How to pay back $120,000 in student loans?

[ILikeTobacco]

I think the US unemployment rate is now falling, while the UK's is still rising, and its only going to get worse for now. :(

Although definitely difficult for anyone to get a decent full-time job.

They should move to a different state. I know in Oklahoma, it is hard to find qualified IT professionals right now. Everyone is already employed. The recession didn't really affect us other than raising gas and food prices. Please note that I said qualified. The unskilled workers always have hard time finding jobs even when the economy is good.

[iamawesomewicked]

They should move to a different state. I know in Oklahoma, it is hard to find qualified IT professionals right now. Everyone is already employed. The recession didn't really affect us other than raising gas and food prices. Please note that I said qualified. The unskilled workers always have hard time finding jobs even when the economy is good.

Because it's easy to move with no money right?

[ILikeTobacco]

Because it's easy to move with no money right?

Considering most companies pay for moving costs, yes its pretty easy.

[DukeEsquire]

I am assuming you live in the USA based on using $ to denote how much you owe. If it starts to become to much, you should look at filing for bankruptcy. It will destroy your credit line for the next decade but it will mean you will only pay back a fraction if any of the cost. The great thing about a degree is that a bank can't repo it. Once you have it, it is yours. It is a drastic and questionably unethical thing to do, but given no other choice, consider it.

Your other option, if they are true student loans, you have the option of contacting the lender and getting the payments deferred partially or completely for a while allowing you to catch up in other things. If you go this route, cut back on all spending and pay your car off immediately. Then you will have 300 more a month to deal with student loans with. If you have any other debts like credit cards, pay them off and then put what you were putting into the credit card/car into the student loan. It is called snowballing your debt. Every few years, refinance the loans at lower rates. If you bring your min payment down from 800 to 500, keep paying 800. You will quickly get to a point where you only owe around 300-400 a month.

You are already paying to much as it is. A house mortgage for $125k costs around $500-$600 a month right now depending on your credit score. May just need to refinance to start with.

Bankruptcy does not remove student loans.

[c.grz]

What kind of job do you currently have?

Where did you go to school that college cost you $120,000?

Many possible options to resolve your debt but need a lot more detail before we can really be of assistance.

[c3ntury]

. Make an effort to pay back the money you stole, which is usually from the public IE: your neighbors, your parents, your siblings, etc....

That is stupidly hostile, and I wouldn't call it "stealing". /facepalm.

[ILikeTobacco]

Bankruptcy does not remove student loans.

If you file for bankruptcy when you have student loans, lenders are forced to at a minimum cut down on what you owe. There are clauses in most student loans for that specific case. At the worst they defer the payments for years or until full time employment is found.

[etempest]

Consolidate in to the lowest possible interest, prey some of those are not unsecured student loans (where the bank can up the interest rate), and make sure you have enough life insurance to cover your dept + what you want to go to your family when you die.

(Edit) Note, Bankrucpy does not wipe out secured/unsecured student loans.

[WelshBluebird]

They should move to a different state. I know in Oklahoma, it is hard to find qualified IT professionals right now. Everyone is already employed. The recession didn't really affect us other than raising gas and food prices. Please note that I said qualified. The unskilled workers always have hard time finding jobs even when the economy is good.

Moving is not that easy.

Especially if you don't have that much money.

[sc302 Veteran]

Nope bankrupcy does nothing for student loans, Suze Orman is trying to do something about it but it is a few years before that comes into fruition or even being passed.

My suggestion is take the adivce from professionals who deal with this on a daily basis. Listed to Suze and/or Dave Ramsey. Cut out your non necessities (cable, as nice as it is, is not a necessity...eating out is not a necessity...video games are not a necessity....your computer is not a necessity, if it is your company usually provides you with one and an air card if needed...the internet is not a necessity). You need food, transportation and a roof over your head. Everything else is a want not a need. It is going to take a while, you have 120,000 in student loans, you are going to probably have a mortgage or rent, and you are going to need some sort of transportation, plus other monthly bills (power, food, fuel, possibly telephone if work does not provide you with a cell phone; nothing else for now).

You want to get out of debt, then you have to "live like no one else" by sucking it up and not having what the rest of your friends have. It isn't going to be easy, but if you follow anything that these two say you will be out of it in 10 years if you make 20-25,000 a year. If you keep it up then you can "live like no one else" and have things that most can't afford and pay cash for them (even if you have an average 40-60,000 a year job at that point), and not have any additional debt.

[AJerman]

You really added a wonderful info, thanks a lot I will follow your recommendation. :rolleyes:

I'm not sure what the rolleyes face is for unless you actually are trying to just get out of it without paying. I told you how to reduce and defer payments until you can pay them. If you didn't want to pay them, you shouldn't have gone to college in the first place. You have the debt now and are responsible to pay it. Defer the payments until you can pay them, reduce the payments if they are too high for you, and find a job and start paying them. There is no other choice, period. As mentioned, not even bankruptcy will get you out of student loans. There are a LOT of people in their 30s and 40s still paying their student loans.

[ILikeTobacco]

Moving is not that easy.

Especially if you don't have that much money.

Already said this but here it is again, most companies pay for moving costs. To add to that though, we are talking about companies who require a minimum of a bachelors or masters degree for the job. Any company that requires those and hires out of state will pay for you to move and in many cases even consider your first 3 months rent a moving expense. The company I am with now pays up to $5000 in moving expenses. Moved one guy from Florida and cost about $2000 to do it so he got the first 3 months of rent paid. Houstin, Texas also has quite a few IT jobs listed that are the same. Jobs are out there, its just a matter of finding them.

The best jobs are almost never listed on the usual avenues for finding jobs because HR doesn't want to deal with thousands of people from around the country trying to get the job. The best way to find jobs is not to look for jobs, but look for companies that you want to work for and then check their company sites for job listings. For instance, lets say you are willing to work in Houstin, Texas.

http://en.wikipedia.org/wiki/List_of_companies_in_Houston

Pick a company and see if they have any job openings you can fill. If your really lucky you can even find a company that will pay for some of your education.

[threetonesun]

Time machine. Go back five years and pick a cheaper school, or go back ten and study harder and get a free ride. Or play sports, if you're so able.

Honestly, look for full time jobs outside of your field, if you have one. I was an English major, and got a good job 3 months out of college, but it was in a field I had never even remotely considered while in school. I'm still in it, and I'm better off than most of my friends who got "real" degrees.

[CoLdFuSi0n]

I'm not sure what the rolleyes face is for unless you actually are trying to just get out of it without paying. I told you how to reduce and defer payments until you can pay them. If you didn't want to pay them, you shouldn't have gone to college in the first place. You have the debt now and are responsible to pay it. Defer the payments until you can pay them, reduce the payments if they are too high for you, and find a job and start paying them. There is no other choice, period. As mentioned, not even bankruptcy will get you out of student loans. There are a LOT of people in their 30s and 40s still paying their student loans.

I agree with you that it seems like he just wants a easy way out of paying it off.

After thinking about I wouldn't hire you as it seems like you have no clue what you are doing. Life is like running a business and if that's what you spent all that money for is a masters in business then you took the wrong carrier if you can't even figure out how to run your own life.

[etempest]

If you don't pay / try to get out them, don't expect to see a tax return for the rest of your life.

[threetonesun]

Already said this but here it is again, most companies pay for moving costs. To add to that though, we are talking about companies who require a minimum of a bachelors or masters degree for the job. Any company that requires those and hires out of state will pay for you to move and in many cases even consider your first 3 months rent a moving expense. The company I am with now pays up to $5000 in moving expenses. Moved one guy from Florida and cost about $2000 to do it so he got the first 3 months of rent paid. Houstin, Texas also has quite a few IT jobs listed that are the same. Jobs are out there, its just a matter of finding them.

That's rare, and I'm guessing requires you move to some undesirable location like Houston, Texas, or take some undesirable job. You can write moving expenses off your taxes. You could also try to get hired as a consultant, where they might pay for your living expenses, but with zero experience, you won't get any of these jobs. You didn't do an internship or anything?

Certainly, though, location plays a big part in this dilemma. If you can get a decent job in a place with lower cost of living, you're golden. If you're trying to live in NYC with $120k in loans, you'll need 15 roommates and three jobs.

Or, you can do what a lot of people your age do, and go into credit card debt and screw yourself over for the next 30 or 40 years.

[ILikeTobacco]

That's rare, and I'm guessing requires you move to some undesirable location like Houston, Texas, or take some undesirable job. You can write moving expenses off your taxes. You could also try to get hired as a consultant, where they might pay for your living expenses, but with zero experience, you won't get any of these jobs. You didn't do an internship or anything?

Certainly, though, location plays a big part in this dilemma. If you can get a decent job in a place with lower cost of living, you're golden. If you're trying to live in NYC with $120k in loans, you'll need 15 roommates and three jobs.

Or, you can do what a lot of people you're age do, and go into credit card debt and screw yourself over for the next 30 or 40 years.

Like you said it comes down to location. I am in Oklahoma and we have tons of IT jobs available right now and can't fill them. Houstin is having the same issue. In those situations, companies have to offer move expenses and education benefits or not find anyone to work for them.

[Peter Griffin]

If you don't pay / try to get out them, don't expect to see a tax return for the rest of your life.

I would gladly make that deal with the government! You abolish my students loans, and you can keep all my tax returns. That would be an awesome deal :)

[carson2255]

I dont know how schools can charge so much for student's education, what is he fair value for a course today, if you go to a $30,000 + tuition college or university, do you think its worth it to pay $2000+ for each course which last one semester?

[soldier1st]

you could ask them to forgive your loan.

[Night Prowler]

^Take a chill pill man. He didn't steal anything from anyone. This is a contract arrangement, not a tort. I had $100,000 in student loans coming out of law school and I'm certainly not ashamed of myself.

Right, who do you think you are kidding. If he is in the US and these are US loans then he owes me, the taxpayer...

Again, if you spent $100k and got nothing out of it then you should also be ashamed of yourself...

These kids nowadays just don't think about tomorrow. Party today, pay later. Well it's now later for the OP. Then he posts is in this forum for help. Well, this is about as silly as bilking the private or public sector out of $110k with nothing to show for it, and no way to pay it back. He needs to go get professional help, and it's just not on methods to pay back the loans. Anybody that can rack up $110k in student loans, with nothing to show for it as more problems than trying to figure out how to pay the money back.

[Southern Patriot]

Make an effort to pay back the money you stole

Stole?? He got a loan.

Anyone that takes out $120k in student loans and gets nothing out of it, should be ashamed of themselves.

He did get something out of it: a masters degree in business.

[Fred Derf Veteran]

Bankruptcy does not remove student loans.

I always wondered about that given that they cannot repossess your degree. $120,000 of students loans is crazy. I have friends that had "significant" student loans but nothing on that scale. In Canada, students complain about paying $6000/yr but they don't realize that a lot of the tuition they pay is subsidized.

[threetonesun]

I dont know how schools can charge so much for student's education, what is he fair value for a course today, if you go to a $30,000 + tuition college or university, do you think its worth it to pay $2000+ for each course which last one semester?

No, not at all. I've taken classes at other educational institutions that were the same length and much cheaper ($100, $200), and gone to free seminars that taught me more than some of my college classes.

Was the diploma worth $120,000 though? Absolutely.

[+John Teacake MVC]

Wow thats a huge amount in Student loans even when you convert it to GBP. . . . Try Roulette. All on Red!