Question:
Dear Steve,
So long story short, I graduated six years ago and immediately got carbon monoxide poisoning. The job I had lined up fell through, and I ended up homeless and sick. Thankfully my sister found out and bought me a ticket to Denver.
I spent several months in my sisters care, recovering. I took any minimum wage job I could get and struggled to try to build a career, spending all of my free time volunteering in my field. I left school with zero information or resources about my student loans. By the time I figured out how much I owed, I was working as a barista and sleeping on my sister’s couch.
I couldn’t afford to pay anything and had no idea who I would even pay or how to proceed. Over the years I got phone calls from people but was unable to substantiate their credentials. Finally, I found a career 2 years ago in my field. As of this November, I will have gotten my 3rd promotion and finally be able to make small payments(as long as they’re 200-400) I’m in default.
I still don’t even know who to pay or how. I turned 30 this year. I have a wonderful significant other who loves and supports me. I want to marry her. Buy a house. What do I do? How do I even start? I want to be out of default so I can prove I’m responsible and move on with my life.
What’s the quickest way to get out of default?
How do I make payments in my student loans?
How much are payments generally?
Do I have to make payments while my wages are being garnished?
What is consolidation? How do I know if it’s right for me? How do I proceed if I decide I want to consolidate?
Aaron
Answer:
Dear Aaron,
Unfortunately, you didn’t tell me if these are federal or private student loans. Let me know in the comments section below. It makes a huge difference.
Thankfully you have a sister who obviously loves you and took you in when you needed help. Not everyone has a family like that. You’re lucky.
It is probably time to also get your hands on all three credit bureau reports and see what is being reported about your debts. You can get a free copy by visiting AnnualCreditReport.com. If these are private loans it may also help to locate some of them. If these are federal loans then you can find out who you owe at the government site NSLDS.
