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I have a student loan payment that is killing me, in the sense that I am unable to build up any sort of emergency fund, or save up money to move into a place that is cheaper and doesn't suck.
There appears to be no student loan provision for "I need to be able to save a little money for a rainy day" or "I need to temporarily reduce my student loan payment to move out of this house from hell and into a place that's cheaper and thus more sustainable".
I have a student loan payment that is killing me, in the sense that I am unable to build up any sort of emergency fund, or save up money to move into a place that is cheaper and doesn't suck.
There appears to be no student loan provision for "I need to be able to save a little money for a rainy day" or "I need to temporarily reduce my student loan payment to move out of this house from hell and into a place that's cheaper and thus more sustainable".
Is this rational, does it make sense?
There are no loans of any kind with this type of provision. Your choices are to tighten your belt another notch or to find a second job for as long as it takes to fund your savings and move.
They don't care about your life except that you pay them back.
Not their problem.
As to not being able to save money:
Do you have the cheapest phone plan, cheapest internet, no TV, Pasta in the pantry?
I've done that. I got ahead.
Re: They don't care. There are supposed to be requirements and options for affordable payments. For example, if my rent were $200 higher they'd reduce my payment to allow me to continue paying my rent. It's sort of like a company store or serfdom arrangement, they do let you pay your basic expenses, but they don't give you any room beyond that.
Where your/their logic fails is when an emergency arises and there's no rainy day fund to cover it. What's your/their solution for "I rent a room in a house and now the house is being foreclosed and everyone has to move out and find a new place to live...but it costs $1,000 to move into another room and there's no money to cover that unexpected expense"? The reason I ask this question is that is precisely what prompted my move into this dungeon; it was the only place I could afford to move into, and even a place like this might not be available on the money I have next time. Is your solution "Not my problem, move into a homeless shelter if they have room or else sleep in doorways"?
I have a prepaid cell phone which costs me about $7-$10 per month, no TV, and several pounds of pasta on hand, plus I just loaded up last week with sale 79-cent cans of pasta sauce, boxed mac-and-cheese, and cans of tomato soup. Actually I think I'm now sufficiently well-stocked that I won't "need" to go any more grocery shopping until November. Oh, and the cheapest internet I can get, although I don't have dialup because I don't have a phone line or even phone wiring.
There are no loans of any kind with this type of provision. Your choices are to tighten your belt another notch or to find a second job for as long as it takes to fund your savings and move.
There are supposed to be "reasonable and affordable" repayment options, Congress said so.
There are supposed to be "reasonable and affordable" repayment options, Congress said so.
There are formulas that determine how much of your monthly income you should be able to afford to pay. From your previous post, it sounds like your monthly payment has been set based on those guidelines. The formulas do not take into account that s**t happens and sometimes the payments will feel less than affordable.
However, there are reasons that lenders (both Federal and Private lenders) will defer your payment for a period of time. You need to contact your lender, explain the situation and see if you're eligible for a deferment. If you've already done so, then your options are limited to finding a way to live more cheaply or finding a way to generate more income.
Depends on what type of student loan they are, I suppose. My husband got his government backed student loans deferred two different times, for 6 months at a time. The second one was for unemployment. But I'm pretty sure the first time was just because he asked for it because he wasn't making enough to keep up. Even though with my income, we were getting by fine, he wanted to pay a few other bills off with higher interest rates quicker, so he put in for a deferment and got it, which let him put those minimum payments toward a higher interest debt.
Don't forget, though, that interest continues to accrue during a deferment. So when your loan starts back up, you will owe more than you did before. So that doesn't really get you "ahead" unless you use the money to pay off higher interest debt. But it could make you a bit more secure.
You can always ask. All they can do is say no.
The real question is, would a 6 month deferment of payments allow you to save enough to move? If not, then your only hope is to find a 2nd or higher paying job.
Re: They don't care. There are supposed to be requirements and options for affordable payments. For example, if my rent were $200 higher they'd reduce my payment to allow me to continue paying my rent. It's sort of like a company store or serfdom arrangement, they do let you pay your basic expenses, but they don't give you any room beyond that.
Exactly. IF.
Quote:
Originally Posted by freemkt
Where your/their logic fails is when an emergency arises and there's no rainy day fund to cover it.
No it doesn't. What part of "They don't care" is hard to understand?
This is why some of us advise AVOIDING it...
Quote:
Originally Posted by freemkt
What's your/their solution for "I rent a room in a house and now the house is being foreclosed and everyone has to move out and find a new place to live...but it costs $1,000 to move into another room and there's no money to cover that unexpected expense"?
I've been 'voluntarily homeless' before and in January I'll be doing so again.
There are many other options.
Buddy of mine, wife, 3 kids etc... He got through school with no student loans, but his wife had them... then medical bills.
They both worked, so he got a second job. That may be your solution.
Not my job (Or theirs) to find your solution.
Also, You WILL need to move at some point. That is HARDLY an 'unexpected expense'
Quote:
Originally Posted by freemkt
The reason I ask this question is that is precisely what prompted my move into this dungeon; it was the only place I could afford to move into, and even a place like this might not be available on the money I have next time. Is your solution "Not my problem, move into a homeless shelter if they have room or else sleep in doorways"?
Prettymuch.
That or get another job, make more money where your at, hussle up some money, etc etc.
Your choice.
It's not MY job OR THEIRS to fix the consequences of your poor choices.
Quote:
Originally Posted by freemkt
I have a prepaid cell phone which costs me about $7-$10 per month, no TV, and several pounds of pasta on hand, plus I just loaded up last week with sale 79-cent cans of pasta sauce, boxed mac-and-cheese, and cans of tomato soup. Actually I think I'm now sufficiently well-stocked that I won't "need" to go any more grocery shopping until November. Oh, and the cheapest internet I can get, although I don't have dialup because I don't have a phone line or even phone wiring.
Have you tried to put your loan in forebearance for awhile until you can sock a little money away in an emergency fund? I've done that a couple of times, I don't think I had to provide any documentation. It was a pretty simple and painless process as I recall. Interest will continue to accrue while you're in forebearance so your payment might be slightly higher when it comes out.
My feeling toward this is that it is/was YOUR responsibility to figure all of this out 'before' you borrowed the money. put yourself in the banks' shoes for a minute:
YOU are a wealthy guy and you've lent out all your money to 100 people and they've promised to give you the money back little by little. they've each promised to give you 250 bucks every month until they give you all the money they owe you.
what if 40 of them one month come to you each say, 'hey, can you give me a break? i really want to save money and i would rather not give you 250, but instead give you 100. pleeeeeeeeeease? pretty pleeeeeeeeeease?"
what would YOU say/do?
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