Seems to be a common "advice" for those concerned how to pay these ridiculous new amounts. However by getting a second job. Am I not increasing my agi for next year, meaning that my payment would go up as well?
Maybe I'm missing something, but if its this straightforward, what is really the answer to the issue? 1 meal instead of 3? Only 2 squares of TP at a time?
Posted by Aldirt_13
8 Comments
When you have debt to service and bills to pay, sometimes the only realistic approach is to increase your income.
Yes, as income increases, payments may also increase, but the payment increase will only be a fraction of your increase in income, so you will still have more disposable income even with the increased payment amount.
It’s common advice because student loans need to be paid. If one doesn’t have enough money, the only long-term solutions are spend less and/or earn more. What would you rather people advise? Some pie-in-the-sky answer that just kicks the can down the road? Interest is accruing daily, so if you’re not pursuing forgiveness the fastest answer is the best. I understand it probably seems heartless, but its the truth of adult life.
You will be a good debt slave and work 2 and even 3 jobs. You really only need about 5 hours of night to sleep. There is nothing at all wrong with the system. The only thing wrong is that you are not working enough.
Second job doesn’t always work. Where I’m from, working more means I’ll pay more tax and end up with less. And yes, your payment plan will go up. The current system wants student loans to be a forever thing.
It’s about coming up with a game plan overall.
Yes, your repayment will go up but it’s not dollar for dollar. You will still be in a better position if you make more money.
But you need to determine if your strategy is going for forgiveness or aggressive payoff and build a plan around that.
If aggressive payoff then you don’t really care about the monthly payment since you’re probably paying well above that.
If your goal is forgiveness then you want to minimize the total amount paid but still make more money (you can do this by filing separately, contribute to a 401k, etc).
I tend to only say that with private loans..and it feels awful when I do have to say it. But for private that’s often the only solution
We made a huge mistake listening to the guidance from our school systems in high school and so now we must pay up with money we don’t have or slave at endless jobs for the rest of our lives to atone.
There’s a reason the previous administration was trying to forgive student loans. It’s the same reason this admin is so against it.
It’s especially amusing, because it’s difficult enough finding one job, let alone two. But, sure, yeah, go find another job! They’re so easy to find! They grow on trees!