I'm 51 and I Have Decided to Stop Making Payments on My Graduate Student Loans Permanently

0/10 and that's being generous.

You can get a home loan with defaulted loans?

Get on a payment plan like REPAYE if you can. My bf and I are on this, and since his salary has stagnated for the last few years, our payments have dropped down to $150 per month, plus mine are in automatic forbearance because of the COVID relief bills. That way you can keep non-payment from hurting your credit rating.

As someone who defaulted (and then rehabilitated) on their student loans, I can tell you this won’t end well.

Student loan debt is not like other debt. They can, and will, go after you forever . They will garnish your paycheck, social security check, they will put alien on your house .

They do not fuck around.

Wow, what a typo R4

Rent and a monthly mortgage payment are the same amount around here. I can save up half the price and my brother will cosign for the remainder. Already spoke to a student loan consumer debt attorney and I won't go into detail here but I wouldn't have to worry about the coming after me if I follow his legal advice.

I'm in forever default. I pay $5 a month as protection money so they won't call all the time or garnish my measly paycheck. I don't expect any of this to change. If Biden wiped out all my student debt tomorrow, I'm not sure it would make any difference in my life. I guess I'd be eligible for government assistance on future education, but I don't need any more education.

Mmm hmm. Hope you didn't pay a lot for that "legal advice," r6.

in the same boat.. 56 years old, owe about 50 thousand, haven't worked in over 5 years and sporadically in the past 10 years because of being a caregiver for my parents... and only have a few thousand dollars to my name (never mind, any retirement savings, 401k, and the 50 cents at this rate i'll get for social security).... one would think i could file for bankruptcy (yes, i know it's very very difficult to do this for school loans) or something... yes, i could get a repayment plan and pay a little something every month, knowing full well i'll die before it's paid off (125 to 150 bucks a month for the next 40 years plus!)....

in closing, so what's the latest on Biden's plan on school loans? personally i feel that ALL loans should be forgiven if the person has let's say graduated 10 plus years ago and still owes any amount...

The last we knew, Biden was telling governors he thought he could only dismiss $10K in loans per person via executive order, not $50K per person as many in Congress want.

There has also been a student loan cancellation for people who had degrees from universities that essentially scammed them, but most people won't qualify for that.

go for income based repayment as someone mentioned. garnishment and legal action is much more difficult.

R10... well if congress WANTS that 50 thousand loan forgiveness and the dems if it goes 50-50 can break the tie, then how are biden's hands "tied" with only the 10 thousand amount?

You guys should go meet the folks on the "Eldergays, how much did you retire with?" thread. They all seem to have at least $5 million. Maybe you could work out a deal to get your loans paid off.

[quote]I'm in forever default.

Rehabilitate. Do an income based repayment.

[quote]The last we knew, Biden was telling governors he thought he could only dismiss $10K in loans per person via executive order, not $50K per person as many in Congress want.

They've already prepped by putting in a provision in the American Rescue Plan that student loans forgiven between now and 2025 will be free from federal taxation.

That being said, I doubt they'll push it until either A.) we get closer to the end of automatic loan deferment or B.) we get closer to mid-terms.

R14... only the interest (taxes) on student loans forgiven? big whoop! (although the interest IS ridiculous!)...p.s. i'm NOT ragging on you just to let you know!....

This will end in arrears!

I never had the opportunity to 'follow my heart' unless the option was lucrative. My father said to find something you can do and make a living doing it. 'Artistic' pursuits were not an option. I had the desire to be a success. That required working weekends even when I worked a lowly employee. I gave up a great deal of fun and self-indulgence when I was young. I worked like a dog and yes I was very lucky. Today, I am rather well off and able to do almost anything I want to do when I have the time. But, sadly, after a lifetime of working all the time, it's difficult to stop even if you can. It's Sunday morning 8am and I'm already at my office getting ready for next week.

The only easy way to be rich and have fun is to inherit money or marry it. Otherwise, there are no shortcuts.

I want an alien on MY house too!

R17 ..or retire from a successful ESOP juggernaut!

OP, you could lose everything. This isn't a nellie prisspot freakout. You can NOT ignore your government loans.

If you are in default, see if you can rehabilitate them. You have to make at least 14 payments in a row, on time and in full.

R4 has covered the legal ramifications. You won't get a home loan with a defaulted student loan.

It took me the better part of 17 years to pay off a loan from college, and I defaulted on it. It wasn't a huge loan, but it became three times as big because of the compounded interest from simply not paying. If I could give any student/graduate advice, it would be to always make that payment, to make it a priority. Even if it's a minimum, make it. It's hard, but it will save years of heartache later.

[quote]only the interest (taxes) on student loans forgiven? big whoop!

More like, normally student loan debt cancelled counts as income.

Without that provision, if they cancel $10K of student loans, they will treat it (in most cases) as if you've made an extra $10K.

So suddenly you go from making $70K a year to $80K a year during tax time.

With the American Rescue Plan, if you should happen to get your student loans (public and private in this case) cancelled they won't count that as you having added the cancelled amount to your income for the year.

[quote].p.s. i'm NOT ragging on you just to let you know!....

R15, I know! Thanks for telling me though! I know how Datalounge is. You have a great day! (Seriously!)

I would chose the aliens in the house....the loan will kill you faster.

Do not implement this plan, OP. Especially if you have health issues.

At some point, you might need to file bankruptcy, especially if medical bills pile up. If you have not been making payments, you will be barred from discharging a student loan that otherwise could have been discharged.

Send something every month. Send $10 if that is what you can send. But have a consistent record of making payments. If the judge is inclined to rule in your favor, the payment history will permit it. No payments will mean no discharge.

(For the pedants among us, there is some very small effort to improve this situation. But OP should not think big change is already in place. Not yet. Until then, send something every month.)

Moral of the story is don’t get a graduate education for a low paying field just because you don’t know what to do after college.

OP, you in trouble, gurl! Get yourself a different lawyer because the one who told you they wouldn’t come after you is full of shit.

Pay your loans DEADBEAT. You chose to follow your passion - that is always a gamble. Pick up a side hustle. People SHOULD have to work hard toward a degree. If everyone got a free ride to college, a degree would be worthless. Apparently to you it is, you whiny pig.

[quote]Rehabilitate. Do an income based repayment.

Fuck you. What do you think "forever default" means? Why do you think the government leaves me alone for $5 a month? I got kicked out of the rehabilitation program (it took me three years to find out why) and last I checked (two months ago) I'm not eligible to re-enter. This isn't a thread for people who haven't thought of obvious steps. It's for those of us who are fucked, how are we handling it. (Step 1: Tell anyone who says "Rehabilitate! Do IBR!" to Fuck Off.)

What r24 said.

I know this advice doesn't help people who are already in debt but you need to think critically about getting yourself in debt. Is it worth taking out this much money? What career am I on a path for and how much will that pay me? What is the return on this investment.

Sadly for a long time no one has had these frank discussions with kids, it was just "go get an education!"

Sure, but maybe the smartest course is to have that education be at a community college.

Have fun in jail and/or homeless

[quote] I would chose the aliens in the house....

Oh dear.

[quote] I'm 51 and I Have Decided to Compound A Series Of Poor Life Choices With Yet Another One!

[quote]I pay $5 a month as protection money so they won't call all the time or garnish my measly paycheck.

Does this really work? When I was unable to pay the full amount, I sent in checks for $25/month and after a few months they sent them all back with a nasty letter saying they would only take a full payment, not a partial.

R32 You're right, they usually won't accept partial payments.

Whoever suggested that is posting from 30 years ago

[quote]This isn't a thread for people who haven't thought of obvious steps. It's for those of us who are fucked, how are we handling it.

No, it's a thread for OP who said nothing about being in "forever default." You may be, but that's not OP's situation at all.

[quote] who said nothing about being in "forever default."

uh, that is the literal definition of the situation OP describes.

R24 Grad programs come into play with wage stagnation and people who are under-employed or even unemployed in the middle of their productive working years. Many people have not productively grown their assets in their 30’s and 40’s nor advanced to peak earning in their 50’s. Everyone’s financial trajectory is probably different, but I have a lot of concern for peers my age who lost their earning momentum by aging out of their jobs and not advancing to bigger ones earlier in life.

Some of my peers are going after pretty expensive grad degrees, even online eMBA’s (executive MBA’s) for $150k, and borrowing or drawing down savings for that. I’m not sure that will pay off for many of them over time. These expensive grad degrees are aggressively marketed because the universities see this as a market potential. If they get your email, expect dozens of emails sent by a third party, essentially hustling for higher tuition fees for specious credentials.

OP, my sister had her student debt wiped due to disability, which I believe you are. It was cumbersome, but she had her claim approved.

What r37 said

For someone like OP, disability fraud seems like the next step. I mean, we all have a stake in making sure Miss OP is always happy and can do what she likes, consequences be damned.

I’ve met folks like you, lazy and smart person with an education, living on the dole

He's not in "forever default" yet, R35.

We're trying to convince him not to get into that situation yet.

Someone else has come along saying he is already IN this "forever default" and now the thread is all about him, but his details are sketchy and it doesn't even seem to be true.

Okay, since you explained it that way I get what you're saying. You mean default from which Miss OP cannot be rehabilitated. Gotcha. Sorry.

"You can get a home loan with defaulted loans?"

if he stopped paying and then got a home loan within a couple months, he could do it.

But, aren't they going to come after you eventually, OP -- assuming this isn't a troll post.

R19 Actually, I own my company and all of the stock so I agree that is another way to do it. And yes, it does add up quickly.

I wish I had stayed in my company's ESOP. Three years and I would have been vested.

But it was the worst company ever. No amount of compensation would have been worth the insanity.

[quote] (Step 1: Tell anyone who says "Rehabilitate! Do IBR!" to Fuck Off.)

Ah!

This kind of response, to someone who wasn't rude to you and thought they were trying to help you (and was talking to OP unless you are the OP but lack the ability to sign your own posts) explains, EXACTLY how you got into this situation.

2 QUESTIONS FOR EVERYONE:

1) SO should i start making income based payments right now? i thought i should wait to see what Biden is going to do and i think right now my loans are on "hold" right now anyway meaning no payments, no interest accumulating, that both are on a covid "freeze"....

2) AT MY AGE, 56 years old and owing around 50 thousand, i suspect in a few years i COULD pay all of it off in one big check swoop, when my elderly mother passes and her money/holdings in the will are divided up among myself and my siblings, HOWEVER, i also think that is 50 thousand i could put towards my retirement (which i have nothing right now!) and if i die in the next 25, 30 years still owing student loans they so be it?

what would suze orman say in regards to question #2?..

This bitch is either trolling us now, or doesn't have the sense the Good Lord gave fleas, but either way I'm out.

What is your payment? Not to sound heartless but I owe around $40K and mine is $285.

You can't come up with $300 a month?

If you do just say "fuck it" prepare for the hit to your credit. I doubt a home lender would "call" the loan over another past due account, but credit card companies will absolutely shut down/close accounts (even if they are up to date/$0 balance) if they see defaults on other lenders. Renting may be tough.

Budget for the garnishment (it was 15% of gross income when it happened to me) because it will happen.

If you don't have the money, you don't have the money, but if you do, and it just sucks and makes things tight, then walking away from them is a bad idea.

You can try to evade credit card debt, repossessed car debt, etc. (there is usually a 5 year statute of limitations) but not so with student loans.

[quote]HOWEVER, i also think that is 50 thousand i could put towards my retirement (which i have nothing right now!) and if i die in the next 25, 30 years still owing student loans they so be it?

If you truly have nothing saved for retirement then the money is better saved for that, but you should be prepared to be able to hide that money. They will place liens (not aliens) on bank accounts as well.

OP here. Thanks for the support. I worked at jobs I liked for the most part. I got educated in fields I was interested. My degrees are ones that not that long ago most people would think practical and with good earning potential from decent schools. All my life I did the best I could and have not only paid off 60k in undergrad loans but 50k in my grad school loans. I don't qualify for government disability and don't want it. I can make more working the 20 hours a week that I can. At this point I'll have nothing when I can't work at all anymore except a not so big social security check and an apartment in low income housing. I worked hard all my life at my jobs. Was I a good money manager? No. That is my fault. I guess I'll just make the IBRs the rest of my life and rent the rest of my life. The lawyers advice I believe but it's also sort of a pain and would or could be too stressful for me.

"they will put alien on your house"

Can they put Bai Ling on the roof?

[quote]but his details are sketchy and it doesn't even seem to be true.

My details only sound sketchy to people who can't comprehend an IBR of $5 a month. The overall point is that it's possible to get to a place where your numbers are so bad it makes zero sense to torture yourself trying to follow the standard advice. Stop worrying about buying a house and find other ways to build stability in your life.

Try to discharge the debt in bankruptcy court. Judges are becoming more lenient about the pesky hardship exemption, especially now.

If this not a troll thread, you’d better listen to R4 and R20, they know what they’re talking about, OP. You have gotten some bad information and legal advice. Student loans are FOREVER. You will not be able to get any sort of loan in the future, and they will garnish EVERYTHING until they get their money back. You will be in a world of hurt.

OP here. Thanks everyone for the input. There are other factors I didn't mention which may have changed some of your answers. Also the attorney was not some street attorney. He has an excellent reputation nationally in the area of consumer debt/bankruptcy/student loans. There's a lot more to it on the legal side than most people would ever realize. Regardless you all helped me to arrive at a revised plan. That means a lot You're my gay bros.

OP, can you kept us posted? I thought student loans couldn’t be discharged either...though the last time I knew someone who tried was about 16 years ago. I’d love to know how you make out.

Fed backed student loans can be discharged in bankruptcy if you prove total disability (by SS standards). You have to pay for a contested hearing (min. $5k retainer for your attorney). Before Trump, the bankruptcy judges were getting more generous in the discharge because the system is so fucked up and so many people are stuck in hopeless situations. From what I heard two years ago, whichever government agency in charge of responding to the bankruptcy petition was getting aggressive in attacking these efforts, hiring private attorneys who are described as ruthless by other debt collection attorneys. Probably a Betsy DeVos call.

I seriously considered the bankruptcy option but determined it was a high stress gamble (with a family member's money paying my attorney fees) compared to the steady management course of just paying my INCOME BASED REPAYMENT of $5 a month.

OP pay off your bills. It’s your duty.

Op. Real question : why are you still in debt at 51? This is no attack: what did you do wrong in your life to still be paying? You’d of graduated @ 1991/92. If you answered above - sorry!

R59 I think OP said this dent was for grad school, not college, so he could’ve gone at any time.

Debt not dent

R59 60k undergraduate. Yes he could have gone anytime. I still believe there’s info missing. It would be @$3 or $4 grand a year right? How is that not do-able? For a person with a degree? Really not attacking Op - just taking on the topic- yet always found that with people not paying school debt - something else was up.

Yes. I went to graduate school later in life. Again I have health problems and can't work full time. I also was basically forced into self employment . I do contract work as well. So I have costs of running my own business. Also while my business has gradually grown it took some hits with Covid. The cash flow has really been a roller coaster. If I go on the one version of the income based repayment I've program the payment is only ten percent of my disposable income. A graduate degree does not guarantee you any specific level of income or traditional employment. If you stay on an Uber for 20 or 25 years the balance is then forgiven if you're over a certain age. I have no stability in my life and want a small house of my own so bad. It will give me some sense of stability. And I am the proverbial DLer where I live in my parents basement. And I don't live in a major metropolitan area so economics and the job carter situation is different. Does that answer everything? I can't think of any important fact I left out.

Just out of interest (from a non-US citizen), what would happen if you managed to emigrate abroad and told them to fuck off?

The OP seems trollish. Insufficient detail, insufficient explanation of the things he appears to be bragging about (in R55 for instance) that he didn't explain before when people bring up various situations.

He hasn't explained the specific majikal details how he will be able to stop making student loan payments without trashing his credit - preventing him from buying a house - and/or being stuffed into the default / garnishment meat grinder.

The advice in R57 is mostly wrong also. There is a specific remedy for disabled people with student loans, but it's not BK.

So when the fuck is Congress supposed to work on the 10k forgiveness? I need that 10k dent in my loans ASAP and so does millions of other Americans. They better not let the time run down until next year's elections and it will be another 100 years before the Dems have majority

R48, believe or not, there exist college graduates who cannot afford an extra $300 monthly payment. Or an extra $200 or $50.

But not in your rarified world, apparently.

But if he has it discharged because of disability how does one hide the 50k he inherits from his mother? Anything you inherit unless from a spouse is taken from you.

[quote] There is a specific remedy for disabled people with student loans, but it's not BK.

Yes, that remedy is pretty amazing for people who spend the day in adult day care, or quadriplegics who barely graduated high school. It's super easy to qualify for if you can get doctors to sign off on you barely being able to wipe your own ass. If you don't qualify through the DOE paperwork version, your next option is to take it to court and litigate your disability. Which is what people with graduate degrees and without catastrophic injuries have to do.

I'm not asking for DL advice or sympathy(!), just sharing my lived experience. Assuming OP is not a troll, he needs to let go of the idea that having a mortgage equals security.

R69 stop being an ignorant tool. The remedy for disabled people with student loans is what is called the Total and Permanent Disability Discharge (TPD). This is available for people who have a 5- or 7-year review for their SS disability; or who have certain disability ratings through the VA; or who have a physician attest that the loan holder is not available to work.

After the TPD is granted, there is a 3 year review period where your income and higher education is monitored. If you earn more than poverty level for 2 in any year, your loans will be reinstated. If you go back to school and receive grants or loans, your old loans will be reinstated. After 3 years if you meet the requirements, the loans are discharged completely. The three year period doesn't start until you formally request it; not when your SS disability begins.

Yes, one can also go to court, probably as part of a bankruptcy case, filing an adversary complaint against the loan holder(s). When I did this at the height of the last recession, it didn't go well, because in 2010 everybody was still of the opinion that student loans should never be discharged under any circumstances. My BK judge granted me a one-year stay (after the BK was granted) from making student loan payments. Nevertheless, the DoE took my tax refund that year. The judge had to contact them and tell them to return my money.

The loan people put my loans in default immediately even though the agreement said they could not. I could not get out of garnishment because the loan agencies don't want you to not be in default - they get to keep nearly all of your student loan payments under default. Only 10% of my default payments went toward my loans, even though those 4+ years of payments more than paid off the full balance of the loans and interest. I did not have the money to go back to court and get the situation corrected.

I tried and tried to get in a loan rehab program. Finally Obama decreed that all people requesting rehab could have it, but I made garnishment payments for 4 years, which barely covered the interest on the loans. And I still had to file multiple written complaints against my loan servicer to be placed in a rehab program, which didn't happen for nearly 5 years after garnishment began.

r70, nothing you've written contradicts what I've said. Just because my experience has been different than yours doesn't make me an ignorant tool.