Private loan for school?

Private student loan requiring me to make payments while in school?

• I am currently a junior at GSU (accounting BBA student 21 yrs old) am about to graduate within one year. I have been looking for work but been unsuccessful so far. I have some private loans that I had to take out when I was at private school (collegiate career started in JAN 2006 at CAU a private school, transferred from CAU to GSU in AUG 2007) when I first started my college career. The loans where for both me and my sister the total amount was 10,000 (5,000 for each) for tutition and housing expenses that the federal loans didnt pay (BIG MISTAKE). Any way the loans are from Loan to Learn a student loan company. They require me to pay the loans while am still in school (BIG MISTAKE NUMBER 2 I SHOULD HAVE READ THE FINE LINES BEFORE SIGNING), I am now 44 days late for payments totaling about 200 and now the company is sending me emails that they are going to file a suit against me, now I may go to jail (well i have nothing to lose technically if I go), the interest is crazy high, I am not working but I am looking as hard as possible everyday for a job. Does anyone have any advice? I have never been to jail before? I definitely know that when I get out of school in May 2010 ill be able to pay off all my debt totaling $18,000 so far, (federal and these private student loans, and 2 overdraft bank accounts and a student housing mishap of $6,000 no credit cards, thank Jesus). Am not a heavy spender any time I get a refund check (my scholarship) from the current school am in I use it to pay down on the these private student loans but its like its not even helping sometimes I get 600 1,000 this semester I got 2,500 because I just a scholarship and I use all of it pay these loans (but then I end drinking roast chicken ramon noodles almost every night). Also I will not be taking out no more student loans federal nor private loans for the reminder of my time in school. I cant stand owing people stuff it kills me. I dont know what to do. I am confused and scared. Need help. :(

• Answer:

  First thing you need to do is calm down. A loan company cannot send you to jail because you are late on payments, so take a deep breath and count to ten. What you need is to consolidate all your debt together so you are making just one payment a month. Have you looked into doing that? Most banks can help you out there, or if you want to get rid of some of this tension altogether, have you thought about trying a debt solution company? Most of the time they can help you not only consolidate your debt but can help get the numbers crunched so you're only paying a fraction for what you owe in the long run. Paying a ton of bills at once is a lot worse then getting one simple check every month. I would look into it. Also - if you are truly hunting for a job, I would look into unemployment and food stamps. These can both get you a little money to help you get along. Unemployment varies from state to state but the overall guidelines is that you are searching for a job and unable to find one, and need to pay bills in the meantime. Food stamps, while not cash you can use for your bills, is still money that you can use towards eating so that you have the chance to pinch every penny you get. I hope everything works out and that this advice helps you out some!