Apr
23

What are my options for dealing with expensive student loan?

By
student loan deal

I’m underemployed – working two hourly wage jobs because I’m “overqualified” (meaning possibly “too old” at 45!) for jobs I apply for. My loans are consolidated with Sallie Mae, and my deferments and forebearances have all ended. A monthly payment of near $900 is due, and I can’t afford it – monthly gross income is $1250. Sallie Mae has online alternative arrangements, but that only reduced payment to $700 for a year or two and then balloons them. I’ve talked with Sallie Mae but they don’t want to take more modest payments (e.g. $100)

I don’t want to default. I feel very stuck. Looking for a good-paying job has been a 4-year struggle as it is. Joining the Peace Corps is the only way to defer payments any further – I’m adventurous but I think that doesn’t solve my problem, really.

Help! Please advise me – there has to be a nugget of hope.
Should have also said – I own no property, no home, no equity, no IRA, no savings. Used these up to pay for necessities and some medical.

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Categories : student loan

1 Comments

1
fly_your_flag_high
December 7th, 2009 at 8:08 am

I’m not speaking from experience, but lenders will often help if you call and explain your situation. I know you called, but if you explain what your income is and tell them that it is impossible for you to make that payment, it seems they’d rather have you pay something than default.

Have you had someone else take a look at your resume? Are you in the right physical area to find a job in your career. Relocation might be necessary.

By the way, 45 is hardly too old to do anything and might I add an illegal reason to not hire someone, but impossible to prove.

You might want to take a job in the industry at a lower position and wage and work your way up. If you know what you are doing it won’t be hard.

$1250/month seems like a low wage. That works out to $7.21 per hour. If nothing else, just find another job that pays more hourly.

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