I've recently graduated from university with no job and no money at all saved (even though I tried to – but of course, life gets in the way). And I have to start paying my loans soon. I have 31k in student loans, 38/39k in PPL under my mom, and 37k in PPL under dad – totaling to over 100k, where I'm responsible for making the payments for all… and I'm completely lost on what to do. Especially with my family's financial instability, there's no way they can help me with this, and I will have to do this on my own.
After some calculations, the monthly payments come down to around $300 for me, $200 under my mom, and $400 under my dad (idk why the interest rate is so high for his – like 9%). This is close to 1k monthly. All I can say is that I have 3 digits in my wallet. I don't know what the best approach would be for me on payment plans, or if there is a way for me to make these monthly payments lower without it being damaging to me down the line. I don't know which payment plan is the best either.
Even though I'm looking at different side hustles, selling my things, and finding ways to earn money while trying to find a full-time job, I feel so helpless and discouraged. The job market is HORRIBLE, and I don't know if I'm going to land a job any time soon, especially in the tech industry. I know whenever I do, these payments will feel less stressful, but as of right now, I feel SO STUCK.
All my goals and dreams now feel so far away. I want to still be able to enjoy my life while I'm still young. Hopefully get a house and have kids in my 30s. It's crazy how the world tells us the best way to do things is go to school, then college, get your degree, and then you get a job and you're set – but it doesn't work that way.
100k in debt as a jobless and broke new grad (need advice)
byu/coconuttywater inStudentLoans
Posted by coconuttywater
4 Comments
If you’re jobless, your income is $0. Get on an income driven repayment plan and your monthly payment will be $0 if you have no income. The parent plus loans are a different story. Your parents are the borrowers for those and if they switch to an income driven repayment plan the payments will be based on their income, not yours. You’re not directly responsible for those loans.
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Presuming Mom took out loans 1 and 2 and dad took out loans 3 and 4?
[https://studentaid.gov/understand-aid/types/loans/interest-rates#older-rates](https://studentaid.gov/understand-aid/types/loans/interest-rates#older-rates)
Mom’s interest for 2020 and 2021 would have been 5.3 and 6.2 or 21 and 22 for 6.28 and 7.54, dad’s would have been either 7.54 and 8.05 or 8.05 and 9.08.
Plan: Mom and dad both need to consolidate so that the loans can be paid on the ICR plan. it sucks but it will take their household income and household loan amounts into account and they will pay 20% of their discretionary income per the ICR plan. Later you can get them onto individual IBR plans but they will have to start filing MFS instead of MFJ for the best deals for you.
The LEGAL obligation is for the parents to pay these loans off. I understand that you have agreed to pay them and there is a moral obligation for you to pay them but once you have them on the IBR, the payments should be manageable for your parents if you are drowning.
You should not need to consolidate, you can just go straight onto the IBR plan.
When the time comes get your own loans on an income driven repayment plan.
Legally parent plus loans are the responsibility of the parent to repay. Have each borrower investigate whether consolidating into ICR/ IBR is worth it. (Don’t consolidate before you have to… consolidation will force loans into repayment).
If IDR is not an option maybe have each borrower look into the extended repayment plan.