I owe 200 k in student loans and make 40 k, will 50 bucks a month keep me from default in 2009?
Fifty dollars a month will not keep you out of default with a debt of 200K and this has never been the case that I am aware of. Federal loans sometimes will advertise a "minimum 50 dollar payment" but if you read more in depth it is to inform you that this is the minimum payment no matter how LITTLE you borrow, not how much. Example: If you just borrow 1,500 total in student loans your minimum payment would be 50 dollars when you graduate. (This is about the same payment as someone who borrowed as much as 5,000 total). Besides, with that much of a debt, I'm sure you have private student loans as well, and those payments and terms are a lot different that the federal loan terms. (variable interest rates - and payments, prepayment penalties, 30 year payment term instead of 10). My advise is to put off the American nightmare for a while and move back in with the parents, grandparents, sibling, cousin, etc. to cut your expenses. Do that..... AND go out and get a second job, 40 hours a week isn't meeting your needs so you need to step it up. 50 dollars a month will not keep you out of defalut and if you don't do something quickly its going to get a lot worse once you are into default. An extra 20 hours on the weekends or in the evening isn't going to kill you. The moral of this story is if you live like a professional when you are a college student (cars, girls, parities...) you will live like a college student when you graduate. You might want to inform those who are your cosigners for these loans you are having problems paying, they will be the ones the most motivated to put you in their basement or help you find that second job.
Is a 200k student loan possible to pay off?
So I got into my top choice dream university (boston university) but recieved NO financial aid from them what so ever, besides 7.5k in federal loans. The university costs about $54,000 per year to attend, and my family's EFC is only $5000. This really sucks, since BU was my top choice, but I was thinking, is it even possible for me to take that much out in other loans? And if I do manage that, would I be able to pay them off after i get a job? I want to go into pre law with a major in political science, and I will probably go to law school as well. possibly be either a lawyer or work for the government. I really don't want to go to a state school and then transfer, since it just gets harder and harder each year to get into BU, and I'm worried i won't get in as a transfer. any thoughts?
Can I get Federal student loans with parents making $200k annually?
I recommend filling out the FAFSA so you don't forfeit financial aid you may be entitled to. Having a sibling in college may affect your parents' expected family contribution (EFC), meaning the amount the government determines your parents can contribute to college costs. The more expensive your college, the more likely it is you'll receive student loans, work-study or other funding. You have everything to gain and nothing to lose! Keep in mind that federal loans are a safer bet, and often come with lower interest rates, than private loans (if you're offered both). Also, be sure to borrow only as much as you're sure you can repay based on the likely salary you'll earn after graduation. It can be hard to predict the future, but many graduates borrow loans without considering the potential financial impact later on. You're in the position now to make smart financial choices. If you'd like to learn more about student loans, start with this article, Understanding Student Loans: 7 Things You Need to Know.
How do people get 200k in debt on student loans?
Undergraduate students are not eligible to take on that much from the federal government. Yes, parents just keep on co-signing their private loans so that they can go to a fancy private school for an art history degree and then work a minimum wage job after graduating. Kids get their heart set on a particular school and think that just because they are good enough to get in then they should do everything possible to go there even if it's not worth it.
If you owe substantial back taxes to the state and federal gov. and then win a lottery how is it handled?
Nothing happens directly, although if the person has any sense at all they'd apply most of the winnings to what they owe. Of course, if they had good sense they wouldn't be $200K in debt to the IRS in the first place. The IRS can levy bank accounts to get the money the person owes. And the IRS WILL find out about the win, since the person will get a 1099 for it and the IRS will also get that info. And the person needs to be aware that even though tax is withheld from the winnings, the withholding might not be enough to cover what they'll owe on it.
Extremely stressed out about student loan repayment...?
Go to school in state. Get a job while you are going to graduate school and try to avoid any more loans. Student loans can be graduated, so that your payback starts low and goes up as your income increases. But seriously, you should change plans and go to a less expensive school choice and, as I said, get a JOB. It may take longer, but at least you won't add to your debt. Not sure what you used for your calculations. But my loan is less than 3% interest. So I ran your number of 200K through a loan calculator at 3% and it was $850, not $1600. I assume you are getting loans through a federal program and not foolish enough to go through private agencies. You have the equivalent of a mortgage and you haven't even got a house. There are some plans that say if you agree to work for the government, they will forgive your loans, but it has to be several years and the amount is varied. I haven't kept up with it, but you should ask your financial aid advisor about it. Also, apply for any and all scholarships you qualify for. A lot of them go unclaimed because people don't apply. Not all require financial need.
I have $200k in student loan debt and will start a job that grosses $120k year (no family). What would be the best way to tackle this debt while still investing in my future?
Tom did an amazing job outlining what you should do, but I suggest you take a more aggressive loan payment schedule. Assuming even worst case tax situations, you'll be grossing at least $6500 a month. Set aside $2500 of that to live on. I'd personally suggest that you have a roommate and drive a not so expensive car to limit expenses. People never realize how expensive a car really is, because they see a $400 payment and fail to include the $200 in insurance and $300+ in maintenance/gas/etc. So get a nice little Toyota Camry or Mazda 6 which will say you a considerable amount. With that other $4000, I'd suggest you put roughly what Tom mentioned ($1000) but I'd say go ahead and drop it down to $800. That's a hair under $10,000 a year in a 401K. And since you're most likely young (can't really tell) invest it in a small-cap or more volatile mutual fund. That leaves you $3200 to pay towards your loans a month. For the first two paychecks, take that $3200 and put it in an emergency fund ($6400) in case you run into paying a high insurance deductible or car needs work done or anything. Then start paying towards your loans. That means you're going to be able to knock out your student loans in roughly 7 years (which is great news) because then you'll not only have a higher salary most likely, but you'll get back 3 years of being debt free and can truly do what you want to. Try to kill as much of debt as you can, that way in case you're entrepreneurial or want to take a sabbatical you have the means and aren't worrying about constantly paying back that huge amount. If you do that within 7 years you'll have roughly accumulated $92,000 in your 401K a paid off vehicle, your emergency fund which will likely be $10,000 by then and absolutely no debt. That's assuming no increase in salary.If you're 22/23 you can go into your 30's ready to risk whatever you need to grow or live the life that you want to. If you make more than $6500 net income, then go ahead and use the rest of that towards living expenses, but I'd suggest avoid living on your own for at least a couple years after you have graduated. Unless you have a LTR or fiancee there's really no reason to not have a roommate.
When does it make sense to default on student loans?
Thanks for the A2A. The consensus on Quora seems to be that “never” is the right answer. There is one person who has addressed this issue who has generated quite a bit of comment among educators and the public at large.The reason? Here is a snippet of what he wrote in the NY Times: I chose life. That is to say, I defaulted on my student loans.As difficult as it has been, I’ve never looked back. The millions of young people today, who collectively owe over $1 trillion in loans, may want to consider my example.Am I a deadbeat? In the eyes of the law I am. Indifferent to the claim that repaying student loans is the road to character? Yes. Blind to the reality of countless numbers of people struggling to repay their debts, no matter their circumstances, many worse than mine? My heart goes out to them. To my mind, they have learned to live with a social arrangement that is legal, but not moral. http://www.nytimes.com/2015/06/0... Judging by the comments and responses to this piece, most think Siegel is giving advice that is not just wrong but hurful for those who might follow his advice. These comments by Liz Weston in a piece in Money sums up what many others have said: In any case, Siegel’s piece downplays the personal and lifelong financial devastation that default can inflict, while ignoring the fact that there are now plenty of options for dealing with most student loan debt.If debt collectors are sometimes likened to junkyard dogs, the Department of Education would be the one who is not chained or fenced. There is no statute of limitations on federal student loans, which means its collectors can chase you to your grave.Along the way, they can snatch your tax refunds and garnish your wages without having to go to court. They can even take a bite out of your Social Security checks, something other creditors cannot do. Defaulting on Student Loans Is Stupid, Not Brave Highlighting a moral point while trying to get a movement started to undermine the whole student loan system may make some ideological sense, but in the real world we live in a pragmatic approach seems better for individuals who have to pay rent, buy food and try to survive on often low salaries.