Pissed off about loans

Started by bimbag79
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bimbag79

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Ok I had to vent because other non-trads may understand my circumstances. I am not making enough money monthly/annually to pay rent and bills AND pay my student loans back. Apparently making less than 20K a year constitutes loan repayment. I owe over 38K. I am so embarrassed about my situation and I fear the loan company ruining my credit by hiring a collections agency. I just bought a used car, so I have a pretty big car payment to pay on top of just living expenses. I know some of you are going to be critical and not supportive. Please only those who have constructive criticism/advice need respond.
 
Have you done everything you can to minimize your loan payments? For one, you should definitely consolidate and try to spread your loan payments over the longest period possible. Also, you need to see if you can sign up for income-sensitive or graduated-payment plans. You need to do whatever you can to avoid being in default on your loans because that severely limits your options.
 
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Ok I had to vent because other non-trads may understand my circumstances. I am not making enough money monthly/annually to pay rent and bills AND pay my student loans back. Apparently making less than 20K a year constitutes loan repayment. I owe over 38K. I am so embarrassed about my situation and I fear the loan company ruining my credit by hiring a collections agency. I just bought a used car, so I have a pretty big car payment to pay on top of just living expenses. I know some of you are going to be critical and not supportive. Please only those who have constructive criticism/advice need respond.
Geez, don't be so quick to jump on us before we even get a chance to reply; it's not like all of us haven't made our own stupid decisions along the way. Heck, one of the main reasons why my ex and I went our separate ways is because I got tired of having the collection agencies constantly calling us. :meanie:

Look, your situation sucks, but it's not uncommon, and you can get help from credit counselors. Make sure to pick one that is non-profit if you go that route. You might also try calling your lenders directly and explaining your situation to them. It's really important that you not default, because you don't want your credit to be shot. So you need to figure out a way to spread out your payments and make them affordable. Beyond that, try to minimize your expenses as much as you can, and think big expenses here. Most people's biggest expenses are housing and transportation. Can you get a roommate or move into a cheaper apartment? Can you live with a friend or family member for a while? Can you manage without your car? I assume probably not since you just bought it, but those are the things I did while I got myself out of my own debt hole. It took a few years, but I did get out, and you can too. :luck: to you. 🙂
 
Definitely call your lender. They see this problem fairly frequently and have programs to help you. Usually they will be more than happy to line out your options to help you get into a repayment schedule that works for both you and them.

Whatever you do DO NOT IGNORE IT. That is a sure way to get your credit wrecked quickly. They can probably restructure your payments, give you a deferment (this is a limited amount of time), or a forbearance if you qualify financially.
 
Ok I had to vent because other non-trads may understand my circumstances. I am not making enough money monthly/annually to pay rent and bills AND pay my student loans back. Apparently making less than 20K a year constitutes loan repayment. I owe over 38K. I am so embarrassed about my situation and I fear the loan company ruining my credit by hiring a collections agency. I just bought a used car, so I have a pretty big car payment to pay on top of just living expenses. I know some of you are going to be critical and not supportive. Please only those who have constructive criticism/advice need respond.


Can you get rid of the car you just bought and eliminate that loan? Even selling it at a loss and driving the $1000 beater might be necessary. What other things can you do to make ends meet? Live in a less expensive place? Can you eliminate other expenses such as eating out? The sacrifices you make now to keep your finances in shape will be oh so good to you 😍 down the road. Whatever you do ... avoid increasing your debt even more with credit cards. Make sure you can make the minimum payment on everything and then accelerate (increase) the payments on your highest interest loans and pay those off as quickly as you can. Are you applying to medical school or in medical school? If you are considering applying, make sure you get your finances in order first. The last thing you want to worry about in medical school is whether you can pay your bills (on top off all the other stuff you need to worry about).
 
Thank you everyone for your advice. I need the car to drive to work which is in the next town over. I have checked out taking a commuter bus, but I work nights and it's inconvenient. My rent is the biggest problem. I tried to get out of my lease early and the apt complex said I owed $2700 worth of back-rent because I got the apt for cheaper than fair market value. Believe me, I have been trying to do anything to decrease my expenses. I contacted my lenders today. They said I should reapply for economic hardship or income sensitive assistance. I told them I could pay something but not the full amount every month. They refuse to accept anything other than the payment in full. Once my forbearance runs out, I better be in medical school or have a better job because they'll garnish my wages. I'm confident I qualify for forbearance.

P.S. Sorry I was defensive about who responds.
🙂
 
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Thank you everyone for your advice. I need the car to drive to work which is in the next town over. I have checked out taking a commuter bus, but I work nights and it's inconvenient. My rent is the biggest problem. I tried to get out of my lease early and the apt complex said I owed $2700 worth of back-rent because I got the apt for cheaper than fair market value. Believe me, I have been trying to do anything to decrease my expenses. I contacted my lenders today. They said I should reapply for economic hardship or income sensitive assistance. I told them I could pay something but not the full amount every month. They refuse to accept anything other than the payment in full. Once my forbearance runs out, I better be in medical school or have a better job because they'll garnish my wages. I'm confident I qualify for forbearance.

P.S. Sorry I was defensive about who responds.
🙂


I don't know your exact situation, but have you considered getting a different job or a second job. If you can't decrease expenses, you can try to increase income. If you are commuting to the next town at night for less than 20k/year with any sort of degree, you can almost assuredly do better.

Good luck
 
I will share with you my story, maybe it will help: in 2000 I finished a PhD program with 85K in student loan debt, and 30K in credit card debt. After the first 6 months grace period ended, the loan people said they wanted minimum $995 as the monthly payment. I was only making 28K, and all that was too overwhelming for me to deal with.

So I eventually moved to a bigger city where there would be more jobs; I worked 3 jobs, I worked all the time, it really wasn't good for my mental health, but whatever; I signed up to take 2 classes at the local community college so my student loans would freeze. I ignored the student loans (they were frozen while I was enrolled in these classes, and I attended classes infrequently just so the teacher wouldn't drop me, and I got Fs in all the classes but it didn't matter). I did manage to make a whopping 60K in 9 months, and I sent as much as I could to the credit cards to pay those down.

Also, I completely stopped using the credit cards. All the information from the credit cards I kept organized (what each percentage rate was; the total amount due; etc.) - I put it all on one page and then prioritized them by the highest finance charge to the lowest.

I am still taking 6 units to freeze the student loans, and this helps immensely. My credit card debt is now at zero, and now I send payments to the student loan people while the debt is frozen (the interest on the unsubsidized portion still grows, and the govt. pays the interest on the subsidized portion).

Student loan debt is very depressing, but credit card debt is worse. At one point I was considering transferring as much student loan debt to the credit cards (with those handy checks the credit card companies send you), and then declaring bankruptcy, which would put my credit on hold for 7 years or so. But I didn't do that, I just kept cutting corners; staying in and watching TV instead of going out and spending money; eating at home; retraining myself to not WANT things, as this society really has us salivating to buy buy buy. Wear the same clothes, not get my hair cut every 6 weeks, not use gobs of toothpaste when I brush my teeth, etc.

It really sucks being in debt, but it isn't impossible to crawl out of debt. And it is very common in the US to have debt, you are not alone! Anyway, good luck! 🙂
 
I will share with you my story, maybe it will help: in 2000 I finished a PhD program with 85K in student loan debt, and 30K in credit card debt. After the first 6 months grace period ended, the loan people said they wanted minimum $995 as the monthly payment. I was only making 28K, and all that was too overwhelming for me to deal with.

So I eventually moved to a bigger city where there would be more jobs; I worked 3 jobs, I worked all the time, it really wasn't good for my mental health, but whatever; I signed up to take 2 classes at the local community college so my student loans would freeze. I ignored the student loans (they were frozen while I was enrolled in these classes, and I attended classes infrequently just so the teacher wouldn't drop me, and I got Fs in all the classes but it didn't matter). I did manage to make a whopping 60K in 9 months, and I sent as much as I could to the credit cards to pay those down.

Also, I completely stopped using the credit cards. All the information from the credit cards I kept organized (what each percentage rate was; the total amount due; etc.) - I put it all on one page and then prioritized them by the highest finance charge to the lowest.

I am still taking 6 units to freeze the student loans, and this helps immensely. My credit card debt is now at zero, and now I send payments to the student loan people while the debt is frozen (the interest on the unsubsidized portion still grows, and the govt. pays the interest on the subsidized portion).

Student loan debt is very depressing, but credit card debt is worse. At one point I was considering transferring as much student loan debt to the credit cards (with those handy checks the credit card companies send you), and then declaring bankruptcy, which would put my credit on hold for 7 years or so. But I didn't do that, I just kept cutting corners; staying in and watching TV instead of going out and spending money; eating at home; retraining myself to not WANT things, as this society really has us salivating to buy buy buy. Wear the same clothes, not get my hair cut every 6 weeks, not use gobs of toothpaste when I brush my teeth, etc.

It really sucks being in debt, but it isn't impossible to crawl out of debt. And it is very common in the US to have debt, you are not alone! Anyway, good luck! 🙂

That was a wonderful post! I am lucky because I am currently paying down one credit card which I planned to pay off in the next six months. I'm just frustrated about the loans and money in general. If I had kids I would be receiving aid right now. I think there's something wrong with a system that punishes those who follow the rules and rewards those who do not. Nothing against single moms, I am saying the system is wrong.
 
I will share with you my story, maybe it will help: in 2000 I finished a PhD program with 85K in student loan debt, and 30K in credit card debt. After the first 6 months grace period ended, the loan people said they wanted minimum $995 as the monthly payment. I was only making 28K, and all that was too overwhelming for me to deal with.

So I eventually moved to a bigger city where there would be more jobs; I worked 3 jobs, I worked all the time, it really wasn't good for my mental health, but whatever; I signed up to take 2 classes at the local community college so my student loans would freeze. I ignored the student loans (they were frozen while I was enrolled in these classes, and I attended classes infrequently just so the teacher wouldn't drop me, and I got Fs in all the classes but it didn't matter). I did manage to make a whopping 60K in 9 months, and I sent as much as I could to the credit cards to pay those down.

Also, I completely stopped using the credit cards. All the information from the credit cards I kept organized (what each percentage rate was; the total amount due; etc.) - I put it all on one page and then prioritized them by the highest finance charge to the lowest.

I am still taking 6 units to freeze the student loans, and this helps immensely. My credit card debt is now at zero, and now I send payments to the student loan people while the debt is frozen (the interest on the unsubsidized portion still grows, and the govt. pays the interest on the subsidized portion).

Student loan debt is very depressing, but credit card debt is worse. At one point I was considering transferring as much student loan debt to the credit cards (with those handy checks the credit card companies send you), and then declaring bankruptcy, which would put my credit on hold for 7 years or so. But I didn't do that, I just kept cutting corners; staying in and watching TV instead of going out and spending money; eating at home; retraining myself to not WANT things, as this society really has us salivating to buy buy buy. Wear the same clothes, not get my hair cut every 6 weeks, not use gobs of toothpaste when I brush my teeth, etc.

It really sucks being in debt, but it isn't impossible to crawl out of debt. And it is very common in the US to have debt, you are not alone! Anyway, good luck! 🙂

Great story!!! Its almost Hollywoodian.....
 
He hasn't triumphed yet. But I'm definitely rooting for all of us in this situation.

Well, true, he/she hasn't triumphed over his/her debt yet, but he/she did triumph in their own attitude regarding their debt. Once you get a plan in action, and work hard to achieve it, you have triumphed over your own negative beliefs. You are open to the belief that you can accomplish what is a very difficult task. It takes a resolute posture to triumph over your own fears, doubts and negative situations.

For example, when watching the movie "Rocky," Stallone steadfastly practices before the match, running miles on end, with that great music playing in the background, he hasn't won anything yet, maybe he won't, but there is a triumphant spirit in the air. That is what I meant. The story was inspiring!

For a dream to come true, you've got to dream the dream first.
 
I wish all future/potential med students would read this thread. I was just reviewing my loan information today from school, and I am one of the lucky ones...

In short, I will be paying back school loans until the year 2035!! Think about that for a minute. That is 29 years from now. And, my total debt burden will be roughly $247,000 I will have paid off by then. And, I'm not exactly going to be a youngster in 2035.

People need to seriously think about the choices they make before they make them. Going to school - especially a Caribbean or other offshore school - can financially ruin you. As I said before, I'm one of the lucky ones. I got into an anesthesiology residency at a great program. But, there are many who will end-up in a non-lucrative field, or worse fail out of school altogether.

I can't stress this enough: think long and hard about how much debt you are going to amass while in school. I am an older graduate, and at this point I can seriously say that if, back in 2001, I'd had the realization of how much debt I was going to be in and for how long and the ability to know what I know now about the field of medicine, I would probably have stayed in my previous career. Again, I did this, I succeeded, and I'm going to have a bright future career. But, especially you older students, think long and hard about the decision you are making to get a graduate degree, how much it's going to really cost and for how long, and understand what you are getting yourself into. I can tell you right now, the field of medicine is so screwed up right now that it's probably, in hindsight, not worth what I went through to get where I am now. I love being a doctor, but practicing medicine involves much more than that. And, the debt, man, the debt, just makes it hard to stomach.

-Skip Intro
Ross University, 2005
PGY-2, Anesthesiology
 
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If you're not in med school yet, I'd definitely consider looking at a 2nd job that doesn't take up too much time. I know this sounds stupid, but selling things (not your own, buying and selling inventory) on ebay can actually be fairly decent money. No, not those cheesy late night TV ads, but real ebaying.

I remember when I was in high school I'd look on ebay for prices of stuff I'd see at closeouts and stuff (there was actually a closeout store right by my school back then, they've since gone bankrupt [ah, irony]), and sell a few things for spending money. Now, the stuff I sold back then would hardly make me any money today just because ebay fees have gone up so much, but still, there's plenty of money to be made if you can get a good deal on stuff.

If it was earlier you could have actually bought toys at wholesale from the toy manufacturers (popular toys anyways) and sold them for quite a decent amount of money, but it's way too late for that now since it's already december and it takes forever for them to ship to you (plus they're already sold out of anything profitable by now). I know a lot of fairly big-time ebayers, and several of the ones I know make in the 6 figures. They're not *just* ebayers though, since ebay isn't good for selling some sorts of things, so they sell elsewhere too (own internet stores, Amazon, classified ads in the newspaper, etc.)

It's not really very glamorous, but if you're lucky and willing to put some money on the line every now and then it's decent returns.

Earlier this year I got VERY VERY lucky, because the Apple store was clearancing Sony HDV-FX1 camcorders (a very high end HDTV camcorder) for $2000. Which sounds expensive but it's a $3000 camcorder. Anyways I ended up selling them for like $2800 each on ebay, after managing to score 3 of them.

That made up like, half my entire year's ebay sales profit :laugh: (I obviously don't ebay very high volume-I have to work full time and I was studying for the MCATs so I basically didn't sell anything this year).

Anyways, it's fairly hard to get that lucky but, if you keep and eye out for such things you're almost sure to be able to make a little bit of money.

Oh if you're clever you can look on ebay to see what people are selling and try to figure out where they're buying it. I remember doing this back in the old old days.

If you want to get off to a decent start on buying random cheap stuff just start looking at those bargain hunting websites, like Fatwallet, etc. People will post bargains they've found and such, although usually there's nothing particularly profitable, but even on popular websites there will occasionally be something pretty good. Of course, anything popular will mean that about 10,000 other people will have already purchased the item and tried to sell it on ebay, lol. Still, if you have no idea where to start, that's a start.
Optimally you'd find things to buy and sell yourself, and start figuring out if there are actually decent things to buy wholesale, etc. Of course I'd only do that if you seriously wanted to do it, if not I'd just stick to selling the occasional thing you found cheap.

Also, if you have a lot of junk sitting around, you can start by selling all that junk you don't use for some money to tide you over for now. Plus it'll build up your reputation on ebay anyway.