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By bitterseafigtree http://bitterseafigtree.tumblr.com/post/128196023714/so-your-school-loans-are-in-default-and-you-are?utm_campaign=SharedPost&utm_medium=Email&utm_source=TumblriOS ON GOVERNMENT LOANS:
Things have changed. When you call your loan servicer, they won’t treat you like shit anymore. They won’t threaten you or harass you or insist you pay half your paycheck to get out of default. Here is what I’ve experienced while dealing with defaulted government loans. 1. Find out who owns all your debts right now. It may be early enough that your most recent loan servicer could still be the owner. If it’s been over a few months, or years, it will be a collections agency or several agencies. Check your snail mail. Their policies usually dictate that they send paper mail. Once you find the collections agency, ask for “proof of debt.” By law, they must provide you proof that they own your debts so they can’t scam you. 2. Once you establish that this agency owns your debt, tell them that you can’t afford much but would like to “rehabilitate your loans.” This means you will make a payment for 9 consecutive months. The agency, by law, must use a government formula to figure out how much you pay each month. If you make around 40K, you will be asked to pay somewhere around $100-150/month. If you are unemployed, you can rehab for as little as $5 a month. Ask them to autodebit so you don’t accidentally miss a payment. If you miss one, your 9 months starts over. 3. Once you finish your 9 months, call the collections agency to make sure they won’t autodebit anymore. They will hand your debt back over to the loan servicer you worked with before they got the loan. Most likely, you have Great Lakes, Nelnet, Navient (formerly known as Sallie Mae), or one of these loan servicers. Then go to this studentloans.gov website and make an FSA ID and PW. 4. Begin a consolidation through the student loans website. The consolidation form will ask you to write in every loan. It might be on the website already, but check this NSLDS.gov site to be sure. This website has an up-to-date account of all your outstanding loans. Consolidating is a tedious and boring process. Make sure you have a few hours free to do this. 5. When you consolidate, the form requires you to fill out a payment plan. You want an IBR plan, or Income Based Repayment Plan. This plan will allow you to make minimal payments according to your income for 20-25 years. Then, the government will forgive your loan. Consider it 25-year mortgage for your college education. Also, the IBR will re-evaluate your income every year in order to adjust the monthly payment. If you lose your job, your monthly payment will reduce dramatically, and if you find a better paying job, you may have to pay a bit more. 6. Also while consolidating, you must choose which loan servicers you’d like to work with. I work with Nelnet. Nelnet was difficult to work with for years, like not allowing you to email in documents–only mail or fax. You can email scanned documents to them now. Remember, you can download free scanning apps to use with your smartphone camera. Remember to keep a log of every time you call, whom you talked to, and what you talked about. This is an important lesson I learned while calling companies for my immigrant parents. Anyway, because of government regulation, they are actually nice to you and available 24/7.They can’t pull their bullshit anymore because they use government calculations. I’m sure it’s the same with all the other loan servicers. As I said before, I work with Nelnet, but it really doesn’t matter which one you choose. 7. When you finish with consolidation, wait a few days and call your loan servicer. Ask them if they’ve received the request for consolidation. Then, check in with them every week for the next six weeks to hear the status of the consolidation. They are not good about emailing you updates, i.e. never. I did my consolidation wrong the first time, and they just rejected it and never notified me. I found out when I made my weekly Monday night call. Had to fill out the damn form all over again. It’s finally been accepted. 8. They will then set up you up with an IBR plan. Your payments will most likely be the same as what you payed the collection agency because they’re using the same government calculator. Autodebit those payments. This is all I know so far. This is far better than defaulting and having the government garnish your wages. And once you begin the IBR plan, there is an end in sight! -- ON PRIVATE LOANS: I don’t know much about these, but I know private is much harder to deal with. 1. It’s not great to default with these loans either. Defaulting and declaring bankruptcy does NOT absolve you from the loan. Your wages can still be garnished if the collections agency sues you and wins. 2. If you make regular payments, the loan servicer will not settle your debt with you. Because they’d rather have your interest payments. If you default in order to settle with the collections agency who buys your debt, you’d better have enough cash to pay them off in one lump sum. They will bargain with you to get you to pay between 50-60% of your loan. If you own 100K, do you have 60K in disposable income? If so, you shouldn’t ruin your credit! 3. You can now refinance your loans! Due to new legislation (I think it’s Elizabeth Warren’s doing), you are allowed to consolidate all your private loans under one bank and get a lower, fixed interest rate. I’m willing to bet your interest rates are at 8% or higher. You can consolidate all these to under 5%, or even as low as 2%–the better your credit, the better your rate. I would consider perhaps working with the credit unions instead of a bank. -- I hope this helps you. If you have any questions, please send me a message and I’ll do my best to help you figure it out. thanks, Praise. We’re most of us working people with little to no extra income. Purposefully defaulting on your loans only works if you can settle. Don’t listen to bourgeois debtors praising purposeful default as some sort of useful and progressive direct action. You will end up with garnished wages. The stories Praise and I hear are always the same. It doesn’t make you less radical or something to fill out this shit paperwork and receive a long term IBR plan. The payments for us are low. We’ll never pay off the majority of our loans before they’re forgiven. I don’t do it because of some ridiculous principle. I do it because it’s better than having my wages garnished. If you need further help, I know Praise will answer your asks. She’s kind of become an expert on this process. Send her a message. She’s super cool. Timely Also of note, once you’re on an IBRplan, you will need to re-file that paperwork every year to stay on that plan or start paying your loans back in full, so keep up with filing your taxes and doing your paperwork! (via rudegyalchina)
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""""One of the most mortifying moments I experienced in my theatrical career was when I was asked to bring the entirely African-American cast of a new musical we were workshopping, a new piece by an African-American librettist and composer, across the street to the Dorothy Chandler Pavilion and up into the plush boardroom so they could perform a song or two for the board of directors. I wanted to say something, but I didn't. For one thing, it would take an invaluable 45 minutes to an hour out of the creative team's limited time together. But... every year we had to do the same old song and dance for the board to remind them that yes, we did do new plays and musicals, so yes, it was sometimes a good idea to expose the board to new voices, to the vibrancy of an exciting work in progress.
You all know where this is going, don't you? I led the team in. The talent in that team! The writer/composer himself and the cast, lauded veterans of the stage and the most promising members of the next generation of acting giants. And there was our board. White, as white as can be, white white white white. And very comfortable. They'd just been served lunch, I believe. My theater spared no expense in pleasing our board and catering to their demands (oh my god, I'm feeling such rage right now! I'm pretty sure we had a staff member who was mostly dedicated to help our richest board members get house seats to shows on Broadway and the West End. But I digress...) The only black face in the audience seated at the conference table? The only person of color? The head of our education department, of course. My heart went out to her. The cast sang a song from the show. They did it. And they brought it. Because they were and are professionals. And the very pillars of the Dorothy Chandler Pavilion reverberated down to the parking lot. It was breathtaking. And I had just been complicit in the remaking of a scene for the millionth time: black bodies and voices entertaining white audiences, an institution raising money on the backs and voices of black bodies. I was too mortified to apologize to our writer and to our cast, none of whom, I should add, expressed even an iota of discomfort. They were professionals, and they shone. And come to think of it, they'd probably all become accustomed to this scene. "It's just how theater works," they might have thought with a shrug of their shoulders. Or maybe they seethed inside, for the millionth time, when all they were trying to do is workshop a new musical. Well, I apologize sincerely now to our writer and those actors. I wish I had had the courage to put my foot down. It is not how theater should work. I quit the American theater on Valentine's Day 2016, so I've been out more than four years now. And honestly I don't plan to return, which is why I can write with such candor. The heart of the problem, my friends, is with the non-profit structure, which is capitalism on steroids. Who are the bosses ultimately in an American institutional theater? The board of directors. Who are the board of directors? For the most part, those members of the community not with the strongest attachment to the art form but those with the deepest pockets. Often they're really not members of the community. They often just drop in. They are sometimes mere tourists. It's no wonder that that board meeting was held in the Dorothy Chandler Pavilion. The theater, like most American theaters, had built its board of directors on the old opera model: You get the richest folks together, offer them galas and house seats and receptions and private recitals and showings (for which artists often don't get paid extra, mind you), you pamper them and make them feel more special and entitled than they already do, and then they'll write you big checks to support the kind of art they like, the kind of art they can bring their kids and grandkids to. AND they--not the artists, not the community--get to hire the institution's leadership. It is a rotten model. Rotten to the core. How can any artistic institution claim to be working for and in the community with that model? It's got to be torn down. It's got to be reinvented. And I have no idea what the next model will be. I really don't. And no, honestly I don't think government is the solution frankly. Some of the most bloated, self-satisfied, decadent theater I've ever seen was in Germany, where it was almost fully government-funded. Lots of bells and whistles and provocations and completely soul-dead. I see amazing and galvanizing lists of demands recently being made and posted by theater artists of color. These are vital demands. But they don't address the central issue. As long as the ultimate bosses of an artistic institution remain the community's deepest pockets, nothing will change. Nothing. You'll be putting band-aids on a gaping wound. Sorry, but it's true. So please figure something else out. Maybe for a few years you just avoid the institutions. You've already started. In the pandemic, so many of you are making amazing art without an institution. Find those who truly adore your work and ask them to fund it. Screw non-profit. Form a corporation and value your art art-making as a resource that profits you, your viewers/audience and your community. I have no idea. But please don't return to a new version of the old. After the virus, after he's out of office, after police reform and nationwide conversations about race, after, after, after, begin something new. I can't wait to see what it is!” Words: Pier Carlo Talenti Video: Griffin Matthews April Yvette Thompson Categories
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