I need financial help!
I am 15,000 in cc debt and 89,000 in student loan debt, 26,000 of that is not a federal loan, but i private loan I took out when I was in school. I am considering bankruptcy and saw thatif you can prove undue hardship, student loans would be considered. I am only in my mid twenties and I do not own a house or car.
I feel like for all of the debt I have, I should have something to show for it. I am a teacher and do not make that much money. What should I do? I do not charge anything anymore and only use my bankcard when I want to purchase something. I have cut my spending due to the fact that I cannot afford anything.
I have consolidated my student loans to lower my payment..
Bankruptcy on student loans is next to impossible. That fact th
Bankruptcy on student loans is next to impossible. That fact that you are young will be held against you since you could pay this off in 25 years of repayment. You probably havent even been in repayment long enough to qualify under the Brunner Test.
Have you looked into Public Service Loan Cancellation? http://www.finaid.org/loans/publicservice.phtml
Younger Student Debtors In Trouble Have $0 Payment Option
My name is Morgan Fisher, Co-Founder of the Student Debt War Project that is currently underway to help millions of students, parents, and taxpayers repair our broken education and student debt system (www.studentdebtwar.org). For younger debtors, the Dept. of Ed. and its authorized guarantors offer troubled debtors a program known as Income Contingent Repayment (ICR) and similar payment option programs. The program allows for $0 payments each month on your student loans if you are experiencing hardships. The major problem with the program is that federal law requires a 25-year term and you must re-qualify for the program each year by sending the guarantor a copy of your tax returns (that show a qualifying low income, that is usually at or below the Federal Poverty Guidelines. For student debtor over the age of 35, ICR is probably not a good choice, as the program will end just about when one reached retirement age. When it ends, the guarantor sends a taxable event 1099c to the IRS, which then counts the loan write-off balance as your income and taxes it accordingly. In some cases, the taxes can be so high that the student debtor will typically die before ever repaying the IRS the debt. And because student debt is very difficult to discharge in bankruptcy as well, this is why we have coined the name "to-the-grave-debt" for all federally guaranteed student loans. Our primary recommendation is never, under any circumstances, assume federally guaranteed student loan debts unless you do not mind becoming a lifetime debt slave to Uncle Sam should your career or earning goals fail.
My name is Morgan Fisher, Co-Founder of the Student Debt War Quo
My name is Morgan Fisher, Co-Founder of the Student Debt War Quote:
Project that is currently underway to help millions of students, parents, and taxpayers repair our broken education and student debt system For younger debtors, the Dept. of Ed. and its authorized guarantors offer troubled debtors a program known as Income Contingent Repayment (ICR) and similar payment option programs. |
You are forgetting IBR repayment.
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The program allows for $0 payments each month on your student loans if you are experiencing hardships. The major problem with the program is that federal law requires a 25-year term and you must re-qualify for the program each year by sending the guarantor a copy of your tax returns (that show a qualifying low income, that is usually at or below the Federal Poverty Guidelines. |
No, you do NOT send a copy of the guarantor your tax return...they check it via the IRS data base.
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For student debtor over the age of 35, ICR is probably not a good choice, as the program will end just about when one reached retirement age. |
You are assuming that the borrower stays poor or low income their entire life of the loan. Why on earth did they bother going to school??
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When it ends, the guarantor sends a taxable event 1099c to the IRS, which then counts the loan write-off balance as your income and taxes it accordingly. In some cases, the taxes can be so high that the student debtor will typically die before ever repaying the IRS the debt. |
You have proof on this??? Statistics??
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And because student debt is very difficult to discharge in bankruptcy as well, this is why we have coined the name "to-the-grave-debt" for all federally guaranteed student loans. Our primary recommendation is never, under any circumstances, assume federally guaranteed student loan debts unless you do not mind becoming a lifetime debt slave to Uncle Sam should your career or earning goals fail. |
Oh please...education is a god given right. If you want post secondary education, you have to PAY FOR IT. Otherwise dont go to school. I have a high school freshman...we are already preparing for college.
She is expected to get high grades for a scholarship...she knows she will have to take student loans but she is also planning a career path that will allow her to pay it back. She will do AP courses high school and will attend a state school.
Too many kids go to schools they cannot afford for stupid degrees that do not offer any work skills. Why should the taxpayers assume their debt?