- $125k in Navient, Wells Fargo, and Key Bank Parent Plus Private student loans and interest demanding payment in full after parents’ Chapter 13 bankruptcy-what to do? (Cross-posted from r/personalfinance)
- Refinancing Navient Loan - Help picking best of two options
- Conflicted on how much to pay for student loans
- 220k @ approx 6.5%, one loan is 96k @ 7.x%. Refi? What's the key to getting those ultra low refi rates?
- Told My Perkins Loan Cannot Come Out Of Default?
- What are the downsides to consolidating federal and private loans?
- Question about paying off loan in a lump sum
- Am I (25F) better off paying my federal or private loan first?
- Take out large loans or not
- Borrowers defense forbearance
- $140,000 and 6 percent interest, what to do?
- Getting a Loan for Plastic Surgery
- Federal Unsubsidized question
- Letter stating I have been in Adminstrative Forberance for 7 months but payments were still taken.
- Paying off loans impact on Credit
- 1 year to prepare myself for $50,000
- Asking because I couldn't find it -- Should I quickly pay off my student loans?
- Payment Amount Question
| Posted: 15 Oct 2019 04:15 PM PDT Hello everyone, Any insight or wisdom on this issue would be very much appreciated. I am going to summarize things as best I can and am happy to clarify anything. My partner and their mother took out approximately $75,000 in private Parent Plus loans between 2009-2013 with what is now Navient, Wells Fargo, and Key Bank. Their mother ended up filing for Chap. 13 bankruptcy in 2014 due to a failed business. When it was filed, my partner's understanding was the loans were included with it. They had a few small federal loans remaining which were paid off years ago. Ever since the bankruptcy, my partner has been under the impression that the private loans were covered and discharged under it. The loans have been listed as "charged off- bad debt" on their credit reports since shortly after their mom filed Chap. 13 and we were all under the impression the loans were resolved with the bankruptcy. Fast forward to July of this year. Their mom's bankruptcy is finally completed, but the three companies began sending collection letters to their mom's address (my partner lived at home during school but we now live out of state). The letters were addressed to both of them, but unfortunately mom didn't make us aware of it all until very recently. (mom was trying to handle it all herself without bothering us- that didn't work). With interest the loans have ballooned to around $125,000 and all three companies are demanding payment in full. Two of the loans are now showing on my partner's credit reports and the banks are all claiming we are months behind. We consulted with several bankruptcy lawyers in our state and were basically told mom's lawyer messed up and the loans were only frozen, never discharged. They have to make some sort of arrangement, but we are lost as to what to do. Defaulting is a scary prospect. My partner graduated about five years ago but was chronically underemployed due to a severe employment shortage in their field and only recently started a great position in an unrelated but high demand job about a year ago. There is no way we can afford to pay even half the combined standard monthly payments of $1700 a month, much less the entire amount. My partner's income will eventually be several times what they make now but working 50ish hours a week they currently earn around $30,000 a year after taxes. We reached out to Navient a few days ago and they refused to negotiate and do not offer any income-based repayment plans. We are lost as to what to do. The statute of limitations on private debts in our state still has several years left (apparently it was frozen during the chap. 13 according to a lawyer we spoke with), and at this point we are just trying to prevent my partner or their mom from being sued or having their bank accounts garnished. Their mom has a small home and a pension + social security we want to protect, and we rely on my partner's income while I am in school. I realize this is a mess, but any help would be greatly appreciated. Thank you in advance! [link] [comments]  |
| Refinancing Navient Loan - Help picking best of two options Posted: 15 Oct 2019 04:27 PM PDT So, through refinancing our house we have a large sum that we would like to throw at a Navient loan of my wife's. We've stuck with the crappy 7% interest because we had other loans to pay off, and the IBR and deferrment made it the best of our options at the time. Now the other loans are paid off and we have money left over to pay and to refinance into a lower interest rate and better terms. Two options i see(let me know if there are others), im not sure which gives the best end results and could use input. 1) Make the large payment to Navient, then refiance to a private company. I assume this would result in a lower monthly payment, probably a better interest rate as well? 2) Refinance the whole loan first, and make large payment to new company. Maybe they can cut a deal and give us lower rates or terms if we are agreeing to pay down about 1/5th of the loan up front? [link] [comments]  |
| Conflicted on how much to pay for student loans Posted: 15 Oct 2019 09:24 PM PDT I'm planning to go back to school for the accelerated nursing program in a little over 6 months (assuming I'll get in). I know I will not have enough funds for tuition and expecting to have to take out private loans. With that said, I have 25k in student federal loans from going to college as an undergraduate. The monthly payments are almost $300 minimum. I'm working full time right now and making about $2k every month in which I live with my parents where I have no obligatory responsibilities to pay for rent or utilities. Should I be devoting most o f my income towards paying off my current loans right now or should I also be putting aside some of it to save for tuition later on? If I put aside money for tuition, it would mean I take out less private loans because I'm aware there are high interest rates in comparison to what I'm used to in federal loans. If I devote most of my money towards paying off my current loans, then the balance will definitely be lowered but that would mean I need to borrow more in private loans. Regardless I do plan on paying more than the minimum for my current loans every month until I begin school again. It's the matter of should I pay A LOT LOT more or just A LOT more? Save + Pay lower % towards student loans = less private loans to take out, still a handful of federal loans Devote towards student loans only = take out private loans (high interest %), definitely lowered balance of student loans I'm just conflicted because I'm not sure which decision between the two choices is financially the better one. [link] [comments]  |
| Posted: 15 Oct 2019 08:35 PM PDT Title says most of it. I think I could tackle them in 5 years if I realllly wanted to, but I want to invest some. I see offers for super super low refi interest rates. If I could get a loan for say, 100k @ 4.5%, I think I could easily find an investment that pays dividends or appreciates at a higher rate than that. Plus, I can always cash out the investments if I need liquidity (whereas I can't cash out loan repayments, unless of course I get a new loan). Sure, there's risk that the investments lose, but there's also opportunity for them to grow. I'm thinking I'd put approx 1/4 of available cashflow into investments and put the other 3/4 toward loans. No employer 401k matching, and I'm not a big 401k fan (there are better investments; 401k is for lazy investors). I'm thinking I'll refi the 96k loan @ 7.x% interest. What's the best way to get those ultra-low refi rates? With trade war cooling, I think now is good time to refi. [link] [comments]  |
| Told My Perkins Loan Cannot Come Out Of Default? Posted: 15 Oct 2019 03:11 PM PDT TLDR: Is this true? I was told by SS Recovery, who are the collectors for my Perkins loan, that I cannot get this loan out of default—unless it's entirely paid off. They denied me that I have a right to a rehabilitation program. This is bullshit right? They were trying to push me into a loan consolidation, which I know has benefits, but I was fine paying this loan and my Department of Education loans separately—more importantly entering rehabilitation programs to get the loans out of default status and helping my credit. Just before I spoke with the Perkins loan holder, I had spoken with FH Cann (my Department of Education loans holder) and agreed to a rehabilitation program of 12 monthly payments that will have my loans removed from default status in 9months....so I don't understand why SS Recovery told me the Perkins loan will remain in default until it's paid off entirely—and that it's not available for rehabilitation. I've not entered into a rehabilitation program before, or done anything else that should disqualify me, so I believe the Perkins loan holder is lying to me...wtf can I do TLDR(2) — Advice please. I'd rather focus on rehabilitating my loans now and consolidating them after at my own discretion. Input is very welcomed, thanks [link] [comments]  |
| What are the downsides to consolidating federal and private loans? Posted: 15 Oct 2019 06:05 PM PDT Hi all! Currently waiting for approval on a consolidation loan through SoFi. My loans are still in grace period and getting this consolidation will save like like ~$700 a month which is money I really need. I have about $150-160K in student loans, $27K of which are federal. I included my federal loans in this consolidation so I only have to worry about one payment a month. I know I will never work a job that would qualify me for any kind of relief and my gross pay is too high to really benefit for any income based repayment plan so I feel like I'm not giving up too many rights by taking those loans private. And the interest rate I'm getting from SoFi is about the same as the interest in my federal loans. Is there any reason not to consolidate? Will the government ever get its act together to cancel student loan debt or are there any other hidden benefits I might miss out on? [link] [comments]  |
| Question about paying off loan in a lump sum Posted: 15 Oct 2019 01:08 PM PDT After saving up for a year, I finally have the opportunity to pay off one of my loans ($31,000 at 9%) in a lump sum. The loan is currently being serviced by Discover and I called them to ask how I would go about paying it off in full. They said I can make the payment online and that the current account balance includes the outstanding principal balance and unpaid accrued interest. They would then close the account and send me a letter stating that the loan was paid off. There would also be no penalties for paying it off early. The website only has one option to make a payment and the terms state: "In general, payments are applied in the order of fees (if applicable), accrued interest, and then principal (which includes capitalized interest). If a payment is more than the Minimum Payment Due, and you don't choose to advance your Payment Due date, your payment will be applied to the Minimum Payment amount, and then toward the remaining loan balance on the highest interest rate loan in repayment on the statement. If you want to pay off your loan(s), please go to your secure account to obtain the payoff amount." Just to double check, and I hope this isn't a stupid question—if I obtain the Payoff Balance and make a payment in that amount, that should be it, right? I'm a little nervous about making such a huge payment and wanted to know if there is anything else I should look out for before I make the leap? The process just seems so easy and I'm worried I overlooked something that'll screw me over once I make the payment. Thanks! [link] [comments]  |
| Am I (25F) better off paying my federal or private loan first? Posted: 15 Oct 2019 03:39 PM PDT I know the rule of thumb is to pay the highest interest rate however my federal loan is the lowest amount with the highest interest rate. Then I know there's a thing called snowballing, where you should pay the smallest amount loan and work your way up. What do you suggest? Rough numbers: Federal Loan: $12,800 at 4.5% Private Loan: $27,311 at 4.3% (Refinanced with SoFi, originally 11% with Discover) Not sure which one to tackle first, most or evenly. I do plan to throw $1,000-$1,500 monthly into a loan just not sure how to divide the payments. Also any tips on how to not stress about payments? I have a good paying job but I'm a little bummed know moving out would be difficult and I'm basically living paycheck to paycheck with the amount of money I'm putting in. [link] [comments]  |
| Posted: 15 Oct 2019 03:00 PM PDT Got into a 14 month accelerated nursing program. Will need to take out $55,000 in loans. Is this worth it? I am worried about having a huge portion of my paycheck going towards my loan. The other option would be to get my associates in nursing and then go back to school to get my BSN. That would take more time in the long run though before i have my license. Please Help! (No existing student loans or loans) [link] [comments]  |
| Posted: 15 Oct 2019 02:35 PM PDT So we applied last December for borrowers defense for my husband's art institute loans. I put that we didn't want forbearance. Just got a letter that of today they are in forbearance. So weird and a little annoying. I think he should qualify. But who knows when it'll actually come to pass. If ever. Sigh. Anyone else put in forbearance when they asked not to be? [link] [comments]  |
| $140,000 and 6 percent interest, what to do? Posted: 15 Oct 2019 05:17 AM PDT I have $140,000 in student loan debt. I made a pretty dumb decision to consolidate my student loans into one loan with a six percent interest rate a few years ago. Anyway. I currently make $75,000 and live in NY, which is so expensive, but I work in media soooo... How can I even begin to tackle this? [link] [comments]  |
| Getting a Loan for Plastic Surgery Posted: 15 Oct 2019 07:58 PM PDT My question is, if I take out a personal loan to get plastic surgery in Korea will this affect my ability to get a student loan for Med school? I am a university student! I never needed to take out a loan for my undergraduate year! Thank god due to scholarships!!! So, I have no debt other than $830 in credit card debt since I do not work. But, I have a investment account with over $9k saved. So if, it comes to me touching that to pay off the card, then I will use it! But, I get every now and then $300 a month from my parents disability since in High school, my mother stopped working due to a car crash. I will be applying for other student benefits such as CPP etc. I want to take out a personal loan to do Plastic Surgery in Korean for the Summer of 2020! My credit score is about 700! With 3 credit cards at different banks, total balance of $31k credit limit combined! My age is 21 and I just graduated recently! [link] [comments]  |
| Posted: 15 Oct 2019 01:54 PM PDT My son just called me with a question about repayment .. using the basic #s here to keep things simple. He received the $2750 Federal loan and while it's not technically due to go into "Active Repayment" state until 2023, we wanted to put a little towards it each month. He paid $25 last month but when he got the latest statement, there was no reflection of his payment but there was $22 in interest (3 months accrued, I think) My assumption is that he will be able to pay say $25 a month and of that ~$7 goes towards interest and $18 goes towards principal. Is that not how it will work? Also - they say they offer a discount if he can set up automatic payments however he is unable to do so because the account is not in a "Active Repayment" state. Any information to help a non financial person out would be appreciated I told him to contact his service provider to understand how it works. [link] [comments]  |
| Letter stating I have been in Adminstrative Forberance for 7 months but payments were still taken. Posted: 15 Oct 2019 11:10 AM PDT So long story short, I was one of the unfortunate who were tangle up in the for profit school saga. Payments were supposed to be differed till they figure out what's going on. My last cycle of administrative forbearance ended in February and I started making payments in March. I contacted fedloan to see what the status was and they just gave me a non answer and told me to make my payments. So I set up direct debit and went on with my day. I noticed this month that my payment hadn't come out yet so I signed on to see what's up. I found a letter in my inbox dated for September 7th about my Forbearance results. Once again, without any correspondence, my account is in Forbearance and apparently has been since March 1, 2019. How can that be when they have been debiting an active account for 7 months? [link] [comments]  |
| Paying off loans impact on Credit Posted: 15 Oct 2019 06:56 AM PDT First time posting but I've been lurking and learning and implementing things from this community. Currently snow balling my student loans. I have 4 separate loans about $10,700. High interest rate is 6.8% all through Navient. I just remembered that my students loans are the oldest thing on my credit. Once I pay them off the oldest thing on my report will be less than 9 years and my student loans are currently 12 years old. Will this make a huge impact on my credit score? I dont necessarily need a high credit score anymore since I just bought my house but to me its a feeling of Making it in the world with a good credit score. Plus when I need to buy a new car I will want that score. Sorry if this is not relevant to the group. [link] [comments]  |
| 1 year to prepare myself for $50,000 Posted: 15 Oct 2019 04:35 AM PDT I am currently a senior in college who is preparing myself to start paying off my $48,000 in student loans. Does anyone have any tips as to how to prepare myself for a year from now (the 6 month graduation mark)? Im planning on moving to the city and I'm struggle with the idea of the weight of loans on my shoulders. I don't want to fail. [link] [comments]  |
| Asking because I couldn't find it -- Should I quickly pay off my student loans? Posted: 15 Oct 2019 07:39 AM PDT Hello, I currently have about 34k in student loans (I start paying in December) and have a job that's paying me about 60k a year. My interest rates are all below 6%. Should I focus on paying off my student loans asap or should I just go for the 10 year monthly payment plan? Please and thank you. [link] [comments]  |
| Posted: 15 Oct 2019 06:40 AM PDT I'm about to graduate college in 60 days (yay), and therefor am going to have to start paying some loans back (wack).. My credit score being propped up by my 1 (13 year old) Student Loan for average age of credit history. Therefor i want to keep the account open, but want to pay minimal interest. The loan is for 5k, and I have the 5k to pay it off in full now. But I would prefer to pay like $4950, leave a $50 balance, and just pay $1/month until its paid off. Resulting in keeping the account open a few years, and only wind up paying an extra $2-3 in interest. Is this possible ? I previously had two loans through navient, and paid one off, and it dropped my score ~60pts overnight. Trying to avoid this happening again. Will Navient allow a $1/month payment schedule or what is my best way of achieving this? Obviously i'm not going to pay a large amount of interest just to prop up my credit score, but if i can avoid a 50-60pt drop again while only paying an extra couple bucks to keep the account open a few more years until my other accounts can age, i'm good with that. Any advice/suggestions ? [link] [comments]  |
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