Chiropractor's wife!

Chiropractor's wife!
Have Curves In All The Right Places?

Tuesday, August 9, 2011

Who put the D in Default?

Ever since we closed our practice last December we have been in contact with all of our creditors, forthright, and within their reach. We have probably specifically spoken to mentally challenged people from Sallie Mae, the carrier of our private student loan account, hundreds of times to say the same thing and every day several times a day they beckon us to return their call to discuss options. When we do call them back or answer to discuss options the exact same discussion happens over and over again with no new options to consider. Just the same old options which is actually only one option: "pay us something you can't afford that won't go towards your principal". Seriously, if I didn't know how imbalanced a small business makes ones life I would half expect myself to create a business for people in our situation to pay us a .10 cents a call for a sexy robot voice to answer the phones in behalf of them and repeat the following script:

"Hello, _____________, I understand we owe you a significant amount of money and there is nothing we would love more than to pay you regular payments or the entire balance but unfortunately in order to maintain a pulse for me and my dependents I must insist on putting every penny towards the basic necessities of life which at their bare bones exceeds my current income. If my situation changes you will be one of the first people I call. If this doesn't work for you it would serve you well to proceed with a lawsuit or writing off my account and sell it to secondary collection agency which really works to my advantage seeing how I am considered judgment proof in my state! If you continue to call me I will change my number and go into hiding for the next 10 years. Thank you and have a nice day."

It would be great because all these robots calling us can just talk to robots too!! So far default feels divine for the most part so I can't complain.

I just returned from a girls only float trip in Texas and although they are in a water shortage and the river was low we had a swell time! Hence the picture! It was just what I needed to recharge and renew! I came back with a pain in my neck something fierce and my chiropractor was right on it working it out and doing what he does best! Despite being in default officially, I managed to compensate him for his services the best way I know how! Cheers!

I am adding something disturbing to this. According to Sallie Mae's website they have a section that says if you go into default like we have, "You can lose many payment options, such as income-sensitive or graduated repayment." The mental breaks slammed! Hold the phone!! Well before we ever went in default we were on our knees begging for an income-sensitive option just like our Federal loans were in!! We knew our business was closing and that funds were severely limited! They never, ever in the 100+ times it seems we've talked to them to work out an agreement offered this. Now that we are in default I doubt it matters but I do smell a worthy lawsuit, perhaps class-action! When did they start this "income-sensitive" option? If it was after we and thousands of others were already hopelessly in default that is SOL material but if it has existed before we were in default and all these recorded conversations with us that I know for a fact exists then they are in big fat trouble. So frustrating! Their goons called my husbands teaching job today which I am sure they found through his public info on facebook. We are considered under the poverty line in our state so they have nothing to gain from driving us into destitution and homelessness!

1 comment:

  1. I have been in exactly the same position. I tried to work with them, but the only option they would allow was "pay us $2,000 a month when your checking account balance is zero." They want you to pay money you don't have, even if it's less than the monthly payment, so they can eat it all up in fees and interest, and you still owe just as much as when you started, and probably more. I tried to get Income-Based Repayment, but they said, "We don't participate in that program."

    When they found they could get nothing, all they would allow was an economic hardship deferment (which I qualified for several times over). This way, they could continue to charge interest, which would add to my debt, and collect from the government at the same time. When the last of my economic hardship deferments ran out, I resigned myself to default, because I still had nothing, and they refused to work with me.

    When they saw this was the case, they suddenly decided they would take IBR. My payments are based on my income (I have to send copies of my tax return every year) and family size. Guess what? With my income and family size (wife and 2 kids) the government says the amount I can reasonably be expected to pay is $0.00. As long as I keep up the paperwork, and make the monthly payments set by the government (and my income would have to go up substantially before my payments would increase) in 25 years, my debt goes away. But the 25 year clock didn't start until I got on the IBR. That's why they delayed it as long as possible, even though I would have qualified right out of school.

    The bad news? IBR only applies to my Federal loans. I have two relatively small private loans. Because they are not Federal, they do not qualify for any form of Federal relief. Because they still count as student loans, they are non-dischargeable in bankruptcy. I am judgement-proof, but interests and penalties continue to compound, so when my federal loans are discharged, I will probably owe just as much in private loans due to compound interest.