Cubdriver

Yes there is a way to erase federal student loan debts other than paying them, but you don't want to go that way because it entails complete financial ruin to set it up. What happens is your bad loans gets bought by a collection agency from the gov't and this agency will try for years to collect. But if you persist long enough, maybe 10 years or so and they see you are really broke by your credit rating being zilch they eventually will accept a settlement payment for a lot less than the original principal. Don't do this- just pay what you can and don't be an airline pilot if you can't live on the starting salary.

evh347

RELENTLESS is right. I took the advice (4 months ago) to "pay what you can". I figured that by sending in something, they would see that I'm true to my word...I intend to pay. I even asked Collections to define "something". Unfortunately, $100/mo is nowhere near $650/mo and I got my first wake-up call right after Xmas. They tapped my checking account for the remaining $330 that was in there making it nearly impossible to cover my rent check for December. When I called them on it, they referenced my Promissary Note which says that they can do that. I called some other people "in the know" and they informed me that the next play in the Collection's playbook is to either tap my wife's account (currently live in WI) OR begin garnishing my wages. I'm wondering if my airline is required to tell me before I get a paycheck that reads "zero"...that can be answered with a simple phone call. Oh yeah, my big 2007 tax return? They probably already have a lien on that too...meaning my wife and I will have to file seperately at least until we move to MN where those "civil/domicile" (or whatever) rules don't apply.

If I funnel the money through my wife's account......they'll find it eventually. I've already switched bank accounts....but, they'll find that in time. My W2 will eventually give away where I work. If they start garnishing my wages......they'll take all of it.....leaving me to hire an attorney (with what money?) to dispute it.....and in the meantime, how do I pay my bills? Short of hiding my money in shoe boxes or bed mattresses, there has got to be a solution out there for me. This may be a Private Alternative Student Loan.....but, it's still a Student Loan. I can't believe the government would make repayment assistance options available to Federal Loans only. Federal Loans don't cover all of the expenses of flying and this to me is no different than the loans a nurse/doctor might incur and yet they have special Federal exceptions for that?

Cosigning with all of these other (online) companies actually increases the debt if you look at the numbers spread out over 25 years. You might get some initial relief, but over time it gets worse. Even so, I can't afford $450/mo either....not on first year FO $23k/yr pay. My $17/hr office job that I just left could barely have afforded that too considering my other living expenses. Thank god my wife helps with that stuff.....anyways, delaying my entry into the airlines wasn't an option either. At some point, you have to jump into the pool because it can't get any worse than it is now (uh, right?).

Makes me wonder.....was I brainwashed at some point and don't know it? Don't get me wrong, I'm very thankful to have the job I have...but, why on earth did I think that borrowing nearly $76k ($23k/federal, $53k/private) was a good investment at making $23k/yr? Must be just so I could strut around and tell everyone I fly a jet, eh? Whoopie...

Stryker

well just remember that it WILL get better from here... Once you upgrade the load will lighten some... But for the time being, maybe you need to find another institution that can refinance the loan for a better rate. That would definitely help....

Also does your wife work? If you have kids I know that makes things hard, but with her getting a job that could help to carry some of the burden...

Its depressing to know that so many people in our industry have to go through this just to "achieve their dreams".... thats BS if you ask me. Even being a veteran the military wont pay for flight school AT ALL unless its a 141 school. Those are hard enough to find, and then when you get in one, they only pay 60%. And that still kills your GI bill since you only have $36000, and now you cant use any of it for college....

Guess everyone gets the shaft in the end....

Cubdriver

There are raging debates on here about the merits of racking up big loan debts to become an airline pilot. The job doesn't pay enough to pay them back, and it takes years to get to the point where you can pay effectively if you even want to.

I would consider staying out of any such job that cannot pay down your student debts by performing it. There are lots of jobs out there that pay more than entry level piloting. They are not fun but they are there. Go into flying when you can afford it, for what its worth.

Lbell911

The other question is how much money is your "Airline" going to deduct from you paycheck, in order to comply with the order of "garnished wages".....right now I'm a F/A with UAL, (soon to be pilot at a regional), but it's like (ball park) $20.00 - 100.00 that UAL will charge you to have your wages garnished, and send the creditor the check........they even charge you if they have to take out child support.....and it's allowable by law they can charge you for the extra work you cause the accounting department.........

What about a part time job bagging groceries at your local grocery store, for the first year till you get up on year 2 pay?

fosters

They can only garnish 15% of your wages I believe, so it won't all be taken. Not that you should go that route but anyway.

The problem is your credit is already screwed...it'll take 7 years for those non-payments to come off your record, even if you pay the thing off. If you can do it, open up as many credit cards as you can, do balance transfers, and pay the student loans with that money. Then declare bankruptcy to discharge the CC debt. Use the system. Yes your credit will suck but it will suck anyway. Might as well get rid of the debt...

To the guy who is bragging about his 2% interest rate I hope you get hit by a bus. This guy is in need of help and all you do is brag about how great you have it....W-T-F man?

floyd78

Just to let you know...1) most private loans can go on a bankruptcy just not federal loans. 2) 15% of your wages to garnishment if you can not file 3) If you are that bad off go see an attorney and file. 7-10 years and you can be back at step one. Sometimes sooner if you get back in the game to rebuild yourself the right way this time. P.S. lawyers do payment plans...go figure!

Bankruptcy should only be a last ditch effort with no other options i.e. your account is being raided...Protect yourself with the law if they are taking your money.


Just throwing out what I know...I am not a lawyer! Good Luck!

newarkblows

i would sit down with a financial advisor. their has to be a way they can help you. if your stuck i would find an under the table gig near your house that is flexible. I was a valet at a couple of restaurants all through the same company and it worked out really well. whenever i had a free night or aftyernoon i would call the day prior and the owner found something for me. Cash under the table is something that can help pay the bills while they are garnishing your wages. They cant take all of your wages though and your company can charge you a fee for someone going after your paycheck. Companies can and do look down upon people garnishing wages. It could affect your employment because they see this is not being trustworthy (as far as abiding by a contract goes) and many employers are now looking at credit histories prior to employment. I dont think many airlines do though.

here's an article. http://moneycentral.msn.com/content/...ing/p87306.asp

good luck

RatherBGolfin

On thing that you might wanna try until you start making some more coin is see if you can make interest only payments. I know it sucks to not take anything off the principle, but it could help your situation in the interim. I'm in the same situation you are, and unfortunately this is what I had to do on first year FO pay. It helps soften the burden slightly.

The Juice

You can file bankruptcy on private loans but not federal loans. I had a buddy who took out huge loans, got all his education and then filed for bankruptcy. His logic would be if we would repay he would be up to debt for the next 7 years not being able to afford anything anyway so why not file and then in 7 start from scratch again.

I was "lucky" enough to be hit by an 18 wheeler and get enough money to pay off a good chunk of my loan and credit cards so now my payment is about $250 a month and I have some cash in the back to relax with.

Go find yourself a truck boys