STUDENT LOANS Out of Control!

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    • #89885
      BrendaB
      Participant

      ANY suggestions on using diagnosed ADD disability as a leverage to lowering /forgiving part of student loans? Circumnavigating the student loan carriers and WHO/resources that can assist (idealy) free of charge? (I can and do want to work)

      Also extending unemployment past the 6 months.

      Thanks!

    • #89906
      ADHDinPGH
      Participant

      Well….I have some very unconventional advice for circumnavigating things. I wouldn’t even call it advice, but I can tell you how being a victim of bad circumstances ended up saving me from my student loans:

      I’ll try to keep this long story brief, but basically I was underemployed and had a hard time keeping jobs bc of my severe ADHD combined with no insurance and so no meds. I defaulted on all my loans because I was living paycheck to paycheck, relying on public assistance to get by in spite of working 50+ hour weeks at low-wage jobs.

      I live in PA, one of three states where lenders for private loans can’t garnish your wages for defaulted loans so I had that keeping me afloat. One lender sued me, which I would not find out about for several years because I was improperly served. The other lender did not sue me within the statue of limitations (4 years from date of default in my state) so they can no longer take legal action against me to collect.

      Seven years passed and that default came off my credit report. When I learned of the suit from the other lender, I learned they had also sold my debt and the new creditor had no original paperwork on the debt. I hired a lawyer for $800 who filed to have everything removed (I’m simplifying the process for brevity)because they couldn’t show ownership of my debt. It was totally wiped away. Gone. Forever. It’s like I never owed it. The other debt I eventually settled for about $1,000 on a $25k debt. At this point I had rebuilt my credit and had been at a stable, good-paying job for a while so I opened a 0% interest credit card to pay off the settlement and paid that off over a few months.

      I am not recommending this as a solution. My credit was destroyed for a decade, but I was poor so it didn’t matter anyway because I wasn’t in a position to take on credit to begin with. I just wanted to share with you to let you know that if you DO default, it’s not the end of the world. Especially if you don’t own property to begin with. It sucks, yes, but you can totally bounce back!

      Good luck and I hope you find an actual answer.

    • #181054
      BrendaB
      Participant

      Thanks so much. I don’t know why I was never notified of your response. I’m not in default anymore (but still haven’t paid much or anything because I am on income driven and now unemployed). Much of my stuff dropped off after 7 years as well and I too took out a prepaid card and a store credit card and am building up my credit. I spoke with a financial coach who stated I could have the loans excused if I file the disability, and my income would have to be $16,000 or less per year for 3 years (they verify every year). Although my income was only 4k more than that, I really couldnt live off of $16k. So right now I am going the option of income driven. paying for 10 years, and trying to find a nonprofit or govt job to work for where I can have the balance erased– and not pay taxes on the remaining balance. If I work for a co that is not np , govt, etc, I will have to pay taxes on the amount erased.

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