Hi all,
I'll try to be short: I filed personal bankruptcy in 2004, still have 4 student loans (2 from RBC, 2 from NSLSC) that weren't erased in the bankruptcy=approx. $46,000). Have exhausted all IR, was refused DR in repayment (gross family income just slightly over limits). Completed full time studies 6 years ago.
Following IR, loans came due June 1 2007. I was told by NSLSC in June 2007 I could not make payments on any loan (RBC inlcuded) until the gov't officially discharged my bankruptcy, which could take up to 18 months. Was told my account would be considered "frozen" until then, with no late penalties, payments etc. They could not officially accept payment legally as according to the gov't I was still an active bankrupt. So, I didn't make any payments. 11 months later Gov't discharged my bankruptcy and now payments are considered in arrears. As God is my witness, never once did I receive a phone call or letter from NSLSC or RBC in all this time. NOT ONE!! I had no clue what was actually happening on their end (though I should have known dealing with these roaches). Got a call from NSLSC yesterday ordering me to come up with over $2000.00 just to cover interest and get caught up with them. She denied I was told anything close to "don't make a payment," and claimed I made it all up. (I kept notes from this June phone call, "Armand" from NSLSC told me word for word not to make payments, and he did so on June 20, 2007 at 1:53 pm.)
Lesson: DO NOT LISTEN TO ANYTHING THESE NSLSC MONKIES HAVE TO SAY!!! They are NEVER accurate, and every single time I spoke with ANY of them, I was given a completely different story or run around. Do not even speak to them via telephone. Get it all in writing, and fax what you can so you'll have proof of sending.
Tried to be short, sorry. Anyways, NSLSC and RBC Monthly payments are enormously high. I am not working at present, expecting our 4th child in a few months. Hubby works though there is no way we can afford the approx. 1000.00 monthly that is being asked to cover all 4 loans. The most we can afford is 200.00 per month, especially with our family size and my being a stay at home mom. We rent our townhome, and we do not have any assets. These loans were taken out long before we met, back when I was a single mom of 2 trying to make a better life for my kids.
With IR, then extended IR, I have yet to make a single payment on any of my loans. I have always known that I have to pay for my education, though I just can't afford what they are asking.
I don't want to end up in court or worse one day, and I am scared to say the least as to what they will do to me. Can I file a proposal to pay at this point? I am not in collections officially yet, though I certainly will be as there is no way I can pay for these loans. My credit rating is already shot, with no hope for recovery for some time.
Anyways, what can I do to get myself (and family) out of this mess?