Student Loans

[Jhoinsmath]

I have about $60k in student loans. I only worked a few years after graduation and am now staying home with my 3 kids. I don't see how I can go back to work anytime soon as all my kids are 2 and under and won't be in school anytime soon. We can't afford to pay on my loans with my husband's salary.

They have been on deferment for soooo long.

So what happens if I don't pay them? I know my interest keeps going up and up and up.

I'm not looking for advice telling me to go to work. It is not an option for us at this time.

Thanks

 

[PommeDeRoute]

Hi,

My advice is to speak to your lender. Normally lenders allow a lot of latitude in terms of repayment, deferment etc. Just do not default on them. That will affect your credit and your ability to buy a house etc. In the US, the government offers an income contingent repayment plan, where you never pay over a certain percentage of your income. They also allow for situations such as financial hardship. Just call the lender and ask what your options are.

 

[toby]

A word of advice when you talk to your lender.

The lender will likely look at your time line and wonder whether you ever had a serious plan to repay the student loans. I don't mean to sound negative; only trying to prepare for you for a possibly negative attitude by the lender.

You need to come up with a positive interpretation of your time line. You studied, accumulated loans, made a promise to repay, but then withn several years of graduating proceeded to have several children. Unexpected things happen in life, and one child could be an accident -- maybe a delightful one, but unplanned. But having several children within the first years indicates you intended this all along, and therefore had no real intent to repay your loans.This will not sit well with the lender, which has a responsibility to its account holders to keep costs down, and interest payments as high as possible.

This (your apparent lack of intent to repay the loans) is probably not the reality, but it is how it appears. You will probably be asked to explain this by the lender, so be prepared, and good luck!