O Gurl, I take a stab at showing how one can afford to repay $200k.
First, what the government thinks I should spend/save and what is reality are often two different things. That said, let's break it down.
If the average psychologist is making $65k, we will go with that figure. Of course, if we are talking about average psychologist, we are then talking about a married person, with a second income in the home. Let's have the spouse make $65k as well (because, after all, we do tend to gravitate toward those with similar incomes).
Annual income and expenses:
$130,000
($27,600) - student loan payment over 10 years at 7% for $200k (rounded)
($24,000) - mortgage payment at $2k/month. I realize this is reasonable for some, not for others, just going off my own payment.
($12,000) - utilities including TV, cell, etc
($6000) - two car payments at $250 each, or one at $500. (Mind you, this is only for about 5 years)
($6000) - health insurance for two ppl at $250 month
($1400) - car insurance for two cars. Again, going off my own. Two drivers with spotless records
($32,000) - income tax at 25%. But honestly, if you are paying 25% with a mortgage, paying own insurance, etc., you need a new accountant.
This leaves approximately $1,750 per month for food and other expenses. Not a ton of money, but very livable (I have lived very happily on far less).
Again, this is only for 10 years (which sounds daunting when you are thirty, piece of cake when you are in your forties). This also is taking the $65k salary as a given, which I don't believe would remain stagnant over a 10 year period.
