Student Loan Debt Disaster
Hello Ms. Savage,
I am writing to find some help with my student loan debt. I am 48 years old, and have been a teacher for 22 years now. I combined my undergrad degree loans and my masters degree back in 2008 through the advice of Sallie Mae (my lender) who is now owned by Navient. I have made payments up to 120,000 total and still I own 90 K. I cannot pay the principal and have only been paying interest and I can’t stop the bleeding. I have tried to file the application for student loan forgiveness. I was told I need to start all over and make 120 payments before anything can be forgiven. I have been going through hell with this since I can remember. It has affected my credit, and my ability to obtain a decent mortgage interest rate since my debt to income ratio was also so poor. I am at a complete loss and have been to financial firms for any advice. I need an attorney or the right person to help me to refinance this loan or help me fight against Navient. Last year, I thought I had made progress with this, but it turned out to be fraud and I tracked these people to California right down to the apartment. I keep getting phone calls from them and they are making bank on people who don’t catch their scam. I have no idea how to report them, as I already tried and was told police can not do a thing. Any help or advice ? I would be forever grateful. I listen to your program during my 30 min. lunch break while I am in person hybrid teaching in Libertyville. Thank you,
Terry Says
Oh, this is a terrible story — and unfortunately all too common. People who are against some form of student loan forgiveness don’t understand that many people who took out loans 15 years ago are still paying interest rates of 8-9%! That’s why you have paid so much money and still owe most of the original borrowing!
Meanwhile the government borrows at less than 1% for 10 years. this is no way to encourage a more educated workforce. These loans bury people, instead of helping them improve their lives.
And yes, scams abound to prey on people in your situation.
Navient/Sallie Mae have no incentive to show you the alternatives. Since these are Federal student loans you cannot default — and eventually might have your Social Security payments docked. Unless a new administration does something new about loan forgiveness, there is little I can do for the principal.
BUT, please go immediately to either Credible.com or SoFi.com to discuss refinancing at a far lower rate. That will at least allow you to make a dent in the principal. That refinancing rate will depend on your credit rating — but they are far more understanding about student loan debt if you have a good job. Refinancing removes some federal protections such as forbearance– but I think it’s a good tradeoff for a much lower interest rate.
Keep paying –and maybe the next administration will do something about the $1.7 trillion in student loan debt out there burying good people like you.
