Ballpark payment on an $85K school loan

[cglaura]

She has been here with us this weekend and we are all trying to put together a budget for their premarital counseling requirements. All is out in the open. We are trying to help them figure out some minimum salary requirements so they can make sure they don't accept jobs that won't pay the bills. Neither has graduated yet but my son is in the process of putting resumes out there.

Ah, that's great that you are helping. I think too many young people don't take into consideration all the monthly expenses, etc.

Funny how twisted and sidetracked an innocent post can get, heh?

 

[My3kiddos]

There is a new repayment plan for student loans that go by your income, dependents, etc. I have student loans and if I stay at the job I'm at right now I won't have to pay anything for a few more years. Also I believe that if you haven't paid them off in 25 years they remaining portion is forgiven. This might help you some http://www.direct.ed.gov/RepayCalc/dlindex2.html

 

[lillygator]

She has been here with us this weekend and we are all trying to put together a budget for their premarital counseling requirements. All is out in the open. We are trying to help them figure out some minimum salary requirements so they can make sure they don't accept jobs that won't pay the bills. Neither has graduated yet but my son is in the process of putting resumes out there.

I guess I am just different....getting married I would never have discussed this with parents let alone inlaws! will you be this involved with finances the rest of their marriage?

 

[stitchlovestink]

DS wants to marry a gal with $85K in school loans. I wondering if anyone can give me even a rough idea of what those payments might look like. Thanks!

We??? Your the mom and you need to stay out of their personal matters.

You posted on a public message board.

Yes she did... BUT her post was asking for numbers not advice...
Snowywhite's post had ABSOLUTELY nothing to do with the question asked.

Belle5,
I am glad you have such a wonderful relationship with your son and your 'future' daughter-in-law. And I am glad that they are seeking 'qualified' advice before making such important life altering decisions. It is apparent that you have done a wonderful job raising your son! Kudos to you!!

 

[nepean]

I think it is wonderful that they feel that they can discuss their finances with you. Many young people do not understand the processes and get in a lot of difficulty because of this. Hopefully, by asking someone more experienced they can look at all the factors and make informed decisions.

Graduating with that kind of debt is scary. I thought $2000. in 1971 was a lot. Then again my starting salary was $73. per week. DD and her BF often run financial situations by me since I am an accountant and can usually point out the pitfalls.

Good fo you that your son is that comfortable and respectful of your opinion.

Nepean

 

[MoniqueU]

This will not end well and I feel sorry for the future daughter in law. No telling what other things the mil is going to stick her nose into.

 

[rigs32]

There is legislation that if you pay under the income contingent plan for 10 years AND you are employed as a public servant than the rest of your loans will be forgiven. I was paying until the 30 yr plan for a couple years before this passed. I switched to ICR last year. My payment went up $100/mo., but this way I'll be done in 9 more years rather than 27. Good thing I love my job, can live comfortably on the salary, and have no fear of layoffs.

 

[figaromeetsmarie]

?? kind of odd to involve parents in private financial affairs. I'd be pissed if my future husband blabbed to his parents any of my financial info

Agree. You might have a good relationship with them, but finances are NO place for you to be involved..... Don't want to piss your future daughter-in-law off do you?

 

[figaromeetsmarie]

This will not end well and I feel sorry for the future daughter in law. No telling what other things the mil is going to stick her nose into.

Agree

 

[crisi]

I guess I am just different....getting married I would never have discussed this with parents let alone inlaws! will you be this involved with finances the rest of their marriage?

My parents have provided my husband and I with invaluable financial advice over the years. I was "raised" with a good financial foundation - but my husband wasn't. And neither of his parents are really good about it. He has looked to my Dad over the past sixteen years of marriage as a font of financial wisdom. And not just financial wisdom. My parents have been married 45 years and raised three kids. They built a house and maintained it. They have great advice on everything from "which brand of lawnmower to buy," "how to hire a contractor," and yes, "how to keep a marriage going happily for 45 years." We are very fortunate to have them, and I feel sorry for anyone who doesn't have that sort of wisdom to rely on - or doesn't respect that wisdom if they have access to it.

In part because of their wisdom and guidance, we have two children doing well, a house that is well maintained, a marriage that is happy, and were millionaires before we were 40. I'm not sure what downside you are projecting.

 

[LoveBWVVBR]

Well, my DH and I feel totally comfortable discussing finances w/my parents and vice-versa, so some families just operate that way. Come to think of it, we gave plenty of financial advice to HIS parents way back when too. Too bad they chose not to listen and kept digging themselves in deeper. I did have to tell my husband that people tend to stop listening when you start the conversation with "that's so STUPID" though

OP, I have no idea what the payments would be on that kind of debt, but I would encourage your son and future-DIL to get it paid off before embarking on a marriage, a home purchase, having kids, etc. Who needs that kind of financial cloud hanging over their heads? Also, I'd encourage them to save for their own kids' college so as not to saddle their kids with the same kind of debt.

FWIW, my sister and I both had our college paid in full by our parents (save for like 12 grand in loans each), and both of us had a policy of not even being with someone who had major student loan debt. Get the debt retired and THEN get married IMHO. That's what I'd tell my kid anyways.

 

[BLLB]

She has been here with us this weekend and we are all trying to put together a budget for their premarital counseling requirements. All is out in the open. We are trying to help them figure out some minimum salary requirements so they can make sure they don't accept jobs that won't pay the bills. Neither has graduated yet but my son is in the process of putting resumes out there.

Belle5,

 

[lillygator]

and both of us had a policy of not even being with someone who had major student loan debt.

forget about love!

 

[MrsPete]

probably close to $850.00 per month

28% of gross pay for a person just starting out in my job.

Can't he ask her? I think depending on the loan the amount may vary. It is something they should discuss before marriage.

This is absolutely essential. The debt will affect their ability to buy a house, the timing of children, etc. If he can't discuss it with her before marriage, it's a big red flag.

FWIW, my sister and I both had our college paid in full by our parents (save for like 12 grand in loans each), and both of us had a policy of not even being with someone who had major student loan debt. Get the debt retired and THEN get married IMHO. That's what I'd tell my kid anyways.

I can agree with that. A person who'd go into major debt (instead of choosing a less expensive school, or going with another cost-cutting method) would have financial values different from my own, and we'd not be compatible.

 

[FINFAN]

Here is what I can offer as a parent of a kid who will have loans ( currently in year 4 of seriously dating her BF who will not have any)..there are some companies, not many, but there are some that will work with new grads knowing that so many have debt...sometimes a lump sum is offered for a lower starting salary..it may be worth it if it takes a big chunk off the loan and interest. We have researched it for DD's field and believe it or not, some will negotiate this way. If there is going to be any issues, keep in mind the loan is in the girls name, not your son's...a contract can be drawn up keeping that particular debt seperate. If you future DIL is able to have her payments work within a percentage of her salary make sure also that their combined salary does not void such an option out. Our DD will need to make about 50 grand a year and need a roommate...but she lives very simply. One hopeful route is if she lands a positoin that will allow her to live back at home, she will do so for 2 years to wipe the crud out of that loan and then have stable financial freedom.

 

[seashoreCM]

If your DS marries this girl I am afraid there will be various quarrels and spats over money and the marriage could be on the rocks in not too much time.

Worse, DS might sign for some loan for ongoing family expenses or some consolidation loan or something and get stuck with paying for it directly or indirectly.

 

[lillygator]

advice is great, having someone to go to, even better, but a newly married couple spelling out their finances to inlaws is a recipe for disaster......is the couple this open with the daughters parents?

 

[Lisa loves Pooh]

?? kind of odd to involve parents in private financial affairs. I'd be pissed if my future husband blabbed to his parents any of my financial info

I TOTALLY AGREE!

While it is why for HIM to know what he is getting into, I also don't feel that he should be...ummm...ecouraged to not marry her or delay for a lengthy time period, a marriage over a student loan.

Heck--give them a DR study course for a wedding gift and they could have that loan wiped out much earlier than 10 years, if it bothers you, OP! Happens all the time!

 

[twooley2]

well my take on it is that 85,000 student loan is the going rate for a masters degree so her income would add along with the loan interest tax writeoffs over the next few years and this is based on current tax laws and deciding what will happen after they are married is based on the economy and tax law changes along with student loan changes that can be implemented over time. so predicting this and planning may prove fruitless. As you see I am not one that says that over anaylzing a persons financial situation should be of utmost importance. What if your son becomes disabled in the future or even her. Kinda hard or impossible to predict and base a marriage on such things. Its more about how they negotiate and compromise and their values. They will make many decisions together and not all will be in one or the others best interest. Will he keep track of daycare expenses and the years of value if she was not to work and owe her for time lost in her career from lack of experience over time? Kind of odd to me

 

[dvcgirl]

Honestly, I think it's *great* that these young adults have asked for advice.

Most of the 20-somethings in my family are a nightmare from a financial standpoint, and still, they'd never ask for advice (they only ask for money).

I think it's great to keep the lines of communication open on this front. Good for you OP!