Any way to pay off student loans?

The question

Okay, well my boyfriend after graduating high school, was accepted to a private school, he got grants & took out a loan as well from NItNet or something like that, well he went to school for like one semester & than realized that he couldnt affort it so he didnt go back, i reckon he told me that he is about $ 7000 in debt!! well, i was wondering if there is any way that he can get a grant or something to help him pay it off.. i reckon he said that they are defeared till 2012 but still… any way? thanks!

Best answers:

student loan consolidation interest rate

He can only get a grant is he is going to be a college student at the time. He can’t get a grant to pay off a previous loan or school debt. The company is called “NelNet” and the best way to pay off an ancient defaulted student loan is to get a job and send them as much money as possible as quickly as possible. He needs to cut ALL his other expenses down to nothing (no cell phone) so he can afford to do this.

He can do a year or two of public service w Americorps which will give him an education award at the end of the service which can be used to pay back qualified student loans.

His only other options are to pay the debt off through work, or to end the degree and do a stint w Peacecorps or Teach for America which works the same was as Americorps does (but they require a degree to be completed first).

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Should my fiance pay his charged off accounts?

The question

Hello All,

I am 21 and my fiance is 22, his parents convinced him to get a few credit cards when he turned 18 so that THEY could buy stuff THEY wanted. And basically, my fiance never made payments because his parents told him that they would take care of it, but they never did. Now we are wondering whether he should pay these debts or just let it be dropped off when he turns 25, or around the 7 year mark. We ideally want to buy a house by our later twenties so that way, will we have paid our student loans off. I have excellent credit, I practically brag about it, mainly it is because I work hard to keep it that way. If we want to buy a house, we will need a loan, since we wont be paying cash so will it make a difference if it shows that he has limited credit history being that he will be 28,29ish? We would certainly be willing to place a large down payment to supplement his lack of credit history. Should he apply for a credit card and have me cosign to show some type of credit history going on? We currently live together, but we will be getting married on 03/11/2012. I say this bc I dont want any of those, “You need to be married to reckon about this type of stuff” comments. Thanks in advance.

Best answers:

how to get a private student loan with bad credit

I’d just leave it be. Getting a credit card with him would be a fantastic thought. I’d also wait to get married until its off his credit record so they dont come at you for stuff. My cousin had to pay for stuff that her husband had not paid even though they were divorced at the time she paid it since he had those debts when they were married. I am 18, my fiance is 21 and we already bought a house without a down payment with either a FDA USDA loan I cant remember, so it should be fine.

You calculate too far off in the future. Take things as it is.
Nobody can predict in the future. You may broke up with him next year.

About the charge off. He owed that debt, he should pay for it. By living debt free is a excellent way to build fantastic wealth and future. Converse with your fiance which is very vital for your marriage, work your debt together, pay the debt off and stay out of debt is a excellent way to start a marriage. . Majority of dirvoce rate is involved money, so if you guys want to stay marriage for life, working on money issues . Otherwise you guys are better living alone.

First off Ignore Ana’s post. She is setting you up for a scam. But, A thought would be to calculate what debt he has. Maybe make minimal monthly payments. Are here is a terrible word. If the debt exceeds $ 25,000 possibly consider bankruptcy. In my state it is only $ 1500. The ONLY reason i mention bankruptcy is this. Most credit card companies use 3rd party collector and some fourth party. An example would be NCO financial. They have a system base computer which refreshes ancient debt after the 7 years and a few days. So you might be facing a revolving account and may not come off as simple as u reckon. Hope this helps. One more thing. DO NOT USE A DEBT CONSOLIDATOR!!!! You will pay there fees for years while the companies still hound you.

Are you sure you really want to marry this guy?
First he allows himself to be talked into things (by his parents) despite being 18 (an adult).
Then he is thinking of with intent not honoring his commitments by letting his debts slide as though they don’t exist.
This man is not only weak willed (easily led) but inherently dishonest with no pride in himself.
You would be the one who has to live for years with the knowledge that the man you like is a loser who simply runs away from his debts rather than face up to his responsibilities like a man

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Should I pay off my car note or build up emergency fund first?

The question

I just paid off a personal loan, that means I have $ 100.00 extra a month to place towards other debts. I do have some credit card debt at 6% and student loans at ~3% that I am currently paying towards. I also have a car loan at 7.5% which I owe about 2500 on and pay $ 221 month.

Since the car loan is the highest interest debt I have and is the lowest balance, I want to pay it off as quick as I can then I can place that $ 200 towards my other debts. It is due to be paid off in June 2012 at the current payment schedule, but with the extra $ 100 dollars a month, plus any income tax refund I get in February, and a third check in March, I can have it paid off by march or before.

My question is, I only have about $ 200 in my emergency fund right now. I do deposit $ 110 a month so it will grow. Should I place that $ 100 extra a month to my emergency fund until I get $ 1000 and then start paying down the auto loan? Or should I just place that extra to the auto loan and keep on putting my regular deposits to my emergency fund?

Best answers:

pay the car note, if you are already adding to your emergency fund, which by the way is a fantastic thought and kudos to you… you don’t need to add it to the emergency fund. go ahead and take car of you Business with your car note. it NEVER hurts to get ahead!

I reckon it will be better to remove your debt burden first – especially if there is no clause of prepayment penalty. Or, if you wish, you can also split the extra money in half for both the accounts. But from finance point of view, the sooner you become debt-free, the better for you. It will have higher payoff for you in the long run (assuming that you will continue to earn at current rate).

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Comments

Pablo says:

December 14, 2011 at 3:11 am

I will respond to each part of your question. I hope it helps you both.

“his parents convinced him to get a few credit cards when he turned 18 so that THEY could buy stuff THEY wanted. And basically, my fiance never made payments because his parents told him that they would take care of it, but they never did.”

Unfortunately, if he opened the accounts under his name for his parents he would be responsible to get it paid. But, since the 7 year mark is approaching he may be getting past the Statute of Limitations (SOL) in your state to collect on the debt. The excellent thing is that you yourself are not obligated to pay it. These accounts are probably with a collection company. If he is willing to pay it, I’d say to settle the accounts in full. Shoot for 50% or less of the balances.

“Now we are wondering whether he should pay these debts or just let it be dropped off when he turns 25, or around the 7 year mark.”

Of course if the SOL for collections has run out then he is under no obligation to pay. But, collection efforts could continue to question for payment. They can still call him and question for payment. The accounts may have been sold to debt buyer companies which then will collect on the accounts themselves. You didn’t say how ancient the accounts were and when the last payments were. That would be in rank that could help you.

Your boyfriend could set up a savings account, and get a secure credit card to try to re-establish your credit. If he doesn’t have excellent or any credit, it could cause you to get a higher interest rate on your mortgage.

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Alex says:

December 14, 2011 at 3:25 am

Negative items drop of the credit report after 7.5 years, but also check out the statute of limitations (SOL). This is the length of time a creditor has to win a lawsuit. He could settle the debt; it won’t help his credit score after the 7.5 years have passed, but it will stop the calls/letters. If you choose to do this, research setting debts online because there are certainly things to do and things to avoid. Any forgiven debt (either settling for a lower amount or not paying at all) will be considered income by the IRS and taxes will apply.

In the mean time, it is a excellent thought for the fiance to start building positive credit, so he has positive accounts when the negatives fall off the credit report. I would avoid cosigning if at all possible, see if he can get credit on his own before even considering it. If he can’t be approved for a regular credit card, have him check out secured credit cards or even a secured loan with his bank.

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