I was forced to drop out of school my 2nd year because I couldn't afford tuition any longer and I only qualified for the non credit based Staford Loan. I owe the government about $10,000 and the school itself about $20,000. My notes for My stafford loan are $275 per month which I could handle but my note to the school is almost $600 per month and they REFUSED to lower my payments any further due to the amount owed. Now, because I was making only partial payments, my balance is sitting with a collections agency who I fear I will never be rid of. I make $9.80 an hour and make a steady 40hr week but I also have a car note and car insurance (which is an outragous price for a 21 y/o.) I don't know what to do to get these huge debts cleared up. I really am trying here. =(

GET ANOTHER JOB, plenty of people work 2 or 3 jobs to pay their bills.
Realistically, it was quite immature of you to take out a car loan when you KNEW you had college loans you owed. Yes, anyone under the age of 25 pays outrageous insurance rates, because they're crappy drivers and account for more accidents than any age group.

Welcome to the Real World


Additional Details:
Maybe you should have considered your financial woes before going to college, and getting in over your head. But frankly, all your so-called problems you brought on yourself. Like I said, get another job.

There isn't much choice other than to make arrangements to pay it. Student loans are hard to get rid off. Usually only death or severe disability will make them go away, other than paying them off. What you don't want to happen is to go into default. Once in default, the government can intercept any tax returns and garnished up to 15% of your income. Your best option is to try and negotiate for a reduced payment.

If you don't have kids and if this is at all possible in your area, I'd suggest you get a second, part-time job that you can work around your regular job, and use all the second income toward your student loans. There really is no alternative - you have no choice but to pay your student loans.

Do what you can to advance at your job. Try to get promoted, steadily working into higher and higher paying jobs there. Or with time, use your experience at this job to get promoted into an asst. manager's job at a good chain - Walgreens, for example. Someplace that respects their hourly workers, promotes them with or without college degrees.

clark howard the financial expert for CNN talks about this program: http://www.ibrinfo.org/what.vp.html

http://www.clarkhoward.com/news/clark-howard/education/new-site-for-help-with-income-based-repayment-plan/nD5R/

I am sorry this is happening. You need to find financial counselors in your area to help you with this. They have experience with such matters.

You should of really brought a used car and paid for it out of pocket. A lot of people get into this mess of things because they end up paying everything on a montly basis and then have nothing to show for it. In reality there should only be one thing that needs a loan= purchase of a home.

See if you can get into some agreement regarding the car. If you have to return it, do so and buy yourself a used one.

Save up as much money as you can. Stick to a tight budget that only allows for food and other basic nessesities such as rent, gas and lights. Sigh, turn off your internet service and work from a public library as I do. Stop buying clothes. I know that seems like a small expense, but it is not and clothes last longer than one might hope they do, so just use whatever is in your wardrobe right now and leave it at that. See if you can work overtime and really try to make your student loan payments.

Even if you have to downgrade your contract cell phone to prepaid.

By the way, I am not insulting you. This is what I actually did to pay off my first semester of college which i did so rightfully by paying out of pocket.

I would never ever get a car loan. Cars are meant to be paid in full, and as my uncle once said, "it is better to get the used one"