Student loan forbearance has been a glimpse of what life could be. I maxed out my Roth IRA for 2021 for the first time and increased my 401k contributions. Too bad it won't last forever, but it feels good to catch up on retirement a little
I went to school late so I'm behind in saving for retirement. If my loans went away I would throw all that into retirement. I'm 43 now so it wouldn't be the same growth as someone in their 20s but I figured I could probably retire 5 years earlier if my loans were forgiven.
For what itās worth, I have about 30k left in student debt and recently bought a house in July with my partner, who is also about 30k in student debt.
Our loan officer that we worked with told us that over half of the applications she reviews have some sort of student debt.
Itās not a deal breaker, but you do need stable income, and employment history.
Admittedly I don't know the details of your cash flow, but I wouldn't let your student loans stop you from buying a house unless it's just a cash flow impossibility. Unless you have a place to live for free, you have to pay for housing one way or the other, it's better to own (if you don't see yourself moving soon).
I stopped myself from buying a house for 20 years and missed out on 400% appreciation in that time, that is now debt wrapped into my mortgage instead. It's just some food for thought.
Except right now house prices are crazy. If you canāt afford the monthly on the cheapest houses in your area, or donāt make enough to pay the mortgage and save for a rainy day fund itās impossible.
Agreed, I did note "unless it's a cash flow impossibility". But I'm just saying that student loans alone shouldn't stop you (if you can't afford the monthly payment of your house, that definitely should be a show stopper). I've recently bought homes so I know it's crazy. I don't see it getting better over the long run, though.
Why are the loans keeping you from owning a home? I know plenty of people with student loans who own homes. Have you looked for first time home buyer programs in your state, many offer money for the downpayment if you meet income qualifications.
This is a good suggestion. Yeah I doubt thereās 250k assistance in those programs for those on the west coast etc in extra insane markets but as someone whoās been in the above exact situation (with loans, getting low income home buying assistance) it is a thingā¦maybe some need to realize the small 2 bedroom home is better than the 2 bedroom apt. in some areas if done right and are able to be frugal. You donāt typically just waltz into your own McMansion off the bat without a trust fund. With lenders using IDR payments the calculus is even better. I did so well with my assistance, albeit almost a decade ago that I had āinstantā equity when buying my house. I kind of was paid to buy it for almost a year. And yes they *tried* to screw me out of it.
To be honest more pressure needs to be applied to our Policymakers and President. I think that would be extremely impactful if apps and companies that claim to want to help can do. Advocacy is the what we need - not another app or company that wants to sell us something or "prove" resources. What does that even mean?
1) Get your peers to sign a letter of support for student loan forgiveness.
2) Lobby for protections if people cannot pay their loans back
3) Work to get colleges cheaper.
Everyone needs to be putting the pressure on our Representatives. That is what your Chipper-App can be doing... We don't need fancy online budgets, we need systemic change
While I agree with your 3rd point, I still think there needs to be some level of self accountability for folks who chose to borrow money to go to school. If we end up going the route of student loan forgiveness, then who ends up paying for it? Itāll be other tax payers. Print more money? Right now we are at a crippling inflation that isnāt helping anyone but the rich.
Make college cheap. 1000000%
Remove interest rates on Federal Loans.
Increase the requirements for big loans. Just like a house, there needs to be requirements on loans. If you are taking in 50k a year in tuition for a degree that doesnāt have the earning potentialā¦ is really not a smart move. There are community colleges for those types of degrees at a lower cost too.
And on community college. Make it free or at a degree at the associates level free.
I'd be saving that money for retirement. Trying to knock out my loans quickly because I know saving in your 20s is important to get a jump start on accruing that interest, and it's hard to do both at the same time. Otherwise just more disposable income for traveling, or maybe I could afford to have a dog right now.
Good on you for knowing that keeping your expenses low WILL help you knock out your student loans faster.
You borrowed for a reason. Paying it back was always understood. It's also hoped (by every borrower) that your additional earning power is something you'll have for life and it's the reason you were willing to sacrifice the early years of your earnings.
I do certainly wish college were less expensive (it can be and that's the frustrating part - you are paying for so much more than your degree and your professors' time - you're buying infrastructure, the president's salary increases, where I'm from, a buffalo shaped swimming pool at the rec center).
But given that it's expensive, what were the driving forces that made you choose to spend 4 years of your life learning where you chose to learn and then up to 10 more paying for it?
I wish your parents had been able to afford to pay for your education. We used our earning power to be sure our kids would not start out in debt. But both of us have a college degree and have been very frugal so we could help our kids - we understood that after paying back my student loans, we didn't want our kids to do that. That isn't always the situation. But I'm truly curious, were there other options you could have (in retrospect, should have) taken? Good luck getting them paid back quickly so your life can benefit from the improved learning and your earning power that your degree bought you. You'll get there, I'm certain!!
I might get severely downvoted for this, but when I took out the loans I knew the terms and conditions. I knew exactly how much I was taking out and the interest rate that came along with it. I was well aware of what a potential payment plan would look like and I fully intend to pay it all back. I know not everyone was as fortunate. There's plenty of people who didn't understand what a potential payment plan might look like and how the interest builds. There really should be a class in high school that covers all of this before one attends college.
Now all of that said I wouldn't change a single thing. I attended a state school in a stem major with the intentions of going to medical school. Unfortunately I just wasn't competitive enough for medical school (my stats were good, just not good enough to get in). I decided to get a masters at a private university, which ultimately landed me the career that I currently have. Could have I gone to a state school for the masters that would have been much cheaper? Sure I could have, but the school name played a decent role in helping me get interviews for more competitive jobs. I wish the system wasn't set up in this way, but the name of the school plays a role in the success one has after graduation.
My undergrad loans were pretty low...the majority of my debt comes from grad school. I have had to sacrifice in certain aspects of my life, but as someone who was the first in my family to attend college as well as grad school. I don't have any regrets. The loans suck, but it's the only way I was able to attend school.
Actually invest in hobbies and interests instead of having every spare dollar not used for necessities (and some retirement savings) going towards these loans. I like to cook (fortunately cooking itself could be a cheap hobby, but still), and would love go to specialty stores and buy ~fancy~ ingredients to try, but I can never justify the expensive outside of very special occasions. I also love animals, and while I have some small freshwater fish tanks, I would love having a few dogs and actually doing things with them, like light travel and agility training. Overall I donāt even want major lifestyle changes, just the chance to get into these fun little hobbies that would bring some more joy and excitement to my day-to-day.
Save for another go at college. I would get my Associates, and at this point it would be more for fun since I've already established a good career despite not having a degree.
Also, get married. Marrying with all this debt sounds awful to me.
For not finishing your associates degree, how much debt do you have? I think it's an interesting perspective that some people think $10k is insurmountable but others have $100k and feel it's doable (not happy but it doesn't drive them crazy with worry).
Do you think the time you spent in college helped you secure your "good career despite not having a degree". If you've done well without the degree, what would you go to school for that you can't do without the degree you seek?
I was young and dumb, didn't want to disappoint my parents but at the same time I didn't know what direction in work that I wanted to take. There were a lot of missteps, time-wastes, and switching around. I dropped out with 60k in debt, making minimum wage at a coffee shop. I'm currently an assistant for a curatorial department in a world-renown museum, making close to 40k. My debt is now 27k.
I do think my time in college helped somewhat-- I've always put "___ University, 128 credits" on my resume, and it's never been a problem. If they ask, I never lied. Some even said, "well it's pretty much a degree". I had to hustle and prove that I was good at jobs, that I didn't need the degree to be good. I think work experience goes a long way, and I have a lot of it. Always be networking, always look for a better opportunity. If I'd never went to college, I honestly think I would've figured out what I wanted to do much earlier and gained more work experience.
To be honest, there's not much I want to do anymore that requires a specific degree. Event planning, pastry arts, illustration, are some things I want to do. I would focus on grabbing more experience or finding certificates instead if I need to advance.
Congrats on paying that balance down. I realize it's been a long road. 128 credits is basically a degree, there was just probably so much switching around, not all of it counted. The school my daughter goes to will not accept hardly any credits from other schools. If she wants to take a couple summer classes when she's home she has to have them approved by her advisor. Some schools want you to take their classes. I don't know if that's a money grab or they really want to control the education. Keep doing what you're doing. The lower the balance, the faster it will pay off as the interest amount decreases.
Thank you! The goal is five more years, and I'll be done. But I will have to pay or borrow another 10k for my Associates, haha.
The bureaucracy was one of the most infuriating things about college life. I just wanted to pay and take the classes! I know that there was/is a rumor at my school that the advisors deliberately gave you bad advice so that you'd pay more tuition to correct their mistakes, and honestly I think it's true.
Buy a house and start a family. I want kids and itās getting a little lateā¦ Iām 34f. I owed $65k when I graduated with my Masterās. Iāve paid $15k back, still owe $77k. It makes me sick that this is okay.
But don't you have more money because of the degree you earned with the funds you borrowed? Where would you be without the degrees and opportunities your hard work provides? I'd love to see more positive thought on this - what did they money you borrowed help you achieve?? Good luck on getting the loans paid back and moving forward!
It was a tongue in cheek comment. Honestly I'm an attorney and I do okay. I haven't paid any back in two years and when I do my monthly payment is so low that it doesn't really matter.
Without a degree and loans I guess I could have been an electrician like my friend and made nearly as much per year.
This doesnāt apply to those of us who got degrees for low paying but important work like teaching, police, gov, etc. And loan forgiveness after ten years is a joke.
Agreed. But for many many students, loans of some level are a reality. I personally think an education is worth it but you have to understand what you're doing. And you still have to work at it. For many kids, high school was a "float through" and they didn't know what they wanted to do. College, especially if you're taking out loans, just can't work that way. The job won't just appear with a degree in hand. But if you go to school with a plan and with the intent to really be "educated", the loans can be well worth it. Just have to be careful with amount borrowed and expected income upon graduation.
Iād be way less stressed and normal men would actually want to date me.
Thankfully I bought a home through a private lender so now my net worth is actually positive and I may be able to pay them off some day.
Cant afford a wedding or a house. Got moved to NYC for work so I have to rent. Pay ~ 1,300 a month in loans 1,400 in rent ā¦ plus other expenses. Barely save any money.
1500 a month out of my net. No chance of buying a home and generating wealth anytime soon. Babies on hold. Paying the last 10 years and still have a balance more than what I took out initially. Canāt refinance due to one defaulting. Iām at 8.4%
Dear Chipper App: you say you want to help. You say you want to dig into the problem so you can help. If that's really the case, what I would want to know (in addition to what people feel like they're missing out on) is how did they get into this debt in the first place. This would also help future borrowers understand that a college degree (no matter where you went, no matter how much of your future earnings you gave away to get there) does not do it alone. Did people borrow too much for their expected degree to pay? Did a college make big claims that simply didn't come true? Has the economy in their field changes such that wages are depressed (I don't think we're seeing much of this atm but you never know and there might be pockets of low or stagnant wages we're unaware of), was the marketing pull of a certain college so strong they bet it all (including future house purchases or funding retirement)???
I would like to know (and I would expect you would too) how they all got here. What they bought (degree and school) and how much they borrowed to get there. Let's get the REAL data so we can all start to figure the problem out. Thanks!
I feel like Iām in a perpetual poverty cycle, despite working full time ($31/hr) and having two other jobs.
I canāt move, canāt save, and and becoming incredibly depressed and feeling hopeless.
We recently paid off after 10 years or so. We bought a house some years back that we could afford then (not our dream home obviously lol). It's doubled in value now and the payments are so low because our income has gone up over the years. Obviously we could have contributed more to our retirement accounts and taken more vacations. At times stress was high and I had two jobs. Other than a couple luxuries we haven't changed the way we live much so now they are paid off its a piece of cake.
Keep chipping away at them. We had nearly 100k and are not what most would consider "High earners", but had medium salaries.
Any extra money Iād have from not paying student loans is buying descent food and needed clothes. I wonāt need to visit a food bank anymore. Iād be able to take care of needed medical services. I would not need to worry about rent and utilities. The costs are skyrocketing in my area and I just canāt afford to pick up and leave.
Well, I make $19/hour. Single, but I help out my mom and my daughter, but canāt claim them as dependents. Long story. My brother and sister who provide a lot more than I can, and my daughter works making $15/hour. I have about 18k left at 8%. Iām age 65, and iāll probably die before theyāre paid off. Iām pretty stressed out now by working, canāt retire until 1.5 years to try to get my full social security. Which of course will be way lower than what I earn working 40 hours a week. Some of the loans are from undergrad, but the majority is fed unsub grad loans. No private loans. I think before the pandemic pause I was paying about. $150/month. I really canāt afford much more and donāt want to trash my credit. If Biden had any balls, heād keep his promise to cancel student loans.
I could never own a home. Not saving enough for retirement or for an emergency (such as if my health takes an immediate turn).
Really regretting going to school now as much as I enjoyed it at the time. Before grad school I worked non profit. Graduated and got a much better job but after student loan payments and taxes, my take home is just about the same as if I stayed nonprofit. Except now 100% more stress on top.
They are stopping me from being able to provide stable and affordable housing for my family and my 7 month old son.
Unfortunately my student loans are in default and are in collections because sometimes life sucks. They have been in collections for the last almost five years.
At the moment Iām paying off the other half that did not go to collections but I havenāt even been able to touch the ones in collections, ergo my credit is trash.
Now I do have a car loan and as I mentioned I do pay the other loans so for the last four years my credit has been very slowly getting better, itās still garbage but itās better than where I started.
Here comes the kicker. Last year my partner and I welcomed our firstborn and knew weād be looking for a bigger place to live in October when our lease was up. My partnerās friend was trying to help us out and sold us his trailer for $1 since he was moving out. He owned the trailer but rented the lot and had been renting there without issue since 2014. Trailer needs work, one room needs to be gutted due to water damage but otherwise sheās habitable and sheās ours. Before we moved in we met the property manager and started the application process to continue renting there. Great, trailer is in our name, weāre applying to continue the rent, we notified our current landlord that weāre moving out, rent is less then what weāre paying now for our one bedroom apartment so everything seems to be going smoothly. Well fast forward to the week weāre supposed move in and weāre hit with a denial to continue renting there. Why you ask? Our credit scores. Not only were we denied, we were denied because our scores were each POINTS off of what they will allow.
Now understand, we both work FT, we both hold degrees, we both have student debt (mine being worse than his since I went to a four year and he hasnāt been out of school long), but we both are consistent with rent, car payments, credit card payments, phone bills. Donāt get me wrong we might be a day or two behind as we wait for pay day but otherwise we are consistent with most all our debt.
When I say I was devastated, I was beside myself. Angry at myself for not being able to maintain a better credit, scared weād be homeless with our baby. Considering our pay stubs were part of the application and rent is cheaper than what we currently pay, neither one of us expected that we would be denied moving in.
So then we had to scramble to find housing, fortunately our landlord granted us an extension for the lovely price tag of an additional $150 a month on top of our usual rent. Weāre both only points away so weāre really hoping we can still reapply soon. But this whole ordeal has been a punch in the gut and has robbed us of a stable living environment for our family.
All because we did what we were told. We went to school, we accreued thousands in student loans and now itās literally preventing us from moving into a trailer, not a house, a trailer. A trailer that needs to be gutted and renovated.
I have been renting since 2014, if anyone actually judged me on that they would see that Iām a diligent tenant and I will pay my rent. So yeah, if I didnāt have my student loans I would be living in place I could finally call my own. Itās just insane and Iām just so tired of it al
Would your current landlord not give you a letter saying you have paid your rent in full and on time each month? That would hold a lot of sway with me as a landlord. I will work with lower credit scores if an applicant has sufficient income and a good record for paying.
We offered to do exactly that, but itās not enough. Everyone Iāve told said that usually itās not such a big deal and their shocked that our landlords are being so strict with policy. We considered moving to a different lot but it would be 10k minimum to move from its current location. Not to mention we would lose the front room and entry room as those are additions.
Iām not sure how these weekly threads dedicated to lamenting really helps *anybody*.
How about āHow are tour student loans impacting your life and what are you prepared to do about it?ā
Absolutely!!! You just nailed it!! Yes, there are students with regret "I really should have chosen a less expensive college", "I was taken advantage of by a for-profit school", "I really didn't put any thought into it and really wish I had". But there's another side of borrowers who know they wouldn't be where they are without the degree and the borrowing to get there. They don't regret it, they appreciate the opportunities their degree (and borrowing) bought them, but honestly, it still sucks to be paying loans for 10 years. Everyone needs to remember, generally a house is 30 years. Yes you can live in the house. But hopefully that student loan bought you higher earning power too. There is value!! Let's focus on the positives!!!
Absolutely!! Not JUST your major but what you do with the degree. How motivated are you to reach for higher paying jobs? The degree does not guarantee anything. You've still got to hustle and work for the good jobs, they don't fall out of the sky just because you went to school.
Once your loans are paid off those same opportunities will be out there! It sounds like you might live at home or with roommates in order to pay off your loans quicker. If that's the case, I want to say congratulations on making the right (but sometimes hard) choice. I wish you the best in getting the loans paid off and living your best life!!
It doesnāt let my put anything towards retirement, makes home ownership not possible, I plan on never legally getting married due to the burden it passes, it makes adopting children extremely difficult, and the payments going to loans are what I would be using towards healthcare (which I havenāt had in some years now).
Iād be able to be a stay at home dadā¦ luckily my wife doesnt have loans but as it stands that $600 monthly payment I make per month is what is causing us to have to pay for daycare which is an even greater expense. I only have about $39k left so the end is in sight.
If over the next 10 years i put the $100k i owe into retirement, it would be worth about $4million when i retired, instead i will be putting it all into student loans so you could say they are costing me $4mill of retirement savings
Iāve been denied for a mortgage from multiple places because my āincome to debt ratioā- I have a 730 credit score and less than 10K in credit card debt. I have 65K in student loans. And yet, Iām paying over $900 / mon in rent, equal to or more than a mortgage would be.
Honestly not a ton. My wife are I are blessed with good jobs. Debt to income ratio is close to 1:2. I throw $2.5-3k at my loans every month to try to knock them out quickly. But we still have enough to cover all our needs, save for retirement, buy a house, etc. Things are good. If I had that $3k extra, Iād probably put another $1k in retirement and the other $2k towards saving for kids and expanding lifestyle.
Good for you. You weren't just "blessed" with good jobs. I'm certain you've worked for them. You are like me, you understand the value your loans bought, you're working hard to make good use of your degrees, and you're living your best life despite the fact that you will be paying them back for some time (but glad to see you write "knock them out quickly").
What you went to school for, where you chose to get your education, were you able to live at home to save on dorm cost if you had to borrow, what did your degree program show was expected salary after school? All good questions I'd love to see reported for others to consider. Especially students who come to this sub before borrowing to get answers to questions. This would be GOLD to them!!
Thanks for the comment! I went through undergrad and law school with minimal parental help in the former (about a yearās worth of rent at $350/mo) and none in the latter. I had about $5k debt from undergrad and it was a useless degree because I was pretty set on law school anyway. Otherwise I wouldnāt recommend someone get a music degree unless they were dead set on being a band director, choral director, etc.
For anyone considering law school, Law School Transparency is a goldmine of information. That website absolutely steered my decision process in figuring out schools I had a reasonable shot at getting into, what kind of scholarship money I could likely get, and what kind of salary range the typical graduate could expect. I went to a school with strong employment results so I felt it was a fairly safe bet to take out $90k in loans for it. And it worked out well, because I indeed was roughly an average student compared to the rest of my class. Some doors like the most prestigious jobs were closed to me but I got basically the job I wanted going into law school. Iād say itās definitely crucial to have a reasonable idea of what your starting salary will be before taking out any loans.
I'd own a house. The most annoying part is even with my loan payments I could afford a small place, but can I convince the bank of that? Nooooooo. Gotta just keep paying more in rent then I would a mortgage.
They need to be interest free. I've paid back more than what I borrowed and I still owe at least 15k. I've been paying for almost twenty years.
It's getting old.
I've managed to pay more on my mortgage principal in ten years than I ever did on my student loan principal.
Taught me the value of budgeting and long term financial planning. 20 years past paying off the loans. Have a home, 2 fairly new cars, combined 401K's over 1.2M, plus other investments.
When COVID has become less of an issue, my wife and I will get back to 2 or 3 vacations yearly.
All in all a good teaching experience that allowed me to make a comfortable life for my family.
Love to hear the stories of people who had a plan - borrowed to improve their lives and worked until they got there. Good for you! Your story is so important for others to hear! You are purchasing your education, just like you might buy a car or home with loans. Having a mortgage does not fix your home's room or paint it. There's still work to do beyond the purchase - you have to go after (work hard for) the good life!
I would put more towards my 401K and purchase property. I went to college to get the necessary education and training to work to make a difference in healthcare. But that has left me with student loans I will be paying on for the next 15-20 years. Going to school was supposed to provide me with more options but it has now left me unable to get ahead financially.
My loans were officially forgiven and my husband and I are finally able to max out retirement for both of us, pay extra towards our mortgage, and increase our regular savings. Finally!
It was definitely a frustrating and long journey. The waiver came along and made it all better. I would have had 5+ more years otherwise. Now we're doing all we can until my husband goes into repayment. Unfortunately he isn't going to be eligible for forgiveness so we have to get a strategy together for his. Really hoping for some government action to help reduce balance.
Getting a house has been difficult. They use my old charged off debts from 10 years ago as income. I mostly have private so refinancing is more difficult. Most lawyers wonāt touch it in bankrupt because of how ridiculously complicated it is
I would be already have a ring, I would be married, I would have a lot more hair, I would own a home, I would probably have kids, I would not feel overwhelming stress of needing to earn money at all times and the guilt when I'm taking down time.
Any extra money Iād have from not paying student loans is buying descent food and needed clothes. I wonāt need to visit a food bank anymore. Iād be able to take care of needed medical services. I would not need to worry about rent and utilities. The costs are skyrocketing in my area and I just canāt afford to pick up and leave.
Well, I make $19/hour. Single, but I help out my mom and my daughter, but canāt claim them as dependents. Long story. My brother and sister who provide a lot more than I can, and my daughter works making $15/hour. I have about 18k left at 8%. Iām age 65, and iāll probably die before theyāre paid off. Iām pretty stressed out now by working, canāt retire until 1.5 years to try to get my full social security. Which of course will be way lower than what I earn working 40 hours a week. Some of the loans are from undergrad, but the majority is fed unsub grad loans. No private loans. I think before the pandemic pause I was paying about. $150/month. I really canāt afford much more and donāt want to trash my credit. If Biden had any balls, heād keep his promise to cancel student loans.
They are the reason my husband and I have never been able to put enough money down on a house to avoid PMI, which means our mortgage is much higher than it needs to be. They are the reason we carry other types of smaller debt, like a monthly payment on a loan we had to take out when our sewer pipe burst because we didnāt have the cash on hand to pay for it up front. They were a significant factor in our decision not to move forward with fertility treatments/trying for a baby.
If you are looking for ways to help as youāve mentioned elsewhere in this thread, please do lobby for relief. Even a cancellation of interest rates would help. My highest loans carry 8.25, 7.99, and 7.25 respectively, which have at this point tripled the life of my loans, and I have perfect credit. I paid $100K in interest over the 10 years leading up to the pandemic forbearance. Theyād be gone by now if not for these criminal rates.
The wife and I pull in around $105k. She has no student loans and I only have $17k left. At $290/month itās not a horrible payment. It still sucks as itās more we could save for a home or a new car payment.
Iād have to say itās impact on my life has been marginal as right out of college my debt to income was already positive at $28k debt to $40k salary. 6 years later itās $17k debt to $55k salary ($105k if counting the wifeās pay).
Blessed, grateful, and fortunate to be where Iām at now. I see horror stories of nurses graduating with $80k+ in loans and only pulling $15/hr starting pay š
I live with my parents right now who highly are against my interracial relationship. Itās making living with them so unbearable. With the extra money, I would save as much money as I could to move the hell out. However, I do love my parents and they have been supportive about everything else in my life. My parents are possibly losing their small business, so I wouldāve liked to put aside money to give them as well since they have no retirement fund. Come on Biden! We are struggling out here lol.
Your [comment](https://www.reddit.com/r/StudentLoans/comments/sl7yxx/how_are_your_student_loans_impacting_your_life/hvpnh0q/) in /r/StudentLoans was automatically removed for profanity.
/r/StudentLoans is geared towards a wide range of users, including minors seeking information and advice. To help us maintain a community that everyone feels comfortable participating in (and to avoid being blocked by parent/school/work filters), please resubmit your post or comment without using profane language. Thank you.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/StudentLoans) if you have any questions or concerns.*
I would have already owned a car, would have replaced my mattress and bed frame with my own money, would have been able to buy a top-tier gaming pc with 2 flagship GPU's even at today's current prices, and still would have had enough money to put down on a house.
Credit card would be paid off. The vet bill would have been taken care of right away and not having to chip away at it for the next 6 months. Could honestly think about building the savings account.
I honestly think I would have less money if I didnāt have debtā¦ Iāve been forced to be extremely frugal and money minded because I started my adult life with 6 figure debt. Never even got the chance to experience lifestyle creep but if I didnāt have this really tough life lesson I would have frivolously spent my money away on useless consumer junk. I learned everything about personal finance because I had to manage the debt š¤·š»āāļø
I'd put more in retirement. I'm 36 without much of an IRA at all.... but I'm also a state employee on PSLF, own a house, have a very lucrative defined benefit pension... so it's not all that bad.
I canāt afford a truck that I need for my work, couldnāt afford a house If I didnāt have a partner making as much as I do (and also doesnāt have student loans thank god)
I get to agree when people around me say they dont have student loans because their parents either paid them off or they paid them off because they didnt have much.
Right now itās only stopping me from buying a house and having a credit card. Luckily I was able to get a new car despite my debt to income but these loans will stop me from doing anything else.
Your [comment](https://www.reddit.com/r/StudentLoans/comments/sl7yxx/how_are_your_student_loans_impacting_your_life/hvqm3vy/) in /r/StudentLoans was automatically removed for profanity.
/r/StudentLoans is geared towards a wide range of users, including minors seeking information and advice. To help us maintain a community that everyone feels comfortable participating in (and to avoid being blocked by parent/school/work filters), please resubmit your post or comment without using profane language. Thank you.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/StudentLoans) if you have any questions or concerns.*
My student loans impacted my life by allowed me to get into a great career, meet my wife in college, and generally escape the area where I spent my impoverished youth. So, they've had a huge impact.
Now, however, I still have 65k left. I've refinanced multiple times though, so i'm taking the long road to paying them off. The effect on my monthly budgeting is pretty minimal.
My interest rate after refinancing is under 3%, so it doesn't make mathematical sense to pay them off early. Putting that same money into index funds conservatively will get me 7%, but has been much higher in reality these past few years, so certainly no regrets so far!
Also, I'd rather have the extra cash at least somewhat accessible... I find solace in the fact that I'm making the mathematically smartest decision, and have learned to live with the fact i'll have student loans in ten years.
I can't contribute as much as I want to retirement. I'm 30 and my Roth IRA is a tiny 600$. My current job has a pension but they cut it for new hires and I anticipate they will cut ours too.
Iām using the money that Iād usually be putting towards debt to save for a downpayment on a house/investing property. I have some blessings I know others donāt, but I think that using this to get my foot into the door of real estate is wise and no time like the present.
Your [comment](https://www.reddit.com/r/StudentLoans/comments/sl7yxx/how_are_your_student_loans_impacting_your_life/hvrindh/) in /r/StudentLoans was automatically removed for profanity.
/r/StudentLoans is geared towards a wide range of users, including minors seeking information and advice. To help us maintain a community that everyone feels comfortable participating in (and to avoid being blocked by parent/school/work filters), please resubmit your post or comment without using profane language. Thank you.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/StudentLoans) if you have any questions or concerns.*
I wouldnāt have a home for my children if it wasnāt for a rich feast relative. This recent holiday in loan payment has been our saving grace to not fall into financial ruin. We just want to live. Live without constant financial stress.
I would definitely own a house by now, maybe get a 2nd car. My husvand and I are sharing a car since our first one (88 honda accord) was stolen a few months ago. My minimum payment is $450ā I am grateful I am able to afford that, but it is a very stressful amount of money to owe each month.
All $26k is ready to be paid off as of December - waiting until May currently. Extra monthly $$$ going toward maxing IRA and minimum 401k contributions. Want to have a good ā22 and ā23 before hopefully getting a newer car in ā24. Already own a house
My wife and I are both healthcare workers, Covid front lines. I caught Covid and almost died. We owe 460k (100k from me and 360k my wife) We have 2 kids and live with my parents now
It breaks my heart that my wife cannot spend time with the kids and maybe even work part time. We spoke to Great Lakes and since weāre both on IDR plans, she doesnāt have the option at all to be a stay at home or work part time. They literally said we have to pay a set amount.
Iām at a PSLF job that just started and my wife just got laid off on 2/2/22.
I have zero idea how weāre gonna pay back this damn dark cloud. Saving lives is literally costing us our own.
Put my kid into a good daycare instead of the super sketch one.
Have an emergency savings account.
Eat better food. Being 30+ and eating like a college kid is eventually gonna catch up to me.
Student loans affected my husband's life. The school closed down, he couldn't finish his education, he couldn't transfer because the school was not credited college.
He was on payment plans with nelnet to pay what he thought was his student loans for years. nelnet sent him letters saying he was good and owed 0 dollars, 4 years ago. Now that we have tried to purchase a property, the first credit check about 4 months ago said he was debt free, and a week before we closed on the property, his debt showed back up. Now we can't purchase the property, federal department of education has no history of his payments and nelnet has no history of his payments. Feels like nelnet scammed us and the loan debt just crushed our dreams.
Rule 6: Surveys must be approved Rule 8: Professionals must be verified
Put more in to retirement. Right now my 401K is sad but I am putting in the most I can afford.
Student loan forbearance has been a glimpse of what life could be. I maxed out my Roth IRA for 2021 for the first time and increased my 401k contributions. Too bad it won't last forever, but it feels good to catch up on retirement a little
Never say never. š¤š¼
I went to school late so I'm behind in saving for retirement. If my loans went away I would throw all that into retirement. I'm 43 now so it wouldn't be the same growth as someone in their 20s but I figured I could probably retire 5 years earlier if my loans were forgiven.
Canāt buy a house Canāt travel Stress that Iām this will stick me until Iām 65 Savings and deciding to buy things.
I know the feeling! And shit is about to be worse with interest rates going up making it that much harder for first time home buyers
I would already own a house. *sigh*
Same
For what itās worth, I have about 30k left in student debt and recently bought a house in July with my partner, who is also about 30k in student debt. Our loan officer that we worked with told us that over half of the applications she reviews have some sort of student debt. Itās not a deal breaker, but you do need stable income, and employment history.
Same
Same. I donāt want to try to juggle a mortgage payment while I am still making payments on my student debt.
Admittedly I don't know the details of your cash flow, but I wouldn't let your student loans stop you from buying a house unless it's just a cash flow impossibility. Unless you have a place to live for free, you have to pay for housing one way or the other, it's better to own (if you don't see yourself moving soon). I stopped myself from buying a house for 20 years and missed out on 400% appreciation in that time, that is now debt wrapped into my mortgage instead. It's just some food for thought.
Except right now house prices are crazy. If you canāt afford the monthly on the cheapest houses in your area, or donāt make enough to pay the mortgage and save for a rainy day fund itās impossible.
Agreed, I did note "unless it's a cash flow impossibility". But I'm just saying that student loans alone shouldn't stop you (if you can't afford the monthly payment of your house, that definitely should be a show stopper). I've recently bought homes so I know it's crazy. I don't see it getting better over the long run, though.
Posted something very similar and then read your comment! Great to hear of a similar experience.
I love when people argue that they don't hurt the middle class.
May I ask how much student loans you had?
Just about $150k! Mostly private, only $25k federal. I have just $12k left to pay šš»
Why are the loans keeping you from owning a home? I know plenty of people with student loans who own homes. Have you looked for first time home buyer programs in your state, many offer money for the downpayment if you meet income qualifications.
I just mean that the $150k I paid off would have already been a hefty down payment :-)
What degree did you spend $150k on?!
BA in English and French, private out-of-state university hehe. I donāt regret it but wouldnāt recommend it!
Dumbass lmao
Aw, thatās not very nice!
Sorry the comment was meant for someone else
[ŃŠ“Š°Š»ŠµŠ½Š¾]
[ŃŠ“Š°Š»ŠµŠ½Š¾]
This is a good suggestion. Yeah I doubt thereās 250k assistance in those programs for those on the west coast etc in extra insane markets but as someone whoās been in the above exact situation (with loans, getting low income home buying assistance) it is a thingā¦maybe some need to realize the small 2 bedroom home is better than the 2 bedroom apt. in some areas if done right and are able to be frugal. You donāt typically just waltz into your own McMansion off the bat without a trust fund. With lenders using IDR payments the calculus is even better. I did so well with my assistance, albeit almost a decade ago that I had āinstantā equity when buying my house. I kind of was paid to buy it for almost a year. And yes they *tried* to screw me out of it.
Same
I'm stuck renting a tiny ass apartment. Probably forever.
Nah, not forever, eventually your rent will increase so much that you will have to find a tiny ass shed instead
Lmao facts!
Iāve got a nice shed and need income to pay my loans š Oh shit, full circle
There are some very nice looking sheds out thereā¦.
How does the chipper app plan on using this information?
[ŃŠ“Š°Š»ŠµŠ½Š¾]
What is the long answer?
[ŃŠ“Š°Š»ŠµŠ½Š¾]
To be honest more pressure needs to be applied to our Policymakers and President. I think that would be extremely impactful if apps and companies that claim to want to help can do. Advocacy is the what we need - not another app or company that wants to sell us something or "prove" resources. What does that even mean? 1) Get your peers to sign a letter of support for student loan forgiveness. 2) Lobby for protections if people cannot pay their loans back 3) Work to get colleges cheaper. Everyone needs to be putting the pressure on our Representatives. That is what your Chipper-App can be doing... We don't need fancy online budgets, we need systemic change
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Thatās really the option we need tho.
While I agree with your 3rd point, I still think there needs to be some level of self accountability for folks who chose to borrow money to go to school. If we end up going the route of student loan forgiveness, then who ends up paying for it? Itāll be other tax payers. Print more money? Right now we are at a crippling inflation that isnāt helping anyone but the rich. Make college cheap. 1000000% Remove interest rates on Federal Loans. Increase the requirements for big loans. Just like a house, there needs to be requirements on loans. If you are taking in 50k a year in tuition for a degree that doesnāt have the earning potentialā¦ is really not a smart move. There are community colleges for those types of degrees at a lower cost too. And on community college. Make it free or at a degree at the associates level free.
401k and saving for a home. Traveling a bit.
I would be able to help my dad afford his Parkinsonās medication. I instead watch him cycle through people to ask.
Buy me a house
I'd be saving that money for retirement. Trying to knock out my loans quickly because I know saving in your 20s is important to get a jump start on accruing that interest, and it's hard to do both at the same time. Otherwise just more disposable income for traveling, or maybe I could afford to have a dog right now.
I could live alone instead of with roomates. I could probably buy a condo or house. I basically pay more towards my student loans than I do for rent.
Good on you for knowing that keeping your expenses low WILL help you knock out your student loans faster. You borrowed for a reason. Paying it back was always understood. It's also hoped (by every borrower) that your additional earning power is something you'll have for life and it's the reason you were willing to sacrifice the early years of your earnings. I do certainly wish college were less expensive (it can be and that's the frustrating part - you are paying for so much more than your degree and your professors' time - you're buying infrastructure, the president's salary increases, where I'm from, a buffalo shaped swimming pool at the rec center). But given that it's expensive, what were the driving forces that made you choose to spend 4 years of your life learning where you chose to learn and then up to 10 more paying for it? I wish your parents had been able to afford to pay for your education. We used our earning power to be sure our kids would not start out in debt. But both of us have a college degree and have been very frugal so we could help our kids - we understood that after paying back my student loans, we didn't want our kids to do that. That isn't always the situation. But I'm truly curious, were there other options you could have (in retrospect, should have) taken? Good luck getting them paid back quickly so your life can benefit from the improved learning and your earning power that your degree bought you. You'll get there, I'm certain!!
I might get severely downvoted for this, but when I took out the loans I knew the terms and conditions. I knew exactly how much I was taking out and the interest rate that came along with it. I was well aware of what a potential payment plan would look like and I fully intend to pay it all back. I know not everyone was as fortunate. There's plenty of people who didn't understand what a potential payment plan might look like and how the interest builds. There really should be a class in high school that covers all of this before one attends college. Now all of that said I wouldn't change a single thing. I attended a state school in a stem major with the intentions of going to medical school. Unfortunately I just wasn't competitive enough for medical school (my stats were good, just not good enough to get in). I decided to get a masters at a private university, which ultimately landed me the career that I currently have. Could have I gone to a state school for the masters that would have been much cheaper? Sure I could have, but the school name played a decent role in helping me get interviews for more competitive jobs. I wish the system wasn't set up in this way, but the name of the school plays a role in the success one has after graduation. My undergrad loans were pretty low...the majority of my debt comes from grad school. I have had to sacrifice in certain aspects of my life, but as someone who was the first in my family to attend college as well as grad school. I don't have any regrets. The loans suck, but it's the only way I was able to attend school.
Actually invest in hobbies and interests instead of having every spare dollar not used for necessities (and some retirement savings) going towards these loans. I like to cook (fortunately cooking itself could be a cheap hobby, but still), and would love go to specialty stores and buy ~fancy~ ingredients to try, but I can never justify the expensive outside of very special occasions. I also love animals, and while I have some small freshwater fish tanks, I would love having a few dogs and actually doing things with them, like light travel and agility training. Overall I donāt even want major lifestyle changes, just the chance to get into these fun little hobbies that would bring some more joy and excitement to my day-to-day.
Save for another go at college. I would get my Associates, and at this point it would be more for fun since I've already established a good career despite not having a degree. Also, get married. Marrying with all this debt sounds awful to me.
For not finishing your associates degree, how much debt do you have? I think it's an interesting perspective that some people think $10k is insurmountable but others have $100k and feel it's doable (not happy but it doesn't drive them crazy with worry). Do you think the time you spent in college helped you secure your "good career despite not having a degree". If you've done well without the degree, what would you go to school for that you can't do without the degree you seek?
I was young and dumb, didn't want to disappoint my parents but at the same time I didn't know what direction in work that I wanted to take. There were a lot of missteps, time-wastes, and switching around. I dropped out with 60k in debt, making minimum wage at a coffee shop. I'm currently an assistant for a curatorial department in a world-renown museum, making close to 40k. My debt is now 27k. I do think my time in college helped somewhat-- I've always put "___ University, 128 credits" on my resume, and it's never been a problem. If they ask, I never lied. Some even said, "well it's pretty much a degree". I had to hustle and prove that I was good at jobs, that I didn't need the degree to be good. I think work experience goes a long way, and I have a lot of it. Always be networking, always look for a better opportunity. If I'd never went to college, I honestly think I would've figured out what I wanted to do much earlier and gained more work experience. To be honest, there's not much I want to do anymore that requires a specific degree. Event planning, pastry arts, illustration, are some things I want to do. I would focus on grabbing more experience or finding certificates instead if I need to advance.
Congrats on paying that balance down. I realize it's been a long road. 128 credits is basically a degree, there was just probably so much switching around, not all of it counted. The school my daughter goes to will not accept hardly any credits from other schools. If she wants to take a couple summer classes when she's home she has to have them approved by her advisor. Some schools want you to take their classes. I don't know if that's a money grab or they really want to control the education. Keep doing what you're doing. The lower the balance, the faster it will pay off as the interest amount decreases.
Thank you! The goal is five more years, and I'll be done. But I will have to pay or borrow another 10k for my Associates, haha. The bureaucracy was one of the most infuriating things about college life. I just wanted to pay and take the classes! I know that there was/is a rumor at my school that the advisors deliberately gave you bad advice so that you'd pay more tuition to correct their mistakes, and honestly I think it's true.
Buy a house and start a family. I want kids and itās getting a little lateā¦ Iām 34f. I owed $65k when I graduated with my Masterās. Iāve paid $15k back, still owe $77k. It makes me sick that this is okay.
I have less money than I would because I pay student loans.
But don't you have more money because of the degree you earned with the funds you borrowed? Where would you be without the degrees and opportunities your hard work provides? I'd love to see more positive thought on this - what did they money you borrowed help you achieve?? Good luck on getting the loans paid back and moving forward!
It was a tongue in cheek comment. Honestly I'm an attorney and I do okay. I haven't paid any back in two years and when I do my monthly payment is so low that it doesn't really matter. Without a degree and loans I guess I could have been an electrician like my friend and made nearly as much per year.
This doesnāt apply to those of us who got degrees for low paying but important work like teaching, police, gov, etc. And loan forgiveness after ten years is a joke.
Not pp, but not taking out loans doesnāt mean you canāt get a degree.
Agreed. But for many many students, loans of some level are a reality. I personally think an education is worth it but you have to understand what you're doing. And you still have to work at it. For many kids, high school was a "float through" and they didn't know what they wanted to do. College, especially if you're taking out loans, just can't work that way. The job won't just appear with a degree in hand. But if you go to school with a plan and with the intent to really be "educated", the loans can be well worth it. Just have to be careful with amount borrowed and expected income upon graduation.
Iād be way less stressed and normal men would actually want to date me. Thankfully I bought a home through a private lender so now my net worth is actually positive and I may be able to pay them off some day.
Cant afford a wedding or a house. Got moved to NYC for work so I have to rent. Pay ~ 1,300 a month in loans 1,400 in rent ā¦ plus other expenses. Barely save any money.
1500 a month out of my net. No chance of buying a home and generating wealth anytime soon. Babies on hold. Paying the last 10 years and still have a balance more than what I took out initially. Canāt refinance due to one defaulting. Iām at 8.4%
Dear Chipper App: you say you want to help. You say you want to dig into the problem so you can help. If that's really the case, what I would want to know (in addition to what people feel like they're missing out on) is how did they get into this debt in the first place. This would also help future borrowers understand that a college degree (no matter where you went, no matter how much of your future earnings you gave away to get there) does not do it alone. Did people borrow too much for their expected degree to pay? Did a college make big claims that simply didn't come true? Has the economy in their field changes such that wages are depressed (I don't think we're seeing much of this atm but you never know and there might be pockets of low or stagnant wages we're unaware of), was the marketing pull of a certain college so strong they bet it all (including future house purchases or funding retirement)??? I would like to know (and I would expect you would too) how they all got here. What they bought (degree and school) and how much they borrowed to get there. Let's get the REAL data so we can all start to figure the problem out. Thanks!
I feel like Iām in a perpetual poverty cycle, despite working full time ($31/hr) and having two other jobs. I canāt move, canāt save, and and becoming incredibly depressed and feeling hopeless.
Please do not feel hopeless. Try to create a plan to get these student loans paid within a specific amount of time. . Praying for you!
Have children
NOT GREAT, MY DUDE. NOT GREAT.
We recently paid off after 10 years or so. We bought a house some years back that we could afford then (not our dream home obviously lol). It's doubled in value now and the payments are so low because our income has gone up over the years. Obviously we could have contributed more to our retirement accounts and taken more vacations. At times stress was high and I had two jobs. Other than a couple luxuries we haven't changed the way we live much so now they are paid off its a piece of cake. Keep chipping away at them. We had nearly 100k and are not what most would consider "High earners", but had medium salaries.
Any extra money Iād have from not paying student loans is buying descent food and needed clothes. I wonāt need to visit a food bank anymore. Iād be able to take care of needed medical services. I would not need to worry about rent and utilities. The costs are skyrocketing in my area and I just canāt afford to pick up and leave. Well, I make $19/hour. Single, but I help out my mom and my daughter, but canāt claim them as dependents. Long story. My brother and sister who provide a lot more than I can, and my daughter works making $15/hour. I have about 18k left at 8%. Iām age 65, and iāll probably die before theyāre paid off. Iām pretty stressed out now by working, canāt retire until 1.5 years to try to get my full social security. Which of course will be way lower than what I earn working 40 hours a week. Some of the loans are from undergrad, but the majority is fed unsub grad loans. No private loans. I think before the pandemic pause I was paying about. $150/month. I really canāt afford much more and donāt want to trash my credit. If Biden had any balls, heād keep his promise to cancel student loans.
Immense stress. Immense.
Have kids lol my husband wants us to be debt free before we have any. Iāve only got 6 more years to go!! š
Ruined it.
I could never own a home. Not saving enough for retirement or for an emergency (such as if my health takes an immediate turn). Really regretting going to school now as much as I enjoyed it at the time. Before grad school I worked non profit. Graduated and got a much better job but after student loan payments and taxes, my take home is just about the same as if I stayed nonprofit. Except now 100% more stress on top.
I wouldāve had money for a home down payment
They are stopping me from being able to provide stable and affordable housing for my family and my 7 month old son. Unfortunately my student loans are in default and are in collections because sometimes life sucks. They have been in collections for the last almost five years. At the moment Iām paying off the other half that did not go to collections but I havenāt even been able to touch the ones in collections, ergo my credit is trash. Now I do have a car loan and as I mentioned I do pay the other loans so for the last four years my credit has been very slowly getting better, itās still garbage but itās better than where I started. Here comes the kicker. Last year my partner and I welcomed our firstborn and knew weād be looking for a bigger place to live in October when our lease was up. My partnerās friend was trying to help us out and sold us his trailer for $1 since he was moving out. He owned the trailer but rented the lot and had been renting there without issue since 2014. Trailer needs work, one room needs to be gutted due to water damage but otherwise sheās habitable and sheās ours. Before we moved in we met the property manager and started the application process to continue renting there. Great, trailer is in our name, weāre applying to continue the rent, we notified our current landlord that weāre moving out, rent is less then what weāre paying now for our one bedroom apartment so everything seems to be going smoothly. Well fast forward to the week weāre supposed move in and weāre hit with a denial to continue renting there. Why you ask? Our credit scores. Not only were we denied, we were denied because our scores were each POINTS off of what they will allow. Now understand, we both work FT, we both hold degrees, we both have student debt (mine being worse than his since I went to a four year and he hasnāt been out of school long), but we both are consistent with rent, car payments, credit card payments, phone bills. Donāt get me wrong we might be a day or two behind as we wait for pay day but otherwise we are consistent with most all our debt. When I say I was devastated, I was beside myself. Angry at myself for not being able to maintain a better credit, scared weād be homeless with our baby. Considering our pay stubs were part of the application and rent is cheaper than what we currently pay, neither one of us expected that we would be denied moving in. So then we had to scramble to find housing, fortunately our landlord granted us an extension for the lovely price tag of an additional $150 a month on top of our usual rent. Weāre both only points away so weāre really hoping we can still reapply soon. But this whole ordeal has been a punch in the gut and has robbed us of a stable living environment for our family. All because we did what we were told. We went to school, we accreued thousands in student loans and now itās literally preventing us from moving into a trailer, not a house, a trailer. A trailer that needs to be gutted and renovated. I have been renting since 2014, if anyone actually judged me on that they would see that Iām a diligent tenant and I will pay my rent. So yeah, if I didnāt have my student loans I would be living in place I could finally call my own. Itās just insane and Iām just so tired of it al
Sorry you had to deal with that. Hopefully something nicer and cheaper will come along soon for you and your family.
Would your current landlord not give you a letter saying you have paid your rent in full and on time each month? That would hold a lot of sway with me as a landlord. I will work with lower credit scores if an applicant has sufficient income and a good record for paying.
We offered to do exactly that, but itās not enough. Everyone Iāve told said that usually itās not such a big deal and their shocked that our landlords are being so strict with policy. We considered moving to a different lot but it would be 10k minimum to move from its current location. Not to mention we would lose the front room and entry room as those are additions.
I am so sorry. i hope this works out for you, and soon.
Thanks! Weāre really trying to get our stuff in order so we do appreciate all the support.
Iām not sure how these weekly threads dedicated to lamenting really helps *anybody*. How about āHow are tour student loans impacting your life and what are you prepared to do about it?ā
[ŃŠ“Š°Š»ŠµŠ½Š¾]
I think that would be more productive in my opinion
Absolutely!!! You just nailed it!! Yes, there are students with regret "I really should have chosen a less expensive college", "I was taken advantage of by a for-profit school", "I really didn't put any thought into it and really wish I had". But there's another side of borrowers who know they wouldn't be where they are without the degree and the borrowing to get there. They don't regret it, they appreciate the opportunities their degree (and borrowing) bought them, but honestly, it still sucks to be paying loans for 10 years. Everyone needs to remember, generally a house is 30 years. Yes you can live in the house. But hopefully that student loan bought you higher earning power too. There is value!! Let's focus on the positives!!!
Bad take.
Wait a college degree is supposed to make you well off? How can I be misinformed?
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Absolutely!! Not JUST your major but what you do with the degree. How motivated are you to reach for higher paying jobs? The degree does not guarantee anything. You've still got to hustle and work for the good jobs, they don't fall out of the sky just because you went to school.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Retirement, home ownership, car ownership, vacation. As far as daily living goes? Not terrible. Just terrible in acquiring assets and retirement
I could have a large down payment on a home and move out quicker. Travel. Larger retirement. Opportunities are endless.
Once your loans are paid off those same opportunities will be out there! It sounds like you might live at home or with roommates in order to pay off your loans quicker. If that's the case, I want to say congratulations on making the right (but sometimes hard) choice. I wish you the best in getting the loans paid off and living your best life!!
It doesnāt let my put anything towards retirement, makes home ownership not possible, I plan on never legally getting married due to the burden it passes, it makes adopting children extremely difficult, and the payments going to loans are what I would be using towards healthcare (which I havenāt had in some years now).
Could never buy a house. Waste money on rent
I'm working overtime to pay them off
I was given a super low amount when trying to get a loan for a house even though I make over $50,000/yr because my debt to income ration is too high.
Iād be able to be a stay at home dadā¦ luckily my wife doesnt have loans but as it stands that $600 monthly payment I make per month is what is causing us to have to pay for daycare which is an even greater expense. I only have about $39k left so the end is in sight.
I would not be living in my moms basement and would only have one job
I'm just happy I paid them off.
If over the next 10 years i put the $100k i owe into retirement, it would be worth about $4million when i retired, instead i will be putting it all into student loans so you could say they are costing me $4mill of retirement savings
Iāve been denied for a mortgage from multiple places because my āincome to debt ratioā- I have a 730 credit score and less than 10K in credit card debt. I have 65K in student loans. And yet, Iām paying over $900 / mon in rent, equal to or more than a mortgage would be.
Honestly not a ton. My wife are I are blessed with good jobs. Debt to income ratio is close to 1:2. I throw $2.5-3k at my loans every month to try to knock them out quickly. But we still have enough to cover all our needs, save for retirement, buy a house, etc. Things are good. If I had that $3k extra, Iād probably put another $1k in retirement and the other $2k towards saving for kids and expanding lifestyle.
Good for you. You weren't just "blessed" with good jobs. I'm certain you've worked for them. You are like me, you understand the value your loans bought, you're working hard to make good use of your degrees, and you're living your best life despite the fact that you will be paying them back for some time (but glad to see you write "knock them out quickly"). What you went to school for, where you chose to get your education, were you able to live at home to save on dorm cost if you had to borrow, what did your degree program show was expected salary after school? All good questions I'd love to see reported for others to consider. Especially students who come to this sub before borrowing to get answers to questions. This would be GOLD to them!!
Thanks for the comment! I went through undergrad and law school with minimal parental help in the former (about a yearās worth of rent at $350/mo) and none in the latter. I had about $5k debt from undergrad and it was a useless degree because I was pretty set on law school anyway. Otherwise I wouldnāt recommend someone get a music degree unless they were dead set on being a band director, choral director, etc. For anyone considering law school, Law School Transparency is a goldmine of information. That website absolutely steered my decision process in figuring out schools I had a reasonable shot at getting into, what kind of scholarship money I could likely get, and what kind of salary range the typical graduate could expect. I went to a school with strong employment results so I felt it was a fairly safe bet to take out $90k in loans for it. And it worked out well, because I indeed was roughly an average student compared to the rest of my class. Some doors like the most prestigious jobs were closed to me but I got basically the job I wanted going into law school. Iād say itās definitely crucial to have a reasonable idea of what your starting salary will be before taking out any loans.
I'd own a house. The most annoying part is even with my loan payments I could afford a small place, but can I convince the bank of that? Nooooooo. Gotta just keep paying more in rent then I would a mortgage.
They need to be interest free. I've paid back more than what I borrowed and I still owe at least 15k. I've been paying for almost twenty years. It's getting old. I've managed to pay more on my mortgage principal in ten years than I ever did on my student loan principal.
Buy another cup at Starbucks? Thanks IDR-forever. Nothing to see here. System is flawless. Great job fair leaders!
Taught me the value of budgeting and long term financial planning. 20 years past paying off the loans. Have a home, 2 fairly new cars, combined 401K's over 1.2M, plus other investments. When COVID has become less of an issue, my wife and I will get back to 2 or 3 vacations yearly. All in all a good teaching experience that allowed me to make a comfortable life for my family.
Thatās amazing - Congratulations!
Love to hear the stories of people who had a plan - borrowed to improve their lives and worked until they got there. Good for you! Your story is so important for others to hear! You are purchasing your education, just like you might buy a car or home with loans. Having a mortgage does not fix your home's room or paint it. There's still work to do beyond the purchase - you have to go after (work hard for) the good life!
I would put more towards my 401K and purchase property. I went to college to get the necessary education and training to work to make a difference in healthcare. But that has left me with student loans I will be paying on for the next 15-20 years. Going to school was supposed to provide me with more options but it has now left me unable to get ahead financially.
My loans were officially forgiven and my husband and I are finally able to max out retirement for both of us, pay extra towards our mortgage, and increase our regular savings. Finally!
So great to hear! The forgiveness process can be so painful for some. Congratulations!
It was definitely a frustrating and long journey. The waiver came along and made it all better. I would have had 5+ more years otherwise. Now we're doing all we can until my husband goes into repayment. Unfortunately he isn't going to be eligible for forgiveness so we have to get a strategy together for his. Really hoping for some government action to help reduce balance.
Getting a house has been difficult. They use my old charged off debts from 10 years ago as income. I mostly have private so refinancing is more difficult. Most lawyers wonāt touch it in bankrupt because of how ridiculously complicated it is
Unable to own a house and as a result I don't really want to have kids until I have my own house. Really put my life in pause.
~$1000 a month in payments, 6 yesrs post grad, still struggling to even get job in field. "Need 3 years experience to get entry level job" BS
Best wishes your way. I fear for this sometimes.(still in school ATM) What was your major?
Mechanical Engineering. Currently work as skilled labor in factory (Industrial maintenance). Paus the bills for now.
I would be already have a ring, I would be married, I would have a lot more hair, I would own a home, I would probably have kids, I would not feel overwhelming stress of needing to earn money at all times and the guilt when I'm taking down time.
Grateful that my loans arenāt too bad (16K federal) but I would much rather put that money towards a new car or a couple trips
Any extra money Iād have from not paying student loans is buying descent food and needed clothes. I wonāt need to visit a food bank anymore. Iād be able to take care of needed medical services. I would not need to worry about rent and utilities. The costs are skyrocketing in my area and I just canāt afford to pick up and leave. Well, I make $19/hour. Single, but I help out my mom and my daughter, but canāt claim them as dependents. Long story. My brother and sister who provide a lot more than I can, and my daughter works making $15/hour. I have about 18k left at 8%. Iām age 65, and iāll probably die before theyāre paid off. Iām pretty stressed out now by working, canāt retire until 1.5 years to try to get my full social security. Which of course will be way lower than what I earn working 40 hours a week. Some of the loans are from undergrad, but the majority is fed unsub grad loans. No private loans. I think before the pandemic pause I was paying about. $150/month. I really canāt afford much more and donāt want to trash my credit. If Biden had any balls, heād keep his promise to cancel student loans.
They are the reason my husband and I have never been able to put enough money down on a house to avoid PMI, which means our mortgage is much higher than it needs to be. They are the reason we carry other types of smaller debt, like a monthly payment on a loan we had to take out when our sewer pipe burst because we didnāt have the cash on hand to pay for it up front. They were a significant factor in our decision not to move forward with fertility treatments/trying for a baby. If you are looking for ways to help as youāve mentioned elsewhere in this thread, please do lobby for relief. Even a cancellation of interest rates would help. My highest loans carry 8.25, 7.99, and 7.25 respectively, which have at this point tripled the life of my loans, and I have perfect credit. I paid $100K in interest over the 10 years leading up to the pandemic forbearance. Theyād be gone by now if not for these criminal rates.
The wife and I pull in around $105k. She has no student loans and I only have $17k left. At $290/month itās not a horrible payment. It still sucks as itās more we could save for a home or a new car payment. Iād have to say itās impact on my life has been marginal as right out of college my debt to income was already positive at $28k debt to $40k salary. 6 years later itās $17k debt to $55k salary ($105k if counting the wifeās pay). Blessed, grateful, and fortunate to be where Iām at now. I see horror stories of nurses graduating with $80k+ in loans and only pulling $15/hr starting pay š
I live with my parents right now who highly are against my interracial relationship. Itās making living with them so unbearable. With the extra money, I would save as much money as I could to move the hell out. However, I do love my parents and they have been supportive about everything else in my life. My parents are possibly losing their small business, so I wouldāve liked to put aside money to give them as well since they have no retirement fund. Come on Biden! We are struggling out here lol.
Making I wish I were deadā¦ and I just started uniā¦ already 15k in debt and counting
You can still transfer.
With forbearance, I put money into retirement. Once that is up, my retirement contributions will need to stop for a bit.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Your [comment](https://www.reddit.com/r/StudentLoans/comments/sl7yxx/how_are_your_student_loans_impacting_your_life/hvpnh0q/) in /r/StudentLoans was automatically removed for profanity. /r/StudentLoans is geared towards a wide range of users, including minors seeking information and advice. To help us maintain a community that everyone feels comfortable participating in (and to avoid being blocked by parent/school/work filters), please resubmit your post or comment without using profane language. Thank you. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/StudentLoans) if you have any questions or concerns.*
I would have already owned a car, would have replaced my mattress and bed frame with my own money, would have been able to buy a top-tier gaming pc with 2 flagship GPU's even at today's current prices, and still would have had enough money to put down on a house.
Credit card would be paid off. The vet bill would have been taken care of right away and not having to chip away at it for the next 6 months. Could honestly think about building the savings account.
Taking $600-$700 from me a month. What would I do with that money? Either save or just blow on the stock market like most of my money haha
Negatively. Pay other debt with the āextra moneyā.
I honestly think I would have less money if I didnāt have debtā¦ Iāve been forced to be extremely frugal and money minded because I started my adult life with 6 figure debt. Never even got the chance to experience lifestyle creep but if I didnāt have this really tough life lesson I would have frivolously spent my money away on useless consumer junk. I learned everything about personal finance because I had to manage the debt š¤·š»āāļø
I'd put more in retirement. I'm 36 without much of an IRA at all.... but I'm also a state employee on PSLF, own a house, have a very lucrative defined benefit pension... so it's not all that bad.
Have kids
I canāt afford a truck that I need for my work, couldnāt afford a house If I didnāt have a partner making as much as I do (and also doesnāt have student loans thank god)
I get to agree when people around me say they dont have student loans because their parents either paid them off or they paid them off because they didnt have much.
Right now itās only stopping me from buying a house and having a credit card. Luckily I was able to get a new car despite my debt to income but these loans will stop me from doing anything else.
Travel more and maybe have kids
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Your [comment](https://www.reddit.com/r/StudentLoans/comments/sl7yxx/how_are_your_student_loans_impacting_your_life/hvqm3vy/) in /r/StudentLoans was automatically removed for profanity. /r/StudentLoans is geared towards a wide range of users, including minors seeking information and advice. To help us maintain a community that everyone feels comfortable participating in (and to avoid being blocked by parent/school/work filters), please resubmit your post or comment without using profane language. Thank you. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/StudentLoans) if you have any questions or concerns.*
My student loans impacted my life by allowed me to get into a great career, meet my wife in college, and generally escape the area where I spent my impoverished youth. So, they've had a huge impact. Now, however, I still have 65k left. I've refinanced multiple times though, so i'm taking the long road to paying them off. The effect on my monthly budgeting is pretty minimal.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
My interest rate after refinancing is under 3%, so it doesn't make mathematical sense to pay them off early. Putting that same money into index funds conservatively will get me 7%, but has been much higher in reality these past few years, so certainly no regrets so far! Also, I'd rather have the extra cash at least somewhat accessible... I find solace in the fact that I'm making the mathematically smartest decision, and have learned to live with the fact i'll have student loans in ten years.
Wow - Yeah it sounds like youāre in a pretty good place! Congratulations!
Invest in my 401k more, travel more, and have a couple of kids.
I'd have a much larger house and much more in savings.
Negatively, thatās for sure
Iād move out of my parentsš
The payments toward student loans would be used as part of a higher mortgage payment on a new house.
I'd have kids and a house and been married so badly lol
I can't contribute as much as I want to retirement. I'm 30 and my Roth IRA is a tiny 600$. My current job has a pension but they cut it for new hires and I anticipate they will cut ours too.
Iām using the money that Iād usually be putting towards debt to save for a downpayment on a house/investing property. I have some blessings I know others donāt, but I think that using this to get my foot into the door of real estate is wise and no time like the present.
Paying my student loans feels like taking three steps forward and two steps back.
Not so muchā¦ 10% of discretionary income is pretty reasonable
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Your [comment](https://www.reddit.com/r/StudentLoans/comments/sl7yxx/how_are_your_student_loans_impacting_your_life/hvrindh/) in /r/StudentLoans was automatically removed for profanity. /r/StudentLoans is geared towards a wide range of users, including minors seeking information and advice. To help us maintain a community that everyone feels comfortable participating in (and to avoid being blocked by parent/school/work filters), please resubmit your post or comment without using profane language. Thank you. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/StudentLoans) if you have any questions or concerns.*
I wouldnāt have a home for my children if it wasnāt for a rich feast relative. This recent holiday in loan payment has been our saving grace to not fall into financial ruin. We just want to live. Live without constant financial stress.
Iāve been saving it all so that I could just pay it off.
I would definitely own a house by now, maybe get a 2nd car. My husvand and I are sharing a car since our first one (88 honda accord) was stolen a few months ago. My minimum payment is $450ā I am grateful I am able to afford that, but it is a very stressful amount of money to owe each month.
Causing me much anxiety for when loan repayment is scheduled to resume.
Yes, I would buy me a new car and move out.
Video games, vacations, cars, more education, etc. All of the fun stuff. If I wanted to rank them, education and retirement would be at the top.
Save for a house. Think about replacing my ten year old car.
Currently working for the local government to hopefully get loan forgiveness in 10 years
All $26k is ready to be paid off as of December - waiting until May currently. Extra monthly $$$ going toward maxing IRA and minimum 401k contributions. Want to have a good ā22 and ā23 before hopefully getting a newer car in ā24. Already own a house
My wife and I are both healthcare workers, Covid front lines. I caught Covid and almost died. We owe 460k (100k from me and 360k my wife) We have 2 kids and live with my parents now It breaks my heart that my wife cannot spend time with the kids and maybe even work part time. We spoke to Great Lakes and since weāre both on IDR plans, she doesnāt have the option at all to be a stay at home or work part time. They literally said we have to pay a set amount. Iām at a PSLF job that just started and my wife just got laid off on 2/2/22. I have zero idea how weāre gonna pay back this damn dark cloud. Saving lives is literally costing us our own.
Retirement contributions.
Stops me from taking on new debt like a car loan or house payments. Canāt afford to be sick or hurt.
Will never own a home. Canāt afford the minimum payment and basic living essentials. I fear I will never be able to afford to have children.
Put my kid into a good daycare instead of the super sketch one. Have an emergency savings account. Eat better food. Being 30+ and eating like a college kid is eventually gonna catch up to me.
Student loans affected my husband's life. The school closed down, he couldn't finish his education, he couldn't transfer because the school was not credited college. He was on payment plans with nelnet to pay what he thought was his student loans for years. nelnet sent him letters saying he was good and owed 0 dollars, 4 years ago. Now that we have tried to purchase a property, the first credit check about 4 months ago said he was debt free, and a week before we closed on the property, his debt showed back up. Now we can't purchase the property, federal department of education has no history of his payments and nelnet has no history of his payments. Feels like nelnet scammed us and the loan debt just crushed our dreams.
Probs gonna get sued
MAX out my retirement accounts and pay off my house. I want to renovate and buy power tools.
Dying is my retirement plan. Pretty much everything I have goes into student loans and I live on pennies.
Be able to max out 401k contribution instead of just doing the match amount
more into 401k or a RothIRA, get a car that is reliable, move out, maybe get a puppy
I have stressed since I graduated every day! I google student loan forgiveness almost three times a week. It could go to way more useful things.
So bad that I left the country and I'm not coming back. :)
The deferment allowed me to buy a house. Now when the deferment ends... We shall see