Poor me

Dennis Robert Redmond dredmond at efn.org
Thu Apr 19 07:27:08 PDT 2001


On Wed, 18 Apr 2001, Chris Doss wrote:


> Anybody out there know what happens if I default on my unpayable student
> loan? Credit destroyed? Life ruined? First-boen child sacrificed to Baal?

Naw. You don't have to default at all, if your income is below a certain point, and if the money is owed to Sallie Mae or the Education Dept. You go on the "income contingent" plan (5% of your monthly gross, and since I have no income, this zero right now) and accumulate interest, but this is capped at 8%. They can't take what you don't have.

Bear in mind that this is an option you have to sign up for. Also, if you have lots of loans, it makes sense to consolidate 'em into one single loan.

-- Dennis



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