Financial Woes

posted 5 months ago in Career
Post # 2
Member
14067 posts
Honey Beekeeper
  • Wedding: June 2011

530/month for 10 years is about 63k….. how much do you own?  Or how much stands to be forgiven after 10 years assuming the program is still around?  Is there a good middle ground to not counting on the forgiveness and paying them off, but not as aggressively so that you could still afford “life” as you wish to live it?

Post # 3
Member
40 posts
Newbee
  • Wedding: April 2015

Isn’t there a middle ground? For example, could you plan to pay them off in 5 years instead of 3? Then you’d have a little extra spending/saving money…

Post # 4
Member
504 posts
Busy bee
  • Wedding: May 2018

If you didn’t do the nonprofit agency job (especially since there’s no guarentee the program will be here in 10 years) can you make more money at a different job? Especially since you have a masters degree.

Post # 5
Member
1742 posts
Bumble bee

I’m aware of the program, but haven’t been keeping tabs on how likely it is to stick around.  I would guess not likely in the current political climate, particularly grad school loans, but I also don’t know how easily it can be taken away, either. 

In addition to the comment from pinkshoes about finding common middle ground and paying it down over longer not quite as agressively so you’re not as screwed if it goes away…is this nonprofit job what you went to grad school for or are you choosing a non-profit for employment as a way of getting your loans forgiven?  I know some professions, like social work, requires an advanced degree even though it pays peanuts.  Is your degree something that can be better transferred to a for-profit private sector that will get you a higher paycheck and allow you to pay your loans more agressively? 

Post # 6
Member
722 posts
Busy bee
  • Wedding: June 2017

talula23 :  I echo the PP’s and say try to find some middle ground.  You don’t want to hate life for the next three years because you can’t do anything fun, but it’s also going to weigh on your for the next 10+ years (and potentially delay other life plans) if you can’t get them paid off.  Figure out how much you can comfortably put towards paying them off and see how long it would take you to do that.  That way, you are able to also have some extra to make a small savings cushion and still have a little fun.  It sounds like these are a big impact on doing other things in your life, so the sooner you can pay them off, the better.

Post # 7
Member
292 posts
Helper bee

Yes, the biggest question is how much do you owe?  A friend of mine was going to sign up for this program only to realize that the monthly payment would be sky high and it would be paid off before she reached 10 years anyway.  

Post # 8
Member
122 posts
Blushing bee

I would be hesitant to rely on the 10 year program. Not only could it go away, but are there any concerns about being able to keep a full-time job at a nonprofit for 10 years? I know sometimes nonprofit funding is also not a sure thing. 

Maybe find a balance between paying it off early and not being miserable for 3 years. Also, if you end up having a child while still renting it won’t be the end or the world. I know plenty of people who bought their first home after having children. I know it may not be what you envisioned, but it may be necessary. Student loans are really awful. Both my husband and I have a good amount and I really don’t want to still be paying them decades after getting my degree. 

Post # 9
Member
2360 posts
Buzzing bee
  • Wedding: April 2017

talula23 :  Is this the loan forgiveness program for health care fields?  If so, there’s a lot more red tape and restrictions than what you might think.  You not only have to work for a non-for-profit entity for at least 10 years, but it also has to be in an underserved area.  So working for a non-for-profit in a suburban area doesn’t cut it.  It would have to be in like rural Montana, or on an Indian reservation.  My husband is an ER physician and has looked extensively into this program.

He has a ton of student loans from med school.  We just got married last month; he was 35, me 31.  Ideally I would have liked to have been done having kids by age 30, but that’s not how life worked out for us.  While my husband makes good money, he is agressively trying to pay back his loans, so I would plan things without the idea that your loans will be forgiven.  I will be at least 32 when we have kids; it’s not my ideal, but it’s not super old either these days.  I know several people that had babies while renting; again not the end of the world either.  We just bought our first home last fall – he age 34 and me 30.

I get that you may feel disappointed in not being able to do things at the age you want to, but life rarely goes exactly according to plan.  I would focus on paying them off in 5, not 3 years.  You can’t be all work and no play.  You’ll still be at a young age – actually, at an age where I see a lot of people buy homes and have kids.

Post # 10
Member
34 posts
Newbee

Just FYI, DeVos’s proposed budget plan announced today includes cutting this benefit, as well as major changes to the income contingent program as well.  Banking on living out this benefit (even if it DOES stick around) is, IMO, not the best plan. A lot can happen in 10 years. 

Post # 11
Member
34 posts
Newbee

Also, you may want to check, but I believe once you are married they will consider both of your incomes in setting the repayment amount, so the amount you are paying now may go up anway.  I looked in to the same program, but as someone prior to me said my payment would have paid the loan off in 10 years anyway.  The program payment IS income contingent, and I believe it is subject to change with changes in income.

Post # 15
Member
2360 posts
Buzzing bee
  • Wedding: April 2017

talula23 :  From my understanding, if you’re already in a repayment program – not an income based one – your payment amount is based on the amount of your loan + the number of years for repayment, not you + your spouses’s combined.  So it doesn’t matter if you combine incomes once married, at least that is what our accountant told my husband (but he makes a lot more than me anyway so it may be a moot point).

 

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