Student loans: what happens when you can't afford the payments?

Question

When my daughters first left for college, I was told that the school's policy was for the parent/guardian to apply for an education loan. If it was denied, the student would automatically get it. I said then that I couldn't afford to make any additional payments but that didn't seem to matter. When the time arrived to begin payments all I could do was to ignore the notices because I could not afford to pay. This summer I received notice that my stimulus check had been taken & used

toward this debt & I was subject to garnishing of all state/federal taxes owed in the future & possibly my wages until this debt was paid in full. I seem to owe approx. $10- $12,000 for each child!! Is there anything I can do? I am even afraid to call these people but I know that I definitely can't afford for them to take my wages. I am barely making it now. Someone please help!!!

Answer 1

Talk to the financial advisor to see if you can defer the payments.

Answer 2

Read here, hopefully some of this information will be helpful.

http://www.ed.gov/offices/OSFAP/DCS/inde...

Answer 3

Ignoring those notices is where you screwed up.. You should have immediately called and asked about options.. It's now too late.. IT's become legal.. It is in default so they will continue to garnish wages, taxes, etc until it's paid in full..It's not their fault that you can't afford to pay.. The school told you that because they wanted your money /kids money and that is all colleges are in business for..They don't care if you can pay it or not.. as long as they get their tuition every year..  There is nothing you can do.. You can call them and ask for options or ask for lower payment but they will more than likely tell you, you should have contacted them at first notice.. They will continue to add fees monthly till it's paid in full..You are dealing the federal govt. they don't play around.  GL