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.
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.