A well known bank has threatened to report me for not having money to pay back student loans...

[Gravitycollapse]

I suppose this is the beginning of the next financial collapse many have predicted.

Let me be clear here: I am fucking broke. I have a college degree but am stuck at a job making less than 10 dollars an hour because the job market is so shallow. I have multiple student loans so it is not simply a matter of not being able to afford to pay back one loan. By paying back one I'm not paying back another. It's a lose lose situation.

So I asked the bank for a forbearance because I am looking for a job. The bank not only refused to grant me one, they said even if they wanted to they couldn't grant me one because of "the contract."

Consider that for a moment. The banks have written their own regulation precluding them from acting in such a way that is best for business. What is best for business is either temporarily lowering the payment amount or giving me a forbearance. The bank will not and/or cannot do either. Instead they are fully prepared to report me to collections. A pointless threat because I don't have any money for them to collect.

The conversation was comically absurd. I paid what was past due and literally told them I would not have any money for the next payment and that they should fully expect me to not pay next month. They said okay and the phone went click.

Some of you may be wondering "is there a cosigner?" Yes, and that cosigner is now permanently disabled and on a fixed income.

It's almost worth laughing at. Almost.

[Thor_MN]

1. Speaking as someone who cosigned some student loans, they will be going after your cosigner.

At the very least, they will send letters that are threatening.

I hope you find a relevant job soon that pays better. You should be making more than what my first job out of college paid 30 years ago.

[BuelahWitch]

2. Are these Federal or private loans?

If they're Federal, see if you can get a Direct Consolidation loan. IMO the Federal Government is easier to work with than the banks when you have hard times.

[Gravitycollapse]

3. These are private. Hence the insanity. The federal government knows how to handle these things.

And I have had zero trouble with my federal loans so far.

The private banks are apparently made up of people who are economically ignorant and possibly insane.

[cyberswede]

4. Can you consolidate the loans?

Sometimes you can lower the interest rate when you consolidate - and maybe the payment would be more manageable.

I wish you luck, whatever happens.

[Gravitycollapse]

5. It's doubtful they would consolidate at my current income.

Even at a lowered interest rate and more manageable payments, I simply don't have the money to pay back any loans. I barely make ends meet every month.

Although, I'm currently investigating the option of consolidation as it is literally the only one left. Even though it's probably still not a viable one.

[SheilaT]

6. Report you?

To whom? To what end?

There's an awful lot of things wrong with student loans. And I don't know what you originally borrowed, and I have no idea what sort of interest has accrued. No matter those things, you shouldn't be charged interest. Or at best some fraction of a percent.

Of course, if you have no money, the interest rate hardly matters.

But the fact that these loans cannot be discharged in bankruptcy is unfortunate.

Anyway, what a shame you're going through this crap.

[My Good Babushka]

7. So they'll report you

you'll have bad credit and have to use cash for everything. It's better to stop paying them and save up the cash.