When you don't get the "big payoff" for your monstrous student debt - how do you get a payment you can afford?

Question:My daughter has a monstrous student debt - she hasn't been able to make it pay off and is now very over qualified although she is virtually unemployable at a professional level because she hasn't passed the bar. She can't afford a car, she can't afford to live, she can't afford her debt. How does she get this on an easy payment for the rest of her life plan - and still be able to have a life? Ideas please. I co-signed and it is also on my plate. I'm not at all sure she has done everything she has the power to do, she may not know the answer. Its not an easy discussion to have with her, she's stressed to the max.

Answers:
I have consolidated my loans with Sallie Mae & have a graduated payment schedule. They also offer an income-based payment option.
I'm assuming you are in the US. You want her to learn to cope with her own life, not just bankroll her through mistake after mistake, but you also want to provide loving support.

Look up the terms on which student loans are provided by the UK government (see http://www.slc.co.uk/). Basically, the interest rate is the rate of inflation, and repayments begin only once a certain salary level is reached and are proportionate to salary. After a certain period (I think 10 or 15 years), the loan is written off.

What I'm suggesting is that you offer to fund emulation of these terms, working out what she would be paying each month based on her income under these terms, and making up the difference yourself to the actual repayments. If you do that, it will take a lot of the pressure off her and give her a chance to sort out what she is going to do, without actually lifting the whole responsibility away from her. If this suggestion seems overly generous to you, remember that you are co-signatory!
Best idea is to call your lender(s) and see what options they have for you.

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