Need advice on student loan issue

[Left Coast2020]

I have this knot in my stomach right now. I have been out of the country for two years, now partially homeless, and I get this letter in the mail from ECMC with a 5 figure number I owe for my student loan. I have no clue how they found this address (possibly from my address for food stamps). I can't see how anyone can pay their student loans back -- especially if they are working a $10 an hour job. I called Sen Boxer's office and was told student loans are not dischargable--like a credit card is. I guess I default since I not a cousin of Mitt's nor have I worked at Bain Capital. What do I do? The interest is stacked against me. What should be about 25-30,000 minus the 17,000 I've already paid, the amount is well over 50. I am disgusted at our system of educating students. Yet, we have to suffer with debt. It is really depressing me. How do I handle this?

[elleng]

1. If you don't want to flat out default,

and/or ignore, you might contact them, let them know your financial situation, and if you have ANY present income, offer them something (like $5.00/month) to show your good faith. If you have no income, simply inform them. Remind them you've already paid $17,000, in better days.
Sorry

[saras]

2. First thing - get all the paperwork, and some support, and read it all

There's a bunch of complicated stuff having to do with deferring student loans. In general, doing nothing for a long time is horrible, but the best thing to do is get it on the record that something is happening, if nothing more than your contacting them every month, saying "I still have a $10/hr job".

But you don't do that until you know what the real situation is.

You're not already in default just from not responding? If an agency already has the loan, they have different rules.

[thepurpleknuckle]

3. jacksons....

Pay off 20 dollars of it every month until you get a better job. It'll lighten the impact and keep you out of a carboard box living situation.

[grasswire]

4. take a deep breath

Can't get blood from a turnip.

I guess first you should figure out the status. Is it with a collection agency? Those people will say anything and cannot be trusted.

Get the status clear in your mind, and then look for advice about your options from someone you can trust.

I'm sorry. You're not alone.

[pa28]

5. Call Joe Biden.

He might be able to help.

[Liquorice]

6. If you haven't paid in two years and didn't have a forbearance or

deferment, then I assume you have defaulted. The ECMC site has some information about what you can do now. You can get out of default and start making payments (hopefully) based on your income. I know how you feel. I'm paying mine now, but there was a time when I couldn't and it's very scary. If you make small agreed upon monthly payments, they will leave you alone and your credit will slowly recover.

[winstars]

8. Go to this website first: NSLDS and find out how much you really owe and...

who actually now owns the loan. It is a Dept of Ed that is very accurate on when you got the loans the types and other information that you will need. If you don't have an old pin number they want, just apply to get a new one and you can find out where you stand. Some of it depends on which type of loans you received at the time

http://www.nslds.ed.gov/nslds_SA/


Then go to this Department of Education website:

http://www2.ed.gov/offices/OSFAP/DCS/index.html

It has all the information on what to do basically. I would try calling the D of E first because if you can deal with them its better than ECMC or one of the many collection agencies they use. You may be forced to deal with ECMC or one of their collection agencies who are scum of course.

D of E Info: 800 621 3115

What you want to do if entirely possible is "Rehab Your Loan" if you can make like 9 payments in a row, after that your loan can be put back to normal status with monthly payments. All the lates, (30/60/90/120/150 days) will still be on your Credit Reports but the trade lines will now say "paying as agreed" instead of "in Collection" or "defaulted"... If you have more than a few loans, look into "consolidating" your loans to your benefit. Don't let them pressure you into making a down payment upfront, you do not have to do so. This all will be difficult because they usually want like 1% of the total per month...They are supposed to work with you and figure out a amount you can actually pay each month. If you are talking to ECMC or any of their scum collection agencies and they are dicks you can go back to the D of E and essentially make the CA's make nice, supposedly anyway... The second D of E website has a ton of clear information for you.

Good Luck!!!

[Orrex]

9. Like countless thousands of similar student loan victims, you're screwed

At some point they're going to tell you that you need to pay them some crippling amont each month, to which you'll quite reasonably protest that you can't afford to give them that much. And then they'll say "if you can't give it, then we'll simply take it from you."

It's a nightmarish and predatory system that's more or less equivalent to indentured servitude, and the best part is that when you reach out to DU for moral support, you can count on at least several replies telling you that it's all your fault.

I've seen it many times before, and it infuriates me every time.

You won't likely get anywhere with your lender by explaining that you were out of the country. Your best bet is to ask for a hardship forbearance, which might buy you a year or so. After that, you can look into consolidating your loans, if possible, which could make you eligible for additional deferments.

Other than that, unless you're lucky enough to die or become permanently and totally disabled, then you'll be paying at least 10% of you monthly gross income until your loans are repaid.

Good luck to you and to us all.

[cbdo2007]

10. what were you doing out of the country for 2 years???

[Left Coast2020]

11. When you can't find work here, you go to......

....China and work as an English Teacher as I did. I've been there before so I sorta know my way around. And yes I can speak the language, but not as good as native speaker. I use wrong tone--and there are four. But thats I worked to survive.