Question about student loan payment

[JackBurton]

This is crazy to me. $160K+ in student debt? You better be pulling down at least $500K per year after college to justify that nonsense.

 

[jpiniero]

This is crazy to me. $160K+ in student debt? You better be pulling down at least $500K per year after college to justify that nonsense.

Most private schools are $40k/yr these days. If you didn't get any scholarship or work during the 4 years, 160k is pretty typical.

 

[jagec]

I understand that leasing a car isn't the smartest move, but I have driven 18,000 miles per year the past 3 years due to work and due to coming home to visit family. I figured if I bought a car new, it would depreciate in value extremely quickly, and if I bought a car used, that would also lose it's value far too quickly.

If you drive that many miles, a lease would be an even worse deal for you than it already is for most people. You realize that a typical lease only "allows" 12,000 miles a year, with a $.15+/mile overage charge?

And you're worried about how much depreciation those miles would otherwise cost you, on a used car?

Most private schools are $40k/yr these days. If you didn't get any scholarship or work during the 4 years, 160k is pretty typical.

Which is why, if you can't get a scholarship and are too lazy to work, you shouldn't go to a spendy private school.

 

[Strk]

Most private schools are $40k/yr these days. If you didn't get any scholarship or work during the 4 years, 160k is pretty typical.

Good thing there are plenty of awesome state schools.

 

[SeductivePig]

If you drive that many miles, a lease would be an even worse deal for you than it already is for most people. You realize that a typical lease only "allows" 12,000 miles a year, with a $.15+/mile overage charge?

And you're worried about how much depreciation those miles would otherwise cost you, on a used car?


Which is why, if you can't get a scholarship and are too lazy to work, you shouldn't go to a spendy private school.

I was planning to negotiate for more mileage on the lease, which isn't terribly difficult. Might seem like a bad decision to go for a new car, but I drive quite a bit and my neck and lower back have been injured before - the roads here further exasperate the problem.

 

[Anubis]

Good thing there are plenty of awesome state schools.

yes and no

this really depends on the state, because not all states have "awesome state schools"

and if you go to one out of state its just as expensive as a private school

ands shit they are not all super cheap anymore, think the ones in NY are getting close to 20k a year,

 

[purbeast0]

being $160k in debt in student loans with a $1200/mo payment, and thinking about leasing a car because you "need a nice car" just seems like a really really bad idea to me.

 

[JM Aggie08]

Sweet mother of God. I thought I had it rough with 35k @ 5%....

 

[Anubis]

Sweet mother of God. I thought I had it rough with 35k @ 5%....

no shit, I guess I should stop bitching about the 297$ I pay every month for mine

 

[Stopsignhank]

CP,

I am no financial guru, but I would like to recommend something to you. Go to http://www.fatwallet.com/forums/finance/ and start reading. Don't post anything, just read. Now the people there are extremely cheap, which can be a good and a bad thing. However I think if you do some reading there you will learn a little bit more about how money works. I am talking more than, I give you this slip of paper and you give me an item.

For instance in your situation they will say that leasing is a horrible thing for you (I agree) and that you should keep driving your car. Take the money you would spend on the car and put it towards your student loan.

Anyway read on that form for about a week and you will have a better understanding to get your money to go farther.

 

[Uppsala9496]

As far as the condo, I'm currently paying $1150/month for rent in Chicago, so I was thinking to put some money down on a condo so I would have something to show for my rent, and also so that I could deduct some of the interest. I'm just pissing away money right now paying rent.

Not to burst your bubble, but I'm not sure you'll qualify for a mortgage based on your debt to income ratio. Isn't it 43% and below or something to qualify for a FHA (which only requires a 3.5% down payment and not 20% like a conventional)?
And $1,150 a month in rent is really cheap.

 

[SeductivePig]

Not to burst your bubble, but I'm not sure you'll qualify for a mortgage based on your debt to income ratio. Isn't it 43% and below or something to qualify for a FHA (which only requires a 3.5% down payment and not 20% like a conventional)?
And $1,150 a month in rent is really cheap.

The $160k is in my dads name, I would have a good shot.

$1150 isn't cheap, atleast not for a studio which is what I've got.

 

[SeductivePig]

being $160k in debt in student loans with a $1200/mo payment, and thinking about leasing a car because you "need a nice car" just seems like a really really bad idea to me.

I have neck/lower back pains. Suspension/Isolation from bumpy Chicago roads in Chicago traffic is something a Camry is pretty terrible at. I spend 1.5 to 2.5 hours a day driving, I need the comfort.

Furthermore I'm planning to give this car to my sister, she would need it next year.

 

[WackyDan]

I was planning to negotiate for more mileage on the lease, which isn't terribly difficult. Might seem like a bad decision to go for a new car, but I drive quite a bit and my neck and lower back have been injured before - the roads here further exasperate the problem.

If you have that much money to put down on the student debt, you would be best served to take some of it and use it as a down payment on a quality used or new car and still end up with a smaller payment than a leased vehicle with zero fucks given about mileage per year.

You can find any number of economy cars in the $15-20K range nicely optioned. Leasing is a pretty bad idea given what you told us, but hey - It's your money.

 

[SeductivePig]

CP,

I am no financial guru, but I would like to recommend something to you. Go to http://www.fatwallet.com/forums/finance/ and start reading. Don't post anything, just read. Now the people there are extremely cheap, which can be a good and a bad thing. However I think if you do some reading there you will learn a little bit more about how money works. I am talking more than, I give you this slip of paper and you give me an item.

For instance in your situation they will say that leasing is a horrible thing for you (I agree) and that you should keep driving your car. Take the money you would spend on the car and put it towards your student loan.

Anyway read on that form for about a week and you will have a better understanding to get your money to go farther.

Thanks, will take a look. I would like to mention that I am very money conscious already - don't have internet/tv, never eat outside, buy food in bulk, use cashback/0% rewards to my advantage, etc.

 

[Uppsala9496]

The $160k is in my dads name, I would have a good shot.

$1150 isn't cheap, atleast not for a studio which is what I've got.

I may be completely wrong here, but if you are a co-borrower and it shows up on your credit report, it counts against you.

And you are not going to find a comparative place with a $1,150 mortgage payment.

 

[SeductivePig]

I may be completely wrong here, but if you are a co-borrower and it shows up on your credit report, it counts against you.

And you are not going to find a comparative place with a $1,150 mortgage payment.

It's not on my credit. My score is 740, and the loan is a parent plus loan. It's not under my name afaik.

I'm aware I won't get a $1150 payment, but at least I'll have a property in my name, may get a tax break, and may even profit from selling it after a few years.

Also keep in mind, this is all speculation. I wouldn't go through with the car until I put $75k down, and I wouldn't go through with the condo until I had a reasonable down payment and/or a significant other to move in with me - probably looking at late next year.

 

[cabri]

Lease mileage charges will be around $0.15-$0.30 per mile overage.

Normal leases will be 12000-15000 per year.

So you are looking at an additional $1K-$2K per year of close out charges based on mileage.

Best to purchase a 2-3 yr old car - the depreciation will already be done by the time you purchase it and you can get plenty of ride from it.

 

[SeductivePig]

Lease mileage charges will be around $0.15-$0.30 per mile overage.

Normal leases will be 12000-15000 per year.

So you are looking at an additional $1K-$2K per year of close out charges based on mileage.

Best to purchase a 2-3 yr old car - the depreciation will already be done by the time you purchase it and you can get plenty of ride from it.

I can manage to stay under 15k miles, not a big deal. Worst case, I can negotiate maybe 16k and stay under that.

The point is, by the time my lease is done, I don't foresee overages being a problem - I'd have maybe $40-50k of debt at that point, easily refinanced into something that's low interest, and I'd be pulling in near or above $100k.

The way I see it, I'm at my physical peak, and I'm willing to sacrifice a little bit of money to enjoy my youth.

 

[Corporate Thug]

Which is why, if you can't get a scholarship and are too lazy to work, you shouldn't go to a spendy private school.

Most UC schools are in the $33-35k range now so it's not too far off from private schools. The cost of education has just spiraled out of control. Much more so than other expenses.

 

[jagec]

Most UC schools are in the $33-35k range now so it's not too far off from private schools. The cost of education has just spiraled out of control. Much more so than other expenses.

Resident tuition at the UCs is around $13k/yr right now. The Ivies are around $40k. Yes, those numbers are a lot more expensive than it used to be...but it's still only $52k at the UCs for 4 years at world-class institutions. This is, of course, assuming that you get exactly $0 in scholarships or financial aid.

Sure, if you use their fully-padded "Live like a prince and don't get a job" numbers for your living expenses, that will go way up. But no one needs to do that. Students are free to rent crappy rooms within easy biking distance of campus, sell their cars, and cook for themselves if money is tight.