Ballpark payment on an $85K school loan

[DawnM]

Honestly, I advocate friendships first. DH and I met when I was dating someone else, but he joined our "group of friends" and hung out with a group of us all the time. That is how we got to know each other. We ended up best friends long before we dated and when we decided we liked each other (I had broken up with said b-friend), we decided it was either get engaged or never date and ruin our friendship. We were married within 6 months after that.

So, these types of questions WERE answered long before we even started dating.

Traditional dating is not my thing....I have never had a guy I didn't know ask me out and I said yes. Anyone I dated was at least a friend of a friend and came "recommended." I actually am not a fan at all of traditional dating. I think it can be dangerous in many ways.

Dawn

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?

 

[ccgirl]

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.

Lets say your sister was going up for a job against someone from Harvard. All other things considered equal. Who do you think the prospective employer is going to pick? I would say some luck regarding other potential candidates is always involved.

 

[maggiew]

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.

I guess I don't understand this new law. You only pay for 10 years and then the rest is forgiven? I haven't done the math on this, but how much of the original loan is actually paid? (I'm not talking about YOU specifically, just the general "you".)

I have a DD in college.

Maggie

 

[crjack]

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.

Belle5 it sounds like both your son and his girlfriend are mature, smart, hard working young adults. I think it's wonderful that they are looking at their finances now and asking for input.

For years I have seen posts from people who wished their parents had discussed finances with them more or offered more guidance.

These discussions dont have to involve specifics such as salary or loan amount to be beneficial.

I live in the college capital of Boston and see it all with various amounts of debt. I don't think there is one right or wrong answer with all of the potential circumstances out there but one thing I think is critical is having a plan in place to deal with it and it sounds like they have it. Your suggestions may help them to improve upon that plan.

Best wishes to them.

 

[rigs32]

I guess I don't understand this new law. You only pay for 10 years and then the rest is forgiven? I haven't done the math on this, but how much of the original loan is actually paid? (I'm not talking about YOU specifically, just the general "you".)

Maggie

You pay for 10 years under the income contingent plan (NOT income based - different calculation) or regular plan and the rest is forgiven. As an example, my monthly payment under IC is about 55% of the payment I would have under the regular plan. But it depends on your salary and total loan amount how much is paid back.

One additional thing is that your spouse's income is considered in the calculation. So if I were to get married, my payment would jump pretty close to the regular plan amount. Let's say I do that after 5 yrs under IC. Then I pay 5 yrs under the regular and with a total of 10 yrs, anything left over is forgiven.

There was additional legislation passed for prosecutors and public defenders to chop down their loans but the amount of money given to fund the bill means I'll never see a dime of that money. And it might actually negatively affect the New York state program in place to aid prosecutors with loan repayment. What was supposed to help me with my debt loan is actually going to hurt me a little.

 

[Kathy C]

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?

What a tacky statement! I'm curious are your daughters grown and married?

Kudos to you Belle5 for having that kind of open relationship with your son and future DIL that you can discuss these kinds of things. My son and DIL are both 29, and I have the same kind of relationship with them. It's nice to know that they think enough of your opinion to ask. Nothing wrong with it!

 

[ccgirl]

What a tacky statement! I'm curious are your daughters grown and married?

Kudos to you Belle5 for having that kind of open relationship with your son and future DIL that you can discuss these kinds of things. My son and DIL are both 29, and I have the same kind of relationship with them. It's nice to know that they think enough of your opinion to ask. Nothing wrong with it!

I am 40 and really wish I had this benefit. I could have really used the financial guidance. The DiL to be and Son asked for her help...she is not intruding at all. I would LOVE to have a MiL like this.

 

[FINFAN]

I just want to add that a lot of kids have higher college loans in the last few years too due to the stock market of '08...we lost almost 50% of what we had set aside and are basically repaying again, add in helping aging parents and you can easily see how large college debt can add up.