I OWE YOU $125,000 but Im Broke

[nobs]

So anyways, I attended a university from 1997-2002 and I borrowed about $40,000 in student loans.

After I graduated we were in a small recession so I took the best job I could find which paid me $25 K because I have no experience. This is where I screwed up. At that point my monthly payment was about $500 which would have been damn tough to seing, but I probably could have.

But I made no payments and they werent contacting me so I was like fuk it I will just wait until they contact me. Real stupid move on my part for sure, I cant deny that.

Anyways they finally contact me in 2009 amist a recession. Now I am making about 40 K Gross not Net, which is what I figured when I let it slide back in 2003. I figured, hell I will be making more later I will take care of it later. What I didnt count on is

Now they say I owe $125 K ( on 40-45 k in loans ) DAMN.

They sent my account to a collection agency and the collection agency charged 15K to my account for their fee. SHIT.

Late fees + interest had taken me up from about 40K to 95 K then the collection agency brought it up to 110 K then another years fees and interest makes it 120-125 K. '

So long story short = I cant pay this.

So I call the collection agency because they just sent me a letter. they say I need to pay it all now or they will give me a pay plan. They say i can pay them 1% = $1200 a month for the next 9 months and if i do that I wont be in default I will just still owe $120K or so and then I will have to keep paying my monthly payment of probably $1000 per month or go back into default.

So whats my advantage to doing this ?

first, i am single no dependents so my 40K is like 28 K after taxes, medicare, FICA and shit, so thats 2300 take home pay. so lets keep it real, it would be tough as hell for me to pay the $1200 a month but even if I did, after the 9 months I probably still owe the same I owe now. ( I am at close to 1200 a month in interest )

At this point even if I paid the most I could ( half my take home ) all I would be doing is covering the interest. I dont see a way out through doing this.

So I guess I just have to let them garnish me. The most they can take is 15% of my take home pay. That comes out to about $345 a month. The other way, I am paying $1200 a month, and neither plan is ever going to get me out of this debt.

I hate to let them garnish me, but why would anyone pay the $1200 and pretty much put themselves into poverty when the most the gov't can garnish is $345. ( Unless by paying the $1200 you could get it paid off ), but like I said the $1200 a month would be just covering the interest, and thats the most I could pay.

Now I know I took the loan, but its seems taking student loans is the ultimate gamble, noone knows what the conomy will be when they graduate, noone can say for sure they will make 75K + when they graduate, so taking student loans = one of the biggest gambles of your life. And this is the same gov't that makes betting $25 on an NFL game illegal.

[nobs]

This is no joke.

I was working at Mcdonalds before I started college. I was barely making minimum wage and if I hadnt gone to college I would be working some crap job today making $7 an hour paying no taxes, probably living on food stamps.

Instead I make 40 K and pay about 12 K in the various FICA, Medicare, Fed Tax, Work Comp taxes, and I have never been on food stamps, welfare, etc.

So to me, the govt is getting its money back by getting an extra 10 K in tax revenue every year.

[mtneer1212]

bankruptcy?

[pico]

you're going to be in debt for the rest of your life. better get used to it now

[tltaylor89]

Government forgives the loan if you work for them.

[nobs]

You generally cant get out of student loans through bankruptcy.

In fact the gov't tells you that you cant but some people have been successful. Still I read where less than 1% who have tried have done it.

You pretty much have to be making 15K or less a year and satisfy the judge that you wont ever be able to make more.

The point of bankruptcy is so people dont get so far behind they can never catch up, of course the govt was sure to exempt itself from that.

[tltaylor89]

You should have joined the Navy before school

[Brock Landers]

you went to college, how is it you make shit for money with a degree?

[nobs]

you're going to be in debt for the rest of your life. better get used to it now

Exactly. I am currently bringing home 2300 a month, so i am just getting used to the day when that falls to 1950 or so. Other than that, I am not even going to worry about it.

all they can do is take 15% of my disposable income so I am not going to start sending them 50% unless they give me a deal. Like if they told me, send $1200 a month for 5 years then its clear I would seriously consider doing it and just struggling for 5 years.

but the way it is no, If I sent $1200 a month for the next 5 years I would still owe what I owe now.

Only solution here would be to start making $75 K a year but I dont see a big raise coming soon and I cant work another job because I dont have set schedule. I work 42-46 hours a week now not always the same day and some evening

[nobs]

you went to college, how is it you make shit for money with a degree?

yeah I graduated too.

I know college graduates who make less. The day when a college degree guaranteed 75K is long gone if it ever existed in the first place.

[Tree Rollins]

...

[nobs]

You should have joined the Navy before school

Yeah I should have gotten the GI Bill or something, I was a stupid 19 year old kid who thought when I graduated I would have my pick of jobs all paying 100+. I actually remember telling myself I would just pay it all back out of my first years salary, you know cause I thought I was going to owe 40K and be making 150 K.

[nobs]

Listen, knobs. Your post is way to long. There is nothing going on in your life that could possibly be interesting enough to take up 17 paragraphs. Please summarize.

I am a deadbeat no good for nothing bum who owes you $125,000

[Dirty Sanchez]

Just do the man thing....and take the jail sentence....probably have to do 3-5 years and give up some ass to your cellmate...but you'll be in the clear

[nobs]

They cant send you to jail for this

[nobs]

Shit the gov't made out huge on this

They paid 45 K of my college costs. I have been sending them 12 K a year tax money for the last decade and now they still get the 12 K a year taxes for the rest of my life plus another $350 a month from me for the rest of my life.

[brxbmbers42]

So anyways, I attended a university from 1997-2002 and I borrowed about $40,000 in student loans.

After I graduated we were in a small recession so I took the best job I could find which paid me $25 K because I have no experience. This is where I screwed up. At that point my monthly payment was about $500 which would have been damn tough to seing, but I probably could have.

But I made no payments and they werent contacting me so I was like fuk it I will just wait until they contact me. Real stupid move on my part for sure, I cant deny that.

Anyways they finally contact me in 2009 amist a recession. Now I am making about 40 K Gross not Net, which is what I figured when I let it slide back in 2003. I figured, hell I will be making more later I will take care of it later. What I didnt count on is

Now they say I owe $125 K ( on 40-45 k in loans ) DAMN.

They sent my account to a collection agency and the collection agency charged 15K to my account for their fee. SHIT.

Late fees + interest had taken me up from about 40K to 95 K then the collection agency brought it up to 110 K then another years fees and interest makes it 120-125 K. '

So long story short = I cant pay this.

So I call the collection agency because they just sent me a letter. they say I need to pay it all now or they will give me a pay plan. They say i can pay them 1% = $1200 a month for the next 9 months and if i do that I wont be in default I will just still owe $120K or so and then I will have to keep paying my monthly payment of probably $1000 per month or go back into default.

So whats my advantage to doing this ?

first, i am single no dependents so my 40K is like 28 K after taxes, medicare, FICA and shit, so thats 2300 take home pay. so lets keep it real, it would be tough as hell for me to pay the $1200 a month but even if I did, after the 9 months I probably still owe the same I owe now. ( I am at close to 1200 a month in interest )

At this point even if I paid the most I could ( half my take home ) all I would be doing is covering the interest. I dont see a way out through doing this.

So I guess I just have to let them garnish me. The most they can take is 15% of my take home pay. That comes out to about $345 a month. The other way, I am paying $1200 a month, and neither plan is ever going to get me out of this debt.

I hate to let them garnish me, but why would anyone pay the $1200 and pretty much put themselves into poverty when the most the gov't can garnish is $345. ( Unless by paying the $1200 you could get it paid off ), but like I said the $1200 a month would be just covering the interest, and thats the most I could pay.

Now I know I took the loan, but its seems taking student loans is the ultimate gamble, noone knows what the conomy will be when they graduate, noone can say for sure they will make 75K + when they graduate, so taking student loans = one of the biggest gambles of your life. And this is the same gov't that makes betting $25 on an NFL game illegal.

i would contact obama. see if he can do anything about it

[tltaylor89]

Hey Nobs whats your profession?

[nosniboR11]

not sure about this whole story, student loan, if you dont pay , they really dont send to collection agency's , they garnish your check, they give your forbearance but I do not think they send this to any collection agency, when they can just send to the govt. after 270 days of non payment and they will garnish your check, thats how it works, period

[Dirty Sanchez]

o.k since this is another SBR BS Fantasy....then go to your city center and find a dark alley.....give helmet shines for $25...you could make about $100 an hour...a few hours a night you'll be out of debt in a couple of years

[tltaylor89]

Tell ya what NOBS this is your best option you have to get a government job and by government job I mean FBI or Cia or NSA.Second option is get a financial advisor see if there is a loophole.

[brxbmbers42]

o.k since this is another SBR BS Fantasy....then go to your city center and find a dark alley.....give helmet shines for $25...you could make about $100 an hour...a few hours a night you'll be out of debt in a couple of years

[nobs]

not sure about this whole story, student loan, if you dont pay , they really dont send to collection agency's , they garnish your check, they give your forbearance but I do not think they send this to any collection agency, when they can just send to the govt. after 270 days of non payment and they will garnish your check, thats how it works, period

No its at a collection agency right now, and its been 7 years not 270 days. They let that interest and late fees really add up

[tltaylor89]

3rd option move out the country and renounce your US citizenship

[nobs]

o.k since this is another SBR BS Fantasy....then go to your city center and find a dark alley.....give helmet shines for $25...you could make about $100 an hour...a few hours a night you'll be out of debt in a couple of years

I wish this was a fantasy but this is actually true

[forsberg21]

You said a collection agency took over the loan, right? If a collection agency has it, can't you default on it by declaring bankruptcy since it's no longer a student loan?

[jjgold]

The new generation kids have no shot to get out of debt, more and more kids are all loaned up from college and when they get out they get a low paying job or are unemployed. I have no clue what the answer is.

[Fire in da hole]

you went to college, how is it you make shit for money with a degree?

Because he went and got a shit degree or he is a shitty worker. Either way, it is his own fault.

[EmpireMaker]

You need to call the federal student loan people (fvck the collection agency) tell them your sad story and that you want to make affordable payments and work out a plan with them.

[brxbmbers42]

didnt even graduate high school. got the boot for various disciplinary reasons. making 60k a year

[Boner_18]

This thread gets posted all the time. Just pay your debts. Cut your cable, stop gambling, work a weekend shift. Stop acting like a victim and pay.

[nobs]

3rd option move out the country and renounce your US citizenship

Yeah could move to Canada but I would probably end up making less than $1950 take home pay.

the way it is now I make 2300 then it will be 1950 after they start garnishing.

The collection agency keeps telling me I have to start sending 1200 a month or its going to garnishment. I guess they dont realize that i know the garnishment = 15% = $345 a month. Either that or they just think im stupid.

I called them thinking they would offer me a deal, a way to settle. They didnt offer much of a deal.

I work in a bank, was wamu not its chase, sometimes working late nights in account verification/ auditing

[nobs]

This thread gets posted all the time. Just pay your debts. Cut your cable, stop gambling, work a weekend shift. Stop acting like a victim and pay.

This is only the 2nd time boner. I dont have cable and my gambling isnt a big amount. I am small time. Im not trying to say i am a victim, but like I said if I paid the 1200 a month It wouldnt lower what I owe at all

[nosniboR11]

No its at a collection agency right now, and its been 7 years not 270 days. They let that interest and late fees really add up

again you are full of it, student loans do not work the same as credit cards, you are fibbing , only way its been seven years without any payment is if you had it deferred for that time or it was in forbearance , then after you exhausted all the deferment and forbearance then the 270 days start and then they will garnish your check,

[nobs]

Because he went and got a shit degree or he is a shitty worker. Either way, it is his own fault.

I think its some of both