She can't get payment relief on $137,000 in private student loans. It's a warning for millions.
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Samantha Ferguson, a 40-year-old woman, is struggling to pay off her $137,000 private student loan debt after losing her job. Changes to federal student loan repayment plans under Trump may lead to more borrowers turning to private lenders, exacerbating the issue.
Samantha Ferguson, 40, has $137,000 in private student loans after studying politics in Scotland. She borrowed $104,000 from Sallie Mae in 2003 because federal loans weren't available for studying abroad. Despite paying $200,000, her balance remains high due to high interest rates and capitalization. After losing her job, Ferguson sought relief from her lender, MOHELA, but was unable to secure lower payments or a pause. Private student loans lack affordable repayment plans and federal loan forgiveness, making them more challenging to manage than federal loans. Ferguson's situation may become more common as Trump's repayment overhaul takes effect, potentially driving more federal borrowers to private lending. The changes include new borrowing caps for advanced degrees. Ferguson's debt has significantly impacted her life, preventing her from saving for retirement or having children.
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