Thursday, October 29, 2009

Federal Student Loans...

I downloaded the federal forbearance form yesterday to find out that my lender only allows you to forbear for 3 years. Guess what??? I am already in year 3. So…I haven’t figured out my exact plan of action. About ½ will go into repayment in January 2009 and the remaining ½ will go into repayment in June 2009. Total monthly student loan payments will be approximately $1,300 per month.

$1,300 is a small fortune for a single woman making $72k per year with a monthly mortgage payment that is also approximately $1,300.

Whatever my budget will be…it will be tight. Very, very tight.


Tom said...

OK I am going to tell you something that no one else seems to want to tell you.

I appreciate that you do not want criticism of your situation only help as to the way forward.

Have you actually dealt with the underlying issues which got you to this point in the first place?

What was your real motivation for going to law school and incurring a massive amount of debt? Prestige? Ego? Social Status?

What was the real motivation for living beyond your means in other areas of your life?

Be honest with yourself. It is only when we can answer the "why" behind our financial mistakes that we can really move forward with a realistic and sustainable financial plan.

black dog said...


I can appreciate that you are pushing "Windy City Blues" gal to dig deeper, but asking her real motivation behind going to law school and then only offering negative options? There are more positive reasons to go to law school than prestige, ego or social status, and I'm going to guess that she had good intentions when she applied for higher education.

Windy City gal- keep working on that debt, try to stay away from the impulse buys (so hard I know!) and stay positive. Also, check out my blog because I'm going through the same thing :)

Tom said...

Black Dog - I'm afraid that in the current climate I see very few positive reasons to go to law school given the significant debt it involves. It is only the academically gifted that are going to secure the jobs with the six figure salaries to be able to service the debt.

Most newly admitted are either unemployed or seriously underemployed. The market reached saturation point years ago.

Most reasons for going to law school IMHO are misguided. My two cents :)

Theresa said...

Can you get a roommate? That would help.

I also agree with Tom in a sense. You do need to look at why you keep getting into credit card debt. The ship has sailed on the law school debt but this credit card debt keeps rising. or returning...

I only wish you the best.

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