Student loan troubles

Hi guys,

I'm paying back my student loans at the minute but the amount got to be too much where most of my pay check started to go to sallie Mae every month.  I have called them at least three times to try to lower my payments to something more manageable. They were unwilling to listen. The last time I called, they said to not pay for a few months (go into default I assume?) and then they will be able to bargain with me on the monthly payments. I haven't applied for citizenship yet and am still on ILR. If I stop paying for a while then they let me lower my payments, will that look like I have bad character when I apply for citizenship? I'm worried and don't want to ruin my future but also I can't keep up these huge payments for another 30 years.

Thanks for any help!

Have you filed your taxes for the US yet? If you do that you may be able to file under income based repayment and get your payments lowered. There's a section on the Sallie Mae/Navient site- Change payment- where you can input your income (converted into dollars) and get options on what payment plan to apply for. It may not work, but it's better than just defaulting.

Are your loans private or public?

Mine have been on a repayment plan since I finished my MA here and I haven't had any problems reapplying for a repayment plan every year - but they are public.

Mine are both private and public. I will try the income based repayment options. However my question is, will this all be checked when I naturalise?  If at worst case I cannot pay the amounts. Also, if I pay an amount that I can will it still go into default? Say I need to pay $1,400 but I pay 500 like I have been before they raised them, will that still at least show I'm trying to make payments? Thanks

I would like to know as well. I want to say they only check to see what you have done while here in the UK but I'm sure KF Dancer or KSand 24 or Geeta will know much more

I'm afraid I can't be of any help as I don't really know anything about US student loan repayments or whether they will affect the citizenship requirements.

My gut is that a default to the US won't affect citizenship.  But I don't know that for sure.

But they are MUCH stricter on citizenship since December.  A refused entry can now mean you don't qualify for naturalisation for 10 years...

I honestly think they will work with you on your payments.  I believe your taxes having your adjusted income will help you tremendously. 

Definitely look into IBR/ICR repayment options for your public loans!  You can go right to http://studentloans.gov and look up information on the loans you have, and all the different repayment options, and you can fill in deferment & adjustment applications right online.

Don't worry whether you've filed your taxes yet or not.  I put off applying, because I hadn't filed, and ended up in default.  Sallie Mae did offer me a reduced repayment then, which got me out of default & fixed my credit, but the amount was still way higher than my income-based rate, and more than I could have possibly afforded if we were paying for housing.  When I finally looked at the IBR application, it turned out that all I needed to do was tick the box for alternate proof of income, and send in a couple of pay stubs.  I could have saved myself about $4000 if I'd just applied right away!

I don't know what to tell you about the private loans, as I never had any, but it might be worth looking into some kind of refinancing or consolidation loan.  In any case, I find it a bit dubious that you'd *have* to go into default first.  I would recommend you do some thorough googling before you do that, to see what other options there are, and what (if any) regulations there are on what they have to do.

At the end of the day, I don't think it would come up in your citizenship.  I don't think they do routine credit checks, and I don't recall them asking about it on the form.  I think the only way it would come up is if it got to the point where there was a court judgement, but the finance companies generally try to avoid that.  They'd be more likely to sell the debt on to another company first, and all that can take quite a while.  So, even in that worst-case-scenario, you could probably apply and be finished with your naturalisation process before it ever came up.

Those of you making payment to your school loans, do you make payments using an American bank account or a British bank account? 

Currently, mine is on automatic payment through my American bank account, but eventually I will need to begin transferring money from my British account to my American account.  To avoid fees and make life a little easier, I was wondering if I can pay from my British account.

Those of you making payment to your school loans, do you make payments using an American bank account or a British bank account? 

Currently, mine is on automatic payment through my American bank account, but eventually I will need to begin transferring money from my British account to my American account.  To avoid fees and make life a little easier, I was wondering if I can pay from my British account.

It will depend on your student loan provider. Mine are held by Nelnet and I know they are happy to accept my payment in GBP. I have to pay some other bills so my hubby and I just transfer money through pay pal once a month for all my US bills.

Lyonaria, would you mind telling me more about Nelnet accepting payment in GBP?  I've been transferring money to my US account every month like a fool!  I can't find any info anywhere on the website....any help would be greatly appreciated!

Lyonaria, would you mind telling me more about Nelnet accepting payment in GBP?  I've been transferring money to my US account every month like a fool!  I can't find any info anywhere on the website....any help would be greatly appreciated!

Hey nychica! Before I moved over last year I made sure to call them a few times to discuss what I needed to do regarding my account with them since I was heading out of the country. I wanted to know if I HAD to pay in US$ or if they would accept the GBpound. I spoke with at least 3 or 4 different reps with them and the consensus is it's just fine to pay with the GBpound and from a UK account. I haven't set up a UK bank account on my Nelnet account, but it seems like it would be pretty straightforward after looking at it. You could always give them a call if you have some questions or any issues? If you have a Skype account you can do a voice call with US 1800 numbers for free and since they have 24 hour service, you can call them whenever!

I have spoken with them a few times since I've moved, and the last time I spoke with someone I verified that I could pay with the GBpound. That was in December 2014, so I doubt it's changed. It's just easier to transfer the needed money through paypal for my Credit Card payments that HAVE to be in US$ and it's a stupidly small amount of money to increase it to the amount for my loan.

Sounds easy enough but my luck I will have one that makes it difficult! I am currently on a deferment but due to end in July.

On debts generally, see the official standards: https://www.gov.uk/government/publications/chapter-18-naturalisation-at-discretion-nationality-instructions (Annex D)

While I cannot suggest how the authorities charged with naturalisation decisions might act, I can say that there might be an assimilation to UK Government practice (and concerns) with (non-)repayment of their own student loans. Compare how two Canadian bankruptcy courts dealt with the subject (conflicting decisions):
http://www.uniset.ca/other/cs3/25CBR3d271.html
http://www.uniset.ca/other/cs3/68CBRNS93.html
(The question was whether a US student loan could be discharged in Canada, making it uncollectible in Canada (but still collectible in the USA if the insolvent ever had assets there)

It is in you interest to try to reschedule a US student debt or subscribe to means-based payment terms. Under no circumstances should you convert a public (government) loan to a private (commercial) loan, whatever anybody tells you.

Thanks for the help guys. I called up navient and worked out a more affordable payment plan and didn't have to default! I guess sometimes it makes a huge difference of who you talk to.