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Old 01-27-2015, 10:55 PM
 
213 posts, read 181,489 times
Reputation: 84

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Quote:
Originally Posted by GraduatewithDebt View Post
Hi CD Forum,

New here, and would like some advice. As so many here and out there all over the country, I graduated from college (undergrad) with deep student loan debt (about $85K undergrad) and couldn't find a job that pays anything, so I decided to go to graduate school. I am still living at home with my parents, and it looks like it will stay this way for the foreseeable future. Most of my friends are all in the same boat, still living at home, in big student loan debt, and pursuing an advanced degree or another undergraduate degree. A couple of my friends have over $200K in debt already.

My questions pertains to the following. There has been quite a bit of talk of a student loan bailout plan, and that it could even come about as part of the next election. I am aware of the Public Service Loan Forgiveness Program. In fact, a couple of my professors in school were even recommending taking on as much debt as possible under this program, and then only making the minimum payments for 120 consecutive payments (10 years), and having the rest of the debt load forgiven. They said they used this exact strategy, and are on track to have roughly $200K in debt forgiven after the 10 year period. So basically make interest payments for 10 years, and then have the entire principal balance of the loan(s) amount forgiven.

Does taking this maximum amount of debt out in grad school sound like a good strategy if I can land a public service sector job after graduation? How long will this legislation be on the books? I am worried if enough people are getting these large amount forgiven left and right, that they will put an end to this program. Also, what about the possibility of a bailout program for the millions of students in debt across the country. What do you think this would look like, and for what amount?

Thanks in advance for your help and advice!!
Only take out more loans if you plan on getting a good job to pay back the debt. Why would you pay more money for education if you 're gonna work a low paying job?
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Old 01-28-2015, 09:07 AM
 
2,512 posts, read 2,700,500 times
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1) What will your monthly student-loan payment be?
2) What is the rent for a one-bedroom apartment in your area, including low-income housing which you might qualify for?
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Old 01-28-2015, 09:22 AM
 
2,775 posts, read 2,819,258 times
Reputation: 2979
The educational loan bailout isn't going to happen - just a fact - what you are hearing in the media is complete bs. The banking and financial services industries run the world (and every major Govt.) right now and all the laws have been shifting towards people with debt not being forgiven (nor having bankruptcy as an option as our parents once did). The people who owe money will have to pay the banks back lest the banking system/monetary system just collapses... and no one with power or influence is going to allow that to happen without sticking it to those that "owe" a lot. The educational loan situation was set up to evolve into this in my opinion... you cannot tell me University expenses have justifiably gone up 300% in the past 25 years to warrant such an increase in tuition. It just doesn't make sense, and we all know it.

As such your best bet is this... only borrow what you need to for Graduate School, and work your ass off to pay off the debt as quickly as possible. Trust me on this having about 20 years on you experience-wise... $80k of debt is nothing! With proper budgeting and full-time employment you can pay this off reasonably quickly. Living at home will help enable you to make this happen even faster.

Also, please stop looking at living at home as though it is some sort of negative thing... it's not (that's a perception sold to Americans the last few generations which is complete crap - the rest of the world knows this, you should know this as well). Live at home, enjoy your family, and at some point you will be in a better financial situation and able to start a family of your own with a significant other. Unless you have dysfunctional relationships with your parents, don't go renting an apartment...or adding to the list of expenses you have. Take advantage of what your parents are offering and enjoy being with them while they are alive (those of us adults who have lost a parent or two in most cases wish we had spent more time with them).
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Old 01-28-2015, 10:43 AM
 
34,240 posts, read 41,253,416 times
Reputation: 29696
Quote:
Originally Posted by GraduatewithDebt View Post
My questions pertains to the following. There has been quite a bit of talk of a student loan bailout plan, and that it could even come about as part of the next election. I am aware of the Public Service Loan Forgiveness Program. In fact, a couple of my professors in school were even recommending taking on as much debt as possible under this program, and then only making the minimum payments for 120 consecutive payments (10 years), and having the rest of the debt load forgiven. They said they used this exact strategy, and are on track to have roughly $200K in debt forgiven after the 10 year period. So basically make interest payments for 10 years, and then have the entire principal balance of the loan(s) amount forgiven.
Sounds like scamming the system IMO, running up $200K in student loans then expecting the debt to be written off?.
Who do you think absorbs the cost of this debt forgiveness program?
Did the thought ever cross your mind that perhaps you couldnt afford a college degree and would have been better off going to trade school?
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