Student Loans/Defaulted loan



I went to the Art Institutes which is a for profit private arts college.

To help fund the tuition I got a $30,000 private student loan from Chase Bank. They want me to pay $400/mo but I work for minimum wage which is $8/hr part time and I don't bring home enough money to pay that loan plus my federal loans. I only bring home about $650/mo.

I am now delinquent and they are sending me letters threatening default. I pay them $100/mo now and I am behind by almost $1000. I've talked to everyone I know to talk to. They don't care.

Will my life be ruined when this loan defaults? I'm in good standing with my federal loans because they are allowing me to pay interest right now.

Chase WILL NOT grant me a deference or forbearance AT ALL WHATSOEVER. I am extremely depressed and suicidal over this and have been going to therapy.

They don't care. What is going to happen to me when it defaults? Is my life ruined??

Hi Katie

What a frustrating situation and sadly it's not an uncommon one when it comes to private student loans.  As you have many options available for lower payments.  Have you asked them about consolidating?  This would extend the term and lower the payment.  You also might ask if they have an interest only plan.  I would see if you can find a supervisor or better yet an ombudsman to help you at their offices as they may be in a better position to work with you.  You could also try approaching the consumer finance protection bureau at for help. Finally you might ask your congressmans office to help you negotiate an affordable payment.

I'm sorry I don't have better info for you but as you've seen private loans are tough to work with.  I wish you the best-please do reach out again along the way to let me know if you were successful with these resources.


Student Loans

All Answers

Answers by Expert:

Ask Experts




I can answer any questions about federal student loans and many about private student loans. I can also answer questions about other types of financial aid. I am not a financial planner or attorney so cannot give investment or legal opinions.


I have worked in the student loan industry for over 15 years - primarily in the compliance area. I also work with borrowers with particularly complicated issues. I had a column answering financial aid questions in several newspapers for seven years and have appeared in several radio and television segments on student loans and financial aid. I have given presentations all over the world on the US financial aid programs.

National Council of Student Loan Programs Massachusetts Association of Student Financial Aid Administrators

Boston Metro Washington Post Express various industry blogs and newsletters

BS in Business Communications.

Past/Present Clients

©2017 All rights reserved.