Ballpark payment on an $85K school loan

[tlbwriter]

Why on earth would we want to pay off the loans of someone who took those years off from work and took out loans instead? I didn't go without sleep for 3 years so I could turn around and pay off school loan debt for someone who made an easier choice! If I'd wanted to do that, I would have skipped the job for those years and taken out my own loans.

Okay, adding another factor... what if you fell in love with someone who had huge loans because he'd gone through a very expensive program, like medical school? And had worked as much as he could, but hadn't been able to avoid getting loans? Would you still feel that he had taken the easy way out?

 

[tinker&belle]

No, I really don't see how a person's value is all being placed upon money. Pay the loans off and THEN get married. That doesn't place anyone's value on money. To me, it shows respect to your future partner and their parents, period. IMHO it would have been horribly disrespectful towards my parents if I had married someone with 85K in loans and then taken on the burden of paying those loans off. My parents worked more than 1 job EACH so my sister and I didn't have many college loans. What a huge slap in the face it would have been if I'd just turned around and taken on someone else's loans out of "love". Sorry, but I love my parents too and I respect them tremendously for what they did for me. Any spouse of mine was going to have that debt largely settled before we got married...same with my sis. That is just a show of respect towards me IMHO.

Since this is the budget board, I have to really wonder what Suze Orman or Dave Ramsey would say about this topic? I'll bet that Suze would be all "don't marry her until she pays it off! Get a prenup!" but I'm not sure about Dave.

Dave never recommends letting a debt determine a lifestyle decision such as when to marry or have children.

 

[LoveBWVVBR]

Okay, adding another factor... what if you fell in love with someone who had huge loans because he'd gone through a very expensive program, like medical school? And had worked as much as he could, but hadn't been able to avoid getting loans? Would you still feel that he had taken the easy way out?

No, that and veternary school would probably be the exceptions, as you can't really work through those programs. I would want to make sure that he was serious about a rapid payoff before I got serious with him, though.

My sister is a lawyer and worked full time in a career job and went to law school at night, so even in a profession like law it is possible to come out with no debt. I worked full time during the day and got my MBA at night courtesy of my company's generous tuition program. I can't tell you 1) how brainless the program was and 2) how many people were taking out like 50K in loans to go full time. Even an article I was reading recently in either Money or Kiplingers didn't advocate taking out debt to get an MBA as it's not really a sure ticket to any line of work. No way would I take on someone's debt when they chose to go full time for something like that

 

[Pea-n-Me]

If I'd had to pay my own way through school, I would be even more determined to not take on someone else's school debt. My sister and I both worked full time in our career jobs while going to grad. school full time at night because our employers paid for it that way. Both of us got very little sleep, but we both got our grad degrees debt-free. Why on earth would we want to pay off the loans of someone who took those years off from work and took out loans instead? I didn't go without sleep for 3 years so I could turn around and pay off school loan debt for someone who made an easier choice! If I'd wanted to do that, I would have skipped the job for those years and taken out my own loans.

You are assuming someone "skipped work". This is a big assumption.

I am one of the unfortunates who had live on my own AND pay my own way through school. I worked two jobs during my seven years of full time college. I came out with school loans and I paid them down as soon as I could. Thankfully my DH didn't mind taking on the debt I had as we started our lives together.

Which worked out well, because later, he went to college as an adult and we took on his school loans as well, together.

You make it sound like everyone takes the easy way out and I'm here to say that's often far from the case. There are plenty of us out there who simply had to do it on our own.

 

[LoveBWVVBR]

You are assuming someone "skipped work". This is a big assumption.

I am one of the unfortunates who had live on my own AND pay my own way through school. I worked two jobs during my seven years of full time college. I came out with school loans and I paid them down as soon as I could. Thankfully my DH didn't mind taking on the debt I had as we started our lives together.

Which worked out well, because later, he went to college as an adult and we took on his school loans as well, together.

You make it sound like everyone takes the easy way out and I'm here to say that's often far from the case. There are plenty of us out there who simply had to do it on our own.

Clearly you read what you wanted to read into my statement AND bolded things so as to take them out of context. I was talking about the people in my grad program who were skipping work and taking out tons of loans...not people who go to college on loans in general. Sheesh. There is no "assumption" on my part. My grad program was small. Plenty of people were very up-front that they were taking out excess student loans for "living expenses" during grad school. This might be fine if you are becoming a doctor, but it's straight-up dumb if you're getting a generalized graduate degree at what amounted to probably a tier 3 school.

I don't see anyone who takes out loans for any degree as unfortunate. What I've stated repeatedly is that I'd expect those loans to be paid off or largely paid off before I married that person. That is not unreasonable IMHO. That is what *I* expect. Everyone is different. I was raised with those values and raise my children with those values.

 

[shortbun]

So-some of you are advocating asking a first date-in the first few minutes-about their finances? If they don't walk out on you and tell you what you want to know, then you walk out on them if they have debt? Most kids don't even ask about sexual history when they meet so they are in love by the time school loans are mentioned. then what?

 

[twooley2]

I am so glad that I grew up in a different time era and do not stress about this kind of stuff as I have bigger and greater things in life and love my husband and kids and vice versa. Dating was never about who will come out ahead it has always been a team thing and while some logic is thrown in, if someone were to ask me about my financial situation and bail based on it had it not been a good one. I'd be walking and let the next one have him. What makes him think hes such a catch? I have seen big houses or bigger than ours, fancy cars and well to do.. better off people that have more problems than my family and less love. Some beat their wives and kids but hey they may have good credit and no student loans, how bizaare is that.

 

[twooley2]

Clearly you read what you wanted to read into my statement AND bolded things so as to take them out of context. I was talking about the people in my grad program who were skipping work and taking out tons of loans...not people who go to college on loans in general. Sheesh. There is no "assumption" on my part. My grad program was small. Plenty of people were very up-front that they were taking out excess student loans for "living expenses" during grad school. This might be fine if you are becoming a doctor, but it's straight-up dumb if you're getting a generalized graduate degree at what amounted to probably a tier 3 school.

I don't see anyone who takes out loans for any degree as unfortunate. What I've stated repeatedly is that I'd expect those loans to be paid off or largely paid off before I married that person. That is not unreasonable IMHO. That is what *I* expect. Everyone is different. I was raised with those values and raise my children with those values.

I don't agree that doctors are so well to do or have so much more capability of making income. Some jobs pay more than drs make. Take into consideration the overhead for a private practice and many doctors make equal to anyone with a masters degree in business. As a matter of fact many go back to business school to figure out how to manage their practice overhead cost. Many people take loans out to live on during schooling as the same person might not be able to live while going to school and work. School can be rigorous for any career it just depends, not to mention if they have kids to support. When would they be with their kids? As for how you are raised once we are adults we decide what we want to do and what is best for us. I can see you wanting to protect what you have but to say it is not open to being lost is a great misundertanding you could pass up a great opportunity/love, life, kids whatever to be with someone who has paid off student loans but turns out to be a wife beater or a bank robber. There are no guarantees. I find no one person has it all in life theres always a balance somewhere.

 

[Free4Life11]

I'd like to know this as well. 6.8 seems huge in the current interest rate environment, particularly since these loans are never dischargeable. I just don't get it.

The rates used to be variable and they switched to fixed rates for an unknown reason. It's a shame really, since the current variable rate for Stafford loans taken out between 7/1/98 and 7/1/06 is 2.48% for repayment and 1.88% for deferment!

http://www.ogslp.org/sls/documents/RevisedVarRates.pdf

 

[Pea-n-Me]

Clearly you read what you wanted to read into my statement AND bolded things so as to take them out of context.

Hmm, maybe I misunderstood.

I would not marry a partner who was coming into the relationship with a ton of any kind of debt. I just wasn't raised that way, and I won't live that way nor raise my children that way. I would see that debt as taking away from MY children...not a great way to start off a life together

That seems pretty clear to me.

Grad school business = smoke and mirrors, IMO. However, you have the right to feel however you want to feel.

 

[soonerfan2008]

I never had to take out student loans. However, my husband has a loan for $35K, and I am happily married to him. Pretty sure my parents do not see it as disrespectful to them that I married someone with loans. He is a hard-working individual who takes care of our family, and THAT is what is important. Not everyone with a loan "took the easy way out."

No, that and veternary school would probably be the exceptions, as you can't really work through those programs. I would want to make sure that he was serious about a rapid payoff before I got serious with him, though.

My sister is a lawyer and worked full time in a career job and went to law school at night, so even in a profession like law it is possible to come out with no debt. I worked full time during the day and got my MBA at night courtesy of my company's generous tuition program. I can't tell you 1) how brainless the program was and 2) how many people were taking out like 50K in loans to go full time. Even an article I was reading recently in either Money or Kiplingers didn't advocate taking out debt to get an MBA as it's not really a sure ticket to any line of work. No way would I take on someone's debt when they chose to go full time for something like that

I don't know where your sister went to law school, but most of the top law schools do not have a night program. My husband is a lawyer who DID go to a top law school, and he would absolutely tell our children to avoid law school unless they got into a top school. In fact, msn just did an article on the fact that the profession is saturated and most schools provide throwaway degrees for a huge profit (for the school). Even though my husband went to a great school, which incidentally was entirely paid for by the military to include his salary during law school, there were a lot of graduates who had a very difficult time finding a well-paying job. Even the best, biggest firms are cutting salaries, delaying start dates and hiring fewer new grads.

So, while it might seem like working your way through a night law program might be more responsible than taking out loans to go to a great school full time, I'd argue that you are wrong.

 

[TMB1203]

86K is exactly how much student loan (both subsidized and unsubsidized Stafford Loans) I took out for med school. I consolidated at graduation for 30 years at 2.25% interest, my monthly payment is $390.02. My husband has student loan debt too for law school. We were advised not to co-consolidate, b/c if one spouse dies, the other would be responsible for the balance.

This actually happened to a friend of mine. A couple years later, he husband was diagnosed with colon cancer and died at the age of 32. She now has both student loans that she is paying for.

 

[cm8]

This actually happened to a friend of mine. A couple years later, he husband was diagnosed with colon cancer and died at the age of 32. She now has both student loans that she is paying for.

that is so sad. I can just imagine the heartache that she must feel stemming from the loss of her Best friend and husband and the fact that she has to still pay for his loans as well

 

[LoveBWVVBR]

I don't know where your sister went to law school, but most of the top law schools do not have a night program. My husband is a lawyer who DID go to a top law school, and he would absolutely tell our children to avoid law school unless they got into a top school. In fact, msn just did an article on the fact that the profession is saturated and most schools provide throwaway degrees for a huge profit (for the school). Even though my husband went to a great school, which incidentally was entirely paid for by the military to include his salary during law school, there were a lot of graduates who had a very difficult time finding a well-paying job. Even the best, biggest firms are cutting salaries, delaying start dates and hiring fewer new grads.

So, while it might seem like working your way through a night law program might be more responsible than taking out loans to go to a great school full time, I'd argue that you are wrong.

I don't know if I'd call her school a top-notch law school, but I'd sure call her salary and job top notch Maybe she just got really lucky, but she was able to pass the bar quickly and then secured a very good job quickly. I know a few of her law school classmates and they've all done well for themselves as well. I don't think that they would be making more if they'd gone to Harvard instead, but I could be mistaken.

 

[LoveBWVVBR]

So-some of you are advocating asking a first date-in the first few minutes-about their finances? If they don't walk out on you and tell you what you want to know, then you walk out on them if they have debt? Most kids don't even ask about sexual history when they meet so they are in love by the time school loans are mentioned. then what?

No, that conversation often happens before the first date now from what I can tell. In the era of internet dating, it's relatively easy to weed out people who don't fit your values before you meet up with them. Apparently you can even background check potential dates pretty easily. I only know this second-hand as I haven't dated in 15 years, but I can't blame people for being thorough before even having a first date.

 

[piperett]

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.

This is what I'm banking on! I'm about to start repayment on my loan, hoping to be finished by the time my daughter turns 16, then the rest forgiven. I'm a teacher, by the way.

 

[momxx5]

I tried to read and keep up, but is it ever mentioned what this girl's career will be, her possible income, and her son's job/income?

I mean she could be a nurse and have this paid off within years.

So, what's the scoop?

 

[piperett]

I tried to read and keep up, but is it ever mentioned what this girl's career will be, her possible income, and her son's job/income?

I mean she could be a nurse and have this paid off within years.

So, what's the scoop?

I'd like to know too. When it comes down to it, if you have $85k in loans and in your career you will make $50k a year, you could essentially pay it off in 2-3 years if you were dedicated enough. I look at how many times over in my lifetime will I make back what I've spent in student loans. The answer is many times over, so this keeps me from losing sleep.

 

[Belle5]

I tried to read and keep up, but is it ever mentioned what this girl's career will be, her possible income, and her son's job/income?

I mean she could be a nurse and have this paid off within years.

So, what's the scoop?

We would expect that she would do very well (better than my son)at some point in her career. My son who is graduating first may need to be prepared to handle some of his own bills plus hers until she is where she wants to be which may take a few years. She graduated with a perfect GPA and dual degrees from a large and well-regarded state school and is now in a very respected graduate school.

 

[soonerfan2008]

I don't know if I'd call her school a top-notch law school, but I'd sure call her salary and job top notch Maybe she just got really lucky, but she was able to pass the bar quickly and then secured a very good job quickly. I know a few of her law school classmates and they've all done well for themselves as well. I don't think that they would be making more if they'd gone to Harvard instead, but I could be mistaken.

That's great for your sister--she is very lucky. By and large, third and fourth tier law schools are the ones that offer an evening or part time program, and everyone I've met in the profession would seriously caution someone against going to one.