Granny_Weatherwax Posted December 23, 2016 Share Posted December 23, 2016 a friend whose student graduated with $80,000 + in Sallie Mae private loans? Said loans were cosigned by her grandparents. Neither the graduate nor the grandparents can afford the monthly payment. Quote Link to comment Share on other sites More sharing options...
JanetC Posted December 23, 2016 Share Posted December 23, 2016 First, check if there are any alternative repayment plans they can change to. Otherwise, they are going to garnish student's wages and/or grandparent's social security income. http://www.collegescholarships.org/research/student-loans/ The damage has been done, at this point. The time for counsel would have been before they signed for all those loans! 6 Quote Link to comment Share on other sites More sharing options...
Granny_Weatherwax Posted December 23, 2016 Author Share Posted December 23, 2016 <snip> The damage has been done, at this point. The time for counsel would have been before they signed for all those loans! I agree. I don't think they understand the severity of their situation. I don't know what words of encouragement to give. It's a situation of first generation college student and the family doing anything and everything they could think of to help attain that degree. It makes me sad. Quote Link to comment Share on other sites More sharing options...
Angie in VA Posted December 24, 2016 Share Posted December 24, 2016 No advice, but this makes me so sad. 2 Quote Link to comment Share on other sites More sharing options...
Janeway Posted December 24, 2016 Share Posted December 24, 2016 (edited) a friend whose student graduated with $80,000 + in Sallie Mae private loans? Said loans were cosigned by her grandparents. Neither the graduate nor the grandparents can afford the monthly payment. Did they know what the grandparents were doing? If I were the parent, I would not touch that with a ten foot pole. My children know how I feel. And if the grandparents tried to overrule me by signing themselves, then that would be on the grandparents. Or did the parent know at the time and was ok with it? Edited December 24, 2016 by Janeway 1 Quote Link to comment Share on other sites More sharing options...
Guest Posted December 24, 2016 Share Posted December 24, 2016 Can they refinance the loans? (Is that even possible to do?) Maybe get it so they would at least lower the monthly payments? (What were they thinking???) Quote Link to comment Share on other sites More sharing options...
justasque Posted December 24, 2016 Share Posted December 24, 2016 a friend whose student graduated with $80,000 + in Sallie Mae private loans? Said loans were cosigned by her grandparents. Neither the graduate nor the grandparents can afford the monthly payment. I would help the student to look carefully at her budget, to see if any savings were to be had. Can she live with the grandparents (or parents) rather than renting? Can she use public transportation rather than using a car? Can she look at both housing and transportation together to see which combination creates the most savings? Is she in a high COL area, and if so would it pay to move to a low COL area even if she had rent and transportation needs? I assume she is working. Has she maximized the potential for income in her field? If not, what would that entail? Better job, more certifications, some kind of networking/connection that would help her move up? What other areas of her budget may be of concern? What is she paying for clothes, gifts, entertainment, food, coffee? Is there any wiggle room there? Can she moonlight? Adding a 15-hour-a-week job might make up the difference. Two jobs isn't easy, but the time to do it is before kids and marriage - and she's in no shape for either of those till she knocks out the loans. Evening retail jobs, weekend housecleaning, regular babysitting - there are quite a few possibilities to consider, each with pros and cons. Everyone else's suggestions about refinancing, interest rates, and so on are good avenues to pursue also. But ultimately a full financial picture is needed before you can see which solutions are the best in the long run. 5 Quote Link to comment Share on other sites More sharing options...
Grantmom Posted December 24, 2016 Share Posted December 24, 2016 Live at home, or with the grandparents, and work as much as possible to pay the loans off now, before kids and marriage. That's what I would do. I would just work as much as I could, rely on the family to support me if they were willing, and pay every penny I could to the loans now. You don't want to be saddled with that down the road. 6 Quote Link to comment Share on other sites More sharing options...
goldberry Posted December 24, 2016 Share Posted December 24, 2016 Oh my gosh what a horrible situation. 1 Quote Link to comment Share on other sites More sharing options...
Granny_Weatherwax Posted December 25, 2016 Author Share Posted December 25, 2016 She is being counseled by others to apply for forbearance, a consolidation, and for hardship. Since these aren't federal loans - she has those too - I didn't think the same rules applied. Quote Link to comment Share on other sites More sharing options...
JanetC Posted December 25, 2016 Share Posted December 25, 2016 (edited) You need to read the documents she signed, but no: the same rules do not apply. http://privatestudentloans.guru/do-not-borrow-private-student-loans.html Edited December 25, 2016 by JanetC 1 Quote Link to comment Share on other sites More sharing options...
JanetC Posted December 25, 2016 Share Posted December 25, 2016 Some other good links: About consolidation: http://privatestudentloans.guru/why-consolidate-student-loans.html About repayment: http://privatestudentloans.guru/repaying-private-student-loans.html 1 Quote Link to comment Share on other sites More sharing options...
TammyS Posted December 30, 2016 Share Posted December 30, 2016 When the loan was taken out, what was the plan for repayment? What part of that has changed? Can anything be done to get the plan back on track? 1 Quote Link to comment Share on other sites More sharing options...
Granny_Weatherwax Posted December 30, 2016 Author Share Posted December 30, 2016 (edited) Here's what I can share: the student went to a respected private university. The loans were cosigned as the student didn't receive enough merit or financial aid to cover expenses. The idea was that the student would graduate and the name of the university, along with the humanities degree, would guarantee a high paying job and there wouldn't be a need to worry about the loans because the payment would be minimal compared to the salary the student would be making. The student has already spent a year with Americorps and has had some of her federal loans forgiven. I have shared all of the links with the family and have done my best. I am quite frustrated, not at them, but at the general naivite evident within this situation. Many first gen students and their families have false beliefs about what a college education can do. Simply earning a degree, no matter how smart you think your student is, does not guarantee employment or financial well being. We've had many threads about financial safeties, alternative paths, etc. that anything I write here would be preaching to the choir but, man, oh man, I wish high schools and colleges and universities did a better job of educating students and families about the realities of student loans. Edited December 30, 2016 by Scoutermom Quote Link to comment Share on other sites More sharing options...
8filltheheart Posted December 30, 2016 Share Posted December 30, 2016 Here's what I can share: the student went to a respected private university. The loans were cosigned as the student didn't receive enough merit or financial aid to cover expenses. The idea was that the student would graduate and the name of the university, along with the humanities degree, would guarantee a high paying job and there wouldn't be a need to worry about the loans because the payment would be minimal compared to the salary the student would be making. The student has already spent a year with Americorps and has had some of her federal loans forgiven. I have shared all of the links with the family and have done my best. I am quite frustrated, not at them, but at the general naivite evident within this situation. Many first gen students and their families have false beliefs about what a college education can do. Simply earning a degree, no matter how smart you think your student is, does not guarantee employment or financial well being. We've had many threads about financial safeties, alternative paths, etc. that anything I write here would be preaching to the choir but, man, oh man, I wish high schools and colleges and universities did a better job of educating students and families about the realities of student loans. This is not just a first gen problem. I am always amazed by the number of posters on CC who argue that name is worth the debt. 1 Quote Link to comment Share on other sites More sharing options...
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