Paying off a student loan

amother

Silver

Fri, Mar 08 2024, 2:45 pm

OP I can relate a lot more now unfortunately. My parents opened lots of credit cards in my name without my knowledge and left a ton of debt on there to just destroy my credit. It’s a huge betrayal and even though I know they didn’t intend to hurt me, it’s really hard to live with and forgive.

I think you’re probably at this point already, but be very on top of his credit now. Credit Karma is great because it’s free and will give full snapshots of what debt and accounts are open under the persons name. Unfortunately for this situation you can’t get it removed from his credit and I believe it sits for 7 years (unless you file charges for identity theft which like me, I’m glad to hear you’d never do)

As far as opening a zero interest credit card to pay it off, that’s a good idea but have a set plan of paying it back before doing it. Can you make monthly payments to pay it off completely within the timeframe of the zero APR? Because once that promo ends the rates are double what you’re paying now, and it’s very common for most people to use it as a temporary crutch but then fall in to paying lots of interest after the fact. So just work out logistics before hand and have a solid plan

For the practical side of doing it:

1. Open a business zero APR card. Probably will need to be in your name if his credit is not goo. The business card (you can do it as sole prop under your own name, you don’t have to actually have a business) will allow the debt to sit there over time without hurting your credit, which a personal card will.
Great options are the chase Ink cards right now, they are having zero interest promos for I believe 12 months or maybe even 18, and will give you rewards back as well
Another option is the Amex cash card, which is nice because it will allow you to easily get some cash via the Amex Venmo connection

2. Getting the cash- this part is trickier and requires some creative tactics. Probably the best way to do it will be to open a business account using a credit card processor (again, under sole prop) like square. Then charge the amount you want on the new card and then once it’s processed transfer it to you bank account. You will have to pay a fee, probably somewhere between 2-3%, for the transaction.

advocate

Sat, Mar 09 2024, 9:05 pm

Depending on what state you live in, opening a 529 account and putting money in there and then paying off all or part of the student loan from there may be an option to consider because a) there may be a tax deduction and b) there might be a state match. (You can take the money out almost immediately)

Hatzlocha rabba!

amother

Tan

Sat, Mar 09 2024, 9:46 pm

You sound so strong and kind.

Just some hope and iyh I hope this works out well for you, although of course there’s no guarantee.

My husband came into marriage similar- he had “student” debt that included loans for living expenses etc.. There was a cc his dad room out on his name to cover “wedding” expenses - except they never paid their commitments and it was alll spend on gowns and wigs for his mother.

I found out while we were engaged and it was brutally hard to process. But he was very adamant that he would do better and I could see his drive and discipline.

It was still very challenging, I had to use my savings and that was with me supporting us for him to learn the first year then while he built himself up but bh bh bh he makes a very comfortable living now.

amother

Sat, Mar 09 2024, 11:17 pm

Appreciate all the replies, very helpful! @Advocate, I’m very interested in hearing more about the 529 acct. we’re in NJ but the private student loan was taken out in Ny. I read somewhere online about only being able to pay off 10k per person, but if I can get a benefit for that amount I’d do it. This all needs to be done asap, so wondering how long this would take and the process.

amother

Sat, Mar 09 2024, 11:21 pm

@amother silver and & Amother tan, thank you for your replies, I feel less alone. It’s really tough going through this, esp now. We had plans to go on vacation, and now we basically can’t do anything. Everything is from Hashem I believe, and iyh it’ll be for the best.

amother

Lotus

Thu, Mar 14 2024, 10:49 am

Hi op how are you?
I've been thinking of you.

Have you tried the HFLS?
They have a Fresh Start Loan up to 20k at 0% interest.
It's specific to help ppl who have high interest debt

amother

Silver

Thu, Mar 14 2024, 11:43 am

amother Lotus wrote:

Hi op how are you?
I've been thinking of you.

Have you tried the HFLS?
They have a Fresh Start Loan up to 20k at 0% interest.
It's specific to help ppl who have high interest debt

Loans are only available to those who live in NYC and boroughs, not sure if it’s applicable but good suggestion

amother

Thu, Mar 14 2024, 12:04 pm

@ amother lotus, thx for the thoughts and suggestion! I just searched it up as I’ve never heard of it before and it sounds amazing! Just wish I still lived in NY. We recently moved to Nj so I assume we wouldn’t be eligible based off the criteria…. As of now our only choice left is to use our only savings we (I) have. My husband wants it out of the way, and I also checked on the account and it said it’ll cost an additional 11.5k just in interest if we continue to pay over time. 14.1% crazy! It just feels like a waste. If I knew about this loan and the details sooner, I would’ve done something about it. (Before we had kids and expenses started piling up) I knew my in laws took a loan under my husbs name for college but had no idea any details or anything about it. Gam zu Ltova. Thank you everyone for your thoughts!