OCCUPY STUDENT DEBT

I borrowed about $120,000 for law school (and had a little over 10k from undergraduate school), graduating in 2009.

I currently owe approximately $175,000. My daily interest is $31.56. I barely make that much after taxes!

Over $50,000 dollars in loans are graduate loans with an interest rate of 8.5%. My credit was in the mid 700’s when the government/ banks issued the loans to me- at such a high percentage rate.

My loans fell into default and the lender said that, unless I agreed to capitalize the interest or pay two past due payments, they would have to keep me in default. The lender bombards me with emails regularly, and I did not receive notice to resubmit my Interest-Based Payment application from the lender because I assumed it was an advertisement- one of the many encouraging me to go back to school and take out more loans. My license can be revoked for falling into default on my student loans. I was underemployed and did not have the thousands of dollars necessary to bring the loans current (yes, two months resulted in over 3k in payments due). Thus, I had no choice but to agree that I would be charged interest on interest at between 6.8 and 8.5% on over 100k in debt in order to convince the lender to review my income based repayment options and reinstate my loan to good standing.

A system that puts a young person in this situation is wrong. I am not asking for the right to file bankruptcy. I am simply asking that the government either cap the loans or give an honest and reasonable interest rate. Furthermore, capitalization should NEVER be required to bring you loan into good standing. This seems like an UNFAIR AND DECEPTIVE TRADE PRACTICE.

I feel like I have done everything right, have been lied to by society, and am a prisoner to my debt. I am not alone. My best friend owes $60,000 at 9.5%, with her mother as a co-borrower, and she works as a preschool teacher.

If your license does not require good-standing on your student loans to maintain it, why would you not default in my situation? As a debt settlement/ collections attorney, I do not have that option. The Florida Bar will take my license if I default. Despite that, it is an option that crosses my mind every single day that I work 12 hours a day- six days a week! I love my job as much as I love my husband. I can’t imagine giving up the right to help people out of debt because I couldn’t manage to pay mine. But, at the end of the day, I know I can’t go to jail for not paying my debt. So, I will keep slaving away to pay. But I pray that the rest of the world will not, and will force change on this ridiculously corrupt system.