Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)

Is there a way to get out of school debt?

My husband graduated from college. We now have school debt of about $144 thousand. That is more than our mortgage! The repayment is $600 a month. We can't afford that. They will not reduce it any more for us. They will defer it. That means we don't have to pay it for 6 months at a time, but intrest accumulates. This is so stupid. They won't adjust the payment to make it affordable for us, but they will allow us to stop paying and let it grow bigger.

Does anyone know how to get out of this?

Answer Question
 
AngelDawn7

Asked by AngelDawn7 at 2:17 PM on Mar. 3, 2009 in Money & Work

Level 3 (25 Credits)
Answers (21)
  • wow thats alot...what is his degree in?
    ria7

    Answer by ria7 at 2:19 PM on Mar. 3, 2009

  • WOW!! Did I read that? 144,000? Is he a doctor? Sounds like for that kind of cash he should be making enough dough to cover that??
    Anonymous

    Answer by Anonymous at 2:19 PM on Mar. 3, 2009

  • It's a loan, you have to pay it back. The best you can do is lock in a good rate.
    Anonymous

    Answer by Anonymous at 2:21 PM on Mar. 3, 2009

  • Yes, what you need to do is file for an economic hardship. Not sure if your dealing with Sallie Mae but they allow the borrower to do that. Theyll send out a form to fill out and attach proof of the hardship, like a bank statement, etc. Its pretty easy to do.

    There are also things like permanent disability if the situation applies, that has to be filled out by a doctor.

    You wont really 'get out of it' unless youre in a situation that the loans can be discharged like I mentioned above with a disability. That is what I had to do.

    Call your lender and ask about an 'economic hardship' deferment plan.
    lilmizmoore1127

    Answer by lilmizmoore1127 at 2:22 PM on Mar. 3, 2009

  • Check out Dave Ramsey's website for getting out of debt.
    timelessglass

    Answer by timelessglass at 2:22 PM on Mar. 3, 2009

  • @600/month not including interest they are giving you 20 yrs to pay it back. I wouldn't think you would want to take much longer because with interest that may be a 30 yr note.
    ria7

    Answer by ria7 at 2:23 PM on Mar. 3, 2009

  • There is nothing you can do about student loans, other than pay them off. They don't even go away when you file for bankruptcy. Sorry but you all are stuck with it. You can't take out a loan to go to school and never pay it off.
    feesharose

    Answer by feesharose at 2:24 PM on Mar. 3, 2009

  • You can still make payments during a deferment or a forebearance. I've done it myself when I lost my income for awhile. So, take the deferment, but then keep on paying whatever you can afford. This way you'll still be paying down the debt without any penalty for not making minimum payments. There is no way to "get out of it", though. You just have to pay it off.
    BlueFrogMama

    Answer by BlueFrogMama at 2:28 PM on Mar. 3, 2009

  • I don't know if it is a matter of wording that I'm just reading wrong but you really shouldn't want to "get out of" money that you owe. You borrowed the money with the promise to pay it back and you ought to pay it back. Like someone else said, they're giving you 20 years to pay that at $600 a month so I'm not sure how the monthly payments could be any lower. They defer the payment to give you time to get a job (assuming your degree will get you a higher-paying job) so that you don't have the burden of the bill while looking for a job. We all have loans, I'm working on paying mine off and no one's giving me a break either. I also don't expect one.

    $144,000 is a lot of money for a school (it must have been a good one). At my original school, it would have been at least $120,000 after 4 years so I left and went to a cheaper school because I knew I would never be able to afford to pay it after I graduated. Good luck!
    NovemberLove

    Answer by NovemberLove at 2:33 PM on Mar. 3, 2009

  • Yikes where did he go to school. With that kind of debt did he live off student loans all that time? You need to get a part time job to pay this. Work nights opposite of him. He took out the loans he owes the money.
    Anonymous

    Answer by Anonymous at 2:36 PM on Mar. 3, 2009

Join CafeMom now to contribute your answer and become part of our community. It's free and takes just a minute.