TLDR: friend has $60,000 with SallieMae and a $900/month payment. How do we lower the payment? Refinance?

    EDIT: adding that the last payment due is now 63 days late

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    Hello, this is my first time posting so thank you in advanced to any who comments with their experience/advice on the next steps to take.

    I have been helping a friend with her student loan situation. She has reached a point where she can no longer afford her payments toward her SallieMae loans ($900ish/month). Originally she was on a payment plan that she could afford, but then she returned to school and has been in school long enough that SallieMae is no longer allowing deferment of payments. So now the current repayment plan they have her on she can not afford.

    She has just over $60,000 in SallieMae loans and over $81,000 in Nelnet loans (currently in deferment/in school status). Her goal is to get the loan payments low enough that she can afford them.

    When she realized she would not be able to afford the new payment amount (about 120 days ago), she called SallieMae to see if they would be able to adjust the payment amount. They told her there were no options for her at that time and that she would need to miss a payment in order to be able to talk to a different department that may be able to help her. So she missed a payment and called in again. They then told her they were not able to help her and recommended she get a second job. The payment is now 63 days late.

    Currently, she is a third grade teacher making about $50,000/year while also in grad school for her teaching license. She is about to finish her first year of teaching and grad school. She have a car payment of $576/month, but the loan is in her sister's name. Her rent payment is $800/month. Car insurance is $190/month. After other smaller expenses, she has about $200/month she can allocate toward student loans at this time.

    She files taxes single and claims her 23 year old brother as a dependent because he has lived with her for several years and is not in school and unable to work due to medical reasons.

    2014 was the first year she took out student loans.

    We emailed The Institute of Student Loan Advisors (TISLA) and they recommended attempting refinancing if anyone will pick the loans up.

    Before taking the next step and applying for refinancing, I felt I should post on here to see if anyone had any other suggestions or advice on who to refinance with or things to watch for when refinancing. If any additional information would be helpful, please let me know and I'll provide what I can. Thank you again to anyone who gives their time and attention to this post.

    Unable to Afford SallieMae Payments
    byu/sleepyhead_69_420 inStudentLoans



    Posted by sleepyhead_69_420

    2 Comments

    1. 141,000 ?! I’d be talking to bankruptcy lawyers for the private loans, PSLF for the federal loans.

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