I am doing the best that I can under the circumstances. You’re paying about 3 percent towards your debt. Here I am Todd and today topic of discussion is Massive Student Loan Debt.
Massive Student Loan Debt
So, first I’m going to discuss my problem is that I have $235,000 worth of student debt from my public education. I see no way of paying off, this is the first year. The last year, that I’ve made $65,000. The year before that I made $27,000. My partner and I have been together for over eleven years now. We just don’t know what marriage looks like with student debt. I don’t want to be focused on paying off my debt. I want to be focused on building a life for myself. I know that I’m facing some sort of decision in the next couple of years. We want to buy a house. We want to get married. So I need to get informed.
I am so curious to hear about financial situation, How much have one paid off for your student loans? So, now are you paying the minimum payment each month that is of $35 dollars a month. How does that make you feel, $35 a month? My goal is to pay $35 a month until I die. You can’t begin to grapple with paying more. If I began to think about, what does it look like to pay down $235,000 in debt, knowing what that looked like for my parents when they bought their house 30 years ago.
I need to make decisions about my life right now. So to me that means building a life for myself that doesn’t focus on paying down my debt. You could pay an extra 100 bucks a month, and you could cut that loan term down to 25 years. You could pay more and cut that loan term down to 16 years. Suddenly it becomes very manageable. that’s just paying a little bit more. Now, how do you do that? There’s two or three ways I call CEO: cut costs, Earn more.
So there are certain areas that you are probably spending on, now that you could shave off 100 bucks a month, 200 bucks a month. I believe that if I chase an income, I’m not going to live a life that I think is worth living for me. I am really oriented on mission and making sure that my work has a positive impact. I’m not interested in seeking more income for the sake of seeking more income. I am taking back my power and I will not participate in that system. May be what that looks like is my parents passing and I do not want that to happen. It is a cost that I will bear that we immigrated from the Soviet Union and my parents bought a home and they lived their whole lives for their son. And then at the end of the day, he has to sell a house to a bank because he was intended to fulfill this dream that they had for him.
I’m fulfilling the dream. My goal is not paying off debt to some company whose CEO can buy himself a private golf course. My goal is to change the world, leave it better than I found it, chasing income is not the way to do that. You only have three ways that you can approach this financially. If you want to pay your debt off, which is a big, if you want to pay it off faster than 30 years. There are three ways to do it. You can cut costs, which you told me, you don’t want to do or it might not be possible. You can earn more which you told me you don’t want to do. You can optimize your expenses by calling up and negotiating 100 bucks here in there.
So, there’s no magic solutions here. All of those though would work very well and would allow you to cut that debt down dramatically. What is the benefit of me paying an extra $500 a month? What if your debt was paid off a year from now? What changes in your life? Not much. If you don’t see any change yet when your debt is paid off. If you haven’t internalized that then why — But what’s the change? Your parents will have to pay 600 bucks a month towards your debt, and maybe the conversation with your girlfriend changes as well, and maybe the conversation about saving for a house, or whatever else you want to do, changes as well. If you don’t see that then it’s no surprise that this conversation is stuck.