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I moved all my debt from a third party to being a government loan. Does that change anything?
Yes, that is the wisest move you could have mmade considering your circumstances as I understand. I am not an accountant, lawyer or professional of any kind that's relevant. Some of what I say here may be incorrect. To the best of my knowledge it's accurate. I am someone who had the entirety of their student loans forgiven, thanks to president Joe Biden. It took a large amount of time spent reading legalese, time on the phone with loan servicer representatives and way too much time worrying about shit which I could not change quickly or easily.
First thing: No one should ever be trapped in a situation, where they feel they must choose between bills/food/rent or paying loans granted for educational purposes and enabled/encouraged by the government. No one. Honestly it's ironic in my opinion, that there is a lack of educational resources available for mitigating debt gained solely for the purpose of education.
Thankfully, there are also many, many rules in place, made to prevent your situation and others like it from occurring.
- Call your loan servicer or spend time on their website.
If you suck on the phone, go to their website. If the website sucks or is confusing, take short notes and write down any questions. The most likely best option for you is an Income Driven Repayment plan. IDR. However, some people may not qualify due to whatever loan scams were available when the loan was first taken out.
- The servicer representatives are paid regardless of what you do.
The person you talk to is not getting a commision. Your payments do not go to them. They are there to answer your questions. Their job is to keep the account out of default. They (probably) do not want you to go into default or declare bankruptcy. They (hopefully) want you to communicate, work with them and eventually make payments or contribute to society (more on that later). The government owns your debt. That debt is also probably insured or negligable. The government probably does not NEED your balance in full on time. They have other ways of generating income, like literally generating physical currency. Having wages garnished and getting drops in your credit score are from not doing anything and gnoring the debt and their notices.
- IDR.
On an IDR they will look at your income and any other expenses you might have. Some things count in your favor like paying your electric bill and rent, other things are irrelevant like a nyetflix subscription or paying for ubers. They determine through algorithms or math or something if you can afford to make payments or not. If you are truly in dire finanacial stress, you probably will get a deferment if you aren't already on one.
- There are other debt forgiveness programs.
If you work as a teacher you can get loans forgiven. Same goes for certain types of public service. There are other repayment plan options. Check studentaid.gov, it has a forgiveness page with a wealth of information. It isn't always easy to understand because there is a lot of nuance and circumstances covered. You can try calling their hotline number too but I had better luck with the servicer. Mine were forgiven due to being totally and permanently disabled. I had no idea it was an option.
- Conclusion.
There are other comments here basically saying "jUsT pAy it" which aren't contributing to the conversation at all. They should be treated as what they are: trolls and losers. Fuck them. They deserve nothing, not a second glance, not a reply, not even a downvote. Fuck. Those. Pricks.
Good luck, don't let your past define your future. Unless you want it to.