How to defer Private Student Loans
Strategy for Paying Off Massive Private Student Loan Debt
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all right so let's talk about what are
your options when you owe a ton in
private student loans
and you don't make no money i know
here's the thing you owe a bunch in
private student loan debt
but you only make 40 50 60 70
80 000 a year and i say only and that's
all relative i i get it but when you owe
a hundred two hundred three hundred
thousand in private student loans
that money that you earn isn't going to
pay off the balance of
the student loan that you have in a
reasonable amount of time
so what can you do well the first thing
you can look into obviously is like
refinancing right you can try to
refinance the debt to get a lower
interest rate
but the problem is a lot of times these
companies aren't going to be willing to
work with you on
all of your private student loan debt
they may take on some
but they're not going to take on 200 300
000 unless your
income is such or your assets are such
or your cosigner's assets are such
that they'll allow that to happen so a
lot of times it's not going to be an
option for you right
and it'll be like well what about
settling cool
settlement may be an option if you're in
default
and you can afford the settlement but if
you owe 200
000 and you don't have any money to put
down towards a lump sum
then what does that settlement look like
if i got you a 50
settlement or a hundred thousand how
long is it going to take you to pay that
off
you're like well if i could do it over
10 years it don't work like that
not outside of like bankruptcy or
lawsuit or anything but just a general
settlement
they're usually going to be limited to
12 18
24 months maybe 36 every now and then 48
months
that's usually the most time you're
going to get
other than that it's going to be this
very short window so if you owe a bunch
in private student loan debt
you're going to need a large lump sum to
put down towards this debt
there's really no way around that plus
in order to get to that settlement
you're going to have to default which
means
your credit score is going to take a hit
and your cosigner's credit score is
going to take a hit
there ain't no way around that we can't
avoid that we can't do anything about it
and you're like well can't i get my
cosigner off
sure if you can find a way to get your
cosigner off your loan
through refinancing that's an option now
maybe you can ask for a cosigner release
from the loan holder that you borrow the
money from
that's a possibility but usually that's
only a possibility
if you've been making payments on your
loan as agreed
under the amortization schedule now if
you're under like an interest based only
payment or something like that
they're not going to get the cosigner
off you have to make the payments as
agreed to pay off the loans
not this reduced amount and you have to
do it over a period of time
if you don't do those things then your
cosign is likely not going to get
released
so what do you do then you can stop
paying right
if you do that credit score is going to
take a hit collection attempts may
happen
you don't have to worry about a
garnishment right away but at some point
they're likely going to
sue you because that's the only way they
can get money from you
in order to get money from you they have
to sue you win the judgment
and then they have the right to garnish
your wages potentially
they can also put a levy on your bank
account where they take money out your
bank account
and they can put a judgment on your home
now all this depends on what states you
live in the laws there and everything
like that
but those are the general things they
can do once they sue you
and get a judgment before then all they
can do is send you threatening letters
and keep digging your credit score
now say that's all and i know for some
of you that's really stressful
but in reality it's not the worst thing
in the world that can happen
when you stop paying 200 000 on student
loan debt right
then what is your other option if you
don't like that one the only thing
that's left
really is going to be looking into
bankruptcy and you would likely be
looking into a chapter 7 or chapter 13
depending on how much you owe
now with a chapter 7 that one's over
within a couple months it's cheaper it's
faster
that's a lot of times what people want
to do a chapter 13 is usually going to
be three to five year period
and you're going to make monthly
payments on your debt while you're in
this bankruptcy
now a lot of times you'll go to a bank
state attorney they'll push you into a
chapter
13 they'll say oh we'll take care of
student loans in there really it's not
taking care of your student loans it's
just giving you
breathing room because in this chapter
13 what's going to happen
is they'll set you up on monthly
payments that make you feel good
about your student loan debt but the
interest is still
growing over time so by the time you
leave bankruptcy
you'll end up owing a lot more than once
you started
now it feels good to have that relief
for that time and i get it
but that's that is just what it is it's
just kind of like this
pause period but it doesn't really fix
your situation
the only way that bankruptcy fixes your
situation with your student loans
is that a you file bankruptcy and then
b you file a lawsuit to try to discharge
your student loan debt
now people be like oh you can't
discharge student loans that's what hurt
that's that's not how it works you can
discharge student loans it's just
incredibly hard to do
for most people now you'll see things in
the news well this person did this and
this person did that
usually those are anomalous cases where
it makes sense
a lot of times it's not going to happen
for people now with private student
loans a lot easier
was too long that's what i'm talking
about where it's really freaking hard to
get rid of
but private student loans a lot of times
you can get a discharge
and even if you can't get a discharge
you may be able to work on a better
settlement
in bankruptcy than you could work out
outside of bankruptcy
what do i mean you know i said earlier
they're usually only going to do
12 24 36 maybe 48 months
to work out the settlement a lot of
times in bankruptcy you can negotiate a
10-year
settlement right at zero percent
interest and spread it out over time
right that's totally possible there
really aren't any rules on what the
settlement needs to look like in
bankruptcy is my point
that it's a whole new world with whole
new options now should you do this
no like i don't suggest anyone file
bankruptcy just because right
but if you don't have any other options
or you looked at the other options and
they're all shitty to you
then you look at this when you say i got
to do what i got to do
now does that come at a cost hell yeah
it's going to come at a cost on legal
fees it's going to come in costing your
credit score
it's going to come at all these other
emotional costs as well
but the relief you get knowing that you
did something i guarantee it's going to
be worth between the long run like i
i know it because i see it all the time
in people where they just feel
oh i did something about this debt
that's what that looks like now look if
you come to me and you want me to access
your student loan situation
i'm going to talk to you straight i'm
not going to you i'm not going
to sugarcoat anything to you
and i may talk dryly about it because i
don't have the emotions that you do
about your debt
but i do have the understanding of
what's going on
and what you're going through and what
the solutions look like
so if you want to talk to me about the
student loans and what we can do to
try to figure out how to help you cool
let's talk
until next time peace
