Hi Everyone. I have a 27 year old grandson who has amassed a student loan debt of about $40K. He went to UCLA and nearly finished (lacks about 5 classes) before dropping out. He hopes to continue some day. The loan defaulted and he needs to get it out of the rears before he can perhaps go forward to finish the degree. I'm not sure he'll go back to UCLA or perhaps one of the big three, etc. My question is does anyone have experience with where to start with getting things back on track with the loan? Are their organizations that specialize with such matters? (Hope I've stated this clearly enough). Thanks in advance.
There is nothing good and legitimate that will get him out of his loan except fast and furious repayment. Depending on what he borrowed and the terms of his loan, his balance may already be twice that. This will never go away- even in bankruptcy. He has to get out in front of this making double and triple payments each month if he stands any chance of regaining his freedom. Sorry, I know that's not what you wanted to hear. Honestly, getting a degree today, unless you're 100% sure it is THE ONLY thing holding him back, is just a distraction. He needs 2 jobs- maybe 3 with no hobby but throwing money on this problem.
Thanks for the response. I wasn't suggesting that he get out of the debt at all. That balance is his balance of recent..with some interest already added on. I was mostly inquiring about information about bringing it from the rears...or perhaps a different payment schedule, figuring that there are professionals that advise on things like this. I think his motive was to bring it up to current, borrow a bit more and finish what he started... and yes, he'll pay it all back in the long run. He's that kind of young man. Hope this clarifies his situation.
The only way to escape student loans are death, permanent total disability, or emigration. They're a racket. There's no good reason they shouldn't be dischargeable in bankruptcy if everything else is.
If the goal isn't to get out of debt, I'm not sure that I can help you. The way to bring it up from the rears IS precisely to repay double and triple payments. I'm sure this sounds very much like an overreaction. The student loan program of 2004 and after is probably a very different from what his parents or even you experienced in college. Unless his student loan was specifically set up to NOT accrue interest, it started the day he took out the loan (probably before the first day of his first class). I don't mean to sound hysterical, but the seriousness of defaulting on a student loan in 2018 is probably 4 times worse than you're giving it credit for. Second job. Third job. Your son's situation is exceptionally normal. I'll bow out at the risk of sounding like a crazy person. But, I'll leave you with these: TED Talk: How college loans exploit students for profit | Sajay Samuel 650+ comments follow the video.
His goal IS to get out of debt. I see that you misunderstood my last comment. When I said that "I wasn't suggesting that he get out of the debt at all"... I meant DID NOT mean I was suggesting he not get out of debt (which he clearly will) but that he was not trying to get out of repaying it. Also, he is my grandson, not my son. Since his student loans are from few various sources, I was simply inquiring of ways to approach it, etc. He has has already discovered that he may be able to refinance the loan and lower the rate significantly.
Good Morning. I would check all companies that assist in repaying student debt. Look for a job there. Check state jobs. ( in the past some states have helped with loan forgiveness) I would suggest to him that he take the lowest cost classes around to transfer to his existing transcript to keep it alive. I have found our local senators office helpful with educational dilemmas. They are there to serve the public and have been very helpful in my state. Although it may not be his current lifestyle becoming a couponer/refunder could help dramatically his journey to pay off this debt. This may seem extreme and I hear the laughing but we have been able to save a large chunk of money doing coupons, refunds and test drives. Hille
Forgiveness programs currently require perfect repayment for 10 years, which he won't qualify for- in addition, there is talk of eliminating or curtailing the forgiveness programs. He can only re-enroll in a CC to keep his loan in deferment if he isn't in default (though I could be wrong about that for all types of loans- it's worth considering, but interest will continue to accrue on his balance). I almost didn't even post (since I did say I would bow out lol) except to tell you I'm also a couponer Hille! For those in the southeast, it is currently Super Doubles at Harris Teeter through Tuesday. Extreme Coupon central
