I can't afford to pay my student loan. During the last three years, I have been unemployed for about nine of those months. During the two years and 3 months of employment, I just did not have made enough to afford to pay for rent, etc. (and all the costs associated of being a father of a two year old and being the prime "breadwinner").
I have just started a job at $13/hr. Once it goes permanent, I will make $35K base and commissions which may go up to 20K per year. But, until then, what do I do? I don't want to default. I would like to get a house one day. A lot of people have told me that defaulting on student loans looks very bad on one's credit report.
My question: How do I inform them that I can't pay right now? I have already forebeared the most that was allowed. Can they reduce payments (to like $100/month even that may be too high right now!). I need help. Advice would be very appreciated.
By jcoreyL from Atlanta, GA
You will have to contact them and see what arrangements can be made. I'm surprised if they haven't been calling you. If they call you that would be a good time to talk to them about it. (11/29/2010)
If these are loans from the federal government you can request to be put on the Income Based Repayment plan. I wouldn't wait for them to contact you. Call and explain your situation and ask what options might work for you. (11/29/2010)
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