Student Loan default for the second time
March 18, 2014 5:51 PM Subscribe
I'm 38 and I graduated in 1997. I've defaulted on my student loans twice. Maybe three times? They're direct student loans. I consolidated my loans in circa 2001 and paid on them responsibly for maybe 10 years. I think I messed up again about a year ago and rehabilitated them and got out of default. But now I've failed on that rehabilitation and my loans have been sent to a recovery agency.
posted by dchrssyr to Work & Money (8 answers total) 5 users marked this as a favorite
I really suck at this. I get scared and overwhelmed and then I panic and avoid the whole thing. It's a nightmare of a vicious cycle.
I understand that loan rehabilitation is a one shot deal. So that's not an option. What does that leave? Working with the collection agency? Those guys really scare me.
Right now, I'm supporting myself and my partner on a modest income and I don't see how I can make payments until my partner finds a job.
I work in social services and currently work for a non profit. I've been here 6 months. My previous job was 5 years at a for profit service provider agency. The ten years previous to that, I worked for non profit agencies. I don't know if that matters. I know that there is a kind of student loan forgiveness for social service employees but since I'm in default again, it probably doesn't matter.
Do you know where I should start? I'm afraid to call the collection agency but if that's the only starting point, I will make myself. How do I get them to work with me instead of just insisting that I pay them money I can't afford? How long until they garnish my wages?
I don't think I'll ever be able to get on top of this and trying to always feels shameful and hopeless. But I'm not looking for emotional support or suggestions for therapy. I've addressed this issue in therapy before and I really just need someone to sort out the details and help me make an action plan to prevent garnishment or legal action.