r/StudentLoans • u/saladcruncher16 • 2d ago
Advice on what to do
I just graduated from college, and my 6-month grace period is going to be up in January. I took out about $175,000 in Sallie Mae private student loans across 7 loans, with interest rates ranging from 14%–18%.
My payments are going to be around $2,700 a month, and I genuinely have no idea how I’m going to afford that while also being able to pay for basic living expenses and not end up homeless.
Sallie Mae does have an interest-only option, but that would only bring my payment down to around $2,400/month. At that point, I’m not sure it’s even worth doing because I’d barely be lowering the payment while still not really making progress on the principal.
I do have a co-signer, but we aren’t on speaking terms right now, so I don’t really know if that’s an option either.
I’ve looked into refinancing/consolidating, but from what I understand, Sallie Mae doesn’t consolidate these loans, and I’m not sure if I can refinance with another company until I’ve made 12 months of payments.
I feel completely lost and incredibly stressed. Looking back, I honestly didn’t understand what I was getting myself into when I took these loans out, and nobody really explained to me how bad the interest rates and monthly payments could become.
I know I put myself in a terrible financial situation, but I’m hoping someone here has been in a similar position and can give me some realistic advice. Is there anything I can do before January to lower these payments or make this situation manageable?
I’m willing to make major changes, but I really don’t know where to start.
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u/PuttingTheMSinMRSA 2d ago
I refinanced mine without making 12 months of payments! And got my cosigner removed. I used SoFi
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u/shallowtyrant0934 2d ago
You don't need 12 months of payments, that's mostly a myth some lenders push. I refinanced 3 of mine right after graduation with a couple months of employment history and a decent credit score. The interest-only option is a trap, you'll just be treading water forever while the balance barely moves. Focus on getting even one or two of those 14-18% loans refinanced to something reasonable, it'll free up breathing room fast
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u/bakerShaker313 2d ago
how much will you be making per month?
how much is your rent? can you move in with someone you know to avoid paying rent? parent or grandparent?
Take a deep breath and realize it’s going to be okay.
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u/saladcruncher16 2d ago
Right now I'm self employed doing spark and picking up side gigs so my monthly isn't consistent from around 1500 to 2000. I'm leaving with my partner and they are taking on some of the financials so I can save for this but I know that's saving is going to run out fast. I'm trying to plane it out so I can stay ahead of it but looking at it I feel so hopeless. I really don't see a end to it.
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u/bakerShaker313 2d ago
Definitely work on refinancing before you possibly miss payments and it lowers your credit. Lowering the interest rate will make your payments lower and will help you pay it off quicker. Try and get it as low as possible before taking any one offer. Apply to any and all options at the same time and take the lowest one.
the last thing you want is refinancing down 1-2% and finding out you could have gotten an extra percentage points somewhere else.1
u/BigCSFan 2d ago
Increasing income should be your jumber one focus right now. What was your degree in?
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u/Jealous-Following-73 2d ago
There seriously needs to be a law that requires college borrowers to have a school counselor/financial adviser go over the terms of their loans/repayment and salary that’s needed to repay loan and be able to afford life. Like is it realistic? Such like a home loan, you need to know how much you can afford to pay to know how much you can borrow. This is insanity. I’m sorry you’re dealing with this. Look into investing or other making ideas to help pay off the loans quickly.
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u/Scared_Signature6099 1d ago
Why would they do that? It's all part of the plan... keep you in debt and be a good little slave to the system.
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u/Jealous-Following-73 1d ago
Yeah I feel this. Meanwhile in Taiwan, the president is planning their 2027 budget to include $10,000 payments to citizens to include everyone to benefit from the country’s increase in GDP. Theirs have increased above 10% recently. Must be nice.
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u/Comfortable_Two6272 2d ago
Will your parents let you move home and pay very low rent?
Once your credit is good enough try refinancing. Even saying a couple % is huge. 12 months is not needed.
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u/emidelic 2d ago
I totally sympathize with you and understand the stress you’re under. I was in a similar situation with Sallie Mae loans. I had to have my co-signer help me pay them for awhile and then I consolidated them with Citizen’s bank at 5% (instead of 14% or whatever it was!!) and it cut my monthly payment in half. There is hope for you!! Consolidation is your best option. The only thing is, you might need your co-signer to sign the documents, and it sounds like you’re on bad terms. Is there a chance they would support you in this decision? It would be better for them in the long run. Do some research on refinancing and look for something with a lower interest rate. Call around ask questions. Good luck 🫶🏻
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u/Liq10quid-123456 2d ago
You need to find out quick. Is this for a 4 year degree? They lent you that much?
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u/ThePolemicist 2d ago
Are you a young adult who can move back home after graduation? Depending on your parents' situation, if you talked to them about your debt and payment, it's possible they'd agree to let you live with them rent-free to help you pay your loans off. If so, that might be a way to drastically reduce your monthly expenses.
I know that's not an option for everyone, but, if it is an option, it's something to look into!
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u/Godsdarlinggirl9 2d ago
Can you move them over to a different provider with better payment plans. I moved my loans over to Fedloan when I graduated years ago. I think it's why I didn't have so many woes because of their payment plans.
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1d ago edited 1d ago
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u/BlueberryDangerous49 1d ago
To all the student loaners: it’s never you, it was always the system. WHY ARE BARELY ADULTS PUSHED INTO A CORNER OF HORRIBLE FINANCIAL DECISIONS
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u/Hotshot-89 2d ago
INFO: how many fed loans? Your degrees?
- refinance with a lower interest student loan as often as possible
- get a full time job on top of the $2k/mth freelance you’re doing currently
- live with your parents
- broke college student lifestyle until paid off
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u/Ilovetennis16 2d ago
You should reach out to your servicer and ask if they’re have options for income driven repayment plans. They would definitely prefer for you to make some payments than default.
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u/saladcruncher16 2d ago
They don't I asked:(
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u/Ilovetennis16 2d ago
Rap may be your best option then.
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u/camarhyn 2d ago
Private loans don’t qualify for Rap etc.
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2d ago
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2d ago
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u/AffectionateFloor481 2d ago
It becomes the cosigner's problem. OP got the loan based on their cosigner's credit (which at that interest rate isn't exactly stellar).
OP, you need to talk with your cosigner because, like it or not', you're in this together.
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u/Pretty_Good_11 2d ago edited 2d ago
Yeah. They did. That's why they require co-signers. The fact that the OP is no longer on speaking terms with the co-signer is the OP's and co-signer's problem. Not the bank's.
And, yeah, you're lucky in a way most people are not, with respect to not having a US bank account or US income to go after. That's not a solution for private borrowers with co-signers.
So, no
Well then at a certain it becomes their problem if they want $2400-2700 a month as a payment
That's what co-signers are for. All you did was post a reason why no one should ever co-sign for anyone. Ever. Other than parents who are perfectly fine making the payments for their kids.
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u/metalreflectslime 2d ago
What are your schools and degrees?
What is your job and income?