I am 24 years old. I went to a private school for my undergrad and took out an exorbitant amount of private loans to pay for that degree. Right after my undergrad, I did a master's because it was fully funded and my life wasn't all the way together yet. I just finished, and I currently work as a teacher, making 49.5k while I get it together to either pursue a PhD or go to law school. The issue is that during this gap year, I am not studying, so my deferment period is almost over, and I will begin to pay my loans this December. I have calculated that it will take half my salary to meet the minimum. After about 6 years of accruing interest, my loan is at 150k.
I am very anxious. I know now that taking out those loans was a mistake, but at the time, it seemed to be the norm here in the US. I had just moved to Miami from Puerto Rico, and everyone in my family had studied in the Dominican Republic out of pocket (we're not wealthy ourselves now, but my grandparents had the means to pay for schooling then). Having college savings for your kids was not a thing for my parents. I had nobody to advise me that NO school is worth that amount of money, and my father cosigned my loans with the same "you gotta do what you gotta do" mindset. Having a cosigner who will suffer because of my bad decisions is only making me feel more anxious. I feel alone and like there will never be an end to this tunnel.
Right now, I don't have many bills, which is a blessing. My car is paid off, and I live at home. The impending repayment has become a source of a huge amount of stress. I am very aware that this is all my fault, and I just feel like an idiot.
Has anybody been in a similar situation? How did you cope? Did you get a second job? Should I enroll in a graduate certificate program to continue to defer my loans? Should I face my loan head-on, or should I figure out a way to defer it while I find a way to earn more money? Any advice?
I was thinking about going to law school since being an attorney has a lot of potential to be a lucrative career, but I also understand that it would mean taking out even more loans. Would it be worth it?
I feel like I'm drowning in debt
byu/my_name_is_didi inStudentLoans
Posted by my_name_is_didi
8 Comments
Do you have all private loans or some federal loans?
What are the interest rates on your loans?
You may be screwed depending on your education. From what I’m reading, I assume you majored in English or Education? 150k in loans should’ve gotten you 75k starting salary for the right education.
Lawyer salaries are bi-modal meaning you have big law which makes a ton, and everyone else who makes very little relatively.
I wouldn’t go to law school with that debt load. The extra masters is really the head scratcher here. Makes sense if you get a PhD but none if you go to law school.
I’d get a better job, otherwise it’s gonna be literally decades of repayment
What is your master’s in?
What is the interest rate on these private loans?
> Should I enroll in a graduate certificate program to continue to defer my loans?
No, you are digging the hole deeper and, depending on the terns of your loan, they usually only allow so much in school deferment.
Since you live at home and have minimal bills the best bet is to buckle down and pay these off aggressively as possible. A weekend job will help.
Once you can show 9 to 12 months of on time payments try to refi at a lower interest rate. Do this every 9 to 12 months.
> I was thinking about going to law school since being an attorney has a lot of potential to be a lucrative career
A lot of lawyers are about to get AI-ed imo, so not worth it
Can’t you bankrupt private student loans?
Honestly I wouldn’t go to law school. It’s a lot of money and MAYBE you get a lucrative career. But you are probably also doing Satans work and will be miserable.
Edit: I needed to add some positivity. Pay what you can while you’re with your parents and see if you can find something rewarding with what degrees you do have. You are early in career so you have growth ahead. Also, maybe organize with other borrowers and maybe we can get this changed?
Do not, and I mean this, go to law school with the expectation of making money out of it. With 0 context to your college GPA, 0 info about an LSAT score. You’re playing with fire. As another has said, big law is a streamline but you need to be in the right spot for that to work by choosing the right school. If you’re battling for mid-tier schools and your classmates for top 15% (which isn’t even a guarantee for a sniff at big law), you’re either racking up interest debt (full scholarship) or accruing graduate debt (no scholarship) to only finish with a career making the same salary the first few years as your constituents who didn’t go to law school. I know fellow classmates still making under 80K in NY. Also, region matters for attorneys on the fringe (FL ain’t it). Pick your poison.
Take all legal measures to increase your income. Allocate extra payments to the private loan with the highest interest rate. When possible refinance private loans at a lower fixed interest rate.
Law school or latin american studies will not have the ROI you are seeking.