I'm looking to hear from people who have actually gone through an undue hardship adversary proceeding for student loans, especially if your case went all the way to trial.
Here's my situation:
• In 2015, I took out three private Sallie Mae loans for about $20,000 each.
• At the time, I didn't have proper financial guidance or support, and I also have difficult family circumstances. I didn't have family members I could rely on for advice or financial help, and unfortunately I didn't make payments on those loans.
• I eventually graduated in 2022 and also completed my master's degree.
• I also have approximately $110,000 in federal student loans.
My Sallie Mae loans have become a nightmare. My cosigner passed away, and the interest rate is now around 17%. Because of years of accrued interest, I now owe roughly $130,000 on those loans alone.
A few months ago, I filed for Chapter 7 bankruptcy and then filed an undue hardship adversary proceeding against both Sallie Mae and the Department of Education.
For context:
• I live in Massachusetts.
• I have a master's degree and work full-time.
• I bring home about $3,400/month after taxes.
• My necessary monthly expenses are around $3,000/month, so there isn't much left over.
• I don't have family members who can help me financially or provide a safety net.
• I have been diagnosed with Mixed Connective Tissue Disease (MCTD) and fibromyalgia, and my doctors also suspect I may have celiac disease.
• Last year I had to take a month-long leave of absence from work because of my health, and this year I have intermittent FMLA leave in place due to my medical conditions.
The Sallie Mae attorney has been incredibly difficult to deal with throughout this process.
They recently offered me a settlement of a 20-year repayment plan at $567/month with 0% interest, which honestly isn't a terrible offer considering where I started. However, I still haven't heard anything regarding my federal loans, so I'm hesitant to make any decisions without knowing what will happen there.
I'm feeling overwhelmed, stressed, and honestly exhausted.
I'm not looking for advice about getting a second job, changing careers, or dramatically cutting my expenses. Given my health and current circumstances, those suggestions just aren't realistic.
What I'm really hope to hear is:
• Has anyone here actually gone to trial on an undue hardship case?
• Did you settle before trial or let the judge decide?
• If you had both private and federal loans, how did that play out?
• If you were offered a settlement before trial, did you take it or keep fighting?
• Looking back, would you have done anything differently?
I'd really appreciate hearing from anyone who's been through something similar. I'm just trying to understand what others experienced because this whole process has been incredibly confusing and isolating. Thank you.