I am single, in my late 20s, and I have about $65,000 in private loans and $255,000 in federal loans. I was a minor when taking out the majority of those loans over 10 years ago, and basically at the behest of my parents, who said they needed the money for living expenses. I am no longer on speaking terms with them. I have consulted with a lawyer since, who was sympathetic but advised that legal costs and the drawn-out nature of the legal system would mean that I could end up with even more debt and it could easily take 8+ years to reach a resolution. I have decided against a lawsuit, especially since I have recently heard that my parents are in poor health (one has a terminal diagnosis).
I am a relatively new grad RN. The average starting salary here is about $58-60,000. I am completing an NP certification (paying out-of-pocket) and expect to complete it in 2 years, which will boost my earning potential. However, even if I live as a pauper, I will spend at least 10 years paying off the loans.
I have spoken to several advisors and PSLF is an option if I continue working for a nonprofit hospital or other organization for 10 years, which is still a long time, but at least it frees up some money for retirement/investment/etc. If PSLF fails, I can use that money towards paying off the loans. It's obviously a risk. Does anyone have any other ideas on what I could do? I've looked into the NHSC repayment option but I'm not sure it would help much, since most of my loans are not from nursing school.
I'm having a hard time dealing with the reality of this burden. I want to do normal things like save for retirement, maybe get married, buy a small house. It feels like I'll be losing 10 years of my life to loans that my parents used. It really sucks.
Specializes in Critical Care; Cardiac; Professional Development.
I would suggest reading Dave Ramsey, who is excellent about advising people how to get out of debt. That your parents did this to you is unforgivable. Is there any chance they can help with the payments?
I declared bankruptcy in my early 30s. I also owed the IRS money. I won't go into the details, but my credit score is now 820, higher than my husband's, who has never had any kind of financial issue. If you are able to get forgiveness for any of those via bankruptcy it is worth looking into. The next 10 years are going to be hard either way. I am so sorry for what you are going through. Whatever you do, do not default on the government loans. It gets reported to the BON if you do.
Is it $256 in federal student loans? Or are these private, individual loans? Did your parents co-sign these loans? How did they acquire this money to live on from you?
I second Dave Ramsey. He’s great at helping people get rid of debt. My ex and I paid off two homes and lived debt free. I continue to live debt free aside from my car and house. And I’m paying both down.
Specializes in Critical Care; Cardiac; Professional Development.
On 8/19/2020 at 8:41 AM, LovingLife123 said:
Is it $256 in federal student loans? Or are these private, individual loans? Did your parents co-sign these loans? How did they acquire this money to live on from you?
I second Dave Ramsey. He’s great at helping people get rid of debt. My ex and I paid off two homes and lived debt free. I continue to live debt free aside from my car and house. And I’m paying both down.
Yep. We paid off our home mortgage in a little less than 9 years and we buy our cars with cash. We have a quality of life I never imagined possible with plenty of money for travel abroad (well....back when that was possible). We use credit cards to build up the airline miles, but pay it off literally as we make the charges. I love living debt free and I hope the OP gets to experience it. The original post literally makes my stomach hurt. That kind of debt is a prison sentence.
I too, have a colleague who swears by Dave Ramsey. She's 50 and completely debt free.
Dave Ramsey is amazing. I used his program to turn my life around post divorce and ex had DESTROYED my credit. I may not be where I want to be, but I'm a whole lot closer than I was before the program. It took 7 years to pay off everything
I'm no expert, OP, but it's worth seeing if any of these loans can be consolidated. I was able to consolidate my private loans (already had a bachelor's degree so I didn't qualify for much federal aid and the federal loans were not enough). This lowered my interest rate considerably. (Assuming that legal recourse and/or bankruptcy do not meet all your needs.)
Also, in no way trying to minimise your plight but 10 years isn't atypical for paying off big loans. You might even consider whether taking longer to pay them off allows you to live a slightly more comfortable life and cover some of your other priorities as well. It won't save you money, but living a life of deprivation for 10 years won't help your sanity either! I'm not generally a "debt is just a part of life" person...the only debt we carry is our house and a new vehicle...but I personally would find it easier to commit to budgeting $1000/month (or whatever amount...that's how much I paid for 5.5 years on a similar salary) and figuring they'll be paid off when they're done versus trying to live on beans, rice, and ramen for 10 years.
Good luck to you and I second all the above about taking care of your mental health during this.
"...I am a relatively new grad RN. The average starting salary here is about $58-60,000. I am completing an NP certification (paying out-of-pocket) and expect to complete it in 2 years, which will boost my earning potential. However, even if I live as a pauper, I will spend at least 10 years paying off the loans..."
How much are you paying for your NP certification? Could this money go toward your debt instead and you just hold off on certification for a bit? Might feel a lot better having less debt rather than racking up more.
The curiosity is killing me.... How much of the over $300K went to your parents and how much went to your own schooling? Which degree(s) did you earn???
I would set up an appointment with Travis at studentloanplanner.com. There are many things they can do with someone in your situation with a large debt:income ratio. You could also try this book, it's an amazing resource. You would probably be best to go with PSLF and some form of PAYE/REPAYE, income-based repayment program.
Nurse SMS, MSN, RN
6,843 Posts
I would suggest reading Dave Ramsey, who is excellent about advising people how to get out of debt. That your parents did this to you is unforgivable. Is there any chance they can help with the payments?
I declared bankruptcy in my early 30s. I also owed the IRS money. I won't go into the details, but my credit score is now 820, higher than my husband's, who has never had any kind of financial issue. If you are able to get forgiveness for any of those via bankruptcy it is worth looking into. The next 10 years are going to be hard either way. I am so sorry for what you are going through. Whatever you do, do not default on the government loans. It gets reported to the BON if you do.