I took out around $80k in student loans in the early 1990s. I never finished school and my life spiraled out of control, like way out of control (drugs, prison). My loans went into default. I got my life back in order after 2000 and have since consolidated my loans, which at that time was $165k.
I am on the income-contingent plan and because I’m not able to work because of a health condition (but not enough to get disability, ugh), I have been on a financial deferment. But I still pay $5/mo.
Last year, I renewed my income-contingent application. At that time, there was a change in my income and I hadn’t yet filed my taxes, so I gave them my last three pay stubs. But since the two older ones were more than three months old (because I am a part-time teacher with no paycheck over the summer and this was right after the summer), they didn’t count them and said that my application was “incomplete.”
By the time I gave them the information they needed, my application was then considered “late” and my interest compounded (around $120k) so now my principal is over $285k.
I tried to talk to my lender, but they said they can’t do anything. Is this true? Can I fight this? Is there anyone who can help me? I am being SO screwed and I was really doing all I could do things right!!