Private Student Loan problem...they want $670/mo. and I make very little.?

I was on the phone with Sallie Mae this afternoon. I have a private loan through them for $45,000+-. The loan just entered the repayment period this month (after 2 6-month forbearances) and they are asking for $670.00/month. Here are my monthly finances as of today (I live in CA):

rent: $1025.00

utilities: $150.00

food: $200

transportation: $150

fed. student loan: $50

clothes/etc..: $50

misc.: $200

Total: $1825

This doesn%26#039;t leave much money for private student loans. Is there a maximum (by law) that they can expect based on my income? Do I have any other options? Please help!!

Private Student Loan problem...they want $670/mo. and I make very little.?

The student loan legislation that recently was passed in September 2007 does not include any income-contingent repayment options for private loans at this time. I hope when you talked to Sallie Mae, the representative reviewed repayment options with you:

%26quot;Select Step%26quot; is an option that allows you to make interest-only payments for up to four years followed by level repayments of principal and interest. The benefit of this plan is that you can make reduced monthly payments during the initial years of loan repayment.

Since your current loan balance is over $45,000, you also would be eligible for an extended repayment term of up to 30 years. This option would allow you to lower your monthly payments, but keep in mind that it would also increase the overall cost of your loan, as would the Select Step option.

As you know, forbearance allows you to suspend monthly payments temporarily. However, interest continues to accrue during this time. To avoid having interest added or %26quot;capped%26quot; to your principal balance, you may want to consider paying accrued monthly interest if you decide to request another forbearance period.

If you have more than one loan, your best bet to get repayment relief is to consider refinancing your private loan with a Private Consolidation Loan (PCL). Roughly 75 percent of our customers lower their interest rates when they refinance and obtain a Private Consolidation Loan. You must have graduated from school or be within 30 days of completing your degree or certificate program to be eligible for this loan option.

Also, you may be able to get a lower interest rate on your Private Consolidation Loan if you apply with a credit-worthy cosigner. You are welcome to contact the Private Consolidation Loan team toll free at 866-380-5005 to see whether this option would work for you. Customer service representatives are ready to assist you Monday to Friday, 8 a.m.-11 p.m.

For tips on managing debt and using credit wisely, a resource you may find helpful is %26quot;Be Debt Savvy%26quot; at http://www.salliemae.com/before_college/...

Just remember to keep making regular payments on your loan. This helps prevent your loan balance from getting any higher.

Private Student Loan problem...they want $670/mo. and I make very little.?

Wow, I can%26#039;t believe they want that much money from you. Call Sallie Mae and explain the problem. They usually can work something out. The recent legislation passed about student loans only applies to federal ones. As far as I know, they haven%26#039;t regulated private ones.

Private Student Loan problem...they want $670/mo. and I make very little.?

call someone to consolidate. you may need a cosigner based on your debt-to-income ratio, but you may be able to get a lower rate, and a longer term.

nelnet will give you 30 years, which helps your payments, but causes more interest in the long run. you can make larger payments, or refinance in the future, but there are not costs to do the consolidation.

i dont know what other companies offer, but it doesnt hurt to ask...

Private Student Loan problem...they want $670/mo. and I make very little.?

Reduce your spending costs by

A) Living with a roommate this can save you nearly $225

B) Not eat out

C) Use less power and water by saving electricity

Private Student Loan problem...they want $670/mo. and I make very little.?

WOW!!! why so much in private loans? I would ask for your other options. You might be able to stretch your loan payments out, but you will be paying back more in the long run. IF you can find someone to consolidate your private loans I wouldnt do it. They too will cost you more in the long run. Did you get stafford loans too? For future reference, Sallie Mae has some of the HIGHEST rates and tons of fees on private loans. There are many other lenders with ZERO fees and less interest rates. Good Luck!