what professional do I need - student loan expert

[ktgrok]

My husband got a little excited about Biden changing the plan for the people who applied for the Borrowers Defense against Repayment, for those that can prove their colleges acted fraudulently in how they handled student aid. His did, it is one of two schools usually mentioned in regards to this program...but the act only covers Direct Student Loans and his were Stafford Student Loans which fall under FFELP loans, not direct loans, and private loans, which are killing us and have no recourse, although it sounds like some loans that were refinanced might...?

We need to navigate the changes coming, as well as look into refinancing, etc. He has many private loans that are 13% interest, and at this point, after paying for a decade, he has almost twice as much student loan debt as when he started! All due to interest. We pay nearly $1500 a month towards his loans, and they just keep growing. When he tries to talk to Navient, the ones that manage his loans now, they just have him pay some fees and offer no other solutions. 

At some point, we need to speak to a financial person to determine the best way to consolidate, or something, but I assume not every financial advisor is going to be a student loan expert, or up on the latest changes in laws, what's in the works, etc. 

Any idea of what KIND of financial person to look for?

And please, I don't need to hear about how unwise it was to take out that much debt, etc etc etc. I know that. He knows that. Our children will NOT end up like this. He has serious issues with self loathing related to these loans, and was nearly suicidal over them at one point. He almost wouldn't marry me because he didn't want to bring me into a situation with so much debt. We get it. So please, save the lectures - nothing you can say is worse than what he has said to himself. 

 

[TheReader]

I have no idea, at all, but just wanted to give you a big ole hug.  We are *still* paying some of my husband's loans off, even while putting our kids through college (and, yes, we've taken small parent loans for them, but are being much more responsible this go-round and such)(although, ha, guess it doesn't sound like it, but....).  I get it. Totally and completely. 

So, big, big, big hugs, even though I have no advice at all on who to go to about that. 

[Lecka]

https://www.nytimes.com/2021/03/18/opinion/student-loans-cares-act.html

I read this recently, this person sounds like a similar situation?  

 

[Lecka]

Hugs from me, too.  I don't think this is a fair situation to be in at all.  

[mommyoffive]

14 minutes ago, ktgrok said:

My husband got a little excited about Biden changing the plan for the people who applied for the Borrowers Defense against Repayment, for those that can prove their colleges acted fraudulently in how they handled student aid. His did, it is one of two schools usually mentioned in regards to this program...but the act only covers Direct Student Loans and his were Stafford Student Loans which fall under FFELP loans, not direct loans, and private loans, which are killing us and have no recourse, although it sounds like some loans that were refinanced might...?

We need to navigate the changes coming, as well as look into refinancing, etc. He has many private loans that are 13% interest, and at this point, after paying for a decade, he has almost twice as much student loan debt as when he started! All due to interest. We pay nearly $1500 a month towards his loans, and they just keep growing. When he tries to talk to Navient, the ones that manage his loans now, they just have him pay some fees and offer no other solutions. 

At some point, we need to speak to a financial person to determine the best way to consolidate, or something, but I assume not every financial advisor is going to be a student loan expert, or up on the latest changes in laws, what's in the works, etc. 

Any idea of what KIND of financial person to look for?

And please, I don't need to hear about how unwise it was to take out that much debt, etc etc etc. I know that. He knows that. Our children will NOT end up like this. He has serious issues with self loathing related to these loans, and was nearly suicidal over them at one point. He almost wouldn't marry me because he didn't want to bring me into a situation with so much debt. We get it. So please, save the lectures - nothing you can say is worse than what he has said to himself. 

 

Wow, that is horrible.  I have no idea, but if I see anything I will post about it.  You don't think the program Biden is talking about applies?  I feel for you, we had student loans for a good while too.   I wish I would have listened and just gone to community college first.  UGH.  We both went to a private college that was $$$ back in the day.   I think our generation really was lead down a path though.  Everyone was telling you that you had to go to college and that everyone was in debt so it was OK.  No worries.  You just didn't even think about the thousands of dollars of debt you were taking out and how that was going to effect you later on.  

[alisoncooks]

Yikes. DH is still paying off his college loans. 

Could you take out a bank loan with a lower interest rate (lower monthly payment) and just totally pay off the student loans and no longer deal with them? I know with student loans there are tax benefits that a bank loan wouldn't offer...but if it helps you get right side up...?

(I'm just throwing out ideas...)

[historically accurate]

There are attorneys who deal with student loans. I'm thinking you are probably to that point. 

(((ktgrok))) No judgement from here - we're still paying DH's. Mine were only paid about 5 years ago. 

[catz]

We hired a personal financial advisor (hired by the hour, did a consult/write up over a few months with a few meetings) at one point that was very helpful for us for planning and moving forward with confidence.  They may have good recommendations about refinance/consolidation, etc.  

I'm so sorry you're dealing with this.  I really appreciate when people are brave enough to share their stories because I think it is so easy for families and young people to be lured by predatory lenders and marketing materials.  We really targeted college applications for affordability.  Both my kids are doing DE through a CC. That is a WAY underrated path.  Many super smart and ambitious young people with hard tales to be found there and I would love to see more truly affordable educational paths for higher ed.  

[ktgrok]

1 hour ago, mommyoffive said:

Wow, that is horrible.  I have no idea, but if I see anything I will post about it.  You don't think the program Biden is talking about applies?  I feel for you, we had student loans for a good while too.   I wish I would have listened and just gone to community college first.  UGH.  We both went to a private college that was $$$ back in the day.   I think our generation really was lead down a path though.  Everyone was telling you that you had to go to college and that everyone was in debt so it was OK.  No worries.  You just didn't even think about the thousands of dollars of debt you were taking out and how that was going to effect you later on.  

Yeah...the program as of now only effects Direct Loans. Those started in 2010. Before that, most people got Stafford Loans, which are not direct from the government, just backed by the government. So they are not part of the  program. 

To make this clearn,the original balance was about 75K in loans, some federal, some private.  He now has 177K owed. And loans that have a pay off date of 2045 on some (I haven't looked at pay off dates of all of them). 

It's crushing. 

[Ailaena]

If you know a physician, ask them if they had a financial person specifically to manage their loans.  Most of the docs I know have the same person, who is just a financial planner.  But the advice from them is excellent and they are in a similar boat to your husband.

If you don’t know any, consider reaching out to the med school in your area and asking if they refer their graduates to anybody.

I don’t think there is any one *kind*, just somebody who inadvertently specialized in the area.  

[ktgrok]

So...as I research this, there may be options he has. For starters, it seems MAYBE his federal loans would qualify for some kind of action under the Borrowers Defense thing, they would just need to be consolidated into a direct loan. An article in Forbes says that you can apply, and then they will tell you to consolidate if you qualify. Need to dig up more on that. Also, there have been multiple class action lawsuits and settlements with private loan companies regarding his school, predatory and fraudulent actions were proven and the debts forgiven. Those were not the company he used, but there is a lawsuit right now involving the one he used - so I'm going to find out more about that. 

Basically, they targeted students that would qualify for enough federal loan debt to get to a certain point, push them to apply for it with false stats about repayment, future salaries, etc, then when they hit the limit in their last year would say well, you will lose all your credits if you stop now, we will expell you next week, or you can sign for these private loans (at interest rates so high they knew no one would pay them off) and finish your degree and then of course you will make millions with our great job placement and it won't be a problem. They specifically targeted and enrolled kids with low credit scores and low income parents, knowing they would not have the financial savvy to ask the right questions. (this is proven at his point in multiple courts). So...going to dig in and see what happens. (an example - one single private loan - he has several - started at 5,000 in principal and is now over $25,000 in principal). 

Oh, and because his loans are held by Navient (formerly Sallie Mae) and not the government directly, they didn't fall under the CARES act for payment suspension during Covid so we kept paying on them even when he was partially furloughed. 

Edited March 21, 2021 by ktgrok

[ktgrok]

I'm filling out a "get help" contact form for a non profit devoted to these cases and am stuck on "did you graduate high school". DH dropped out to work full time (his mom was a narcissist and didn't work consistently, he had to work to keep electricity on), and later got a GED. I have no idea if that counts as "graduated" from high school. What a dumb thing to be stuck on. Anyone know?

Never mind - tried it both ways and if I put no it then asks if he has a GED, so that works. 

Edited March 21, 2021 by ktgrok

[ktgrok]

I just helped DH fill out the form to get help from this group, affiliated with Harvard Law. https://predatorystudentlending.org/about-the-project/

[mommyoffive]

Curious what school did he go to?  I worked at one in the financial aid/lending area and was so scammy.

[JennyD]

This is great.  Reading this thread i was thinking that your best place to start would probably be an organization like this one.  

Even if they decline to take your DH's case, they should be able to refer you to someone else.

2 hours ago, ktgrok said:

Basically, they targeted students that would qualify for enough federal loan debt to get to a certain point, push them to apply for it with false stats about repayment, future salaries, etc, then when they hit the limit in their last year would say well, you will lose all your credits if you stop now, we will expell you next week, or you can sign for these private loans (at interest rates so high they knew no one would pay them off) and finish your degree and then of course you will make millions with our great job placement and it won't be a problem. They specifically targeted and enrolled kids with low credit scores and low income parents, knowing they would not have the financial savvy to ask the right questions. (this is proven at his point in multiple courts).

Ugh.  I am so sorry that you are dealing with this.  I have a friend who is a consumer protection lawyer and she says that smart, competent people fall victim to all sorts of scams all.the.time.  Successful criminals know whom to target, and they often count on their victims being too embarrassed to go to the authorities and/or get help.

Your DH is very fortunate to have you on his side.  Good luck, and do keep us posted.

 

[ktgrok]

1 hour ago, mommyoffive said:

Curious what school did he go to?  I worked at one in the financial aid/lending area and was so scammy.

ITT Tech

[ktgrok]

38 minutes ago, JennyD said:

This is great.  Reading this thread i was thinking that your best place to start would probably be an organization like this one.  

Even if they decline to take your DH's case, they should be able to refer you to someone else.

Ugh.  I am so sorry that you are dealing with this.  I have a friend who is a consumer protection lawyer and she says that smart, competent people fall victim to all sorts of scams all.the.time.  Successful criminals know whom to target, and they often count on their victims being too embarrassed to go to the authorities and/or get help.

Your DH is very fortunate to have you on his side.  Good luck, and do keep us posted.

 

Thank you. He is only now getting to where it isn't hugely embarrassing for him. He's realizing these people were professional predators and he isn't the first nor the last to fall for it. Didn't help that his whole life his mom fell for one scam after another....or perpetrated them. He was trying to do the "Right" thing and get out from all that crazy. And he did, but at a very high cost - literally. 

[ktgrok]

Wow, after talking with DH today, and reading more, it's amazing how similar the stories are. This is from the guy currently suing Navient about the ITT loans. It closely mirrors DH's story, up to haivng him sign during class, and pressuring for cosignors. They called his elderly grandma (later diagnosed with Alzheimers) and got her to cosign - he's not actually sure she ever signed anything...but they used her. 

 

What was it like to borrow student loans at ITT?

It felt like they were trying to get me in no matter what. If I didn’t qualify for loans, they told me not to worry, to ask friends, family, co-workers, or anyone I knew with good credit to be a cosigner. Once I got approved, the process would repeat every so often. Every time I had to sign contracts it was during school hours and while I was attending a class. So in order not to miss anything from that class, I would just go and sign things really quick so I could get back to my class. My mom and my wife co-signed my loans many times because my credit was not enough. My mom did not have a job and she still got approved. At one point, after I graduated, one of my loan service providers told me I put down that I was living on campus when the school had no dorms. They did this to get more money out of my loans.

[teachermom2834]

This is really awful. I’m so sorry. 
 

So many are getting student loan relief on loans with better terms to start with. And it isn’t as if your dh is trying to get away without paying anything. This is not the scenario people are thinking of when the argue about the merits of student loan relief.

So outrageous. I hope you find some recourse. 

[elegantlion]

On 3/21/2021 at 9:54 AM, alisoncooks said:

Yikes. DH is still paying off his college loans. 

Could you take out a bank loan with a lower interest rate (lower monthly payment) and just totally pay off the student loans and no longer deal with them? I know with student loans there are tax benefits that a bank loan wouldn't offer...but if it helps you get right side up...?

(I'm just throwing out ideas...)

I'm so sorry. I know a few people who have taken the above route - refinancing with lower interest rates. 

[Bootsie]

Did he attend any other college or university?  If so, I would check with the financial aid department at the school, even if the loans are not associated with that school. They would have some information regarding who are some experts who are up-to-date with student loan information.  

Depending on the size of his employer and industry, he may also check with HR to see if they have recommendations.  

 

[2squared]

Have you calculated how much you need to pay monthly to pay down the loans? Your payment isn’t covering principal and interest, so the balances will keep growing. 
 

A $177k loan at 13% interest requires almost $2k/month payment to pay off the loan in 30 years. Obviously this isn’t  your exact situation, but step #1 for me would be to calculate the required payment to start paying principal and interest. Without traction against the loans, the situation cannot get better. 
 

Step #2 would be to see if I could get a lower interest loan to pay them all off, but I’m guessing  that would be hard with a balance that high.