Ask Me Help Desk - Student loan debts

Student loan debts

Paying back student loans are almost a impossible task unless you hit the lottery, if you decide not to pay back this loan what are something that can happen...

Also is there any solutions to reducing a debt of 26,000 in loans?

If you don't pay they come after you for the money, karl. I know some young people with student loans who are trying really hard to honour their commitment of paying it back.

Solutions to reducing debt, yes, paying it off the best way you can.

Tick

Your wages can be garnished, you can (will) be denied credit, you will never see a check from the government.

26000 in student loan debt is nothing. That's less than $300/month.

People pay off their school loans all the time, it is not impossible.

They will probably take all of your income tax returns and everything. I think it will kind of be like paying child support involuntary. They can garnish your wages and everything.

I thought it would be impossible to pay off my SL. 10 years later I have 2,177.00 left to pay from 20,000. Just make your payments and if you can't make your payments CALL THEM!! Do not just not pay them. They will work with you.

My son, while attending college (in Ontario) told me horror stories about students getting loans and buying cars, accommodation, partying. He didn't have to get a student loan, he was well provided for through University Scholarship Funds; his dad paying 60 dollars a month from the time he was l year old till he started attending college. By that time, all the money was there for him for tuition and books. Thank god, we have the foresight to do that. At the time, money was short in the early years, and I didn't want to put out t he 60 dollars per month just then. But you know, I am so happy he had a trouble free secondary education and further courses after that to enhance his abilities. It is all paying off for him just about now, he is 27.

Tick

That must be really hard... even "under $300 a month" to repay student loans seems crazy. My parents helped me a bit but I still got nearly $5000 in student debt and it took a while to pay it back, about 4 years... last May I made my last payment and that felt great... now if only my credit card had a more reasonable interest I could make faster progress on that debt...

Anyway as others have said, just pay what you can, try and work with them to agree on a reasonable amount you can pay per month and stick with it, eventually the balance will go down bit by bit.

Quote:

Originally Posted by Lowtax4eva

That must be really hard... even "under $300 a month" to repay student loans seems crazy. My parents helped me a bit but I still got nearly $5000 in student debt and it took a while to pay it back, about 4 years... last May I made my last payment and that felt great... now if only my credit card had a more reasonable interest I could make faster progress on that debt.....

Anyways as others have said, just pay what you can, try and work with them to agree on a reasonable ammount you can pay per month and stick with it, eventually the balance will go down bit by bit.

Student loans are a choice. Financial aid is available to those that qualify. Cheaper schools, or even practically free, are available. Once chooses to spend a lot on college. I could have gone to a local branch of a state school for almost nothing. Or free if I was willing to join the national guard. I chose not to. I then chose to attend grad school... which makes private college look cheap.

I fully believe that everyone should have the opportunity to attend college. But I also believe that if you choose to attend an expensive school, you bear the burden of that debt.

Yes,stevecg, I agree regarding choosing an expensive school, and this delima came into play regarding my sons secondary education. He could have gone to a university where it offered 'theory only' residence on campus. He chose computer tech at Durham College in Oshawa, then a small college, but good instructors. Then he chose, after he mastered all he wanted to, a lot of smaller courses to upgrade. So yes, if you are astute and do some reading, then it all works out.

Yes, someone has to bear the burden of a choice of expense in higher learning.

I don't often give example within my own family, but I though some of this information may spread around and others may learn from it,

Tick

Are you on a payment schedule? If so, then why are you having difficulty meeting this schedule? There are certain conditions under which student loan repayments can be deferred but ultimately you have to pay the debt sooner or later. If you default then it's much the same as if you default on any other debt ; derogatory credit rating, possible judgment and subsequent liens against your real assets, possible wage garnishment, tax intercepts, etc. If you want to pay it off at a faster rate then whenever possible add extra money to your regular monthly payment. This'll go directly to reducing the principal and, with less principal you pay less interest and therefore fork out less money overall and pay it off sooner.