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Student loan asking for 25% of income

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nyversion

Junior Member
What is the name of your state? New York

After a few years of hardship (unemployment, low-wage jobs, etc.) I finally got a job that pays $45,000 a year. I had recently used up all my student loan deferments, and I called them to discuss a payment plan. At the moment I owe them approx. $115,000, and they want me to pay around $1000 a month. I would like to do an income-sensitive repayment schedule, but the best they can offer me is 25% of my gross income, which is a prohibitive $899/month. While $45K a year might sound like a pretty good salary in most places, I live in New York City, and I'm far from living in luxury - over half my salary goes to my rent (and I live in a remote neighborhood in Brooklyn), plus after city and state taxes my take home pay is substantially less than my salary implies. I would like to pay Sallie Mae about half of that amount ($450/month), but the person I spoke with just said it wasn't an option, and reminded me they could garnish my wages. I'm afraid that if that happens I will go back to the desperate straits I was in before I got this new job. Is there anything I can do? Is their threat likely? Is it possible that I can negotiate for the amount I would like to pay? It's not that I want to avoid my responsibilities, but I really don't want to end up moving back to the ghetto. Thanks in advance for your advice.
 


TigerD

Senior Member
Ask about the the income contingent repayment plan. ICRP

DC
 
Last edited:

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