Should I put my student loans on forbearance?

This forum made possible through the generous support of SDN members, donors, and sponsors. Thank you.

Frosty808

Full Member
5+ Year Member
Joined
Jul 2, 2017
Messages
41
Reaction score
10
Hi all,

I need some input to make sure I'm making the right decision. Currently, I have run into the joy of having some medical bills and would like to pay them off before they go into collections. I am trying to focus on being a pre-med (volunteer and study MCAT) but worrying about bills and how they have taken over most of my paycheck, about 75 to 80% of every paycheck. So I have spent the last 10 months working three jobs, only to feel frustrated with little progress paying my financial obligations. I do have a budget, but interests have been racking up on my student loans and looking at my bills, it seems I've only been paying the interest and barely the minimum.

I'm thinking it would be okay to push through to forbearance in an effort to avoid some bills going into collections and should I or stick to my income-based repayment plan? Currently, I make $3k more than the FAP minimum requirement. It frustrates me but that's life.

Thoughts?

Members don't see this ad.
 
I suggest not letting any bills go into collection. The extra interest you will pay on everything else in your life that results from a ding on your credit (from your car insurance to home mortgage payments will cost more than the extra interest from having your loans in forbearance. You should work with the medical bill holders and try to work out some plan of action and get it in writing so you don't get hosed if someone still sends it to collections. Worse yet, if you just let it go and it turns into zombie debt someday when you are actually making good money, it could cost 100 times more than what you ever actually owed.
 
  • Like
Reactions: 1 user
I suggest not letting any bills go into collection. The extra interest you will pay on everything else in your life that results from a ding on your credit (from your car insurance to home mortgage payments will cost more than the extra interest from having your loans in forbearance. You should work with the medical bill holders and try to work out some plan of action and get it in writing so you don't get hosed if someone still sends it to collections. Worse yet, if you just let it go and it turns into zombie debt someday when you are actually making good money, it could cost 100 times more than what you ever actually owed.
Thank you, I guess I wasn't clear. I want to pay off all consumer debt (e.g. credit cards and medical bills) but the student loans I was thinking to put on forbearance because I want money to apply for medical school on top of paying off consumer debt FASTER instead of just the minimum etc...
 
Last edited:
Members don't see this ad :)
Thank you, I guess I wasn't clear. I want to pay off all consumer debt (e.g. credit cards and medical bills) but the student loans I was thinking to put on forbearance because I want money to apply for medical school on top of paying off consumer debt FASTER instead of just the minimum etc...

Yes, applying for medical school (and going on interviews) is wildly expensive. I had originally budged $10K and quickly broke that number.
 
Pick the lesser of two poisons (poisons in the sense of debt). No sense in working off loans if other bills are due here-and-now. I’d agree on putting on the forbearance shield and get ready for the short term to somewhat put you stable for the long-term (ie applications, emergency savings, avoiding debt collections and hit on your credit score, etc).
 
Top