Student Loan debt from Hell

What is the name of your state? California

I have over $70,000 in sudent loan debt and I make a whopping $27,000 a year.

I have been out of school with my degree for several years...unfortunatly I went into a field that began a downward spiral the very year that I graduated. I work very hard but there is little hope I will ever be able to pay off this huge debt.

The debt actually started out at around $54,000 but it keeps getting bigger because of the interest.

I don't want to claim bankruptcy but I want this debt to become reasonable.

Legally can I somehow request arbitration to settle this debt for less, or at least put a cap on the 9% interest rate that I am locked into? (already consolidated)

I can come up with about 5k and I am thinking of trying to "negotiate" with them. Does anyone know if I have any legal grounds to do this? Should I get a lawyer?

[Skylyn]

You can forget a BK7 helping. Most federal and private student loans cannot be discharged (by the way, you didn't mention whether these were private or federal...).

"The debt actually started out at around $54,000 but it keeps getting bigger because of the interest."

That is how loans work.

"Legally can I somehow request arbitration to settle this debt for less, or at least put a cap on the 9% interest rate that I am locked into? (already consolidated)"

Legally, you can pay these loans back, or you will soon find out what a "hell" default can become. I'd suggest getting a better job and/or a second job.

It is a federal Student loan and actually it is possible to claim bankruptcy against them if you can show that you have been trying to pay them off for a significant amount of years, don't have the means and have little hope of ever having the means to pay them off, etc.

However that was not my question. I do NOT want to claim bankruptcy, that is why I am looking to mediate the situation.
THAT was the question I asked, sorry if you had a diffucult time understanding that.

I am not now nor have I ever been in default of this loan. I have made substantial payments but because the loan is so huge compared to my income I am not able to even make a drop in the bucket.

That is why the loan has increased so much from $54,000 to over $70,0000...I can not even cover the monthly interest.

The question, again, is if there is a way to negotiate student loans. Perhaps decrease the interest...( I can't refinace because I already consolidated two loans several years ago and am now locked in at 9%) Would it be in my interest to hie a lawyer?

Oh, and I do work 2 jobs, sometimes 3. Part of the reason I have so much debt is because my daughter's dad keeps taking me court for custody...5 times in ten years...and though I keep winning I have paid close to $35,000 in legal bills over the years...but that is a different message board....

[Skylyn]

I did answer your question (when I said "you can pay these loans back"). They are under no obligation to settle for less than payment in full. However, you could always make them an offer and see what they say. However, since these are federal student loans, why would they? They have the rest of your life to collect (no SOL) and the means to do it...

And by all means, please hire a lawyer. They need money too ya know?

"It is a federal Student loan and actually it is possible to claim bankruptcy against them if you can show that you have been trying to pay them off for a significant amount of years, don't have the means and have little hope of ever having the means to pay them off, etc."

This is true, but I doubt that you would pass the "test" in order to get these discharged (i.e., it ain't easy).