I just found out that I might be over 250k in debt after I graduate

[Xeal0007]

^ same concept.

You have not even started school yet? Of course it is nice to have a plan but let's see what you will do when you see your classmates going out to eat at a nice restaurant after a big exam, buying a new car with student loans, going on vacation with student loan money.

BTW, why are people so afraid of "negativity" nowadays? Just because someone is "negative" doesn't mean his point is not valid.

lol, really guy? Nice restaurants vacations, and cars are what going to deter me? Knowing whats at stake? You gotta come harder than that. I've been seeing people do that all through my 4 years of undergrad, and i managed to get out of there with almost nothing to pay back in loans. Like you said... I have a plan. period.

I appreciate the comment though.

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[BMBiology]

You are going to want to "reward" yourself for working so hard LOL

Don't forget the girlfriend. Nobody wants to date a poor student. It is time to take out another loan!

 

[Xeal0007]

You are going to want to "reward" yourself for working so hard LOL

Don't forget the girlfriend. Nobody wants to date a poor student. It is time to take out another loan!

lol im lucky enough to date someone in my same shoes. my girl's a poor grad student too. she understands.

I did what i had to do in undergrad, struggling because i didnt want to be in hectic debt so its nothing new to me

 

[BMBiology]

Dude you are only young once and you will be making really good money as a pharmacist. Why live the frugal lifestyle?

 

[Xeal0007]

Dude you are only young once and you will be making really good money as a pharmacist. Why live the frugal lifestyle?

Understood. I was raised on the work hard now, play later mentality. Truth is there is a point in one's life where they will have to live frugally (unless one becomes a multimillionaire). It just depends on which spectrum of life you choose to live that way. I'd rather live frugally now that i have energy to work many hours. And as i get older, enjoy the fruits of my earlier hard work.

To each his own though, i'm not knocking anyone's lifestyle. Simply trying to give the creator (or troll) of this thread some hope, because for almost 2 pages it was all negativity.

Ps- i don't miss out on too much fun, true i should get out more at 22yrs old; but im happy with life at the moment....soo yea

 

[BMBiology]

Honestly, the OP is going to fail at life (unless he develops some common sense)

 

[a student]

You might wanna consider the 2014 obama student loan forgiveness plan. 10% of your salary for 20 years. For a pharmacist, you will end up paying about 250k. Which is extremely worth it in your situation

 

[BMBiology]

You might wanna consider the 2014 obama student loan forgiveness plan. 10% of your salary for 20 years. For a pharmacist, you will end up paying about 250k. Which is extremely worth it in your situation

Oh geez, why don't I just max out my loans then? I would pay the same if I had borrowed 150 k vs 250 k.

See that is the problem with this forgiveness program. People think they just pay 10% for 20 years then everything will be forgiven. Let me clarify. That is not how it works. Only certain loans qualify for this program, not parent plus loan, not private loans. In addition you would need to pay income taxes on any amount that is forgiven so expect to pay 28-33% tax. The amount you pay not only depends on your salary that year but also your spouse's salary so if you married to someone who makes a good living, expect to pay much money.

Programs like this just encourage people to borrow more when they don't understand the program and as a result, they have more and more debt. They are too ignorant to do some research and they have no one to blame but themselves.

 

[a student]

Oh geez, why don't I just max out my loans then? I would pay the same if I had borrowed 150 k vs 250 k.

See that is the problem with this forgiveness program. People think they just pay 10% for 20 years then everything will be forgiven. Let me clarify. That is not how it works. Only certain loans qualify for this program, not parent plus loan, not private loans. In addition you would need to pay income taxes on any amount that is forgiven so expect to pay 28-33% tax. The amount you pay not only depends on your salary that year but also your spouse's salary so if you married to someone who makes a good living, expect to pay much money.

Programs like this just encourage people to borrow more when they don't understanding the program and as a result, they have more and more in debt. They are too ignorant to do some research and they have no one to blame but themselves.

I did a quick calculation. If the OP was to follow the standard 10 year repayment plan, he would end up paying 345,000 over 10 years. With the forgiveness plan, he only has to pay 250,000 plus the income tax of the last year, say maybe 50k. He will end up paying 300,000 over 20 years.

You're right, the forgiveness program is not as good as it sounds. However, for people who are already in deep doodoo, it is still a better option than trying to pay it all.

 

[BMBiology]

I did a quick calculation. If the OP was to follow the standard 10 year repayment plan, he would end up paying 345,000 over 10 years. With the forgiveness plan, he only has to pay 250,000 plus the income tax of the last year, say maybe 50k. He will end up paying 300,000 over 20 years.

You're right, the forgiveness program is not as good as it sounds. However, for people who are already in deep doodoo, it is still a better option than trying to pay it all.

I am not sure where you get your numbers. Here is my calculation:

125 k starting income, 250 k student loan with 6.8% interest, single status for the next 20 years (not likely but to make it simple I am not even going to include the spouse's income)

Total paid: 365 k
Total forgiveness: 222 k so 33% tax = 73 k

365 k + 73 k = 438 k total~!

https://studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimator.action#section1

 

[a student]

I am not sure where you get your numbers. Here is my calculation:

125 k starting income, 250 k student loan with 6.8% interest, single status for the next 20 years (not likely but to make it simple I am not even going to include the spouse's income)

Total paid: 365 k
Total forgiveness: 222 k so 33% tax = 73 k

365 k + 73 k = 438 k total~!

https://studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimator.action#section1

lol, my bad. I just assumed that pharmacist salary stays at 120k/yr for the next 20 years. However, looking at the job market, I highly doubt that it will go up by 5% consistently every year.

 

[TheWisePharmacist]

The End Is Near!!...Lol..In all seriousness were acting like were serf's who are shackled to our debt and have no freedom to live a good life.

Thanks you for your wisdoms...Impressive credit score of 730. How do you keep your good credit score from being abused by crooks?

Like everything else you care about in life, you protect it. Just checking up on it every month is fine, but if your really paranoid you can use services such as LifeLock.

I honestly think we have this huge generational divide where boomers see all debt as bad, but millennial's see it as just another part of life. Having debt is not always a bad thing, and in some cases can be used to your advantage. For example, back a couple of months ago when I first graduated pharmacy school and got my nice paying job I went out to buy a graduation gift for myself. I ended up buying a $700 customized pc which was a good deal for all of the parts I got in it. They had a program which you could apply for, that spread out your payments over a year with no interest. Long story short I did not qualify because I had no credit, despite my good income. Fast forward to present, where my student loans have finally kicked in and I've stared religiously paying them on time causing my credit score to skyrocket. Now banks and other lenders see through my credit score that I'm a trust worthy individual and will pre-approve me not only for residential loans, but commercial loans as well for my future business. So Xeal007 is right when he talks about it all being about mindset and developing a plan for your future. So please no more gloom and doom, but I guess that is asking for too much....lol!

 

[BMBiology]

lol, my bad. I just assumed that pharmacist salary stays at 120k/yr for the next 20 years. However, looking at the job market, I highly doubt that it will go up by 5% consistently every year.

Even if it goes up just 2% you are still screwed. Remember I have not taken your future spouse salary into consideration.

 

[a student]

Even if it goes up just 2% you are still screwed. Remember I have not taken your future spouse salary into consideration.

I can just be a playa until 40+
=)

 

[BMBiology]

I can just be a playa until 40+
=)

not when you have that much debt! Someone who is financially well off is not going to be stupid enough to inherite your massive debt

 

[a student]

not when you have that much debt! Someone who is financially well off is not going to be stupid enough to inherite your massive debt

Being a playa as in not getting married!

 

[BMBiology]

Being a playa as in not getting married!

you can't be a playa when you are broke and in debt!

Seriously, you thought you would only need to pay a little more than 250 k when you have 250 k in student loan debt?

 

[a student]

you can't be a playa when you are broke and in debt!

Seriously, you thought you would only need to pay a little more than 250 k when you have 250 k in student loan debt?

I'm not the OP, I only suggested that he might wanna look into the forgiveness plan because it might be a better deal than the standard 10 year repayment plan.
The forgiveness plan was meant to help people like the OP who have a high debt-to-income ratio

 

[BMBiology]

^ yes by giving him misinformation.

 

[BidingMyTime]

haha, the OP sounds like someone who is always going to start their diet tomorrow. Just 1 more pizza & ice cream splurge tonight, then start the diet tomorrow. Just 1 more loan today, then start paying them off tomorrow. The problem is....tomorrow never comes until the would be dieter has a heart attack or gets a diabetes diagnosis, and the chronic spender ends up living on the street because all their money is going to debt.