Please help me overcome my loan anxiety

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CourtneyAnn

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I have $60000 in student loan debt from my bachelor’s degree program and my payments are $700 a month. I tried talking to my bank but they refuse to go any lower. Unfortunately all of my loans are private because my parents’ income was too high to qualify for government financial aid.

My job only pays $1050 a month (after taxes) even though I work 10+ hours a day, but it was the only one I could find and I am lucky to even have that. This area is very economically depressed and there isn’t a lot of opportunity. I have no car so I ride my bicycle to work and live with friends and family as a couch surfer. I’m praying I’ll find a better paying job, hopefully something in my field, so I can make my loan payments and live a somewhat normal life. I want to get married and have a family some day but I’m feeling every day like that is becoming more and more hopeless.

Please I need prayers and advice from people who have been in a similar situation. I just feel like I’m trapped and there’s no way out.
 
CourtneyAnn said:
I have $60000 in student loan debt from my bachelor’s degree program and my payments are $700 a month. I tried talking to my bank but they refuse to go any lower. Unfortunately all of my loans are private because my parents’ income was too high to qualify for government financial aid.

My job only pays $1050 a month (after taxes) even though I work 10+ hours a day, but it was the only one I could find and I am lucky to even have that. This area is very economically depressed and there isn’t a lot of opportunity. I have no car so I ride my bicycle to work and live with friends and family as a couch surfer. I’m praying I’ll find a better paying job, hopefully something in my field, so I can make my loan payments and live a somewhat normal life. I want to get married and have a family some day but I’m feeling every day like that is becoming more and more hopeless.

Please I need prayers and advice from people who have been in a similar situation. I just feel like I’m trapped and there’s no way out.
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Bummer.

As long as your income barely feeds you, don’t feel bad about not paying the loan.

Try listening to Dave Ramsey on the radio or over the internet to hear stories of people that have faced what you are facing and come out of it successfully.

It sounds like it’s really important to get out of your area. Would you do live-in childcare? My brother’s ex-girlfriend (who came out of a background with nothing) did that for a while in a totally different state. The pay was terrible, but she did not have living expenses and it would be possible to save almost everything. That sort of arrangement might be a good middle step between your current situation (couch-surfing) and relocating to a new area and having a home of your own.

I’m in TX and I recently saw Aldi’s (the grocery) advertising $11 an hour entry level jobs. There are a lot of opportunities here now at entry level.

Best wishes!
 
$60,000 is a LOT. I can understand why you would be so stressed out. What is your degree in?

I think it would help if you could get a part time job in addition to your current one.

Also, you might think about moving to an area that is not so economically depressed so you can get a better paying job.
 
25 “Therefore I tell you, do not worry about your life, what you will eat or drink; or about your body, what you will wear. Is not life more than food, and the body more than clothes? 26 Look at the birds of the air; they do not sow or reap or store away in barns, and yet your heavenly Father feeds them. Are you not much more valuable than they? 27 Can any one of you by worrying add a single hour to your life?

28 “And why do you worry about clothes? See how the flowers of the field grow. They do not labor or spin. 29 Yet I tell you that not even Solomon in all his splendor was dressed like one of these. 30 If that is how God clothes the grass of the field, which is here today and tomorrow is thrown into the fire, will he not much more clothe you—you of little faith? 31 So do not worry, saying, ‘What shall we eat?’ or ‘What shall we drink?’ or ‘What shall we wear?’ 32 For the pagans run after all these things, and your heavenly Father knows that you need them. 33 But seek first his kingdom and his righteousness, and all these things will be given to you as well. 34 Therefore do not worry about tomorrow, for tomorrow will worry about itself. Each day has enough trouble of its own.(Matthew 6:25-34)
 
Be anxious for nothing, but in everything by prayer and supplication with thanksgiving let your requests be made known to God. And the peace of God, which surpasses all comprehension, will guard your hearts and your minds in Christ Jesus. **(Philippians 4:6-7) **

The temptations in your life are no different from what others experience. And God is faithful. He will not allow the temptation to be more than you can stand. When you are tempted, he will show you a way out so that you can endure. 1 Corinthians 10:13
 
Trust in the LORD with all your heart, And do not lean on your own understanding. In all your ways acknowledge Him, And He will make your paths straight. (Proverbs 3:5-6)
 
Try listening to Dave Ramsey on the radio or over the internet to hear stories of people that have faced what you are facing and come out of it successfully.
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It sounds like it’s really important to get out of your area. Would you do live-in childcare? My brother’s ex-girlfriend (who came out of a background with nothing) did that for a while in a totally different state. The pay was terrible, but she did not have living expenses and it would be possible to save almost everything. That sort of arrangement might be a good middle step between your current situation (couch-surfing) and relocating to a new area and having a home of your own.
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I’m in TX and I recently saw Aldi’s (the grocery) advertising $11 an hour entry level jobs. There are a lot of opportunities here now at entry level.
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I’ve heard of Dave Ramsey actually! I will definitely look into him more, because it does sound like he has some great advice to give about how to live with debt/work on paying it off.

I actually have a few friends who did live-in childcare and really enjoyed it. My biggest obstacle to leaving this area is lack of money to re-establish myself somewhere else, so I think that is great advice and I will definitely look into it! I’ve never really thought about moving to Texas, but I’ve heard the economy and job market there has actually turned up quite a bit recently so I’ll definitely check it out.
What is your degree in?
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Anthropology and social science (double major) with a minor in history 😊 . In hindsight, probably not the most marketable majors. I really wanted to learn more about society and cultures so that I could help people (the original plan was to do a master’s, but I don’t want to even think about going back to school until I pay off my current debts). I was young and I erroneously believed that just having a degree would be enough to assure a higher paying job.
 
Thank you Hesso for the passages. They are truly comforting and I will trying to remember them when things get hard and I begin to lose hope.
 
CourtneyAnn said:
I’ve heard of Dave Ramsey actually! I will definitely look into him more, because it does sound like he has some great advice to give about how to live with debt/work on paying it off.

I actually have a few friends who did live-in childcare and really enjoyed it. My biggest obstacle to leaving this area is lack of money to re-establish myself somewhere else, so I think that is great advice and I will definitely look into it! I’ve never really thought about moving to Texas, but I’ve heard the economy and job market there has actually turned up quite a bit recently so I’ll definitely check it out.

Anthropology and social science (double major) with a minor in history 😊 . In hindsight, probably not the most marketable majors. I really wanted to learn more about society and cultures so that I could help people (the original plan was to do a master’s, but I don’t want to even think about going back to school until I pay off my current debts). I was young and I erroneously believed that just having a degree would be enough to assure a higher paying job.
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It’s criminal that young people are allowed to burden themselves with a mountain of debt to acquire a piece of near useless paper. I’m sorry you are in this position, but if your loans are truly 100 percent private that is actually good news, because unlike those with government backed loans you can discharge yours in bankruptcy. File Chapter 7 and don’t look back.

As to the job front, consider teaching English overseas. There are several countries (Korea for example) where you can do this, make a reasonable wage, and have an adventure to boot. Just do your research and make sure the agency you work with is reputable.
 
CourtneyAnn said:
I’ve heard of Dave Ramsey actually! I will definitely look into him more, because it does sound like he has some great advice to give about how to live with debt/work on paying it off.

The main thing DR can do for you is to give you hope, that there are people like yourself that have faced what you are facing, and that there is life after debt.

I actually have a few friends who did live-in childcare and really enjoyed it. My biggest obstacle to leaving this area is lack of money to re-establish myself somewhere else, so I think that is great advice and I will definitely look into it! I’ve never really thought about moving to Texas, but I’ve heard the economy and job market there has actually turned up quite a bit recently so I’ll definitely check it out.

**I see job advertisements everywhere.

The problem is, you need a much higher income than entry-level to pay your debts, but even just making more than you currently do could greatly increase your quality of life.

Oh, and bear in mind that the summer months are especially problematic for professional families with school-age children. You might be able to find something right now or next year. **
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CthgeDelendaEst said:
It’s criminal that young people are allowed to burden themselves with a mountain of debt to acquire a piece of near useless paper. I’m sorry you are in this position, but if your loans are truly 100 percent private that is actually good news, because unlike those with government backed loans you can discharge yours in bankruptcy. File Chapter 7 and don’t look back.

As to the job front, consider teaching English overseas. There are several countries (Korea for example) where you can do this, make a reasonable wage, and have an adventure to boot. Just do your research and make sure the agency you work with is reputable.
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I don’t like the bankruptcy advice. Right now, nobody’s coming after the OP (because she’s broke). Nobody’s going to come after here until she has some money, by which time she can pay it off.

Oh, and another thing–once you do have a decent income, you’ll need to make sure that you’re paying off your loan, not fees and fines and gotchas. So, do some research on that.

I do like the overseas English idea. Do your research, though, as mentioned, because sometimes there are some huge gotchas.
 
Do your university have a careers service? The ones in my country are often very good at helping former students into appropriate graduate-level jobs. I don’t know the US system well, but surely your universities must have similar?
 
Xantippe said:
I don’t like the bankruptcy advice. Right now, nobody’s coming after the OP (because she’s broke). Nobody’s going to come after here until she has some money, by which time she can pay it off.

Oh, and another thing–once you do have a decent income, you’ll need to make sure that you’re paying off your loan, not fees and fines and gotchas. So, do some research on that.

I do like the overseas English idea. Do your research, though, as mentioned, because sometimes there are some huge gotchas.
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The OP is making $1000 per month and couch surfing. Her prospects for making more money in the near term are poor. This debt will hang around her neck like an albatross and keep her from ever getting ahead. Say her income tripled tomorrow. How is she going to be able to afford an apartment, car, insurance, pay taxes, and oh yes feed herself while making a $700/month student loan payment? She cant. She needs to get some legal advice and put this behind her. I feel no sympathy for a lender who went $60000 deep into someone getting an anthropology degree.
 
CthgeDelendaEst said:
It’s criminal that young people are allowed to burden themselves with a mountain of debt to acquire a piece of near useless paper. I’m sorry you are in this position, but if your loans are truly 100 percent private that is actually good news, because unlike those with government backed loans you can discharge yours in bankruptcy. File Chapter 7 and don’t look back.

As to the job front, consider teaching English overseas. There are several countries (Korea for example) where you can do this, make a reasonable wage, and have an adventure to boot. Just do your research and make sure the agency you work with is reputable.
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I thought you absolutely couldn’t discharge student loans via Chapter 7…private or federal.

Isn’t that law still in effect?
 
Kelfa28 said:
I thought you absolutely couldn’t discharge student loans via Chapter 7…private or federal.

Isn’t that law still in effect?
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I believe student loans are one of the few that cannot be discharged in bankruptcy. However, I have also heard there may be some exceptions, perhaps due to extreme hardship circumstances. Something for the OP to look into.

To the OP: Is there any possibility that you could cut down on some of your current expenses, that is, certain luxury items or activities, and pay a little more on your monthly student loan debt? The amount is high but is still manageable if you are able to budget effectively. One thing you should probably NOT do is take out a new loan or open a new credit card account to pay down your debt.
 
If you are still in Portland, as your information says, there should be more opportunities for you. While there is still some recession job recovery that needs to happen in Portland, it is not really an economically depressed area. The other thing that bothers me is that, unless you are having to pay something like medical out of your paycheck, even with taking no federal and state allowances if you are working 40 hours or more you should be taking home more money than you say you are getting. Oregon minimum wage is $9.25/hr unless you are working for some private person doing something like babysitting or similar. I mean $9.25 x 160 hours (assuming a paycheck every other week in most months) would give a gross of $1480. You would get around 75% of that even after taxes if you chose no personal exemptions (assuming there isn’t some other extra thing being deducted from your pay) which means you should get $1109 minimum. If you claimed your exemption allowances for 1 person for both federal and state, you should net $1171.
This is what I would suggest:
-Go to your college to see if they have a job list for graduates.
-Check out the state employment division resources. You don’t have to be unemployed to use the job finding resources. They can help with resume writing, job finding techniques, etc.
-Look for jobs online in places like craigslist, snagajob.com, indeed.com.
-Go to some temporary job agencies and tell them you are interested in long-term jobs. Some employers actually use temps as a way to try people out before hiring permanently. Plus it is a way to make connnections for future employment.
-Get a job as a waitress. In Oregon tip credit cannot be used against paying minimum wage, so you would be entitled to minimum wage plus tips. It may not be the best job but you could make more money quickly.
 
One other thing to consider.

If you qualify and are still young enough…

Look into joining the military. You could go in as an officer…especially in the Army. If you are willing to make the sacrifice and are savvy enough to look around you could actually get student loan repayment as part of signing on.

The first time my husband re-uped his contract he was able to get both a sign-on bonus and student loan repayment.

When I signed up…I got the sign-on bonus but the student loan repayment option wasn’t available. But, seeing that I was working full-time and my housing and food was all being paid for…I was able to pay down a ton of debt just by going away for 6 months to train.

The military has a lot to offer…but because so many people can’t qualify (75% of young people no longer qualify) it’s tough to get in.

You don’t have to be active duty…you could go reserve of national guard. In a lot of states…being national guard will automatically pay for your tuition for a Master’s degree…as long as it’s a State school.

If you rack up enough active duty years…you’ll also get the GI bill and could go to any school in the country for free.
You could get a Master’s degree…for free…and get it in something totally different.
 
I’d second the recommendation for live-in childcare as a job. The advertised pay for the jobs I see on my babysitting websites is actually very good, as are non-live-in situations. It’s not glamorous work, but you can get paid very well compared to other jobs.

I started out with about $80,000 in student loan debt and my minimum payments were about $675/month. That was for a MA and BA, and the only use for the MA were various long-term substitute teaching gigs as I never got a contract position (I lived in a horrible area to get hired as a new full-time teacher, which you would have thought I would have considered, but I had a certain amount of pride and figured I’d be smart enough to get hired…well…not.)

I don’t know what the rent situation is where you are, but I’m thinking you can probably get in with some roommates too in some tiny place and not have to contribute much in the way of rent.

Not that I would ordinarily recommend this, but is there a reason you cannot temporarily move back in with your parents? My parents always had a stipulation that if I moved back in with them I’d have to pay them rent, but it was also understood that I’d probably get a much better deal than if I was paying for my own apartment. They knew that I was very much a self-starter though so I wasn’t going to take advantage of that for long if I ended up needing to.

If you can knock out just a couple of those loans right away your minimum payment will be a lot lower and you can breathe easier.
 
If you are healthy you might think about joining the national guard. You would be obligated to once a month training and get paid for it. Food and travel is provided and I think you would be protected by law for any time you are called up. Ask a recruiter. I think they take girls, too!
 
I’m really sorry for the situation you find yourself in. I can’t offer any advice as I don’t have any knowledge of the situation in the USA, but I hope things improve for you and you find a practical way to alleviate your problem.

In the UK, graduates don’t start paying back their student loans until they have an income of over £21,000 per annum (approx $32,500). If they lose their job, repayments are suspended until their income rises again.
 
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