redkow97 Posted July 15, 2014 Report Share Posted July 15, 2014 Just got an ass-fuck from Sally Mae. I'm looking at paying close to 10% of my (pre-tax) income toward student loans from August until eternity. Is this par for the course? The last time I had loans (undergrad) I don't recall what my payment was, but I know I didn't qualify for income-based, because my balance was pretty low. I all but killed those loans in a few years, and have a few thousand outstanding that were added to my law school loans. The killer about law school is that no one has a job when they graduate - you have to study for the bar, which for 80% or more of bar applicants, is a full-time job of its own. So you exhaust your grace period before ever even having a whiff of a paycheck. I did some temp work for a few months, then landed my current gig in September of 2013. Based on my $0 income at the time my loan payments were scheduled to start, I haven't had to pay until now. I only have an estimated figure at this point, but it's not an insignificant amount. More than a car payment (which we don't have right now). My concern isn't so much about how we'll afford this, but rather how we'll afford things like a car payment the next time a vehicle needs to be replaced. My wife (thankfully) has no college debt. I'm an educated guy who doesn't live extravagantly, and has never paid interest on a credit card - if I'm struggling, how the fuck are everyday morons surviving in the world?! /rant (for now) Quote Link to comment Share on other sites More sharing options...
RVTPilot Posted July 15, 2014 Report Share Posted July 15, 2014 My Mrs. got a similar ass shafting on her student loans, and you are correct. It is not an insignificant amount. Makes me even more thankful for my G.I. Bill and being debt free on my education. 1 Quote Link to comment Share on other sites More sharing options...
Tpoppa Posted July 15, 2014 Report Share Posted July 15, 2014 I think 10% is the new cap, down from 15%. After the housing crash...student loans will be the next credit crisis. 1 Quote Link to comment Share on other sites More sharing options...
redkow97 Posted July 15, 2014 Author Report Share Posted July 15, 2014 my balance isn't even that high! For people who went directly from undergrad to law school, and financed both (especially without a wife covering housing expenses during law school), they are looking at double or triple my balance... I'm going to be stretched, but not flat-broke. There's going to be an entire generation that is beyond fucked by this. Quote Link to comment Share on other sites More sharing options...
Tpoppa Posted July 15, 2014 Report Share Posted July 15, 2014 (edited) Pretty sure there is a way to defer for a couple years with a $50/month payment. It's been a awhile since I looked at student loans. Edited July 15, 2014 by Tpoppa Quote Link to comment Share on other sites More sharing options...
DAC Posted July 15, 2014 Report Share Posted July 15, 2014 Are those government loans? Or were they pre-Obama? Quote Link to comment Share on other sites More sharing options...
redkow97 Posted July 15, 2014 Author Report Share Posted July 15, 2014 I don't want to defer them. Assuming a worst-case scenario where I can't find a higher paying job, I get public employment forgiveness after 120 minimum payments. I was just expecting the minimum to be a lot lower, and the amount forgiven to be a lot higher. I'm only looking at "saving" $20k with the forgiveness option, so even a small salary increase at a different job (or this one) would amount to $20k a lot quicker than 10 years. I'd like either a lower interest rate, or a cap on the amount of total interest I can pay in a given year. By my calculations, $430 or more of my monthly payment is interest. Quote Link to comment Share on other sites More sharing options...
Tomcat0403 Posted July 15, 2014 Report Share Posted July 15, 2014 You can call and argue with them about how much you can pay. Income based payments will take into account all of your bills, debts, etc. Make it easy, call them..."I cannot afford this, what can i do?" I defaulted on mine, turned around rehabbed them via whatever gov't program and I am currently paying based on a rising payment plan over time. Changes every 2 years i think. 1 Quote Link to comment Share on other sites More sharing options...
Strictly Street Posted July 15, 2014 Report Share Posted July 15, 2014 Sounds like the standard reaming.You don't even get to feel "special" over the whole thing. Nice how they calculate it from "Gross" not "Net" income so your "Rate" goes from ~32% to ~42% if your income.(income taxes + FICA + etc + etc + Student Loans) Quote Link to comment Share on other sites More sharing options...
2talltim Posted July 15, 2014 Report Share Posted July 15, 2014 (edited) We consolidated my wife's through Fed loan for 15 years at $270 a month she originally owed $34k Edited July 15, 2014 by 2talltim Quote Link to comment Share on other sites More sharing options...
Bubba Posted July 15, 2014 Report Share Posted July 15, 2014 I have some sympathy for people who took out loans for student debt, but most never even bothered to ask what the future payments would be on the balance or how it would be repaid. Problem as I understand it is that its akin to buying a house and then being allowed to live to live in it for 4-6 years for free without ever making a payment, and then being 'shocked' when the monthly payment--along with the deferred interest--comes due finally. I've got several friends who are into debt for between $50-100K of both government and private loans, with absolutely no way of ever paying the balance off. IMHO, the system was far too lenient in making loans to students for anything they wanted without ever asking for a reality check from the debtors. At the same time, I never cease to be amazed at just how naive many young folks are about going into debt, whether it be student loans or CC debt or vehicle loans, without having any concept of just what they're signing on for. Seems to me I saw a number of somewhere between $1 and $2 trillion dollars of unsecured student debt outstanding in the US. Definitely the next 'housing crisis'…. Quote Link to comment Share on other sites More sharing options...
2talltim Posted July 15, 2014 Report Share Posted July 15, 2014 Pre consolidation there were 8 loans totaling $1180 a month. Quote Link to comment Share on other sites More sharing options...
redkow97 Posted July 15, 2014 Author Report Share Posted July 15, 2014 If i'm being honest, the payment amount doesn't shock me as much as my income. when I applied for law school, I figured I'd make more money as an attorney than I was making in sales at my old job. I make marginally more now than I did before law school. More income would solve a lot of problems though... Quote Link to comment Share on other sites More sharing options...
madcat6183 Posted July 15, 2014 Report Share Posted July 15, 2014 It's all a joke bro, and sorry but you're screwed. Going to guess it's just like my wife's loans, financed 90% of undergrad and 90% of graduate school, and had over 100K of student loan debt when I met her. Made less than I did, starting out, with an PhD, and her loans just kept increasing their payments/interest. She paid several off, but now we're afraid the rates on the government ones are about to raise, again, making a significant increase in payment. Paying them isn't an issue, however it's stupid that this keeps happening and they keep screwing people. Her private loans are low, like 2-3%, but last time she checked her government backed loan was like 6%, with looks of going higher. Thing is, it doesn't make sense to refinance them together and lose her 2-3% to drop the 6%+ loan to like 4-5% because in the end it won't save and actually cost. Again, this is rediculous. Also FWIW, and no offense, but I wouldn't want to be in your field with any student debt, and looking for a really good paying job. After talking to my cousin and a friend who passed the bar, worked as a lawyer for 2 years and quit for AEP, I wouldn't want to be coming out of law school right now. Cousin graduated with a 4.0 from U of M law school, has interviewed several places, lives at home, has loans, and no job. Passed the bar first time, and has been looking for a job for about 4 months now, maybe longer actually. Friend quit his law practice even after he had part ownership. Said he wasn't making nearly enough to make it worth the hours he was working and never would. Wish you the best with everything but in the end, student loans are just another way the government is screwing everyone. Quote Link to comment Share on other sites More sharing options...
2talltim Posted July 15, 2014 Report Share Posted July 15, 2014 (edited) If i'm being honest, the payment amount doesn't shock me as much as my income. when I applied for law school, I figured I'd make more money as an attorney than I was making in sales at my old job. I make marginally more now than I did before law school. More income would solve a lot of problems though...We feel your pain there too, my wife is a xray tech and certified to do mammograms. When she started school hospitals were recruiting and paying huge signing bonuses and starting at $25 to $30 a hour. Then the economy crashed and when she graduated the best she could find was a job as a mobile tech making $17, and that was after she swallowed her pride and fell back to get STNA at $9 a hour for a year and a half. Edited July 15, 2014 by 2talltim Quote Link to comment Share on other sites More sharing options...
Josh1234 Posted July 15, 2014 Report Share Posted July 15, 2014 My wife is German, and refuses to pay for education (it's free for Germans - if they're in Germany). She got a 2-year degree from Tri-C, and then got into the honors program at Cleveland State, which is a full scholarship. She graduated from there with a BA in International Business. Got a job at a place that will pay for her grad school as long as she gets good grades. This way it might take her longer, but she can get her master's degree for free, essentially. I got out of undergrad with $14,000 in student loans, but my dad is paying for them.... Thanks to my mom, it was in the divorce agreement She always said her kids were entitled to straight teeth and a college education, so the orthodontist and college were in the divorce agreement, haha. That 14K is from the first two years only of college only, though, as I got a scholarship for the last two. I guess my wife and I are both pretty lucky... Quote Link to comment Share on other sites More sharing options...
bloodninja420 Posted July 15, 2014 Report Share Posted July 15, 2014 On the plus side, Op, 10 years go by very quickly. Wait a minute... maybe that's not a plus... Quote Link to comment Share on other sites More sharing options...
ReconRat Posted July 15, 2014 Report Share Posted July 15, 2014 Call me lucky. I went through a 4 year and a two year degree on GI Bill. It paid most all of it. The other two degrees came out of my own pocket. I can't relate to having student loans of magnitude that stick with you forever. I think it would be horrible. Quote Link to comment Share on other sites More sharing options...
Tonik Posted July 15, 2014 Report Share Posted July 15, 2014 Call me lucky. I went through a 4 year and a two year degree on GI Bill. It paid most all of it. The other two degrees came out of my own pocket. I can't relate to having student loans of magnitude that stick with you forever. I think it would be horrible.That's not lucky. That's payment by the rest of us for what you did. It's the least we could do. You paid for it up front with your service. Rest of the peeps in this thread decided to go another way, and pay for it afterwards. Their choice, no biggie. Quote Link to comment Share on other sites More sharing options...
redkow97 Posted July 15, 2014 Author Report Share Posted July 15, 2014 I'm fiscally responsible and not a hypocrit, so bitch as I will, I'm still going to pay off my loans as quickly as possible... I can save more in interst than the $20k that will be forgiven if I knock down the principle enough. May cash out an IRA or 401k to do it. I have a pension now, but it doesn't make sense to be earning 5% interest on savings and paying 6.625% on loans with a higher balance than said savings. Quote Link to comment Share on other sites More sharing options...
turnone Posted July 15, 2014 Report Share Posted July 15, 2014 (edited) I wish college was free for smart hard working kids these days but I don't have a lot of sympathy for the OP. Smart enough to pass law school should be smart enough to see how much you borrowed and estimate the payments expected. But hey, schools don't teach financial basics otherwise we wouldn't have a 'faux slave labor' and 'consumer' economy. Too much debt to quit work and want too much shit to get out of debt.I have some sympathy since they lie to you about how import a college degree is and how much everyone will make after they spend years of their life studying and borrowing to get through school. The days of working your way through college are largely over. Minimum wage is a little over double but tuition is many times more than it was 30 years ago. Most likely an unintended consequence of easy loans meant to help people. And Congress is fucking students. Plain and simple. Large banks can borrow money for FREE. Billions for FREE and students have to pay triple the inflation rate. Hmmmm! Edited July 15, 2014 by turnone 1 Quote Link to comment Share on other sites More sharing options...
Tonik Posted July 15, 2014 Report Share Posted July 15, 2014 I'm fiscally responsible and not a hypocrit, so bitch as I will, I'm still going to pay off my loans as quickly as possible... I can save more in interst than the $20k that will be forgiven if I knock down the principle enough. May cash out an IRA or 401k to do it. I have a pension now, but it doesn't make sense to be earning 5% interest on savings and paying 6.625% on loans with a higher balance than said savings.Good plan. Just commit to rebuilding the ira with the loan payment when the loan is paid off. Quote Link to comment Share on other sites More sharing options...
ReconRat Posted July 16, 2014 Report Share Posted July 16, 2014 That's not lucky. That's payment by the rest of us for what you did. It's the least we could do. You paid for it up front with your service. Rest of the peeps in this thread decided to go another way, and pay for it afterwards. Their choice, no biggie.haha, do you really want to know what the rate of pay was in the military? Quote Link to comment Share on other sites More sharing options...
Tonik Posted July 16, 2014 Report Share Posted July 16, 2014 haha, do you really want to know what the rate of pay was in the military? Oh I know what it is. You paid a big price for your 'free' education. Just as much in lost wages, if not more, as the people that are paying these student loans are spending. You gave up 20K a year in income easy for 4 to 5 years to get your 'free' education not to mention putting your life on the line. And I'm not ripping on them at all, just putting it in perspective compared to your situation. The real problem here is that College education costs are WAY out of line in comparison to the money you make when you get out. It isn't the interest rates, its the inflated principle that kills them. Quote Link to comment Share on other sites More sharing options...
Tpoppa Posted July 16, 2014 Report Share Posted July 16, 2014 College costs are way out of line period. They have outpaced inflation and income growth by a wide margin. 2 Quote Link to comment Share on other sites More sharing options...
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