My bf recently got the Credit Karma app to help boost his credit score (639) & get some insight. Yesterday we found out that his score had dropped a point so I looked through his CK app to figure out what was going on. I found out that his $203,000 student loan had just gained a little over $1000 in interest in the last month.
I told him what had happened & he didn't even know his loan was accruing interest.
So... he hasn't made a student loan payment in 3 years which was when he consolidated his loans. His loan is in good standing but is gaining 6.2% interest each month.
I asked him why he hadn't been making payments and he said he thought student loans are forgiven after 25 years, but I think what he's referring to is only applicable to those making regular payments.
I have no idea how someone could be so misinformed on something so important but either way, this is the situation and we are trying to get a plan together. I don't have student loans so I don't know much about forgiveness programs either.
He has a masters degree in Business Administration but is currently making $2200/month after tax which only leaves about $500 after all necessary monthly bills. I helped him get an interview at a job that would pull in $3k after tax but now I realize that won't cut it in the slightest if the only option here is to just pay this loan off.
His loan is currently consolidated with Navient & has a $1234 monthly payment & 6.2% interest. As of right now it is currently $204,000.
Is the only option to pay it off or is there something that can be done to decrease the amount owed, lower the interest, pause interest rate, forgiveness programs or anything else?
Submitted April 10, 2017 at 06:48PM by sidthekid39326 http://ift.tt/2pn5BS3
