How do you pay back an $87,500 student loan with a $22,000 per year job?

[longbow]

Her payments are $1100 per month. She is just one of several college grads with payments at that level or higher that I know through work.

i don't see them ever paying it off.....

 

[mbills2223]

Are loans consolidated and are they federal loans or private loans?

 

[bradmedic04]

Gotta find something else. You can make more than that in a call center.

 

[longbow]

That is what I said to her

 

[mom45]

I worked with a girl that owed more than that. Her degree was as some sort of personal trainer/sports related something or other. Her degree was not as a physical therapist. She is working at a fitness facility basically as a receptionist. I don't know how she will ever be able to move out of her parents' home. Between her student loans and her car payment, it is a huge debt every month.

 

[CathyInBlue]

I thought the student loan reform made it so that barnone, you could never be required to pay more than 10% of your gross income per month.

 

[hornadylnl]

Universities definitely have a vested interest in not teaching sound financial advice.

 

[GodFearinGunTotin]

If she'd gone into a skilled trades apprenticeship, it's possible she would have gotten paid while going to school and earned 2-3 times her current salary when she got out.

 

[mbills2223]

Universities definitely have a vested interest in not teaching sound financial advice.

At the university level it's far too late anyway, IMO

 

[kiddchaos]

two jobs? three jobs?

 

[Joe G]

She, and her parents, didn't make a smart cost/value calculation before signing for all those loans. Sorry, but it's like borrowing $50k for a car that's worth $20k - you just won't get a payback on that investment.

Would be interesting to hear what she studied, as not all degrees are worth the same in the real world. Have to decide how much you want to invest in a degree where the jobs only pay $20-30k a year.

 

[Joe G]

two jobs? three jobs?

Great point. Maybe live at home for a year, but with the knowledge that it's not a free ride, and you will work multiple jobs in order to pay off those loans and not use it as another free year of screwing off. No parties. No wasteful purchases. All paychecks go to pay down your debt.

 

[JTScribe]

Should be some sort of income-based repayment option available, you have to fill out paperwork with your student lender.

 

[1775usmarine]

If she'd gone into a skilled trades apprenticeship, it's possible she would have gotten paid while going to school and earned 2-3 times her current salary when she got out.

or join the military and use your GI Bill in addition to finding one of these high skilled paying jobs that provides paid on the job training and schooling.

 

[ModernGunner]

One payment at a time. Increased payments as career income increases.

Don't know what degree(s) she has, but it'd be worthwhile to constantly sent out resumes in her career field. Always be looking for the next job improvement and salary increase.

The days of finding a job and staying there 40 years are long past. Nowadays, folks move to a (presumably) better job on the average of every 4 years.

If 'your' boss won't give you a raise, move to one that will (by going to work at a higher starting pay rate). Repeat as necessary.

Personally, don't know how any individual survives in today's world making <$50,000 / yr.

 

[hornadylnl]

If she'd gone into a skilled trades apprenticeship, it's possible she would have gotten paid while going to school and earned 2-3 times her current salary when she got out.

Apprenticeships don't offer courses on golf or Klingon. They also don't have cool booze parties.

 

[GodFearinGunTotin]

Apprenticeships don't offer courses on golf or Klingon. They also don't have cool booze parties.

Some of them do. Especially if they have to go work out of town (construction type apprentices).

 

[hoosierdoc]

You work TWO $22k jobs and do nothing fun until it's paid off. Live with your parents if possible. Use a flip phone. Don't eat out. Don't ever get a car payment.

 

[hoosierdoc]

I thought the student loan reform made it so that barnone, you could never be required to pay more than 10% of your gross income per month.

I bet her P&I payment is way more than 10% though. Thus the crux of the problem.

 

[BogWalker]

The military pays more than $22k/year, especially if you factor in the benefits. Enlistment is always an option to someone who meets the basic physical requirements.