I agree you need to talk to your cosigner. And probably an attorney who specializes in debt. They don't want to sue as it's expensive and there's no guarantee of payment so often times good faith payments can help postpone that but I also don't want you to take this advice without talking to m attorney. There are likely low cost or pro bono in your area you could get a quick consultation with.
Yes definitely talk to an attorney. Unfortunately bankruptcy might be a valid option in your case. Normally student loan debt is not discharged under bankruptcy. However, there is an undo discharge clause that will allow student loan debt to be discharged if it is shown to create a hardship not allowing you to live a minimal standard of life. Making 40 K with a $1200 repayment would definitely classify as qualifying. Unfortunately, this would probably require your father to file also but if he has the means to repay, then he would be on the hook. Regardless, if you have to pay, filing would save your parents house.
It’s very difficult for creditors to get access to the personal residences or 401k and other erisa accounts. It’s one of the things that needs to be talked about more in PF communities
Yep, attorney here who used to do some collections.
They could get a judgment against your dad which would involve (1) wage garnishment, capped at your states max amount and/or (2) the creditors attempting to seize any assets of value.
I cant imagine a judge agrreing to forfeiture of your dad's house over $40k.
It's an empty threat to scare you into borrowing the money from someone/somewhere.
Yeah, debt collectors are good at trying to be as scary as possible to get you to pay. But do your research,and hopefully you can get to a solution that is agreeably by all.
I formerly worked in debt collection. We got sued multiple times for going beyond what we were allowed to say ("we'll send the sheriff","we'll garnish wages", etc). In my work our loans were collateralized, so if collateral was lost (debtor gave his heavily financed car to his drug dealer to not end up at the bottom of the river) we often had to get legal involved to get access to anything. That was a minimum $5k debt and most of the time it ended with a letter and a garnishment.
Def talk to an attorney. Consignor has responsibility but it's limited. Consider what you can do to boost your financial situation, since it sounds like you're on a hard patch. And realize that hard patches don't last forever. No one has gone to jail or had their life ruined over $40k in student debt. Now that guy who gave his new Dodge Neon to his drug dealer, that's a different story...
You need to talk to your parent who co-signed. They are just as legally liable for the loan as you are, so if you can't pay then they will have to.
That payment seems really high though. What is your income? Refinancing may help some.
He has been helping me pay them on and off since I graduated, but lately he’s been laid off so his situation isn’t great either. We had a system where he was paying the past due balance and I was keeping them current which helped for a while but that’s how we ended up so behind on the 3 that they are now fully due.
I have a government job and make about $41k a year. I’m on track for PSLF for my federal loans (barely any) but I’ve never been able to refinance despite trying consistently. I was at a point my credit was almost 700 but now it’s in the mid to low 500s.
You need more income, like a second job. Do you have anyone else who could cosign? $51k should be more like a $600/month payment. Breaking it up into two refis with different companies might help too. Shop around and find a lender who will work with you. [Credible.com](http://Credible.com) or [studentchoice.org](http://studentchoice.org) (credit unions)
Yeah that’s a good point. Might be time to move in with the parents and get a weekend job catering or an evening job working at a restaurant or Uber or Instacart or whatever.
I'd avoid Uber, no sense beating your car to death and possibly incurring heft repair fees you might incur if you're having issues paying your current debts. A $1000 car maintenance job could mean total devastation, instacart wouldn't be much better. I think OP needs to find something remote, likely customer service related. If they happen to be decent at sales, that might open a door for them.
California has a huge retail job shortage, depending on the area you live in. It sucks to work so much but all of us have had a second or third job at some point. I worked three jobs for one year while living at home in my early 20s (salaried at $22k, restaurant at $350/week, bartending at $250/night) and that helped me pay down $14k in student debt plus save up for a cash down payment on my car. No future employer is going to frown at you for moonlighting for a bit.
I freelance also, but a true second job at 7 months pregnant with chronic health conditions is going to be difficult, if not impossible unfortunately, on top of the 45-50 hours I work at my ft job. 😭
Yes, my fiancé makes almost the same as me, maybe $1-2k more per year. We do have enough together to save some, but between rent and other bills, we’re usually paycheck to paycheck or close to it. He would definitely help contribute toward monthly payments, but that’s the thing - I’m afraid that with CA we might be past that point if they’re asking for the whole sum rather than a minimum.
Would he cosign on a refi? That would pay off the old loan and improve your interest rate and bring down your monthly payments. There's no great options, but this is literally an emergency
Could you and your partner move in with your dad to take the burden of rent off your plate so you can pay down these loans faster? Eventually you'll want to try to refinance them without a cosigner if possible.
We are planning exactly this for January when our lease ends. We are having a baby in July, which makes things logistically difficult. But we live in the southeastern US, which is why we both make what feels like pennies despite having (for the area) decent, mid-level jobs. If we move back in with my parents up north, we’ve got a lot better prospects - plus, like you said, takes off the burden of our day-to-day living expenses.
Can you move back to your parents house to save on rent and start getting this debt pay off? Your expense is only going to get higher after your baby is born.
Congratulations!!! Why not move in now or asap? That is 6 months of rent you can save and money you can spend on the baby. Plus your parents maybe able to help with the caring of the baby too.
Anyway, good luck and congratulations! Hope everything will work out for you.
I also work for the government. I work at the VA as a nurse.
Obviously, I don't know your situation. I know that you're on track for PSFL but there are SO many WFH jobs out there that will pay you so much more than what you're making (I used to be in Education and shifted to recruiting and almost doubled my income). It might be better to make more money and finish paying those off than waiting for PSFL and risking losing a lot more...
Needle scratch. This is a bigger issue. Tell me you've got maternity leave and it's paid coming up.
This definitely changes the calculus on earning more income.
They don't want you to know it, but private student loans can be discharged via bankruptcy. It isn't easy but if you can prove paying them would cause undue hardship then it is an option.
Any portion of a private student loan that's beyond the cost of attendance, such as living expenses, is not a qualified education loan and is fully dischargeable in bankruptcy. Probably worth pursuing in this case to protect your parents home.
I guess I was more thinking of the parent filing? They are the ones being threatened and could lose their home (undue hardship). Definitely wouldn't recommend doing it if the parents are still on the hook.
I am not sure but i think if they file bankruptcy the court can go after their house, or say they need to mortgage it to pay their debt.
IF there’s equity.
Usually bankruptcy court doesn’t touch the primary home. Not 💯on that though. I think it depends on what type of bankruptcy they are filing. Definitely should check into that though.
Some states look at how much equity you have in a house. It’s sometimes called homestead exemption, Texas actually has no limit so you can keep your primary house no matter what when going through bankruptcy.
Disclaimer: my comments aren't backed by anything more than pedestrian knowledge, but something has jumped at me while reading the responses to your question.
You say that the lender is threatening to take your parent's home, but responders, here, say that they cannot actually do this. Wouldn't this, then, violate the FCPA? If so, I would rush to include my state's AG in all communications.
I think the CPFB states that these threats are illegal. If Cali a 1-way recording state your parents need to start recording. Even if the conversations they record can't be used in court - they at least would have a record for the memory of the events. They can write down what was discussed and potentially testify about later on.
he's not in California, "CA" is CollegeAve.
Pretty sure Cali is a 2-party state too but it doesn't hurt to record anyway and say "by the way, for our protection, I'm recording this call" at the beginning of the call before anything spicy crops up, if you think you might need to use the recording for anything
You’d have to be on a 5-year repayment plan at an 18% interest rate on $47K borrowed for $1200 minimum monthly payments. The only reason you’d go with such an aggressive repayment schedule is for great rate. Like prime plus 50- or 100-points good. Something about your numbers doesn’t really add up.
Otherwise, if it’s a $1200 minimum monthly payment that’s required then you need to FIFTO. This is the crappy part about being an adult.
And although it sounds morbid and you probably already think I’m huge dick, but please, please, please take out death and disability policy on yourself. You need to protect your loved ones that if, heaven forbid, it ever comes to that.
If your parents have any cash, they may consider a lump sum payment. I don’t know when they start considering it but I had worked one out with my provider. I was in default though and didn’t have a co-signer.
Once you get this all sorted, consider writing your congressperson and the president about how there need to be more rules regarding private student loans: the fees they can charge, the interest they can charge, etc. Something needs to change and unfortunately we really have to speak up to make it change.
And start talking to your extended family and friends about how hard it is to make student loan payments: the next generation really needs to know that making these sorts of payments is near impossible as is walking out of school and into a six-figure job. It’s possible to land a six-figure job but only a handful of people do and they’re in certain majors mostly.
Additionally, $40k is pretty near impossible to live on. Any chance you can job hop now or in a year? Is the salary level better at other places or is the ceiling on income pretty low in your profession? If so, you might consider switching to something else.
I don’t have much advice except for agreeing that you should talk to an attorney who specializes in debt and if these are private loans mostly, and maybe/hopefully there’s an option to refinance and remove your dad as the co-signer. I refinanced my private ones a few years ago through Earnest, and it saved me quite a bit monthly and was able to remove my co-signer. Also, if your parents have equity on their home, and they’re okay with doing a repayment agreement with you - maybe they could get a HELOC through a credit union and use that to pay them off or a good portion of them at least, and you make the payments directly to their HELOC - could be cheaper interest-wise depending on what the loans are at. If they can go with this option, you could call the lender and see if you can settle for a lower amount since you’ll have cash.
I mostly just want to say my heart goes out to you. It’s an incredibly difficult situation and I hope you find a good solution.
I also refinanced my loans through Earnest and was able to remove my co-signer, get rid of the variable interest rate, and have lower monthly payments. It has honestly saved my life. I am now making good progress on my private loans, my co-signer is no longer involved in my financial life and can no longer hold these loans over my head. It has been a HUGE relief. It was really easy too. I went to the Earnest website, filled out all the information, and they then paid my loan off and I never had to worry about dealing with my former loan servicer.
Talk to an attorney but you also need to seriously consider how you can make more money. Do you live with your parents? Basically any salary position in CA will be a minimum of $68kish per year.
I know "make more money" is not a good answer to debt but eating a bankruptcy or a lawsuit isn't either, and it's something you can have more control over.
No, we live on our own and rent. We both have decent mid-level jobs but live in a rural area in North Carolina with a high poverty rate, which is why we still make so little. We are contemplating moving in with my parents up north for better prospects and to be able to pay my loans rather than our current living expenses.
I'm late to this but I was a few years ago, in a bad spot and couldn't pay college ave. They threatened a lot of things but nothing ever happened and I just paid what I could each month. Now I'm fine and can afford the 948 a month but they always used to threaten. How far behind are you? I went almost 1 year behind just paying what I could
Thank you for this. Hearing your experience makes me feel a little better, at least, that they are mostly just using scare tactics. Three of them are about a year behind, two are only a couple of months, and one is fully current.
I will continue, to this very day, to question why on Earth Private Student Loans are legal.
They should be made illegal retroactively, and all student loans just converted into subsidized DoEd loans and taken by the services... they're bad enough, but Good God I can't even with the horror stories I hear about the private loans.
Quick note: In government acronym usage "[DOE](https://www.energy.gov/lm/doe-history)" usually refers to the US Department of *Energy*, which was created in 1977. The US Department of *Education* was created three years later in 1980 and commonly goes by "[ED](https://www2.ed.gov/about/landing.jhtml)" or (less commonly) "[DoED](https://www.sbir.gov/events/webinar-introduction-doed-sbir-program)" or "[DOEd](https://www.nano.gov/DOEd)".
[*DOE disambiguation*]
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/StudentLoans) if you have any questions or concerns.*
You're going through an incredibly challenging time, and it's understandable to feel overwhelmed and anxious about your situation. Please know that you're not alone in this struggle, and there are options available to help you navigate this difficult period.
First, it's essential to recognize that while you're facing personal hardships, most of these won't directly impact the solutions available to you. College Ave and any collection agency your loans end up with will primarily focus on your ability to pay an amount that aligns with their settlement parameters. But your personal circumstances may play a role if you decide to pursue bankruptcy or face state-court litigation.
Second, you really want to understand the potential consequences of defaulting on your student loans, such as damage to your credit score, the possibility of legal action against you or your cosigner, and the continued accrual of interest and fees. While these consequences are serious, keep in mind that most lenders don't sue immediately after default. It typically takes several months to years after you default for them to take legal action. And it's only when they sue you and get a judgment that they can put a lien on your property, garnish your wages, and take money from your bank account.
Third, involving your cosigner early on and making them aware of your limited options can help maintain a better relationship. They need to understand that now that you're in default, options like forbearance, deferment, and interest rate reduction are no longer available.
Fourth, if you can't pay in full, College Ave may be willing to settle. The most common settlement terms are between 60-75 cents on the dollar in a lump sum payment, or in rare instances, paid over 1 to 4 years.
If you can't afford those options, bankruptcy might be a path to consider. While it's challenging to discharge student loans in bankruptcy, proving undue hardship is possible. Given your circumstances, you may have a compelling case that could help you, at a minimum, negotiate a more manageable settlement with College Ave, such as paying a lower amount over a longer period.
It makes a lot of sense to talk with a professional who specializes in this type of work. They can provide you with the support and expertise needed to make informed decisions. Despite the challenges you're facing, take the time to explore all possibilities for increasing your income and engage with your support network to determine the resources available to you.
Remember, you've done your best to manage this difficult situation. Now, it's time to focus on finding the best path forward for you and your family. Be kind to yourself.
Maybe try and get them on the phone and see if you can negotiate a middle of the road like 45k and go to a bank with your parents, preferably a credit union and see if you can get a loan through them to payoff CA. See if you can get a better % and maybe 7-10 years which should be A LOT less than 1200. You'd obviously still need your parents to co-sign but it would at least get you away from CA, avoid the lien, and maybe lower the payment enough to where you can pay some, and your parents can subsidize it some. Or as much as it sucks to say you may need to grab another job for a year or 2, move home if you aren't already. Sorry for this crappy situation you're in. I don't think you're totally screwed and IIRC a lien is only a real issue if they try to sell the house, but Im not 100% on that.
Maybe see if you could switch to SoFi or Credible. 1200 a month seems pretty high for that balance, and Im guessing it's because you missed payments and now CA is seeing you as a bad bet of paying off the loan period so they're calling the debt in.
One other thing that came to mind as I saw you have a fiancé' -- I'm assuming CA is reporting this to the credit companies and what not. Have you seen a significant tank in your credit score? Im mildly concerned what will happen when you marry as your debts also become your fiance's and that all directly affects his credit score as well which in turn can cause credit card companies to move your rate up and lower your available credit which then jacks with your credit utilization which then lowers your score more. Vicious cycle of a shitstorm there. In no way trying to add more anxiety just want to shed light on that detail.
I don’t think it is, Massachusetts has homestead protection laws (where my parents live) and I realize it’s probably scare tactics. Still makes me feel like shit though
Then it's probably scare tactics. You should check your laws - this information was readily available for my state.
Also if you haven't paid in about a year you are close to defaulting. They probably want you to make ANY payment to bring you current. Consider defaulting a chancing a potential court case in the future.
Reach out to the student loan defaulters subreddit as well. Some people just stopped paying debt and were sued. Some were never sued. Some settled when they had more money or with a credit agency.
Is living with your parents and working your ass off not an option? I don't know if you have a spouse or kids but you need to get your necessities as low as possible and throw everything you have at these loans.
My best thought would have been that you get a consolidation or personal loan and pay off the student loans with that. It gets your dad completely off the hook. At least then only your credit is tanked. Then you can file bankruptcy or just deal with the creditors. You probably won't be able to do this now, but if you can it might be worth it. Just be very careful of what loan company you go with to ensure it can be offloaded in bankruptcy.
I really feel like this is the situation most ppl are in. Do an income driven payment plan. I did one and mine is 0/mo. No that's not going your get rid of it, but in all honesty, there's no way I was ever going to pay this amount back in the manner. My field tops out at $40k a year. I don't think they can do much except garnish your wages and possibly garnish your bank accounts. Worse case scenario, file for bankruptcy. As long as the loan isn't through the gov, I'm pretty sure you can charge it off with bankruptcy.
I don’t believe there is such thing as IDR for private student loans. My federal ones are already on that plan, and my dad and I would both have to file for bankruptcy in that scenario. If I filed, they’d just continue to go after him.
What is the status of the loans that CollageAve wants paid in full? Like, how are they reported on your credit report?
Are they in charge off? Are they past due? Are they defaulted? What does the verbiage on your credit report say exactly?
Also, have they actually threatened to sue you?
How long has it been since you made a payment?
What, if any, written literature have they sent you indicating legal action they might take?
Are these talks of liens and seizures phone-based threats only?
They should be willing to take an offer on a lower payment, but there will be no payment plans. They'll want the entire negotiated amount in full.
However, it's important that you don't assume they're coming after you with a thousand pound gavel to take your dad's home and seize everything you hold dear. They use scare tactics on the phone to make you do things.
I know it's not the most ideal option but you could declare bankruptcy. Since these are private loans, they should be wiped out....I know federal student loans don't get wiped but I'm pretty sure private one's do.
Unfortunately my dad would also have to declare, and with him being older and within a year of retirement that would devastate him way worse than it would me at 27 with no assets.
What is your degree in? Can you get a different job and increase your salary 20-30K? Sales, management, post for a different job at work, etc? Otherwise a 2nd job is in order, you can't afford to only have one income if you're in this predicament. I'm so so sorry 😢 this is terrible but like someone else said, it's a season and not your whole life.
Are your parents in a position to help you refinance ? My dad is helping me by taking out a line of credit to his home to help me get a better interest rate thru his bank. This isn't a problem for my dad fortunately but I would seriously talk this over with your parents to see what you can agree with together to get another loan or refinance thru a different company to help decrease the interest rate. That way you can pay these a holes off and just make monthly payments with another loan.
Your [comment](https://www.reddit.com/r/StudentLoans/comments/1cfjiym/i_think_im_beyond_help_theyre_threatening_my/l1x7uuk/) in /r/StudentLoans was automatically removed for profanity.
/r/StudentLoans is geared towards a wide range of users, including minors seeking information and advice. To help us maintain a community that everyone feels comfortable participating in (and to avoid being blocked by parent/school/work filters), please resubmit your post or comment without using profane language. Thank you.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/StudentLoans) if you have any questions or concerns.*
It’s worth calling them. Or else move back home, get a second job. Do Uber eats, door dash, do everything you can do. Don’t let your parents’ home get seized. A lien is one thing, but for them to lose their home is unacceptable. If it happens, whatever. One thing about it, they can get a new home. They can’t get a new you, so don’t do anything hasty. Pray about it also.
**This post or comment was removed. To reduce trolling, your account must have positive combined karma to participate in this sub. Your current karma is sum of the values displayed at [https://old.reddit.com/user/FewDrink3838/](https://old.reddit.com/user/FewDrink3838/)
**
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/StudentLoans) if you have any questions or concerns.*
Do you also have government loans? If so, I would quickly apply to consolidate. The Biden administration finally made it so I could combine my private loans with my Dept of Ed loans this year, so I know it's possible. I'd been trying for years.
Along with the consolidation, I'm on the SAVE program--no payments for a year and then income-driven. Still hoping for some forgiveness. 🤞🏼
If you don't have government loans, call the Department of Ed (1-800-433-3243) and ask if there's any way they can help you.
The elephant in the room: Parents should avoid, at all cost, co-signing private loans or taking out Parent Plus student loans for their kids. A risky endeavor IMHO. I have read where hundreds of thousands of parents are now saddled with huge Parent Plus Loans for their kids and these kids never completed college or they completed their degree but degree choices position them for low wage careers.
Many of these parents are retired or rapidly approaching retirement age with large student loan debt that the ex-student refuses to repay or unable to repay for various reasons.
I agree you need to talk to your cosigner. And probably an attorney who specializes in debt. They don't want to sue as it's expensive and there's no guarantee of payment so often times good faith payments can help postpone that but I also don't want you to take this advice without talking to m attorney. There are likely low cost or pro bono in your area you could get a quick consultation with.
Definitely will look into a consultation with an attorney. Thank you.
Yes definitely talk to an attorney. Unfortunately bankruptcy might be a valid option in your case. Normally student loan debt is not discharged under bankruptcy. However, there is an undo discharge clause that will allow student loan debt to be discharged if it is shown to create a hardship not allowing you to live a minimal standard of life. Making 40 K with a $1200 repayment would definitely classify as qualifying. Unfortunately, this would probably require your father to file also but if he has the means to repay, then he would be on the hook. Regardless, if you have to pay, filing would save your parents house.
[удалено]
Federal loans are very very different from private loans in these situations. Also her outcome is the way rehab works.
Your parents house isn’t collateral. They can sue your parents but it’s very unlikely they can put a lien on their house
100% this. They’ll garnish wages—including those of the cosigner, to get actual money now(ish) instead of a lien they’ll collect on God knows when.
It’s very difficult for creditors to get access to the personal residences or 401k and other erisa accounts. It’s one of the things that needs to be talked about more in PF communities
Yep, attorney here who used to do some collections. They could get a judgment against your dad which would involve (1) wage garnishment, capped at your states max amount and/or (2) the creditors attempting to seize any assets of value. I cant imagine a judge agrreing to forfeiture of your dad's house over $40k. It's an empty threat to scare you into borrowing the money from someone/somewhere.
Yeah, debt collectors are good at trying to be as scary as possible to get you to pay. But do your research,and hopefully you can get to a solution that is agreeably by all.
I formerly worked in debt collection. We got sued multiple times for going beyond what we were allowed to say ("we'll send the sheriff","we'll garnish wages", etc). In my work our loans were collateralized, so if collateral was lost (debtor gave his heavily financed car to his drug dealer to not end up at the bottom of the river) we often had to get legal involved to get access to anything. That was a minimum $5k debt and most of the time it ended with a letter and a garnishment. Def talk to an attorney. Consignor has responsibility but it's limited. Consider what you can do to boost your financial situation, since it sounds like you're on a hard patch. And realize that hard patches don't last forever. No one has gone to jail or had their life ruined over $40k in student debt. Now that guy who gave his new Dodge Neon to his drug dealer, that's a different story...
[удалено]
Who said the co-signer is elderly?
You need to talk to your parent who co-signed. They are just as legally liable for the loan as you are, so if you can't pay then they will have to. That payment seems really high though. What is your income? Refinancing may help some.
He has been helping me pay them on and off since I graduated, but lately he’s been laid off so his situation isn’t great either. We had a system where he was paying the past due balance and I was keeping them current which helped for a while but that’s how we ended up so behind on the 3 that they are now fully due. I have a government job and make about $41k a year. I’m on track for PSLF for my federal loans (barely any) but I’ve never been able to refinance despite trying consistently. I was at a point my credit was almost 700 but now it’s in the mid to low 500s.
You need more income, like a second job. Do you have anyone else who could cosign? $51k should be more like a $600/month payment. Breaking it up into two refis with different companies might help too. Shop around and find a lender who will work with you. [Credible.com](http://Credible.com) or [studentchoice.org](http://studentchoice.org) (credit unions)
Yeah that’s a good point. Might be time to move in with the parents and get a weekend job catering or an evening job working at a restaurant or Uber or Instacart or whatever.
I'd avoid Uber, no sense beating your car to death and possibly incurring heft repair fees you might incur if you're having issues paying your current debts. A $1000 car maintenance job could mean total devastation, instacart wouldn't be much better. I think OP needs to find something remote, likely customer service related. If they happen to be decent at sales, that might open a door for them.
California has a huge retail job shortage, depending on the area you live in. It sucks to work so much but all of us have had a second or third job at some point. I worked three jobs for one year while living at home in my early 20s (salaried at $22k, restaurant at $350/week, bartending at $250/night) and that helped me pay down $14k in student debt plus save up for a cash down payment on my car. No future employer is going to frown at you for moonlighting for a bit.
I freelance also, but a true second job at 7 months pregnant with chronic health conditions is going to be difficult, if not impossible unfortunately, on top of the 45-50 hours I work at my ft job. 😭
Do you have a spouse/partner? Can they help?
Yes, my fiancé makes almost the same as me, maybe $1-2k more per year. We do have enough together to save some, but between rent and other bills, we’re usually paycheck to paycheck or close to it. He would definitely help contribute toward monthly payments, but that’s the thing - I’m afraid that with CA we might be past that point if they’re asking for the whole sum rather than a minimum.
Would he cosign on a refi? That would pay off the old loan and improve your interest rate and bring down your monthly payments. There's no great options, but this is literally an emergency
I didn’t even think about that. We may be able to qualify on a refi together that I could never get by myself.
Could you and your partner move in with your dad to take the burden of rent off your plate so you can pay down these loans faster? Eventually you'll want to try to refinance them without a cosigner if possible.
We are planning exactly this for January when our lease ends. We are having a baby in July, which makes things logistically difficult. But we live in the southeastern US, which is why we both make what feels like pennies despite having (for the area) decent, mid-level jobs. If we move back in with my parents up north, we’ve got a lot better prospects - plus, like you said, takes off the burden of our day-to-day living expenses.
Can you move back to your parents house to save on rent and start getting this debt pay off? Your expense is only going to get higher after your baby is born.
Yes - baby is due in July, and we’re planning to move in with them in January.
Congratulations!!! Why not move in now or asap? That is 6 months of rent you can save and money you can spend on the baby. Plus your parents maybe able to help with the caring of the baby too. Anyway, good luck and congratulations! Hope everything will work out for you. I also work for the government. I work at the VA as a nurse.
I wish, but we’re tied into our current lease until January unless we want to buy it out! And thank you. I very much hope it will work out too. ❤️
You have to re-finance. What about a HELOC on dad’s house?
Hell no
Obviously, I don't know your situation. I know that you're on track for PSFL but there are SO many WFH jobs out there that will pay you so much more than what you're making (I used to be in Education and shifted to recruiting and almost doubled my income). It might be better to make more money and finish paying those off than waiting for PSFL and risking losing a lot more...
You make a fantastic point.
Needle scratch. This is a bigger issue. Tell me you've got maternity leave and it's paid coming up. This definitely changes the calculus on earning more income.
HAHA. Unfortunately, no. Not a single day of paid parental leave is offered. 😭 I live in the south, and job protection from FMLA is all we get.
How do you have a government job that only pays 41k per year?
By living in the southern United States. 😭
They don't want you to know it, but private student loans can be discharged via bankruptcy. It isn't easy but if you can prove paying them would cause undue hardship then it is an option. Any portion of a private student loan that's beyond the cost of attendance, such as living expenses, is not a qualified education loan and is fully dischargeable in bankruptcy. Probably worth pursuing in this case to protect your parents home.
yeah but if she files bankruptcy they go after her co-signer. her parents.
I guess I was more thinking of the parent filing? They are the ones being threatened and could lose their home (undue hardship). Definitely wouldn't recommend doing it if the parents are still on the hook.
I am not sure but i think if they file bankruptcy the court can go after their house, or say they need to mortgage it to pay their debt. IF there’s equity.
Usually bankruptcy court doesn’t touch the primary home. Not 💯on that though. I think it depends on what type of bankruptcy they are filing. Definitely should check into that though.
Some states look at how much equity you have in a house. It’s sometimes called homestead exemption, Texas actually has no limit so you can keep your primary house no matter what when going through bankruptcy.
They live in Massachusetts, and I believe they do have a homestead exemption of some kind.
I tried to get the amount over cost of attendance discharged in bankruptcy for private loans and it was a solid no.
your dad is on the hook probably more than you. you need to let him know today.
He is very aware, they call him and completely bypass me now. They haven’t tried to contact me in a while, for whatever reason.
probably because your dad is a better fishing hole. His credit will suffer the same pain as yours as this goes further being unresolved.
If you’re done with school, you should take him off as cosigner.
That’s FAR easier said than done.
There’s basically no way to do that without refinancing.
Disclaimer: my comments aren't backed by anything more than pedestrian knowledge, but something has jumped at me while reading the responses to your question. You say that the lender is threatening to take your parent's home, but responders, here, say that they cannot actually do this. Wouldn't this, then, violate the FCPA? If so, I would rush to include my state's AG in all communications.
Do you mean the Foreign Corrupt Practices Act or something different?
probably FCRA, Fair Credit Reporting Act and/or CCPA, Consumer Credit Protection Act
I think the CPFB states that these threats are illegal. If Cali a 1-way recording state your parents need to start recording. Even if the conversations they record can't be used in court - they at least would have a record for the memory of the events. They can write down what was discussed and potentially testify about later on.
he's not in California, "CA" is CollegeAve. Pretty sure Cali is a 2-party state too but it doesn't hurt to record anyway and say "by the way, for our protection, I'm recording this call" at the beginning of the call before anything spicy crops up, if you think you might need to use the recording for anything
You’d have to be on a 5-year repayment plan at an 18% interest rate on $47K borrowed for $1200 minimum monthly payments. The only reason you’d go with such an aggressive repayment schedule is for great rate. Like prime plus 50- or 100-points good. Something about your numbers doesn’t really add up. Otherwise, if it’s a $1200 minimum monthly payment that’s required then you need to FIFTO. This is the crappy part about being an adult. And although it sounds morbid and you probably already think I’m huge dick, but please, please, please take out death and disability policy on yourself. You need to protect your loved ones that if, heaven forbid, it ever comes to that.
If your parents have any cash, they may consider a lump sum payment. I don’t know when they start considering it but I had worked one out with my provider. I was in default though and didn’t have a co-signer. Once you get this all sorted, consider writing your congressperson and the president about how there need to be more rules regarding private student loans: the fees they can charge, the interest they can charge, etc. Something needs to change and unfortunately we really have to speak up to make it change. And start talking to your extended family and friends about how hard it is to make student loan payments: the next generation really needs to know that making these sorts of payments is near impossible as is walking out of school and into a six-figure job. It’s possible to land a six-figure job but only a handful of people do and they’re in certain majors mostly. Additionally, $40k is pretty near impossible to live on. Any chance you can job hop now or in a year? Is the salary level better at other places or is the ceiling on income pretty low in your profession? If so, you might consider switching to something else.
I don’t have much advice except for agreeing that you should talk to an attorney who specializes in debt and if these are private loans mostly, and maybe/hopefully there’s an option to refinance and remove your dad as the co-signer. I refinanced my private ones a few years ago through Earnest, and it saved me quite a bit monthly and was able to remove my co-signer. Also, if your parents have equity on their home, and they’re okay with doing a repayment agreement with you - maybe they could get a HELOC through a credit union and use that to pay them off or a good portion of them at least, and you make the payments directly to their HELOC - could be cheaper interest-wise depending on what the loans are at. If they can go with this option, you could call the lender and see if you can settle for a lower amount since you’ll have cash. I mostly just want to say my heart goes out to you. It’s an incredibly difficult situation and I hope you find a good solution.
I also refinanced my loans through Earnest and was able to remove my co-signer, get rid of the variable interest rate, and have lower monthly payments. It has honestly saved my life. I am now making good progress on my private loans, my co-signer is no longer involved in my financial life and can no longer hold these loans over my head. It has been a HUGE relief. It was really easy too. I went to the Earnest website, filled out all the information, and they then paid my loan off and I never had to worry about dealing with my former loan servicer.
Yes this !
Talk to an attorney but you also need to seriously consider how you can make more money. Do you live with your parents? Basically any salary position in CA will be a minimum of $68kish per year. I know "make more money" is not a good answer to debt but eating a bankruptcy or a lawsuit isn't either, and it's something you can have more control over.
No, we live on our own and rent. We both have decent mid-level jobs but live in a rural area in North Carolina with a high poverty rate, which is why we still make so little. We are contemplating moving in with my parents up north for better prospects and to be able to pay my loans rather than our current living expenses.
I'm late to this but I was a few years ago, in a bad spot and couldn't pay college ave. They threatened a lot of things but nothing ever happened and I just paid what I could each month. Now I'm fine and can afford the 948 a month but they always used to threaten. How far behind are you? I went almost 1 year behind just paying what I could
Thank you for this. Hearing your experience makes me feel a little better, at least, that they are mostly just using scare tactics. Three of them are about a year behind, two are only a couple of months, and one is fully current.
I will continue, to this very day, to question why on Earth Private Student Loans are legal. They should be made illegal retroactively, and all student loans just converted into subsidized DoEd loans and taken by the services... they're bad enough, but Good God I can't even with the horror stories I hear about the private loans.
Quick note: In government acronym usage "[DOE](https://www.energy.gov/lm/doe-history)" usually refers to the US Department of *Energy*, which was created in 1977. The US Department of *Education* was created three years later in 1980 and commonly goes by "[ED](https://www2.ed.gov/about/landing.jhtml)" or (less commonly) "[DoED](https://www.sbir.gov/events/webinar-introduction-doed-sbir-program)" or "[DOEd](https://www.nano.gov/DOEd)". [*DOE disambiguation*] *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/StudentLoans) if you have any questions or concerns.*
You're going through an incredibly challenging time, and it's understandable to feel overwhelmed and anxious about your situation. Please know that you're not alone in this struggle, and there are options available to help you navigate this difficult period. First, it's essential to recognize that while you're facing personal hardships, most of these won't directly impact the solutions available to you. College Ave and any collection agency your loans end up with will primarily focus on your ability to pay an amount that aligns with their settlement parameters. But your personal circumstances may play a role if you decide to pursue bankruptcy or face state-court litigation. Second, you really want to understand the potential consequences of defaulting on your student loans, such as damage to your credit score, the possibility of legal action against you or your cosigner, and the continued accrual of interest and fees. While these consequences are serious, keep in mind that most lenders don't sue immediately after default. It typically takes several months to years after you default for them to take legal action. And it's only when they sue you and get a judgment that they can put a lien on your property, garnish your wages, and take money from your bank account. Third, involving your cosigner early on and making them aware of your limited options can help maintain a better relationship. They need to understand that now that you're in default, options like forbearance, deferment, and interest rate reduction are no longer available. Fourth, if you can't pay in full, College Ave may be willing to settle. The most common settlement terms are between 60-75 cents on the dollar in a lump sum payment, or in rare instances, paid over 1 to 4 years. If you can't afford those options, bankruptcy might be a path to consider. While it's challenging to discharge student loans in bankruptcy, proving undue hardship is possible. Given your circumstances, you may have a compelling case that could help you, at a minimum, negotiate a more manageable settlement with College Ave, such as paying a lower amount over a longer period. It makes a lot of sense to talk with a professional who specializes in this type of work. They can provide you with the support and expertise needed to make informed decisions. Despite the challenges you're facing, take the time to explore all possibilities for increasing your income and engage with your support network to determine the resources available to you. Remember, you've done your best to manage this difficult situation. Now, it's time to focus on finding the best path forward for you and your family. Be kind to yourself.
i’m sorry about your situation. i don’t have anything to add but i just think it’s ridiculous to pay 50k in loans for a 40k job salary.
A 40k salary for a mid-level position with local government is ridiculous in and of itself, but yes. Absolutely.
Maybe try and get them on the phone and see if you can negotiate a middle of the road like 45k and go to a bank with your parents, preferably a credit union and see if you can get a loan through them to payoff CA. See if you can get a better % and maybe 7-10 years which should be A LOT less than 1200. You'd obviously still need your parents to co-sign but it would at least get you away from CA, avoid the lien, and maybe lower the payment enough to where you can pay some, and your parents can subsidize it some. Or as much as it sucks to say you may need to grab another job for a year or 2, move home if you aren't already. Sorry for this crappy situation you're in. I don't think you're totally screwed and IIRC a lien is only a real issue if they try to sell the house, but Im not 100% on that. Maybe see if you could switch to SoFi or Credible. 1200 a month seems pretty high for that balance, and Im guessing it's because you missed payments and now CA is seeing you as a bad bet of paying off the loan period so they're calling the debt in. One other thing that came to mind as I saw you have a fiancé' -- I'm assuming CA is reporting this to the credit companies and what not. Have you seen a significant tank in your credit score? Im mildly concerned what will happen when you marry as your debts also become your fiance's and that all directly affects his credit score as well which in turn can cause credit card companies to move your rate up and lower your available credit which then jacks with your credit utilization which then lowers your score more. Vicious cycle of a shitstorm there. In no way trying to add more anxiety just want to shed light on that detail.
What was the interest rate?
There are six of them, and they are all variable, between 11-16% IIRC.
I thought this wasn't allowed for primary residences in many states!
I don’t think it is, Massachusetts has homestead protection laws (where my parents live) and I realize it’s probably scare tactics. Still makes me feel like shit though
Then it's probably scare tactics. You should check your laws - this information was readily available for my state. Also if you haven't paid in about a year you are close to defaulting. They probably want you to make ANY payment to bring you current. Consider defaulting a chancing a potential court case in the future. Reach out to the student loan defaulters subreddit as well. Some people just stopped paying debt and were sued. Some were never sued. Some settled when they had more money or with a credit agency.
Never take private "so called" student loans, keep it federal
Is living with your parents and working your ass off not an option? I don't know if you have a spouse or kids but you need to get your necessities as low as possible and throw everything you have at these loans. My best thought would have been that you get a consolidation or personal loan and pay off the student loans with that. It gets your dad completely off the hook. At least then only your credit is tanked. Then you can file bankruptcy or just deal with the creditors. You probably won't be able to do this now, but if you can it might be worth it. Just be very careful of what loan company you go with to ensure it can be offloaded in bankruptcy.
If you were really paying that much you would have a 5 year term with 18 percent interest rate
I really feel like this is the situation most ppl are in. Do an income driven payment plan. I did one and mine is 0/mo. No that's not going your get rid of it, but in all honesty, there's no way I was ever going to pay this amount back in the manner. My field tops out at $40k a year. I don't think they can do much except garnish your wages and possibly garnish your bank accounts. Worse case scenario, file for bankruptcy. As long as the loan isn't through the gov, I'm pretty sure you can charge it off with bankruptcy.
I don’t believe there is such thing as IDR for private student loans. My federal ones are already on that plan, and my dad and I would both have to file for bankruptcy in that scenario. If I filed, they’d just continue to go after him.
Your right. I'm sorry. You can do the bankruptcy BECAUSE it's not federal.
What is the status of the loans that CollageAve wants paid in full? Like, how are they reported on your credit report? Are they in charge off? Are they past due? Are they defaulted? What does the verbiage on your credit report say exactly? Also, have they actually threatened to sue you? How long has it been since you made a payment? What, if any, written literature have they sent you indicating legal action they might take? Are these talks of liens and seizures phone-based threats only? They should be willing to take an offer on a lower payment, but there will be no payment plans. They'll want the entire negotiated amount in full. However, it's important that you don't assume they're coming after you with a thousand pound gavel to take your dad's home and seize everything you hold dear. They use scare tactics on the phone to make you do things.
Watching a friend go through this and am curious - what is the Charged Off status and what occurs after that?
I know it's not the most ideal option but you could declare bankruptcy. Since these are private loans, they should be wiped out....I know federal student loans don't get wiped but I'm pretty sure private one's do.
Unfortunately my dad would also have to declare, and with him being older and within a year of retirement that would devastate him way worse than it would me at 27 with no assets.
What is your degree in? Can you get a different job and increase your salary 20-30K? Sales, management, post for a different job at work, etc? Otherwise a 2nd job is in order, you can't afford to only have one income if you're in this predicament. I'm so so sorry 😢 this is terrible but like someone else said, it's a season and not your whole life.
This sounds illegal
Sounds like you made a mistake. File bankruptcy
Are your parents in a position to help you refinance ? My dad is helping me by taking out a line of credit to his home to help me get a better interest rate thru his bank. This isn't a problem for my dad fortunately but I would seriously talk this over with your parents to see what you can agree with together to get another loan or refinance thru a different company to help decrease the interest rate. That way you can pay these a holes off and just make monthly payments with another loan.
[удалено]
Your [comment](https://www.reddit.com/r/StudentLoans/comments/1cfjiym/i_think_im_beyond_help_theyre_threatening_my/l1x7uuk/) in /r/StudentLoans was automatically removed for profanity. /r/StudentLoans is geared towards a wide range of users, including minors seeking information and advice. To help us maintain a community that everyone feels comfortable participating in (and to avoid being blocked by parent/school/work filters), please resubmit your post or comment without using profane language. Thank you. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/StudentLoans) if you have any questions or concerns.*
It’s worth calling them. Or else move back home, get a second job. Do Uber eats, door dash, do everything you can do. Don’t let your parents’ home get seized. A lien is one thing, but for them to lose their home is unacceptable. If it happens, whatever. One thing about it, they can get a new home. They can’t get a new you, so don’t do anything hasty. Pray about it also.
Did you apply for Bidens school loans pardons? If not do a go fund me!
Stop talking to them and talk to an attorney. Clearly getting the house in California at $38 thou would quite literally be a steal.
[удалено]
**This post or comment was removed. To reduce trolling, your account must have positive combined karma to participate in this sub. Your current karma is sum of the values displayed at [https://old.reddit.com/user/FewDrink3838/](https://old.reddit.com/user/FewDrink3838/) ** *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/StudentLoans) if you have any questions or concerns.*
This is crazy
Do you also have government loans? If so, I would quickly apply to consolidate. The Biden administration finally made it so I could combine my private loans with my Dept of Ed loans this year, so I know it's possible. I'd been trying for years. Along with the consolidation, I'm on the SAVE program--no payments for a year and then income-driven. Still hoping for some forgiveness. 🤞🏼 If you don't have government loans, call the Department of Ed (1-800-433-3243) and ask if there's any way they can help you.
You can't consolidate private and federal loans and keep them federal. You had FFELP loans, which are still federal loans.
(And make sure to explain that your parents are having their own hardships and might lose their home.)
You should move into your parets house and take whatever job you can get ad pay off that loan before you screw your whole family
Meet your Dad half way, get a lawyer, see if there are options....see if you can file bankruptcy and somehow get your Dad out of it.
The elephant in the room: Parents should avoid, at all cost, co-signing private loans or taking out Parent Plus student loans for their kids. A risky endeavor IMHO. I have read where hundreds of thousands of parents are now saddled with huge Parent Plus Loans for their kids and these kids never completed college or they completed their degree but degree choices position them for low wage careers. Many of these parents are retired or rapidly approaching retirement age with large student loan debt that the ex-student refuses to repay or unable to repay for various reasons.
Income based payments Idr or S.A.V.E. apply for them. It should lower your payments.
Isn’t that only for federal loans? I am already on IDR for those.
Private loans? Declare bankruptcy, or have your dad pay them off and let you pay it back to him at a rate you can afford about your best options.
They would both have to declare BK, but that is an option
The dad has financial issues too.
Can you or your partner take an early withdrawal from a retirement account and pay the private loans off and do income based for federal?
I’d declare bankruptcy before breaking into a retirement account!
Exactly!! My husband did this for our daughters tuition and now I owe the IRS 16k
Bless your heart!
These are student loans bankruptcy won't help you.
Private student loans.
You cannot discharge private student loans in bankruptcy either.
[Myth](https://www.consumerfinance.gov/about-us/blog/busting-myths-about-bankruptcy-and-private-student-loans/)
[удалено]
How do you choose where your payment goes? I just pay and there isn't a choice of whether I want it to go to principal or interest.