Traveling with LOANS? HELP!

[Skies]

I'm not sure if any travelers have set out while still financially bound by... having to pay loans =( I have to start paying a big ass university loan in November and I was planning on traveling at the start of January or maybe end of December.

I'm going to start work soon (August or September), I have a job as a teacher's aid making 10 bucks an hour it's on call, but I'm waiting to get my ID in the mail from the DMV so that I can go get the state required finger print done to start the job. It takes three weeks for the results of my finger print to get mailed back to the agency I'm working for. So I should start the teacher's aid job in less than a month. I also should get hired full time at some other place, I mean I had the interview already and I did well and they said they'd give me a call by the end of the week so hopefully I will get hired there. I've applied to a lot of other jobs and blah blah blah they have me on file and I'll get work soon.

So about the loans. With all the money I make from whatever work I have for the next 3-4 months, lets say I save up at least $ 3,500, shouldn't I just save all that in my bank account and then pay my loans about 300-400 dollars per month, head out to travel in January, and make money on the street while I'm traveling (I once made 55 bucks spanging for 30 minutes I'm sure if I spanged A LOT I can make enough) and have that money put into my account and keep paying off loans while I travel? I'd have the lender take the money out of my account, of course.

Is it illegal to be traveling while paying off loans? I know that if you change your address you have to tell your lender, but if I'm homeless/nomadic will I get in legal trouble somehow? Can the cops come after me? I gotta ask cause I don't know just how crazy the law will get if a traveler/hobo/homeless-ish person is paying off loans with that kind of lifestyle and no steady job. I know that if you fall under economic hardship your loan will be cancelled (and I'm gonna be fucking homeless or whatever) but uh would I be that lucky? haha

Has anyone traveled while also paying loans off or am I the only one in a retarded situation? ARGH

 

[Dameon]

I'm sorry, but I gotta laugh a little at a university graduate being homeless. 'course, I imagine it's by choice, but it sure is funny.

I had student loans. I just never paid them. I haven't been thrown in jail after several years of not paying them, so I think you're pretty safe on that front. I once had a debt collector get ahold of me at my mom's house, and when I told him I was homeless, that stumped him. Kind of hard to threaten you when you don't have anything they can take away.

I don't think the people you're paying care about your address as long as you're still paying the loan. If you don't pay off their loan, and have no address, there's nothing they can do about it, although that's probably not the route you want to go, since I imagine you want to have a normal life at some point soon after doing some traveling.

 

[finn]

You don't have to worry about the police; they got rid of debtor's prisons a long while ago. What they can do is take money from your bank account. I know one guy who has bank accounts in a friends name to get around that. Also, if you're paying back the loan, I don't think they really care if they know your address or where you're living.

 

[dirtbag]

HA!!!

 

[nobo]

look into getting a swiss bank account. debt collectors, or anyone for that matter cant touch your money and it works just like any other bank account, you can get a debit card and shit. in any case yea nothing will happen if you owe money and you get arrested or something especially if youre paying it off. loans are just a bad situation to begin with....

 

[Skies]

I'm sorry, but I gotta laugh a little at a university graduate being homeless. 'course, I imagine it's by choice, but it sure is funny.

I had student loans. I just never paid them. I haven't been thrown in jail after several years of not paying them, so I think you're pretty safe on that front. I once had a debt collector get ahold of me at my mom's house, and when I told him I was homeless, that stumped him. Kind of hard to threaten you when you don't have anything they can take away.

I don't think the people you're paying care about your address as long as you're still paying the loan. If you don't pay off their loan, and have no address, there's nothing they can do about it, although that's probably not the route you want to go, since I imagine you want to have a normal life at some point soon after doing some traveling.

Thanks. I'm actually not a college grad. At all. I went to a university for a year and fucked up academically there. I've been wanting to travel for a few years, it's not a new idea for me, I just had different things to choose from and I chose college at the last minute kinda and well haha since I tried it out I realize it's not fitting me at this time in my life at all. Thanks again for the 2 cents, I have a lot of tension taken off now.

 

[Mouse]

you can ask for a hardship deference with your student loans. I've done it when I'm out of work. they'll either reduce your payment or temp. stop your payments. you'll still rack up interest but at least you wont default. I've known people that work seasonal jobs and just keep saying they are out of work and keep getting their payments postponed.

or you can register for classes, which means you're still technically a student, which means you don't have to pay your loans, and then when it's time for those classes to start you can drop them without paying. I've never tried this but I think it would work.

I think you've got 3 months after leaving school until you gotta start paying (most loans work that way) so you can wait 3 months, reg for classes for the next semester, get your loan payments defered and then drop the classes when the time comes and then you've got 3 more months before you gotta worry about it again.


or you can just not pay them. that's kinda my plan. I'm gonna get my BFA and then skip out. lol. bad credit wont kill me. Eventually you can go into forbearance(Sp?) and get your loans forgiven kinda like bankruptcy or some shit like that. My one friend who has a Masters in photography was telling me about his plans to avoid paying the $5,000 a month payment he'd have to make. I can email him and ask him to explain it again cuz I kinda forget most of it.

there's ways to work the student loan system that can make it so you don't have to pay for years.

and you CAN go to jail for not paying loans. but that's mostly for credit card loans. they treat it like stealing cuz you buy STUFF and then never pay for it. but student loans will only ruin your credit and they'll try to garnish your wages or bank accounts until it's paid off.

 

[Skies]

you can ask for a hardship deference with your student loans. I've done it when I'm out of work. they'll either reduce your payment or temp. stop your payments. you'll still rack up interest but at least you wont default. I've known people that work seasonal jobs and just keep saying they are out of work and keep getting their payments postponed.

or you can register for classes, which means you're still technically a student, which means you don't have to pay your loans, and then when it's time for those classes to start you can drop them without paying. I've never tried this but I think it would work.

I think you've got 3 months after leaving school until you gotta start paying (most loans work that way) so you can wait 3 months, reg for classes for the next semester, get your loan payments defered and then drop the classes when the time comes and then you've got 3 more months before you gotta worry about it again.


or you can just not pay them. that's kinda my plan. I'm gonna get my BFA and then skip out. lol. bad credit wont kill me. Eventually you can go into forbearance(Sp?) and get your loans forgiven kinda like bankruptcy or some shit like that. My one friend who has a Masters in photography was telling me about his plans to avoid paying the $5,000 a month payment he'd have to make. I can email him and ask him to explain it again cuz I kinda forget most of it.

there's ways to work the student loan system that can make it so you don't have to pay for years.

and you CAN go to jail for not paying loans. but that's mostly for credit card loans. they treat it like stealing cuz you buy STUFF and then never pay for it. but student loans will only ruin your credit and they'll try to garnish your wages or bank accounts until it's paid off.

Thanks. Well I have six months after I stop school and I stopped in May so I gotta start paying in November. Since you're saying they'll garnish my bank accounts until it's paid off (if I don't pay them) then I should not pay through my bank account right? I have a bank account, but I can pay in another way right? The thing is I didn't mind paying the first few months, BUT I'm starting to change my mind now haha. But lets say I DO start paying my loans for the first two months of November and December and I DON'T pay by having them take it out of my bank account, and then I suddenly stop paying my loans, is there anyway they can start taking the payments out of my account when I stop?

Or is it a better plan to ask for a hardship deference with my loans for 3 months so that I'd have to start paying in February when I'm already traveling? The thing is I'd still have a bank account while traveling but they can't just start taking money out of my account if I never said how I'd pay off the loans? And if they find out I'm homeless? The other thing is I might start working in the next few weeks for a few months and if I ask for my loan payment to be postponed and they ask for evidence of economic hardship then would they say that I still have to pay the loans starting November if they see I'm making around 1,000 a month?

See if your friend can explain his plan to you again cause any information is helping me out over here.

 

[Matt Derrick]

and you CAN go to jail for not paying loans. but that's mostly for credit card loans. they treat it like stealing cuz you buy STUFF and then never pay for it.

technically, this is untrue. you can only go to jail if the credit card companies can prove you intentionally blew your credit without any intention of paying it off. this is extremely difficult to nearly impossible to prove.

i can name about ten people off the top of my head that i know that have blown their credit intentionally. none have ever (or ever will) go to jail for it. and these aren't paltry sums of money either (5k - 65k!).

now, im generally the last person to let big corporations keep me in line through fear, but there are consequences to not paying off your loans or blowing your credit, or whatever. you should take these into careful consideration.

for example, if you don't pay off your student loans, there is a possiblity of your wages being garnished and whatnot. the best solution to this is to just not use banks ever again. cash your checks through check cashing places, and anytime you need credit cards, just buy greendot prepaid credit cards. generally, you just have to learn to live "underground" and keep your income/finances off the books. it's not the easiest thing to do, but it's not terribly hard either if you're willing to make some sacrifices.

ive been doing it for about 3 years now.

 

[Dameon]

Since you're saying they'll garnish my bank accounts until it's paid off (if I don't pay them) then I should not pay through my bank account right?

That won't prevent them from getting that money out of your bank accounts. If your loan defaults and gets sold to a debt collector, if there's money anywhere they can get at it, it's fairly certain they will get at it. With a judge's approval, they can empty out your bank account. I've heard of it happening before. Debt collectors are brutal, and will do anything short of shattering your kneecaps to get "their" money out of you (and then keep bleeding you for as long as they can for "interest").

 

[Mouse]

I've had a debt collector on my ass for over a year for some money I owe a college that I don't plan on paying. they only call me endlessly. they haven't threatened to take money from me by force. I plan on waiting until they'll cave for less money (they will, my friends have told me they've done it. make a deal for like half the amount or less just to get you off their books)

as for your student loan, you'd have to call your loan people and ask for info. I'd suggest you just postpone payments as much as possible through whatever options you have available through your loan (not the right word, i know.) maybe just call them up and ask for a copy of their rules and shit and they'll send you the info.

they wont find out your homeless unless you tell them. if anything, that might be to your advantage possibly.

postpone postpone postpone. I wouldn't go defaulting right off the bat cuz you might regret it if you decided this isn't the life you truely wanted. some people, like Matt, are ok with it. some aren't. I personally start freaking out a lil inside when my savings account gets below $100. so the whole massive debt thing kinda worries me.

and if money doesn't mean anything to you, why not just get rid of it in order to pay off your loans? hmmm? by not paying off money you've borrowed you're basically saying "I hate money! but you can't have any of mine and I'll take all of yours!"

 

[Skies]

Well, Mouse, thanks for the extra info, but the thing is I don't have an extra $17,500 lying around and I'd have to work for like years in order to pay all that off. I actually have two loans that need to be consolidated into 17500 so yeah eek. But uh... I guess I could get rid of my bank account when I start traveling but I'm scared if that'll be a huge mistake. I mean Dameon said debt collectors can start draining money out of my account if the loans defaults and judges give permission to go into my account.

If I pay 700 a month I'll pay the loan off in 2 years approximately. I'd rather pay like 300-500 a month but then that's well over 3 years. AH!

So back to what Mouse said, sure I'd give out my money to pay off loans but I mean I don't have much money now and it's not like I can pay off the loans in two months lol. I really don't want to spend years paying off loans and then travel after that just so that I know I have good credit to come back to if/when I come back to standard living. I know people would say that's actually the logical thing to do but I can't stand living the monotonous pattern of standard living right now. I fucking postponed traveling last year because I wanted to try out university life. I don't wanna keep postponing traveling. Maybe that sounds stupid, but I'm being honest. I got a glimpse of the traveler lifestyle a few months ago and it fit me rather well.

Maybe I should moreso follow Matt's advice?

Damn I think I'm gonna get screwed sometime with this and it ain't gonna feel gooood. =(

It's gonna be September and I don't even have temporary work yet, so my short term plan is to talk to my lender and see if I can get the loan payments postponed. With the fucking horrible financial/employment luck I've had all summer I doubt I'll soon be able to start working enough to start paying off loans in November.

 

[derekja]

It's too bad it's a student loan. They have extra ways of collecting those and there isn't a time limit on them suing you. Lots of good information here:

http://www.studentloanborrowerassistance.org/

But, I mean, if you're traveling you're probably not making enough taxable money to have them taking your income tax refund be a concern, and it takes a while for them to start garnishing wages and stuff (and never if you're under the table.) It's going to hurt your credit rating, but that goes away after 7 years.

You have to make a call as to whether greater pain to clear it up in the future is worth ignoring it for now. Do some research before you talk to the loan counselor. They're not on your side, regardless of calling themselves a "counselor."

 

[BrokeWhiteBoy]

Guess it was a good thing I got Cal and Pell Grants and the Board of Governors Fee Waiver (Fresno City College thing). My tuition costs were $15 a semester and books and all that ran $200 a semester. The grants were paying me about $4000 a semester. Got arrested and banned from campus in February, but stayed enrolled. Kept getting checks until June.

All the money after Feb went to paying off bail.

 

[Mouse]

damn, u lucky fuck! lol.

sadly my parents make too much so i don't get shit in grants or assistance of any kind. thats why I'm hitting up community college on their dime until I turn 24 and can file the fafsa without them involved and hopefully get grants and need based shit plus a healthy about of merit based scholarships because i maintain and 4.0 as best I can.

 

[Mouse]

because everyone wants to be famous?

 

[BrokeWhiteBoy]

damn, u lucky fuck! lol.

sadly my parents make too much so i don't get shit in grants or assistance of any kind. thats why I'm hitting up community college on their dime until I turn 24 and can file the fafsa without them involved and hopefully get grants and need based shit plus a healthy about of merit based scholarships because i maintain and 4.0 as best I can.

Combined income for my parents was just over 100k. My dad made about 74k. I got around that by claiming I didn't live with him. If I remember right, you can just say that you are working and living on your own and have been for the prior 12 months and get around the parent thing. Hell, no one has to know your "rent" isn't real or being paid since you still live at your parents house.

I still think it is pretty funny that the campus police arrested me, the dean of students banned me from campus until the case is closed and he gets a chance to review if I should be allowed back, yet I was still getting checks mailed to me from their financial department. I also have 11 books still that I checked out from their library, but since I was banned, I can't return them (yes I am aware I could have a friend take them back). I informed the library staff that the books were in my bag which was taken as "evidence" and they are sitting in the campus police evidence room, so I can't get them out. They dropped any and all fines, just as long as I promise to return them when I get them back.

 

[Mouse]

ha.

I've tried to figure ways around it but my mother keeps claiming me as dependent on her taxes so I can't bullshit around that. I don't know if she's done the math but she's prolly not saving much money claiming me vs. paying my tuition w/o grants subtracted. Fuck it, she can fuck herself over all she wants. I'm not paying it right now. When I'm 24 that'll be a different story but by then I'll have it worked out that I AM out of her house, independent (tax-wise) and all that good shit that will get me tons of help... everything short of being knocked up lol.

 

[BrokeWhiteBoy]

Yeah, as soon as I turned 18 my mom quit claiming me, said I can start filing my own taxes. Which is great because I made $981 paid $13 in withholdings and some change last year, and could legitimately claim $1100 in education costs. I was given my $13 back.

$13 bought me two packs of smokes, and a few beers. Was a good day.

 

[Mouse]

yeah. I get constantly fucked by my parents because my mother knows nothing about money. I couldn't get that stimulus check because of her stupid ass. and I can't even get work/study jobs at my college anymore (which has cut MY income in 3rd, which she doesn't seem to understand! always asking me for money and shit that I no longer make!!) because my step dad got a raise.

my parents are stupid as shit.