polksalet Posted November 15, 2007 Share Posted November 15, 2007 A friend of mine just got out of grad school. She has a master's in home ec (yeah for real), works for the state government and makes about $32k per year. She has a new corolla which was a gift from her parents and no bills other than half the rent with her sis in an apt. in Little Rock. Oh yeah she also has 100 GRAND IN STUDENT LOANS. Yes, 100 grand baby. She wants to know what to do to pay them off early. By best answer will likely be to get a second 40 hour job for the next 10-15 years. What say you?? This is a tight spot. Quote Link to comment Share on other sites More sharing options...
Big Country Posted November 15, 2007 Share Posted November 15, 2007 How the heck did she rack up that much in student loan debt? Quote Link to comment Share on other sites More sharing options...
isleseeya Posted November 15, 2007 Share Posted November 15, 2007 A friend of mine just got out of grad school. She has a master's in home ec (yeah for real), works for the state government and makes about $32k per year. She has a new corolla which was a gift from her parents and no bills other than half the rent with her sis in an apt. in Little Rock. Oh yeah she also has 100 GRAND IN STUDENT LOANS. Yes, 100 grand baby. She wants to know what to do to pay them off early. By best answer will likely be to get a second 40 hour job for the next 10-15 years. What say you?? This is a tight spot. probably best if she went back to school to get a PHD Quote Link to comment Share on other sites More sharing options...
muck Posted November 16, 2007 Share Posted November 16, 2007 Spending $100,000 to learn a trade where you will make less than 1/3rd of that in gross revenues in a year is a bad deal. Think about it in business terms. She just bought a company for $100,000 that does $32,000 / year in revenue. This company has overhead and pays taxes; it drops (say) $1,500 / yr to the bottom line (before debt service). It will take her the rest of her life to retire the debt without either (a) selling the company now and buying a different one w/ no money out of pocket (i.e., enter a new, higher paying, profession), ( marry someone that can pay her debts for her, © wait for a relative to die and leave her some money, or (d) get a second (or third) job in addition to the one she bought for $100,000. ...all I can say is that I hope she REALLY (and I mean REALLY!) likes her profession... Quote Link to comment Share on other sites More sharing options...
SF409ers Posted November 16, 2007 Share Posted November 16, 2007 I would say someone must have forgot to tell her that all you need to get a 32k a year job working for the state is a high school diploma. What I can't believe is that you can get a master's in Home Ec, that sounds like a bad joke. It is amazing how many "college grads" I know that have spent a fortune on some degree that has yet to provide them any type of advantage in the "real world". Quote Link to comment Share on other sites More sharing options...
nuke'em ttg Posted November 16, 2007 Share Posted November 16, 2007 Find the nearest Brass Pole and don't do drugs............ Quote Link to comment Share on other sites More sharing options...
MojoMan Posted November 16, 2007 Share Posted November 16, 2007 Prostitution is the answer. Is she hot? Quote Link to comment Share on other sites More sharing options...
nuke'em ttg Posted November 16, 2007 Share Posted November 16, 2007 Prostitution is the answer. Is she hot? Great follow up question........ Quote Link to comment Share on other sites More sharing options...
AtomicCEO Posted November 16, 2007 Share Posted November 16, 2007 (edited) Get a huge pair of fake tits for another 4k, and marry rich. EDIT: She may have to do anal. There's the rub. Edited November 16, 2007 by AtomicCEO Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted November 16, 2007 Share Posted November 16, 2007 I would get a few credit cards with very high balances.....I would then do balance transfers and pay off some of the debt. Then, I would later...say 8 months later...file bankruptcy....just like Dave Ramsey did. Worked for him...might do wonders for her. She could then get a lucrative job telling others how immoral they are for filing bankruptcy while making a killing! Quote Link to comment Share on other sites More sharing options...
wiegie Posted November 16, 2007 Share Posted November 16, 2007 Why the hell would she want to pay those loans off early? Quote Link to comment Share on other sites More sharing options...
T_bone65 Posted November 16, 2007 Share Posted November 16, 2007 Find the nearest Brass Pole and don't do drugs............ Prostitution is the answer. Is she hot? See above for the real answers Quote Link to comment Share on other sites More sharing options...
TimC Posted November 16, 2007 Share Posted November 16, 2007 Going to college is stupid nowadays anyway...especially with the low quality education one receives from the student mills that Universities have become. Quote Link to comment Share on other sites More sharing options...
muck Posted November 16, 2007 Share Posted November 16, 2007 I would get a few credit cards with very high balances.....I would then do balance transfers and pay off some of the debt. Then, I would later...say 8 months later...file bankruptcy....just like Dave Ramsey did. Worked for him...might do wonders for her. She could then get a lucrative job telling others how immoral they are for filing bankruptcy while making a killing! For some reason, I thought that he ended up paying everyone back. Maybe my BIL (who loves DR) didn't have the story straight. I don't really follow the guy much, so I don't know if this is right... Quote Link to comment Share on other sites More sharing options...
Savage Beatings Posted November 16, 2007 Share Posted November 16, 2007 Why the hell would she want to pay those loans off early? That's a great question... I mean she is probably locked in at a dirt cheap interest rate. Why not just ride out the payments until she gains more experience and parlays her government job into the next Martha Stewart television empire. Then, you can think about paying off early. No reason for her to sacrifice her piddly income on that at this point. Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted November 16, 2007 Share Posted November 16, 2007 For some reason, I thought that he ended up paying everyone back. Maybe my BIL (who loves DR) didn't have the story straight. I don't really follow the guy much, so I don't know if this is right... I could be wrong, but he might have filed twice....and bankruptcy is the definition of NOT paying back your creditors. Just saying. I think I had this convo with Puddy last time. I don't really disagree with his preachings...they are sound...just quit acting like people are bad people because they choose the same path you followed to success. Quote Link to comment Share on other sites More sharing options...
polksalet Posted November 16, 2007 Author Share Posted November 16, 2007 I could be wrong, but he might have filed twice....and bankruptcy is the definition of NOT paying back your creditors. Just saying. I think I had this convo with Puddy last time. I don't really disagree with his preachings...they are sound...just quit acting like people are bad people because they choose the same path you followed to success. He filed when he was like 25 y/o and later paid everyone back. He bought a bunch of real estate and some of the notes were called in. He could not pay them and had to file. He sold re for a while and then started his own business. Those are the facts. Quote Link to comment Share on other sites More sharing options...
Dutch Oven Posted November 16, 2007 Share Posted November 16, 2007 I would tell her to check and see if there is loan forgiveness for state employees. Quote Link to comment Share on other sites More sharing options...
H8tank Posted November 16, 2007 Share Posted November 16, 2007 The best investment you can make is in yourself! Quote Link to comment Share on other sites More sharing options...
Savage Beatings Posted November 16, 2007 Share Posted November 16, 2007 The best investment you can make is in yourself! I don't know why this made me laugh, but it did. Quote Link to comment Share on other sites More sharing options...
TimC Posted November 16, 2007 Share Posted November 16, 2007 The best investment you can make is in yourself! Breat augmentation and a cooking class would help her more. Quote Link to comment Share on other sites More sharing options...
Donutrun Jellies Posted November 16, 2007 Share Posted November 16, 2007 Breat augmentation and a cooking class would help her more. Agreed. Cleavage is a terrible thing to waste. Quote Link to comment Share on other sites More sharing options...
Coffeeman Posted November 16, 2007 Share Posted November 16, 2007 Spending $100,000 to learn a trade where you will make less than 1/3rd of that in gross revenues in a year is a bad deal. Think about it in business terms. She just bought a company for $100,000 that does $32,000 / year in revenue. This company has overhead and pays taxes; it drops (say) $1,500 / yr to the bottom line (before debt service). It will take her the rest of her life to retire the debt ... ...all I can say is that I hope she REALLY (and I mean REALLY!) likes her profession... I like this bottom line approach to the problem. Someone in this country needs to take the lead and force some Econ 101 classes in every HS in the US. Drilling into the heads of HS Soph/Jrs (Sr year is too late) the concept of return on investment. Laying out the real opportunities based on the latest ROI studies of various professions against the realistic college (all up) costs + interest costs. This report should be complete with the realistic odds of making certain benchmark salaries X number of years out of school, for example: 10% chance of making >$50K after 3 years with a Home Econ degree, vs. 75% chance of making >$75K after 3 years with a law degree. These percentages should vary based on going to a top univ. system school vs. a state system school, of course. If this girl - and her parents - knew that she'd be making only slightly more than what a kid with a HS diploma in the same industry makes, they would've steered her in another direction, I'd hope. That is, the Stanfords/Harvards/Michigan/Texas's of the world had better not be selling f'g home econ degrees for almost the same cost as MBAs, law and pre-med degrees. Are they? I've been a little out of touch for awhile. If so, they are committing fraud - pure and simple! Or they should also hand out free MRS. degree classes/info too, such as 'Typical ROIs on Breast Implants by State, Related to whether you're starting out at a 2 or 8 on a Scale of 1-10'. I'm sure that study would be popular..... Quote Link to comment Share on other sites More sharing options...
Coffeeman Posted November 16, 2007 Share Posted November 16, 2007 I should also point out that there is nothing wrong with wanting to simply take yer HS degree and go pump gas (or flip burgers or sell clothes at the mall) for a living. We need people like this too, or else it'll cost $5/gallon sooner than we anticipate. Work hard there and you may end up being the manager or assistant mgr and still make maybe $40-50K and be happy. All that would show up in the big study I proposed above. But to sell the idea that every young man and woman must go to college and fork out $75-$100K for a degree that may not pay back anywhere near what it requires in realistic ROI is just wrong. I am not taking a liberal or conservative approach here, just a pragmatic one.... Quote Link to comment Share on other sites More sharing options...
Brentastic Posted November 17, 2007 Share Posted November 17, 2007 I work in the student loan industry - if she has subsidized loans, the best thing to do would be to apply for an economic hardship deferment. If approved, the interest that accrues on the subsidized loans only is paid for by the government (unsub would still accrue and the government would not pay). What that means for her - again, if she is approved for the deferment - she can make payments on the subsidized loans while in deferment status and her full payment would be applied to principle only. Now, the unsubsidized loans would still accrue interest and she would have to pay it. But, at least she could get ahead on the subsidized loans instead of making her typical monthly payment, where most of that monthly payment (in the beginning anyways) is going toward interest. Quote Link to comment Share on other sites More sharing options...
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