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  #61  
Old Feb 27, '12, 6:25 am
Katie966 Katie966 is offline
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Default Re: Facing bad trial (student debt) don't know wut2do

Quote:
Originally Posted by Allegra View Post
People who make informed decisions end up with a student loan payment of $150 per month. Perhaps, they can even afford to make double payments and take care of it in just a few years. This is an example of the "smart loans" people are always talking about. Unfortunately, this is not what many young people have chosen to do and now they are no longer young people and they're in big trouble. Prior to going to college, my peers and I got to see a presentation by the guidance counselor about avoiding unscrupulous individuals who would try to sell us bad credit cards. She should have shown us a video about herself.
I get what you are saying, I just think it was a ridiculous statement to say that people should "never borrow money from anyone". A person who takes out a mortgage is still borrowing money. So is the person who's only paying $150 per month in student loans. And not everyone can save up for a car- if your car breaks down, and you don't have enough money saved to outright pay for one, and need to get to work, you have to do something. Credit does not have to be a bad thing.

High school students are not being given enough proper guidance about their loans, and their parents sometimes don't know enough to advise them well, that is true. It is a big problem. But everyone's circumstances are different, so saying that no one should ever borrow money is unhelpful.
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  #62  
Old Feb 27, '12, 8:03 am
Jeremiah1278 Jeremiah1278 is offline
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Default Re: Facing bad trial (student debt) don't know wut2do

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Originally Posted by Erod773 View Post
Hi everyone!
3 years ago I graduated from college with a significant amount of debt, actually it's crushing because I only get to live off of $300 a month after gas and loan payments. . . .
its $33,000 a year plus benefits, benefits I didn't have from my last job. And I'm on the ground floor of an awesome tech start up being the first person hired for the marketing department.
Alright! This is great news. Erod, sometimes when you pop right into the job market, you get paid pretty low. Think of your $33K as your starting wage for a career that's going to lead you onward and upward. In two years you may get bumped to $35K and you'll get a bit more breathing room in your monthly budget. For now, you are in the Erod Lean Years. But as long as you have a plan and perspective, you can have some peace and happiness during these years.

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Originally Posted by Erod773 View Post
My loan debt is severe it's $100,000 I only get to keep 270 of my income per month after living expenses including paying rent to my parents, which is ok because I should pay them, but I've been horribly depressed for the past week because I don't see a way out.
First, it's very honorable that you pay rent to your parents. And that's a lot of debt, for sure. But there's a way out, and you are on your way.

Quote:
Originally Posted by Erod773 View Post
I feel down, has anyone been through a similar trial? I don't know how to handle this, I don't know if God has given me a huge cross to bear for the rest of my life, I don't know if I can get out of this. Please help me cheer up its so hard for me right now I don't know why God is doing this to me.
Yes, I've gone through something similar . Many of my pals are going through similar things too. You WILL get traction as you advance in your career. Have patience. Take advantage of this time you have living with your parents. By that, I mean, attack any other "payments" you may have. If you have a car payment, cell phone plan, gym membership, etc., attack all of those so that in 6 months, your $270 per month in "extra" money might become $300 or $350 or $400. Without seeing your monthly budget, it's difficult to say where you can do this. But if you have any other debt (car, credit cards from school, etc) attack that stuff with whatever you can from your $270 so that you can get some monthly breathing room. If I were in your shoes... I'd get a second source of income so that I can execute this plan. I started off low-paid out of school, but I earned a few extra bucks on the weekends doing close-up magic. Maybe you can bar tend or be a server somewhere. Shove all those tips into paying off whatever other debts you have. If you have no other debts, I'd build up a bit of an emergency fund of savings with that extra cash before trying to attack your loans. I take it you have a combination of private and federal loans. I assume the federal loans are huge, with a locked interest rate and the private loans have a variable rate. One strategy you might take while at home is to attack those private loans now by paying extra on the principle with whatever extra cash you can accumulate.

I know you're going through a lot, but if you turn this into a nerdy math problem and you get a plan, you may be happier. It's always better to feel poor and in control than it is to feel poor and out of control of your finances. You can do this! Get a plan, start executing it, and you'll feel much more in control and much more at peace.
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  #63  
Old Feb 27, '12, 4:01 pm
Deo Gratias42 Deo Gratias42 is offline
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Default Re: Facing bad trial (student debt) don't know wut2do

Quote:
Originally Posted by jmcrae View Post
You have $270.00 a month after living expenses, including rent? That seems like quite a lot, to me. Most people don't have anything left after they've paid the rent, food, and utilities.

If I were you, I'd put it in a savings account and let it grow.
I was going to say. I'm a student and I don't get that much to live off of when everything's said and done. That's all about to change though as I'll be making $50,000/year now and don't have to pay taxes a almost two years.

One place you can look for extra money is by cutting down your food bill. Take stock of what you're eating. Are there cheaper alternatives? It's Lent. Perhaps a 40 day fast would help you save some money.
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  #64  
Old Feb 27, '12, 5:33 pm
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Schieffelin Schieffelin is offline
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Default Re: Facing bad trial (student debt) don't know wut2do

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Originally Posted by kelvinf View Post
I read the original post with a bit of tears in my eyes. I see education as a fundamental right of man and have never understood why it is still so unaffordable in many countries. Why on earth do parents and/or teenagers have to take extravagant loans to pay for tuition fees....? How do some other nations succeed in providing classic tuition-free education for all?

I thought I knew the American system until 2008, during the crisis, that I really understood how the system functions--on credit. Some have contradicted the poster who made the comment about a house, a car and education being credit-based. For education, it's really just unfortunate that the system is like that. But for a car and other things, I have never undestood why people want to have things they can't afford. And when people portray cars as being unaffordable, I guess they are referring to brand new large cars, unless all new cars in America are by their very nature expensive, so much so that, one needs to borrow money to buy one.

But I remember a thread where someone was asking about second hand cars....So I still don't get it why people go in for things they can't afford only to live a huge part of their lives paying debts. Seems like there is always this assumption of getting a secure job but I wonder whether there is anything like a secure job nowadays.
The main reason why college is becoming more and more unaffordable in the U.S. is because of government subsidies. Every time the government ponies up more money for schools, the schools increase their tuition. It's similar to some of the factors that created the massive housing bubble and burst. Unfortunately the quality of education is not increasing along with the prices.
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  #65  
Old Mar 14, '12, 9:42 pm
Chateau16 Chateau16 is offline
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Default Re: Facing bad trial (student debt) don't know wut2do

I would recommend looking into the income-based repayment program. It is a new program that regulates your payments based on what you can actually pay. It is a new program, and may be able to get you out of your current troubles.
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  #66  
Old Mar 14, '12, 11:54 pm
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ryecroft ryecroft is offline
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Default Re: Facing bad trial (student debt) don't know wut2do

[quote=Allegra;9005162]
Quote:
Originally Posted by Schieffelin View Post
You're not wrong but it is a little more complicated than that. The parents think they are doing the best thing. QUOTE]

They aren't thinking very hard then, are they? I mean, it isn't as if the information isn't there. They know that loans have to be paid back. Right? They know roughly the amount of the loan their child would need. Right? They know how to divide the amount of the loan by the length of the loan. Right? They know average salary of a person starting out in the position their son or daughter is attempting to get. Right? They realize that their child will have current living expenses once they are out of school? Right? They know that most people would like to get married and start a family within a decade of graduating from university. Right? This isn't calculus here. An adult knows what paying off that kind of loan entails. A teenager doesn't. Besides that, there are other options. There are scholarships. There is saving up. There is employment. Who came up with the idea that college students shouldn't be troubled with paying their rent? Yeah, working and going to school is challenging. Better to work day and night when you're twenty and spry than when you're pushing thirty-five and think you kinda might like to get married and have a life someday but can't because you're buried in debt.
This is exactly why we only want a few kids at most. We don't want them to ever be faced with this kind of problem, a want to be able to get through school college included without any debt. You may disagree but we think this is very important.
God Bless
Rye
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  #67  
Old Mar 15, '12, 12:31 am
Viki63 Viki63 is offline
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Default Re: Facing bad trial (student debt) don't know wut2do

I'm surprised no one has mentioned Dave Ramsey's program. He has helped many people get out of debt. See this website.
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  #68  
Old Mar 15, '12, 6:04 am
SamH SamH is offline
 
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Default Re: Facing bad trial (student debt) don't know wut2do

Quote:
Originally Posted by kelvinf View Post
I read the original post with a bit of tears in my eyes. I see education as a fundamental right of man and have never understood why it is still so unaffordable in many countries. Why on earth do parents and/or teenagers have to take extravagant loans to pay for tuition fees....? How do some other nations succeed in providing classic tuition-free education for all?

I thought I knew the American system until 2008, during the crisis, that I really understood how the system functions--on credit. Some have contradicted the poster who made the comment about a house, a car and education being credit-based. For education, it's really just unfortunate that the system is like that.
Only those that choose that route. I received no financial support from my family and graduated in 5 years with a 3.3 GPA, no debt and a small amount of savings. While I did work a lot of hours I can honestly say I probably wouldn't have studied one minute more than I did. My youngest brother graduated in 2001 in similar financial shape - only he had a like new Mustang paid for too.

If you notice education is one area that the government makes no attempt to control costs. Instead predatory student loans are made in ever increasing amounts to unsuspecting naive young people without ever requiring that they make an honest attempt to explain how they will pay them back.
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  #69  
Old Mar 15, '12, 9:26 am
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kelvinf kelvinf is offline
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Default Re: Facing bad trial (student debt) don't know wut2do

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Originally Posted by SamH View Post
Only those that choose that route. I received no financial support from my family and graduated in 5 years with a 3.3 GPA, no debt and a small amount of savings. While I did work a lot of hours I can honestly say I probably wouldn't have studied one minute more than I did. My youngest brother graduated in 2001 in similar financial shape - only he had a like new Mustang paid for too.

If you notice education is one area that the government makes no attempt to control costs. Instead predatory student loans are made in ever increasing amounts to unsuspecting naive young people without ever requiring that they make an honest attempt to explain how they will pay them back.
Thanks for this input! It is clear and exemplary. I study and finance my living via my student job. Good to know that this is also possible over there.
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  #70  
Old Mar 16, '12, 5:58 pm
JDB823 JDB823 is offline
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Default Re: Facing bad trial (student debt) don't know wut2do

In my day job, I am an attorney and deal with this issue regularly. Disclaimer: The following post is NOT intended as legal advice.

The ideal solution is to pay back your loans. Defaulting on any debt has serious unpleasant financial consequences. But if you cannot do that, you may have options.

It is true that bankruptcy does not discharge student loan debt, but bankruptcy may help you deal with student loans. A Chapter 7 filing can wipe out your other debt, allowing you to pay off your student loan. A Chapter 13 filing creates a repayment plan that may be able to help you catch up on student loan payments, BUT you cannot pay off your student loan at any higher rate than any other unsecured debt, such as credit cards, unless there is a special situation, such as a cosigner, or you are paying your other creditors in full. Even so, a Chapter 13 bankruptcy stops all garnishments, collection efforts, and penalties, even though the interest will continue to accrue. There are cases where people have filed repeat Chapter 13 plans, staying "perpetually bankrupt", making little progress on paying down the debt, but keeping the creditors at bay for five years at a time.

If your student loans are FEDERALLY insured, then you may be eligible for income based repayment. This reduces the amount of your payments to an amount you can afford. The federal government has programs to get you out of default and get you current on your loan. After 25 years of payments, your loan will be forgiven. You can find more about these at http://ombusdman.ed.gov. Do NOT default on a federal loan. The federal government has many powers that private creditors do not have to get their money, including intercepting your tax return and even your social security.

If your student loans are PRIVATE, then you have fewer options. You are at the mercy of your creditors until the law changes. Still, private student lenders do not have the same powers as the federal government to collect their loan. They are no different than credit card companies, except that the debt is not dischargeable in bankruptcy. They must sue you to be able to garnish your wages or collect a judgment against you. If you have absolutely no hope of paying off your private student loan debt and you haven't been sued yet, consider moving to South Carolina where wage garnishment is not allowed and judgments are non-renewable.

If you have a cosigner, you have a PRIVATE loan (federal loans NEVER require a cosigner) and your cosigner is on the hook if you default.
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  #71  
Old Mar 17, '12, 8:39 am
tafan tafan is online now
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Default Re: Facing bad trial (student debt) don't know wut2do

To the OP, look up Dave Ramsey's program, ASAP. Go through the financial peace of mind university (it has some name like that). It won't be easy, but you will feel better right away because you will have a plan on how to get out of this mess.

As Dave Ramsey would say on his radio show, you likely did something very stupid. And that is not an insult, we all do stupid things in our lives and we have to dig out of the mess we made for ourselves. And often we do stupid things because society tells us it is the smart thing to do. What is more important is how we recover and learn from it.

Student loans are more often than not, a disaster. I do not understand at all how someone can end up with 100,000K in debt with a bachelor's degree. Most companies do not care a great deal which college someone gets a degree from. There are many ways of getting a bachelor's degree without sepending 100,000 doing so. The university system and the high school counselor's tend to push the prestigious colleges, and don't take into account the long term consequences of the finiancial burden it places on either the student and/or his/her parents. It is crazy.

I will have my third graduating from college this year. Average cost to me for all three for VERY good four year degrees will be around $50,000 a piece. And I could have made it a lot cheaper if I needed. None of them graduate with any debt at all, and actually have enough cash to get settled in an apartment. All of them have found good jobs upon graduation. The same thing that kept cost down, is what got them their jobs. Summer jobs, and more importantly internships after their sophmore and junior years. And some scholarships (there are a lot of those available these days, for students who work hard in high school).

None of them lived at home during college, but if needed, I would have insisted on that and a local school before any student loan was taken out.

Yes, college is expensive, but it does not have to be financial devestating for anyone. I know a couple of kids who pay their own way through, without any help from mom and dad (besides a place to live, I admit that is a lot). A summer job, say 12 weeks working 50 hours a week, can easily net 3000 (at minimum wage). Take that and multiply by 6 years, and you have 18,000 there. If tuition and books cost at a local state school cost 10,000/year (living at home), you need another 22K. A part time job working 20 hours a week the rest of the year can net $4000/year. Multiply that times 4 years and you get 16,000. Now you are 6000 short. Well, scholarships, savings from parents, or something can cover that much. That is all assuming minimum wage. It is actually easier than that, because companies pay really good wages for summer internships for engineering and top business majors.
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  #72  
Old Mar 17, '12, 3:39 pm
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jmcrae jmcrae is offline
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Default Re: Facing bad trial (student debt) don't know wut2do

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Originally Posted by tafan View Post
Student loans are more often than not, a disaster. I do not understand at all how someone can end up with 100,000K in debt with a bachelor's degree. Most companies do not care a great deal which college someone gets a degree from.
And after you've acquired a few years of work experience, most employers don't even care what your degree is in - they just care that you finished school (meaning, you are likely to be literate) and that you know how to manage your time and accomplish the tasks you need to do. The majority of what you know by age 35 is a combination of what you remember from elementary school and your on-the-job experience. Nobody cares by that time what school you went to, or what you took.

Quote:
Yes, college is expensive, but it does not have to be financial devestating for anyone. I know a couple of kids who pay their own way through, without any help from mom and dad (besides a place to live, I admit that is a lot). A summer job, say 12 weeks working 50 hours a week, can easily net 3000 (at minimum wage). Take that and multiply by 6 years, and you have 18,000 there. If tuition and books cost at a local state school cost 10,000/year (living at home), you need another 22K. A part time job working 20 hours a week the rest of the year can net $4000/year. Multiply that times 4 years and you get 16,000. Now you are 6000 short. Well, scholarships, savings from parents, or something can cover that much. That is all assuming minimum wage. It is actually easier than that, because companies pay really good wages for summer internships for engineering and top business majors.
If you start working part time in Grade 10 with full time during six weeks of the summer, you can earn that extra $6,000.00 very easily, especially if you put it into a Presidents' Choice or ING high-interest/no minimums savings account, and don't touch it until you need it.
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