Government Debt Consolidation Loans – Update

Nick Y asked:


There is only one bad thing in my credit report and that is one student loan that is in default. I took this student loan over 6 years ago. It has been hunting me every since I drop out of College. I have made efforts to pay it, but I have been unemployed for a year now. The last payment I made was a year ago and I just received a letter saying that it is still in default status. I called the collection agency and told them my situation. I am unemployed, currently staying at home with my kid while I take classes online to get my degree. I told her we do not have the money to pay the balance. She wasn’t very helpful. I even told her that I want to make the effort to make payments, but I need a job and I can’t find one at the moment. I told her I will start making payments as soon as I start working.
Anyway, I was wondering if it’s possible to make a debt consolidation with my loan and my husband’s student loan. His student loan is also in default.
Any good info will be appreciated.

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JJJJJJJJJJJJJJ asked:


I’m graduating at the end of the semester.
I’ve worked my entire way through school.
My wife and I have one son and another on the way.
We’re finding it hard to make ends meet and I’m pretty sure my degree won’t get me a better job after graduation.
I plan on getting into grad school, but it is so expensive to apply everywhere and I don’t have the $1,000 or more I will need to apply to the various schools I chose.

I hear of many college students getting large loans to cover all of their debt to consolidate everything they owe. They pay off credit cards, cars, etc. I know it’s only a temporary fix as you still have to pay everything off, but is it a good idea?

Plus, is there even any way I can get an education loan AFTER I graduate?

Is there such thing as a good, low rate education loan to help you get into grad school?

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aimsterrr asked:


Yes, it’s true. I fell for the gimmicks and ended up with a few credit cards with all types of debt as well as a student loan. The majority of my debt is school related (books) or auto-repair related (tires, batteries, brakes, misc.). I have been kind of doing the whole college thing by figuring it out myself and wasn’t aware/no one told me student loans were a better choice than credit (my fault) until it was too late.

I’ve graduated from a 4 year institution, one more year of taking classes, then will be headed to California in Summer 2010 to get a house/apt/condo with a friend and get my teacher credentials at CSU San Marcos so I can teach elementary school.

A: How can I REALLY start paying off this debt (aside from starting with paying for everything in cash/with debit like I’ve been doing)? I am scared I will never be able to pay it all off. What are my other options beside debt consolidation which I’ve read can really mess up your credit?
B: With this much debt, what is the likelihood that my friend (has little to no debt) and myself will be able to get a place relatively affordable while we are both going to school (especially if either of our parents can/need to cosign)? We want to live between Oceanside and San Marcos in North San Diego County if that is helpful or possible.
C: Any other financial advice given my situation?

And please, avoid cutting remarks about my “naive collegiate/financial stupidity”. I’m well aware of the consequences for my choices and you should keep in mind I have had little to no help in making these decisions because neither of my parents went to college/are financially savvy. I do feel foolish, and am simply asking for help/advice.

Anything would be greatly appreciated.

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