Author Topic: Private loans $100k, getting sued soon, looking to never paying!!  (Read 839 times)

0 Members and 1 Guest are viewing this topic.

aintgonnapay

  • Valued Member
  • Posts: 21
$100,000 in PRIVATE student loan debt from Sallie Mae. Unable to make the $784/monthly payment and have not paid a dime. I make $14/hour.

1) Got a letter a few days ago saying that they will put my account in collection in a few weeks.

2) I live in a state where they can garnish wages.

3) I am looking to relocate to Texas, Pennsylvania, South Carolina, or North Carolina because I have read that it isn't possible for PRIVATE student loan lenders to garnish wages.

4) Never going to be able to repay this. I have a worthless degree; no chance of ever paying it off short of winning the jackpot.

Any advice? Thank you.

Student loan indentured servant in $100,000+ debt to private lender Sallie Mae. 100% unable to pay even close to the minimum monthly payment.

BellEbutton

  • Valued Member
  • Posts: 3373
Re: Private loans $100k, getting sued soon, looking to never paying!!
« Reply #1 on: March 18, 2017 03:05:01 AM »
$100,000 in PRIVATE student loan debt from Sallie Mae. Unable to make the $784/monthly payment and have not paid a dime. I make $14/hour.

1) Got a letter a few days ago saying that they will put my account in collection in a few weeks.

2) I live in a state where they can garnish wages.

3) I am looking to relocate to Texas, Pennsylvania, South Carolina, or North Carolina because I have read that it isn't possible for PRIVATE student loan lenders to garnish wages.

4) Never going to be able to repay this. I have a worthless degree; no chance of ever paying it off short of winning the jackpot.

Any advice? Thank you.

Why did you take out $100,000 in loans for a worthless degree?

olywa

  • Valued Member
  • Posts: 67
Re: Private loans $100k, getting sued soon, looking to never paying!!
« Reply #2 on: March 18, 2017 05:23:32 AM »
$100,000 in PRIVATE student loan debt from Sallie Mae. Unable to make the $784/monthly payment and have not paid a dime. I make $14/hour.

1) Got a letter a few days ago saying that they will put my account in collection in a few weeks.

2) I live in a state where they can garnish wages.

3) I am looking to relocate to Texas, Pennsylvania, South Carolina, or North Carolina because I have read that it isn't possible for PRIVATE student loan lenders to garnish wages.

4) Never going to be able to repay this. I have a worthless degree; no chance of ever paying it off short of winning the jackpot.

Any advice? Thank you.

Buy yourself some time by signing up at a local community college for a class & get yourself put into automatic deferment for a quarter. Half time enrollment usually buys you an automatic deferment of student loans (typically public and/or private...but check to be sure). Sure, the tuition will cost you around $600 (6 quarter credits is usually around $600, you can likely find cheaper if you look)...but the $600 will then buy you 3 months to not have to pay & be able to figure things out. $600 over 3 months is MUCH cheaper than $700 a month.

You don't have to pass the classes and/or likely even attend beyond the 1st week of classes...but if you sign up for their typical payment plan...you can likely pay $200 a month, bring yourself out of being behind, and buy yourself some time to contemplate your options. Is it a long-term solution, definitely not...but it's a viable short term management option.

Good luck.

Bruno the JDB Killer

  • BANNED
  • Posts: 14304
Re: Private loans $100k, getting sued soon, looking to never paying!!
« Reply #3 on: March 18, 2017 01:20:17 PM »
Save your moving money, it won't help.


Texas allows garnishment for child support, taxes, alimony, and student loans.


 In Pennsylvania, if your disposable income is less than 30 times federal minimum wage, your wages cannot be garnished for domestic support obligations, federal taxes or student loans. Above that, it can.

Under North Carolina law, an employer may be ordered to withhold wages from an employee and pay them to a creditor for the following types of debts: taxes, student loans, child support, alimony, and payment of ambulance services in certain North Carolina counties.

South Carolina still allows garnishment if you owe child support, student loans, or taxes. In these instances, the government or creditor can garnish your wages without getting a court judgment.


Also, if you are working at let's say WalMart and your paycheck comes from a different state that allows garnishment, it will be.

I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

aintgonnapay

  • Valued Member
  • Posts: 21
Re: Private loans $100k, getting sued soon, looking to never paying!!
« Reply #4 on: March 18, 2017 02:39:36 PM »
Why did you take out $100,000 in loans for a worthless degree?

The original amount was $55,000.
Student loan indentured servant in $100,000+ debt to private lender Sallie Mae. 100% unable to pay even close to the minimum monthly payment.

aintgonnapay

  • Valued Member
  • Posts: 21
Re: Private loans $100k, getting sued soon, looking to never paying!!
« Reply #5 on: March 18, 2017 02:41:29 PM »
Save your moving money, it won't help.


Texas allows garnishment for child support, taxes, alimony, and student loans.


 In Pennsylvania, if your disposable income is less than 30 times federal minimum wage, your wages cannot be garnished for domestic support obligations, federal taxes or student loans. Above that, it can.

Under North Carolina law, an employer may be ordered to withhold wages from an employee and pay them to a creditor for the following types of debts: taxes, student loans, child support, alimony, and payment of ambulance services in certain North Carolina counties.

South Carolina still allows garnishment if you owe child support, student loans, or taxes. In these instances, the government or creditor can garnish your wages without getting a court judgment.


Also, if you are working at let's say WalMart and your paycheck comes from a different state that allows garnishment, it will be.

The above states from what I've read refer to federal student loans, not private loans.
Student loan indentured servant in $100,000+ debt to private lender Sallie Mae. 100% unable to pay even close to the minimum monthly payment.

olywa

  • Valued Member
  • Posts: 67
Re: Private loans $100k, getting sued soon, looking to never paying!!
« Reply #6 on: March 18, 2017 05:05:19 PM »
As a 'private' loan...why can't you just BK out from under it? At 100k, it's definitely worth considering the nuclear option. If you can't BK out of it, just let it go to a judgment, which you CAN bk out of. Is this an option for you?

aintgonnapay

  • Valued Member
  • Posts: 21
Re: Private loans $100k, getting sued soon, looking to never paying!!
« Reply #7 on: March 18, 2017 05:51:34 PM »
Going to BK the private loan once the debt grows even larger becoming even more clear to the courts that considering my past employment history earnings, and current earnings, there is NO POSSIBILITY of ever being able to pay them off.
Student loan indentured servant in $100,000+ debt to private lender Sallie Mae. 100% unable to pay even close to the minimum monthly payment.

flaccito

  • Valued Member
  • Posts: 49
Re: Private loans $100k, getting sued soon, looking to never paying!!
« Reply #8 on: March 18, 2017 08:05:54 PM »
"aintgonnapay" nice name!  :vbrofl:

I don't see much you can do to be honest, and if I recall correctly student loans are exempt from BK.

I guess some realistic solutions, if you truly intend to never pay again:

1. Work for cash/under the table ONLY from now on, for the rest of your life. This is easier said than done though.

2. Leave the country altogether and start over fresh somewhere else, but you'll most likely be poor in the new country. Getting citizenship is a whole other animal, might need to get married to a local or something.

About all I can think of. As student loans are government type debt I'm pretty sure you will be garnished no matter what state you move to.

BrokeBob

  • Valued Member
  • Posts: 1394
Re: Private loans $100k, getting sued soon, looking to never paying!!
« Reply #9 on: March 18, 2017 09:30:40 PM »
What some people get, and others do NOT get, is that there is a difference between public and private student loans.

That being said:

There are BK attorneys who deal with student loans sometimes.  IN THEORY, ALL student loans can be discharged in BK if the debtor shows s/he is not ever going to be able to pay off the debt.  In practice, this is extremely rare, except for cases of permanent disability, etc.

My advice would be for the debtor to find a good BK attorney who has actually had experience dealing with SL debt.  It may be possible to get a free consultation. 

fullspeedahead17

  • Valued Member
  • Posts: 6
Re: Private loans $100k, getting sued soon, looking to never paying!!
« Reply #10 on: March 18, 2017 09:54:44 PM »
I was in a similar situation as you. I was in over 130k in debt total once, most of it due to making a poor education choice, one I could not afford. I consider myself an expert with this stuff at this point, considering I have personal experience with this exact issue.

This is what happened to me and some advice: 

I accumulated 100k in private student loan debt and dropped out of the school making my loans due immediately.

I never paid it.

4 years later they cancelled the loans and I wasn't tax liable because my assets weren't even close to 100k when they cancelled it.

I didn't pay a DIME on it. 8 years later my credit is above 700, but that took a lot of hard work and saving. I wouldn't pay them anything. I would wait until they sued me because you could end up paying less if they decide to take that route, which they may or may not. Being sued is usually the best way to handle a debt you can't really afford to pay. Yes, you made a mistake. Who cares, everyone makes them! Don't let that stop you from leveraging the situation to help yourself.

DO NOT DECLARE BANKRUPTCY!! It is highly unlikely that a lawyer would even attempt to get a private student loan discharged. You need to be able to prove "undue hardship" which is near impossible. It has to look IMPOSSIBLE that you will ever be able to pay the money back. You can read literally dozens of stories about people who have attempted (as I did). The few who were successful had no hope of paying it back. For example, they got cancer, went on disability, or had the debt for 40 years and worked low paying jobs for 40 years. You don't want that. If a lawyer claims they can achieve that, I'd question their expertise.

When that happened to me, I seriously considered suicide. It seems like the end of the world but it's not and you don't know what will happen. I wouldn't pay it cause the more you work with them the more they are gonna try to get the maximum amount out of you and be less willing to do things in your favor. Despite what a lot of loan servicers and CCs claim, giving them money and communicating with them does NOT make them want to "work" with your situation, it is a business. It is about money. Federal student loans are a totally different game because it's mandated by the government. I didn't take that approach with my federal student loans, which are in great standing now.
« Last Edit: March 18, 2017 09:59:29 PM by fullspeedahead17 »

 

credit