Did Budget...Need your advice?

[Txgirl]

So I have private student loans that are currently around 90 days past due. I do send in something to the OC every month (obviously not the full amount).

So I sat down and did a budget on what we pay every month. I only included credit cards, mortgage, vehicle payment, monthly bills, daycare. The bills I pay every month.

So after all that is paid. We have about $1000 left over every month to pay for groceries, household necessities (toilet paper, etc.), other unexpected expenses and gas for the vehicles. (I do receive a travel check monthly in the amount of about $200-$300 monthly, however I have been putting those aside as I will be off work for 6 weeks after I have this baby (and take leave w/o pay).

So here is my dilemma. I think my payment for my private SL will only leave us with a few hundred left over a month for food, gas, other expenses that come up. And I have tried to cut costs as much as possible.

Not to mention, that my husband has a smaller amount of private sl coming due in the fall. Then we have federal sl that are in economic hardship right now.

I will have about $70 freed up here in a few months and then our vehicle is paid off in July 2010 (I believe).

Private student loans are a beast to deal with. I just don't know what to do. There is still no way I could pay the full amount and be able to survive, not to mention we do have other SL coming up due.

Any sugguestions? Should I send the OC and/or the CA a certified letter stating what I can pay?

[BigJohn]

I would cash in your travel check and stuff the cash under your mattress.

As for your student loans, I would pray that Obama comes up with a solution because it seems like a lot of people are defaulting on their student loans.

[Recessionist]

I have heard from friends that Consumer Credit Counselors of __________ (fill in your county name) are good at working with student loan debt. I haven't had any student loans so I can't say from experience - but I will say, don't go to just any debt counselor. Go to CCCS - they are the originals.

Also, in some places, your maternity leave can be covered by state disability, so don't forget to look into that, if you haven't already.

And most of all - best wishes for you and new baby.

[Txgirl]

I tried CCCS and they do not deal with any type of student loans at all. Not even private which are not tied to the government.

I hope Obama figures out something!


I have TRIED to talk my husband into getting paperchecks from our employers. Putting what we need to pay the bills on a pre paid debit/credit card and then use cash for everything else.

I definitely thing it would make us more aware of how we are spending our money.

__________________

Should I try this:

So there is a modified repayment plan I can "apply" for. I am going to fill out the paperwork and send in a letter with it.

Should I fax or send in regular mail or certified mail?

[Recessionist]

Fax AND send certified mail.

[Txgirl]

Apparently the account is set up on some sort of modified repayment plan (or so it seems.)

So how would I go about it now? I am several months behind and don't have the lump sum to pay to get caught up.

There is an option to explain on the form if you want another repayment plan (I guess one they don't "advertise")

Again, what should I do?

THanks

[OhioFiler]

Apparently the account is set up on some sort of modified repayment plan (or so it seems.)

So how would I go about it now? I am several months behind and don't have the lump sum to pay to get caught up.

There is an option to explain on the form if you want another repayment plan (I guess one they don't "advertise")

Again, what should I do?

THanks

Don't be afraid to pick up the phone and call the lender's office. You are not the only person in your situation. I'm sure if you're proactive they'll work with you. Don't be afraid of them.

[treehugger1]

Private student loans are a problem. I'm not sure how the federal statutes play into the 15% garnishment allowed by the federal government (this is the case for subsidized guaranteed loans and can be done without court time.)

Is it possible to get a "re"-consolidation loan through Federal Direct on private loans? If so, this might be an option.

If not, then you can call them and see what options you have. I wish I knew more about the private student loan practice, but I do not. I can't remember if they are considered "unsecured" in the BK sense. Federal backed SL's are not and that creates its own dilemma. Perhaps someone knows if priviate SL's can be discharged. I'll guess thay cannot as the lenders probably would not have agreed to the private practice without some offset should borrowers default.

[Txgirl]

Tree- They are a BIG problem! LOL! I am in Texas and they can't garnish wages. Now federal ones can.

I tried consolidating about 8 months ago prior to repayment and no luck. You can't consolidate them into a federal program.

Lastly apparently back in 2005, private student loans can not be discharged. They are considered somewhat unsecured too. You still have to prove the Brunner test like the federal student loans.

I did find something on the OC website about a default prevention dept. Not sure if they are referring to just the federal loans they service or private loans too. So I will try that.

My last option is to fill out their official form for different repayment options and see if I can get approved for that!