Is there a new student loan deferment law in place now?

[kimmerspixelated]

Wasn't there a law passed regarding help with student loans?

[QC]

1. What is your situation?

I have experience with awful loan debt myself, so I might be able to point you to some help.

[kimmerspixelated]

9. A few months behind,

And hubby's hours have been cut, so it is hard to pay and thought there was a new policy in place.

[QC]

10. Well, if these loans are federal, as opposed to private,

you get a certain number of months in which you can request a forbearance for pretty much any reason you like, kind of like free cuts in a class.

However, you don't want to burn all those up. You can get hardship deferments by demonstrating that you are out of work, have awful medical bills, etc.

Longer term, you can get the direct consolidation loan I posted about below. If you choose income based repayment, your payments are limited to 15% of discretionary income. If you work in public service, you make 10 years of payments and the rest is forgiven.

It's a great program--not as good as total forgiveness right now, of course, but it has made life possible for me.

https://loanconsolidation.ed.gov/AppEntry/apply-online/appindex.jsp

[FirstLight]

2. I don't know, but there NEEDS to be!

I have a student loan from my years at community college as a single mom in my 20s and too dumb to ask about details...besides the fnancial aid girl insisted that by the time I graduated I would be making *SO* much more money I could afford it! ya, you know the drill...
so I managed to defer the thing for a few years while I worked temp jobs and tried to get back to school for my BA, got remarried and ended up in the fight of my life....by the time I got away from the abusive ex, my loan was in default and I was screwn.

I even called the Dept. of Education and said "Don't you have a 'grace period' for victims of Domestic violence? It's legally documented." They told me to contact my senator and ask them to pass a bill...
Every year, I call and see what I can do to try and get my loan in a good place, but they won;t take less than $300/mo and I can barely afford $50

...meanwhile every year the Dept of Education happily takes my tax return, which is ALL Earned Income Credit.
Tell me, if I am POOR enough to get the FULL amount of the EIC, don't you think I am poor enough to NEED IT!? ya, they take the money out of one pocket and put in in another one, and all I get to do is see it on paper.

[QC]

3. Are these loans federal or private? n/t

[FirstLight]

5. They started out Federal, but got sold to Citibank

and though the Dept of Education is the one who gets the money, I still have to call a private agency to discuss payments, etc...because it was SOLD to a collection agency I think.

I think they were federal stafford loans, subsidized? But the problem was that back then I was 26, on welfare and student loans were the extra stuff like a desk, or a toddler bed or maybe a car repair so I could GET to school. It took me 4 years to complete my AA...constantly back & forth with part time work, school and having to constantly choose between one or the other, and juggle a kid too. Not saying it was a good idea at the time, but I had full intention and confidence that would be PAID by now.
My last job dried up in early 2009 and I've been freelancing while having to go back on 'assistance' and it just kills me. Can't even change banks because my credit is so bad nobody will take me...and forget about any other credit. I have had to lear how to get by without it.

Now the interest alone is over $3K a year, and the total loan is now up to $20K when all I got was maybe $8-10K to start...

[QC]

6. OK. You can get a federal consolidation.

With income based repayment, the payments are limited to 15% of discretionary income.

If you work in public service, loans are forgiven after ten years of payments. Otherwise, you make payments for 25.

This program is the only thing that has kept me from having to flee the country.

https://loanconsolidation.ed.gov/AppEntry/apply-online/appindex.jsp

[FirstLight]

7. wow, thanks for the info!

bookmarking for tomorrow for sure...

I am planning on working in the nonprofit sector too, maybe that will count for something.

[QC]

8. You are more than welcome. Believe me, I feel your pain. n/t

[Selatius]

4. I pay 200/month for my loans. You're in worse shape than me on that one.

You have my sympathies. I haven't defaulted on mine, but it would really help things if I weren't losing 200 dollars/month on the notion I'd automatically get a good-paying job fresh out of college. Nope. The Great Recession hit, and my industry is bleeding jobs out. I am stuck working a snack bar, and I barely clear 1,400/month in income. The only upshot is I live in a relatively low cost area, but with rent being close to 700 on average around here, it's not much help.

[librechik]

11. soon, grasshopper--but it will be a fight, because

parasite banks now making billions off students will be cut off from their hosts. Hungry vamps make ugly enemies.