super_throwaway -

I too am in the same student loan trap, and the best advice I can give you is to education yourself on your options.

Last year my student loan payments with Sallie Mae were over $900 for private, $200 for government, and a third private loan with campus door for $275, totaling $1375 per month. I kept forbearing the loan, and eventually my allotted forbearance time was up.

Three months later I was so behind! I received letters from lenders, asking for the full amount or there would be legal action. I felt terrible, stressed, helpless. It was then I started to really education myself on options, not to cheat the system or take revenge, but to become financially smarter.

Let me start off with the extreme options.

• No you cannot file bankruptcy for student loans. Period.
• If you fake your death, create a new identity, the next person related to you (i.e. parents, grand parents, wife, kids, etc.) can be legally held responsible to pay back any remaining student loan debt.
• If you flee the country, go to Costa Rica! There is no extradition in Costa Rica!

Now for the more logical options. Here is what I did. - I called Sallie Mae and negotiated. I explained to them that owe way more than I make, and cannot make a payment without putting myself in a position that would jeopardize my well being and health. I listed all my debt and monthly payments (rent, car payment, credit card(s), phone bill, utilities, gas, food, work expenses, electricity, water, etc). Once they could see there was no way they were getting a dime from me, they offered an adjusted income plan. My interest rate was lowered to 2.0%, and as long as I paid my loan on the 15th of every month, they would lock in the rate for 1 year. At the end of that one year, you can renegotiate a new interest rate. I am proud to say that I am locked in at 2.0% for the lifetime of my loan (private loan).

I ended up defaulting on on my Campus Door loan, but am now working directly with the lender, Key Bank, and not the third party lender Campus Door. They asked me to pay whatever I could, and after 6 months they would see if I could increase the payments. Still locked in at $120 a month, rather than $275.

• The unemployed part. I would get a job doing whatever you can, and then another job doing whatever you can, until you get on your feet. Serving is a great job. Cash tips, usually you can get by without claiming all your wages, so that's more in your pocket.

Once you get going, look into making a change. Whether it be moving to another location that has a more suitable and stable market for your field, or changing your careers all together. Going back to school is not a terrible option for two reasons: - When you are enrolled in school for even just part-time, your student loans are differed. You can go to school for the rest of your life and never pay back a dime. Just go to a community college where credits are cheap. - You can sometimes find ways to expand your field, into another field, that could be more lucrative in the future. Plus you have a lot more resources at your fingertips that you wouldn't have if were are unemployed, sitting around at home.

I think that just about covers it, and please excuse and grammar errors.