Question about the impending financial meltdown

[patrick t. cakes]

For a person such as myself with 37,000 in student loans
what does that mean to me exactly? Can someone lead me in the right direction as
to what I should know about our current financial situation and outstanding loans/debt.

Will they be called in all at once?

[gateley]

1. Only 36,000 will be called in at once.

:7

I hadn't heard anything about loans being called in, just that it was iffy about getting new ones. And with 37,000, you obviously didn't have any trouble there! :hi:

[patrick t. cakes]

4. Ha! thank god!

Yeah I don't really know anything about econ/banking just trying to glean info as to whats in store.

And yes seems it's easy as hell to get money when you "really" need it.

:toast:

[Curmudgeoness]

2. What makes you think that you student loans will be called in?

Maybe I missed something, but this is news to me. Actually, you are in luck that the interest rates will not be increasing soon. And this impending meltdown will have different outcomes for different situations. You don't give enough information. Are you working, or looking for work? Do you have other debt? Do you have any savings? Any assets? All of this can effect how it will hurt you.

[patrick t. cakes]

5. I know nothing about finance/banking

Student loans are all I owe, except 5 bucks on a mastercard. No home, trucks payed. Some savings.

I own nothing but this student debt really.
I'm just curious as to what the "impending crisis" means to everyone in the nation.

[Curmudgeoness]

12. Stop. Just stop. Fear is your enemy and there is too much fear

being thrown around right now---mostly by people who have less of a clue than you have. You will be ok as long as you can pay on the loan as required, which is usually not too burdensome unless you are unable to find a job. You do want to remember that student loans are never going away unless they are paid off---you can't discharge them with a bankruptcy.

This is not what most people in the know will advise, but I personally would get the student loan paid off as quickly as I could. I do understand that student loans are usually much lower interest than other loans, but I hate the thought of a loan that can bite me in the ass. But experts disagree with me, so take that with a grain of salt.

I have lived through several times when the economy sucked, and have heard this "the sky is falling" meme too many times to get too excited over it. All of those times are now just bad memories, and I expect this to be the same. Until the sky actually falls, don't panic.

[Warpy]

3. I really can't see that unless you're seriously in arrears

and even then, it would be an exercise in futility.

However, it's in your best interest to try to pay down as much of it as you can since the GOP is determined to get us into a deflationary spiral.

[patrick t. cakes]

6. Yeah, I'd like to pay it as fast as possible

Now, if only I could get that pesky job....:shrug:

[pnwmom]

7. Read your loan document but I can't imagine they could call them all in

because of the U.S. financial situation.

[banned from Kos]

8. well, your loans are probably owed to Sallie Mae (SLMA)

and since you own nothing else you are OK.


Sallie will work with you - they have to.

[patrick t. cakes]

9. good news

i'm hoping to get the monthly payment lowered or deferred for a while.

[SheilaT]

10. Read every bit of documentation

connected to your loans VERY carefully. Every word. Anything you don't understand, either call them up and get it clarified, or find someone who knows more about these things to help you out.

Most people never read what they sign -- and at house closings they tell you there's not enough time to read everything. But you're legally obligated to whatever you signed. Not having read it will NOT get you off the hook.

One thing to find out for sure is if deferring payments stops interest from accumulating. Probably not, so pay very careful attention to that part of it. If you can at least keep up with the interest that would be a good thing.

Good luck.

[patrick t. cakes]

11. Thanks for this

I will heed your advice.

:fistbump:

[roamer65]

13. No. They won't call them in but you will probably owe until paid off.

They are worse than a mortgage, very close to IRS back taxes. Bankruptcy usually does not get rid of them. They are called "non-dischargeable debt". You have to have VERY VERY dire problems for them to be discharged. However, the gov't usually is flexible on repayment terms, depending on your economic situation.