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My wife was told by Citibank that she needs to begin paying back her student loan for about $50k next year. They want like $800/mo which I think is nuts. We are about to buy a home and don't need an extra $800 bill that we cannot afford. Has anyone worked with them to lower the monthly fees? I heard they will take anything as long as you are paying but can't find any information
You can probably work with them to get them deferred, or be put in forbearance.... I think you'll have to provide proof of income and expenses though. I've always had an easy time working with private student loan holders during periods of unemployment, but they're horrible when you're employed LOL
I have never heard that student loan companies will take whatever monthly payment you offer. In fact, student loans are notariously tough - except for the legit forbearances - but really the longer you put off paying it back the bigger the amount you have to pay back.
Educate yourself on student loans. You don't want to mess with them. You can't go bankrupt on student loans. They will haunt you until the day the borrower dies. StudentLoanJustice.Org
My wife was told by Citibank that she needs to begin paying back her student loan for about $50k next year. They want like $800/mo which I think is nuts. We are about to buy a home and don't need an extra $800 bill that we cannot afford. Has anyone worked with them to lower the monthly fees? I heard they will take anything as long as you are paying but can't find any information
please advise!
You can probably work with them and spread the payments out over 30 years, but then you'll end up paying a lot more in interest. If it were me, I'd find a way to pay them $1,000 a month (or more!) and get that sucker out of my life as soon as possible. Seriously. Put of buying that house another year and work on paying off that loan.
In normal times I would suggest you skip the house for now and pay off the loan. However, you may be in one of the best times to buy property cheap, get a low percentage rate mortgage, and put your money to better work. Inflation could make inroads on the interest you are being charged on the student loan.
I guess that I would examine the upside potential of the house, and costs (figure actual total monthly costs of about 1.5X the basic mortgage amount), and try to negotiate the student loan payment down. When equity starts building, I would consider paying off the student loan with an equity loan.
I have my student loans with Citibank and they are pretty tough. I never had an issue paying them, but once in a while when I forget to go online and pay them, I get a call THE DAY AFTER IT WAS DUE.
I have never heard of paying "anything" to student loans. They're usually pretty hard about negotiating from what I've heard from my friends who tried it since they know you can't go bankrupt on them.
So let me make sure I understand. Your wife borrowed $50K from a private lender, agreeing to the terms. But now you guys don't feel like abiding by the agreement. Is that about right? If so, you get no sympathy here. Honor your debt and skip buying a house. Or buy something cheaper.
Well no offense, but why is it so important to you to buy a house when you can't afford the monthly payment for the student loan? I do totally agree it's really high, my monthly payment back in 2001 for a 20K loan was $112.00, but your priority should be to pay the student loan off.
I completely disagree w/ chickpea's sentiments. In a year or two, house prices aren't going to turn around and double in price again, most likely it'll still continue to be declining for a few years. I would be in no rush to purchase a home.
yea, dont cha know only BIG business and highly influential peeps get govt. bailouts.
Student loans will follow you to your grave. Nevermind that it could be a possibility that once you borrowed that money,in good faith, put in your 4-10 years of schooling only to find out you can't find a job...or you find a job-for minimum wage....no matter. You're still screwed. Aint our govt. great??!!
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