Story, I think with these loans being private that FEDLOAN wouldn't help, but I am going to do more research. Something like that IBR plan would be awesome if they gave a damn to consider cost of living.

Bus, thanks for the link! Ill give it a read!
Old 04-04-16, 11:06 AM
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Re: So my student loan company wants me to pay about $550 per month now....WTF?!

I have a friend who is a bankruptcy attorney and he was telling me that one of his clients got the lender to reduce payments simply by telling them that she had no alternative but to stop paying them and they were welcome to try and get blood from a stone. They lowered it because they had to.
Old 04-04-16, 06:28 PM
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Re: So my student loan company wants me to pay about $550 per month now....?!

Originally Posted by Ravenous View Post
I am a federal employee with my dream job but I don't earn that much cash. I have rent and utilities that add up to about $900 a month, lots of gas because I commute 60 miles a day, insurance, cell phone bills, etc.

I cannot afford this at all. Before I was paying $238 a month and was barley scraping by. Anyone out there figured out a way to deal with this type of crap? I cannot be the only out there getting raped. Ugghhhh
At the risk of sounding insensitive (which I'm not, just being brutally honest)...

You are in your "dream job", but it doesn't pay well. That is one way in which you are affecting your ability to repay this loan.

You commute 60 miles a day (I'm assuming this means 30 miles each way). So that's probably at least 10 gallons or $20-$30 in gas each week if you do nothing but go to work and go home.

Insurance is essential, but you don't mention what you pay for your cellphone, or what your other utilities are.

Bottom line is that you borrowed this money for an education, so that you could get a "dream job" that doesn't support repaying what you borrowed.

Some options:

1) Reduce "luxuries". Cable, satellite, netflix, hulu, big data plans on your cellphone, etc.

2) Get an apartment closer to work, it'll save gas and probably lower your insurance rates. It will also extend the lifetime of your vehicle. I always try to live within a mile or two of work, I know I'm going to work 5 days a week, I can drive a bit to get someplace more interesting on weekends.

3) Get a second job, even if just 8-10 hours on weekends, and put ALL of that money towards paying off the loan (maybe build up a rainy day fund first), even in excess of the minimum payments (assuming you're able to pay your other bills). OR... if you could make more at a different job that isn't necessarily your "dream job", take a better paying job.

What is the current principal on the loans, and the interest rate? Seriously, they are a "piece of shit" place because they want the money you owe them? Were they a piece of shit when you want to go to school and they gave you that money in the first place?
Old 04-04-16, 06:41 PM
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Re: So my student loan company wants me to pay about $550 per month now....?!

^^^Well said. Agree on all points.
I'm all for everyone working their "dream job", but if doesn't pay the bills find other means. It used to be the house with the picket fence, now it's the house with the picket fence, luxury car, maxed out cable and phone packages, dinner and drinks out several nights a week, visits to some place that has a beach, etc.
Right out of college, I got a decent job, but lived like I did in college for about 3 years and just threw all my money at paying those loans off. I didn't want them hanging over my head for years. I wasn't trying to impress people by spending beyond my means I was just trying to get out of debt. My college roommates immediately went the route of buying a new car and new place to live. Five years after college I paid off my loans and those roommates are actually still paying on them to this day.
Long story short, just hunker down, cut where you can and get those bad boys paid off. It leads to a lot more satisfaction writing that last loan check then having the latest cell phone.

Last edited by Barth; 04-04-16 at 06:46 PM.
Old 04-04-16, 08:34 PM
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Re: So my student loan company wants me to pay about $550 per month now....?!

Agree with two previous posters. Not trying to call you out but this increase may actually help you out by paying more towards the balance. Quit complaining and tough it out. You make no mention of your income but I bet you can find a way to make those payments if you cut back on nonessential items. I work in mortgage industry and see people complain all the time and they should not as they can truly afford the payment. They just do not want to sacrifice there lifestyle.
Old 04-04-16, 10:44 PM
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Re: So my student loan company wants me to pay about $550 per month now....?!

This college racket thing always gets me. Back in the day, high school taught you how to survive in the world, gave you a basic skillset, or if you took classes in a certain area, could prepare you for life in a chosen field of work. If you wanted to specialize in something, then college gave you the opportunity to advance to a more extraordinary career.

Nowadays, high school is all about college prep. They only teach you what you need to know to get into college so you can spend another 5 (or more) years in school, only now you have to pay through the nose for it. Most people can't afford college, so the government steps in and offers loans so the average Joe/Josephine can further their education. Colleges know this and take avantage of everyone by raising tuitions so people have to get bigger loans to get that college education. They're also guilty of changing the way people perceive life by making everyone think that college is now the natural order of things, that if you don't go to college you are somehow a substandard citizen who does not deserve anything better than McDonalds or Walmart.

The workforce takes advantage of it by handing over the training that they used to do ON-THE-JOB to the schools then make it a requirement that you have that college education in order to get a job that we used to be able to get with a high school diploma and said on-the-job training.

$50,000 later, the kid gets out of college, tries to find a job in his/her chosen field, discovers that there aren't any because everyone else already got them, and goes to work somewhere else, not happy, stuck with paying back the federal government $50,000 for the next 25 years, and can't.

And everyone is brainwashed into believing that this is normal...

It's really sad what this country has turned into.

Last edited by kd5; 04-05-16 at 07:55 AM.
Old 04-04-16, 11:00 PM
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Re: So my student loan company wants me to pay about $550 per month now....?!

Originally Posted by kd5 View Post
This college racket thing always gets me. Back in the day, high school taught you how to survive in the world, gave you a basic skillset, or if you took classes in a certain area, could prepare you for life in a chosen field of work. If you wanted to specialize in something, then college gave you the opportunity to advance to a more extraordinary career.

Nowadays, high school is all about college prep. They only teach you what you need to know to get into college so you can spend another 5 (or more) years in school, only now you have to pay through the nose for it. Most people can't afford college, so the government steps in and offers loans so the average Joe/Josephine can further their education. Colleges know this and take avantage of everyone by raising tuitions so people have to get bigger loans to get that college education.

The workforce takes advantage of this by handing over the training that they used to do ON-THE-JOB to the schools then make it a requirement that you have that college education in order to get a job that we used to be able to get with a high school diploma and said on-the-job training.

$50,000 later, the kid gets out of college, tries to find a job in his/her chosen field, discovers that there aren't any because everyone else already got them, and goes to work somewhere else, not happy, stuck with paying back the federal government $50,000 for the next 25 years, and can't.

And everyone is brainwashed into believing that this is normal...

It's really sad what this country has turned into.
My recently retired work partner paid for college by working only a summer job. Tuition at the same school today is $40,000 now a year, plus $57,000 for the last professional year. The government dipping it's finger in the student loan market really screwed things up unfortunately.
Old 04-05-16, 01:26 PM
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Re: So my student loan company wants me to pay about $550 per month now....WTF?!

Originally Posted by DVD Josh View Post
You forgot:

- Change name
- Move to Mexico
- Begin life anew as a mota farmer
You forgot one more:
-Vote for Bernie.

If he wins, he'll make all school loans magically go away.
Old 04-05-16, 02:51 PM
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Re: So my student loan company wants me to pay about $550 per month now....WTF?!

Originally Posted by redcon1 View Post
You forgot one more:
-Vote for Bernie.

If he wins, he'll make all school loans magically go away.
Oh please, even going forward is on the same level of ridiculousness as getting the Mexicans to build the wall, let alone retroactively forgive past loans. I think you should just delete your post.

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