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Student Loans

By Terry Savage on February 01, 2021 | College Savings / Student Loans

HI Terry,
I have tried getting in on the student loan moratorium period. My student loans are with Nelnet and Navient. I’ve spoken with both and they say they are not participating in the student loan moratorium, and that the moratorium is only for FEDERAL student loans. I don’t understand, because I was only offered student loans because I filled out FAFSA 20years + ago. Is there anything that can help me. My original principle loan amounts are about $48,000 but now I owe somewhere around $80,000.

I don’t know what to do. And I still don’t have my degree from Chicago State University(school has always had finance problems((media)). In addition, I have 180 credit hours and no degree. The advising counselors didn’t care and I was uneducated on know what an upper level division class was until my senior year. Back then I was ill educated on knowing the college-graduation process and what I needed. Is there anything I can do or that can be done?

Terry Says

Yours is a horrible situation — shared by many. I put italics around the worst part. Interest on the loan means that even though you were paying, your balance is more than double what you originally borrowed!
I am urging Congress to deal with this issue by wiping out most past interest and pay off only the original principal of the loan plus a smaller amount of interest. I will use your question as an example of how this issue impacts people.
Let’s hope that this spring the new administration will come up with a fairer approach to the program.

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