Debt problems

[Toadstool Senior Member Find all posts View Profile Close Toadstool]

I have a question for you all. A lot of guys on here with a lot more knowledge than I have about this.

I have a student loan of somewhere between 20 and 30 thousand.
I cannot afford the payments.
I have deferred payments for the last 2 years.
I'm not exactly sure what my options are at this point. I could be in default in the next little while, where interest will start to build.

Can someone give advice? Where can I turn to? What are my options right now?

[MrsLooking4more Retired Super Moderator Member of the Month Feb 2013PEGym Hero Find all posts View Profile Close MrsLooking4more]

Toad are your loans from a financial institution or from the government? Depending on your answer the route to follow is quite different.

[not2big Senior Super ModeratorPEGym Hero Find all posts View Profile Close not2big]

Google student loan forgiveness. There are some options available if you qualify.

[Toadstool Senior Member Find all posts View Profile Close Toadstool]

Toad are your loans from a financial institution or from the government? Depending on your answer the route to follow is quite different.

They are from a financial institution.

[MrsLooking4more Retired Super Moderator Member of the Month Feb 2013PEGym Hero Find all posts View Profile Close MrsLooking4more]

From a financial institution is harder to get forgiveness that usually applies to government issued ones but you can still search google and see if your particular Institution grants forgiveness or Hardship extensions. First read the contract you signed for the loan most of the information you want is there, the rest should be on the internet. If your deferral so far was the normal deferral after graduation you might be able to get the hardship deferral or reduction. This will consolidate all the loans and then reduce the payment to a low amount under hardship until you begin to work then it will restructured.

I don't know if your loans are U.S. based that is how most student loans work here. If you want PM institution details and I can help you look or at least hep you with the legalese.

[WIItard Senior Member Find all posts View Profile Close WIItard]

What country are you in?
Next thought would be do you have multiple loans or one? I would be looking to refi the whole thing. 20- 30K is a car payment, you can't come up with that???


Little more info and I might be able to come up with something.

[Toadstool Senior Member Find all posts View Profile Close Toadstool]

What country are you in?
Next thought would be do you have multiple loans or one? I would be looking to refi the whole thing. 20- 30K is a car payment, you can't come up with that???


Little more info and I might be able to come up with something.

It's a student loan from OSAP in one loan.

[PanBird Senior Member Find all posts View Profile Close PanBird]

Oh Sweet! I'm sometimes happy to live in country with sad weather all the time. Students get "student-contribution" every month. It's a sum for apartment rent and food for a month.
Although i cannot help you Toad :/ I wish I could, but I can nothing about other countries stuuf-like-that.

[Dangler Senior Administrator☼ Wizard ☼ White Tiger Award 2015 Find all posts View Profile Close Dangler]

One possible path:

Begin cutting back on expenditures, seek lower rent, less car insurance, higher deductible, slimmer cable tv package, cheaper cell phone plan, etc.
Change spending habits, get a roommate to pay some rent.
Visit lending institution and see if they will restructure your payback plan. They want some money every month versus zero money a month.

[Dangler Senior Administrator☼ Wizard ☼ White Tiger Award 2015 Find all posts View Profile Close Dangler]

I remembered this a couple hours later, and it is a very powerful tool, if you work with it.

piece of blank paper, folded down the center. 8½ by 11 is good.
In one months time span:

On one side of the fold, list every dime spent, and for what.

On the other side of the fold, list every dime of income, take home after taxes & deductions, tips, etc.

At the end of the month or time period, look over your spending, and start work at getting that aspect under control.
Now do your scheming, planning, reductions, etc. Set goals.
Good luck !

[Toadstool Senior Member Find all posts View Profile Close Toadstool]

I keep telling myself that I'm going to do that! Okay I'd better get started sooner rather than later.

[CUSP82 Administrator Admin of the Month Dec 2014PEGym Hero Find all posts View Profile Close CUSP82]

A monthly payment of good faith is important. Sending something, anything, every month keeps the dogs away.It costs money to put you in default;it must go to a court and you would be there as well. If a judge sees your income and your expenses and that you can't possibly pay what they want he will then restructure it because you can't pay what you don't have. Do you think they can make you pay so that you have no money to live so you now live in the street? Not likely. As long as you can show that you are paying something monthly no one will bother you. Oh yes they will send silly letters and call you but I would just ignore it!

[islander Senior Member Find all posts View Profile Close islander]

Forbearance and financial hardship showing your fixed expense budget and what you can afford. Pull a budget form online be sure to use Everything paid weekly monthly yearly check or cash. Create your worse case scenario and present it. Going after unpaid debt by someone who has nothing they can claim is a loser for them. Good luck.

[MrBigDick Retired ModeratorPEGym Hero Find all posts View Profile Close MrBigDick]

I'll also throw into this that student loans are NOT dischargeable in a bankruptcy.......God forbid you ever get to that point.

If the payments are too high, I'd simply look at your contract as was suggested and then maybe contact the lender to find out what your options are.

[burtybasset Retired Moderator Member of the Month May 2014PEGym Hero Find all posts View Profile Close burtybasset]

I'm pretty crap with debts and bills, your not alone!

Have you now finished college/Uni? Maybe do a bit of tutoring in the subject you have studied?

There is a guy over here in the UK who has a website and is supposed to be brilliant at helping people start taking positive steps toward resolving their financial issues, I don't know if you can make it apply in your country, but I hope it helps!

Money Saving Expert: Credit Cards, Shopping, Bank Charges, Cheap Flights and more

Good luck bro!