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What are my options for Private Loans?

Total Posts: 1

Joined 2011-06-08

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I am at risk of defaulting if I can’t find a way to get an affordable student loan payment.
Is there ANY possible way to include my *private* loans with the IBR program? Can they somehow be consolidated with my Federal loans? If not, what else can I do??! 
Does IBR factor in my Private loan debt when calculating my payment at least? Please let me know. Your help is greatly appreciated!

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Total Posts: 604

Joined 2011-03-30

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I wish.  The feds pretend like you don’t have those private loans. 

As for what to pay first when your financial circumstances are tough, it makes sense to pay first your rent, mortgage, utility payments, or other priority debts.  I would consider federal student loans a medium priority debt because the government has so many collection tactics they can pursue.  As for private student loans, I see them as lower priority debt, similar to other unsecured debt like credit cards or personal loans.  Here are a few things to think about. Private collectors do not have as many collection tools as the government.  There is a lime limit for collection.  The limits are different in different sates, but tend to be six years after default.  You or an attorney in your state could research the statute of limitations where you are.  Often private lenders will hire collection agencies.  You have certain rights to fight back against any harassment or abuse by collection agencies.  Collection fees for private loans should be listed in the loan agreement.  There may also be other laws in your state that limit the amount of collection fees that private creditors can charge.  The main thing the private lender can do is sue you in court. Some private lenders may eventually negotiate a payment plan or debt settlement with you.

Thanks to the National Consumer Law Center for their work to compile the information important to consumers like this.

Total Posts: 1

Joined 2011-08-01

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There are a number of students nowadays who are taking out a student loan, why not? When it is the most guaranteed way of paying tuition fees. Student life is not easy when you don’t have money to pay for your expenses so I think they are many people who indulge in student loan because of financial rough. Another student burden is the student credit card debt. Credit card debt is just as bad as student loan. The worst thing about it is students both suffer this two kinds of debt. College charge cards were a major target of charge card reform. The Federal Reserve has recently released a study on the state of university charge cards. Since the 2009 CARD Act put limitations on how charge card corporations can industry to pupils, the amount of applications has gone down significantly. Regardless of this drop, credit card corporations are still providing $73 million per year to schools whose pupils have charge card debt.I read this here: Colleges still receive $73 million from credit card companies.