I owe 200 k in student loans and make 40 k, will 50 bucks a month keep me from default in 2009?
I understand that a few years ago, if you paid at least 50 a month you would be current and not go into default. However, I’m being asked to dish out $2000 a month (yea I took out extra money for the cars, girls, and parties I’m human just like you) but I can’t dish out 2000 a month if i want a condo, wife and kids (American nightmare). So do I move to colombia and become a farmer, or do I pay 50 a month and expect to stay current even with late fees? True honest answers from experienced debtors would be appreciated…anyone have any advice as to how they would go about making 2000 a month and owing 2000 a month in student loans alone…
second job sounds good but I wasn’t born to work 70 hours a week just to pay “the man” and who said I didn’t want to live like a college student the rest of my life? No I am not going to live with my mom Im 23. I guess I’ll be joining the military…
Fifty dollars a month will not keep you out of default with a debt of 200K and this has never been the case that I am aware of. Federal loans sometimes will advertise a “minimum 50 dollar payment” but if you read more in depth it is to inform you that this is the minimum payment no matter how LITTLE you borrow, not how much.
Example: If you just borrow 1,500 total in student loans your minimum payment would be 50 dollars when you graduate. (This is about the same payment as someone who borrowed as much as 5,000 total). Besides, with that much of a debt, I’m sure you have private student loans as well, and those payments and terms are a lot different that the federal loan terms. (variable interest rates – and payments, prepayment penalties, 30 year payment term instead of 10).
My advise is to put off the American nightmare for a while and move back in with the parents, grandparents, sibling, cousin, etc. to cut your expenses. Do that….. AND go out and get a second job, 40 hours a week isn’t meeting your needs so you need to step it up. 50 dollars a month will not keep you out of defalut and if you don’t do something quickly its going to get a lot worse once you are into default.
An extra 20 hours on the weekends or in the evening isn’t going to kill you.
The moral of this story is if you live like a professional when you are a college student (cars, girls, parities…) you will live like a college student when you graduate. You might want to inform those who are your cosigners for these loans you are having problems paying, they will be the ones the most motivated to put you in their basement or help you find that second job.
