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Ditto the posters who suggested looking into state programs that help repay teachers' student loans. Start with your state department of education.
It sounds like his problems go much farther than just the student loans. He needs to live as cheaply as possible - live with a roommate or with family, use public transportation or get a cheap car, eat Ramen noodles, don't spend any money on socializing and non-essentials.
Your buddy sounds like he needs to take some lessons from some fellow cheapskates! When pilots enter the workforce typical pay is between $15k-$25k/yr w/ loan amounts of $40k-$100k+ depending on how they obtained your certificates. This is what they do:
1) Drive an old beater. In fact chances are the rest of their lives they'll be driving old beaters no matter how much money they make .
2) Live with roommates. Lot's of them. It's called a "crashpad" and some use it as a semi-permanent living arrangement. 6-8 people in a 2-3 bedroom apartment, makes rent cheap. Lots of bunkbeds, I was in one in NYC that had 28 beds in 6 bedrooms.
3) Pack your lunch even when on the road. Some people think it's great they bring their food to work everyday for lunch. Can you imagine being gone 4-6 days at a time and bringing your food along with you? Lots of dried fruit, oatmeal, crackers, bread, pasta, etc. It's sad but I even know what a PB&J sandwich costs to make ($0.30).
4) Side jobs! The more the better! Pizza delivery, grocery store clerks, really anything that is flexible.
5) Cut expenses! Food and beer is pretty much it. No need for a cell phone, if you must have one get a pay-as-you-go phone and use it for emergencies only. Look into using your computer to make phone calls (Skype). No TV or cable! No eating out! At all! Shop at Wal-Mart and buy cheap carbs like pasta, they will fill you up and not cost an arm and a leg. Avoid places like Whole Foods, you can't afford to buy that stuff.
6) Throw all your extra money toward your loans. It's amazing what you can pay off and how quickly it starts going down. It's going to suck but it's either that or never pay it off.
He should be able to consolidate at about 4.5% if several loans. Move to a place that pays teachers better. He does realize that he will have to go back soon for an MA degree and most systems either don't pay or pay only a fraction, unless in a critical need area.
If it is a government loan, he can file for a temporary hardship and they will allow the payments to stop for a short period of time. While this is temporary, interest still accrues on the principle. If it is a private loan, he will just have to suck it up and pay. He can find a second/weekend job, teach summer school, live within his means, apply an extra $10 a month (and indicate for principle only). I am still amazed that he incurred that much for a teaching degree and I am shocked that he had no guidance from his university's career service center to find a school district that would forebear some of his debt for a specified period of work time. A friend of mine works for Philly School District and signed a 5-year commitment and had all of his loans waived, including his Master's degree. Your friend may not like it, but he may need to find a non-desirable district and move on with his life.
I racked up 80K because I went to a private institution for undergrad, and this was after 10,000 a year in scholarships. I also made the financial mistake of working as a teacher in NC (paying only 29,000/year, with no raises in the 3 years I taught due to the waning economy). I do not think it is right to call one stupid for going for teaching... that is our future and I think that it makes sense for us to want only the most well educated, which would justify that debt, to be teaching, training, and producing that future.
Also, people do need to use loan money for living costs. The school I attended was 45 minutes from home and I attended class 5 days a week. I had to live in that town, and after doing the math it was more cost effective to not pay for campus housing. I was not able to work a full time job because our classes were split up so much (usually MWF 1 hour a day and/or T/TH 1.5 hours a day). Also, just to finish the program and the multitude of general education classes, I had to take 15-18 credit hours.
Just to give you some perspective.... some of the comments on here are very rude.
My buddy is 40, he just completed college, and is now a teacher making around 36K a year. He has 100K in student loan debt and its completely buried. I know you cannot file BK on student or other government loans, what what can he possibly do?
$100K in loans to be a teacher at $36K a year? Sounds like a very bad investment.
I racked up 80K because I went to a private institution for undergrad, and this was after 10,000 a year in scholarships. I also made the financial mistake of working as a teacher in NC (paying only 29,000/year, with no raises in the 3 years I taught due to the waning economy). I do not think it is right to call one stupid for going for teaching... that is our future and I think that it makes sense for us to want only the most well educated, which would justify that debt, to be teaching, training, and producing that future.
Also, people do need to use loan money for living costs. The school I attended was 45 minutes from home and I attended class 5 days a week. I had to live in that town, and after doing the math it was more cost effective to not pay for campus housing. I was not able to work a full time job because our classes were split up so much (usually MWF 1 hour a day and/or T/TH 1.5 hours a day). Also, just to finish the program and the multitude of general education classes, I had to take 15-18 credit hours.
Just to give you some perspective.... some of the comments on here are very rude.
NECRO-thread:
Quote:
Originally Posted by bakeranm
I do not think it is right to call one stupid for going for teaching... that is our future and I think that it makes sense for us to want only the most well educated, which would justify that debt, to be teaching, training, and producing that future.
1. No one is calling anyone 'stupid' for choosing teaching (Although I do privately to a buddy of mine... coming from a family of teachers.
After 8 or 9 years of doing it he AGREES with me!
What people are being critical of is the Six figure (And Yes, I'll lump your $80K debt in with that) debt for a job that returns SO much less than that.
Your EDUCATION should have taught you/them basic math.
AND if it didn't... yes it's a waste, because it's just schooling and not education, critical thinking etc.
And no: "Best" (Most well educated as you say) DOES NOT JUSTIFY IT...
Although I would submit being unable to realistically pay it back = not what you claim ANYWAY.
2. all the "I's":
No, you CHOSE to.
"I" am currently finishing my undergrad and working on my masters, school is less than $200 per credit (Counting all fees) and I've been knocking them out at the rate of 18-19 per term. (15 now)
Add the GI bill to that and living inexpensively and I will have my masters in 16 months with NO debt.
So don't give me this "Have to"
You CHOOSE to.
And yes, some people are rude. It's called being direct and not swallowing the BS because the can do math, or critical thinking and see for themselves.
Sorry it it's harsh, but that's life in a place without a bell curve!
There are some tuition forgiveness programs for teachers, but I think the catch is that you cannot have consolidated/refinanced them with a private lender (who often offer a better interest rate unfortunately)
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