Repaying Student Loans

Hi there...

I was wondering if anyone had any advice regarding student loan repayments.  I have had my loans deferred, but I am now working full-time and would expect that I have to start making payments again.  However, I have absolutely no way of doing so.  I am paid a very low salary and my husband is unable to work.  We receive no benefits of any kind.  My little salary is our only source of income.  (As it is, I had to borrow money from my father to pay this month's rent!)  I have gone to the direct loans website and see that in the US, they have "monthly poverty guildelines" that they use to determine whether or not you are eligible for an economic hardship deferrment.  But they have absolutely no information for those of us who live abroad. 

Any help would be greatly appreciated!

Not sure if they could do this for someone living abroad, but I know that Sallie Mae has Income Sensitive Payments.  Perhaps you could look into something like that?  Usually for these payments, it can be as little as 4% of your income.  It may be worth a look.

I do this, but I'm currently still in the States.

I don't know it in great details but I believe income sensitive is determined based on your income tax return (Since you have to reapply on an annual basis).  So if you can provide that you are income sensitive with that, it shouldn't matter that you are abroad or not.  Once again I'm not entirely sure on this.  I would definitely talk to them about it since it never hurts to ask.

I don't know about US student loans, but I would be looking for any issues regarding being non resident in the US. For Canadaian student loans, if you lived outside of Canada, there is zero reprieve on minimum payments, regardless of situation. This is the fine print stuff I'd be looking for.

Is it possible to get some financial advice regarding any other debts, such as going to CAB, to balance your money more easily?

http://www.citizensadvice.org.uk/

or

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/index.htm

Call your loan company! Talk to them about your situation and ask for a deferment or lower payments, they will help you. After all, they want you to pay them back.

I've had to call Sallie Mae to differ payments because of my particular job situation. It was really easy and I was able to do it all over the phone.

Good luck! 

Thanks for the replies!  I really appreciate the help on this board.  Just to clarify, mine are direct student loans, so I don't really have a private loan company I can talk to.  I don't file income tax in the US, as I only just started working in the UK and won't make anything near enough to require me to file.  Has anyone else had any experience of repaying US student loans from the UK?  Any advice from somebody who understands this particular situation would be greatly appreciated. 

If you borrowed directly from the government than you need to call the Direct Loan Servicing Center, this page is full of info for you: http://www2.ed.gov/offices/OSFAP/DirectLoan/postpone.html

There is always someone you can call. If that isn't the information you need, look at your bills and call the number on them the sooner the better. It is easier to work out something before there are late payments or defaults involved.

Thanks for the replies!  I really appreciate the help on this board.  Just to clarify, mine are direct student loans, so I don't really have a private loan company I can talk to.  I don't file income tax in the US, as I only just started working in the UK and won't make anything near enough to require me to file.  Has anyone else had any experience of repaying US student loans from the UK?  Any advice from somebody who understands this particular situation would be greatly appreciated. 

You still have to file.  You just don't have to pay.

I know I was able to defer some of my loans since I am not working (and can't yet until I pass a license exam for my profession) but my interest is accruing.  With my particular situation if I were in the states, I could have qualified for a hardship deferral where no interest would be accrued.  With my situation and the private student loan company that consolidated my loans with, I could not get economic hardship or reduced payments because I was out of the US. 

I know because you are outside the US, a lot of the rules and special assistance may not be available to you, as I have found out.  I found it best to call and speak to them directly and explain my situation so that I could get the best option available to me.

Look at Income Based Repayment options which all lenders with the US Gov't should offer...
http://www.ibrinfo.org/