What to do? Feel stuck! LOANS!!

[MexicanDr]

I am currently in school and have attained a few stafford loans, which I dont have to start doing payments while still in school, but stupid me got 2 private loans a few years ago and now I have to start doing payments.

One of the lenders is Wells Fargo, the other is Chase. I cant defer these ones because the school I am currently going is not in the approved list of schools to defer for these lenders. (When I got the loans, I was attending a different school).

The thing is that I changed my major and now it will take two more years to complete, but its hard to be attending school full time and having money to do these payments.

Is there anything I could do to defer these damn loans? I talked to the lenders and they say I have to do the payments, but is there anything else that you guys have done in similar situations that I can probably do?

Whats up with this new student loan reform, how does this affect my situation?

Thanks

Eddie

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[Phlame217]

refinance and consolidate with a direct loan, and then you qualify for income based repayment which as a student will make life much easier.

 

[Scrub MD]

EDIT: This was for a different thread and may not be relevant for you but I will leave it here. Disregard the estimated payment info.

You could forbear (no payments but all interest accrues, called mandatory residency forbearance, which means they must give it to you if you ask and you are a resident).

Or you could do IBR at 1050 (by putting your info into a IBR calculator on ibrinfo dot org)

Or you could consolidate with extended repayment and pay that. 1600 for 30 year consolidation (finaid dot org)

I would do IBR. It will make some dent in your interest and will forgive the the subsidized interest that is not paid with your payment each year. But you can only do this for 3 years. Then you should forbear.

 

[badasshairday]

Then you should forbear.

Forbear and make interest payments at the least, correct?

 

[Scrub MD]

Forbear and make interest payments at the least, correct?

Yes, if that is possible in your situation. Or pay what you can.

 

[MexicanDr]

refinance and consolidate with a direct loan, and then you qualify for income based repayment which as a student will make life much easier.

What exactly is a direct loan and how would one go about getting one?

Thanks for the info.

 

[TMP-SMX]

Direct loans are federal loans directly from the feds rather than FFEL (from a lender). You would consolidate with direct loans after you graduate if you have any FFEL loans.

 

[deleted77919]

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[badasshairday]

Making interest payments can be difficult as a resident. Say you borrowed $200,000 and will be making $45,000/yr as a resident. ~1/3 will go to taxes leaving you with $30,000.

6.8% of $200,000 is $13,600. This leaves you only $16,400/yr (or about $1300/month) leftover to pay the rent, car insurance, eat, etc.

Is this possible? Yes. Would it be very difficult? Yes.


And yes, I know you can deduct student loan interest, but only up to $2500/yr.

I am extremely angry. WHY CAN'T WE DEFER!!!!!!!! HOW DO WE CHANGE THIS BULL****!