My Situation/Advice needed please

[nef357max]

I'm currently 23 and enrolled in a CJ program at a university here in NC. I have no student debt until this year as I attended a community college before and was able to pay off my tuition as I went. I am a Junior currently.

I have three credit cards which are paid off each month and currently have a $0 balance. I actually don't use all three but have used them in the past for rewards etc.

Chase $1500 limit 22% APR
Capital One $2000 Limit APR 19%
Capital One $1500 Limit 0% intro APR 12 mons 18% after that

I have a savings account with a $1500 balance and bring in about $300 every two weeks with a part time job. Up until August 1st I was working full time but unable to do that with the course load this semester. I also have two vehicle's, an older reliable Honda Accord and a 2000 Toyota pickup worth around $8000 for both. I own them both outright.

My Student Load debit is as follows:

Fed Direct Parent PLUS Loan $3,373.00
Federal Direct Subsidized Loan $5,500.00
Fed Direct Unsubsidized Loan $2,000.00

Total
$10,873

I would assume this would double considering I will have to take out loans next year also.

Basically, how am I doing financially? I know most say not to take out loans for undergraduate degree's which have been avoidable until now. My parents have helped in the past when they could but at this time that is not possible. That and I'm 23...they don't need to pay for my degree/ambitions.

Thank you for your advice/comments/etc.

[kork13]

I think you're doing okay, as long as you have a plan and future means to be able to pay off the student loans. It's great that you went through your first 2 years of college debt free, and as long as you keep out of credit card debt, you should be just fine.

The biggest consideration, of course, is what your plans are for once you graduate college? Do you know the field and potential jobs that might be available to you upon graduation? Based on that, will your expected job options provide enough of an income to make the payments on your debt, save a healthy amount, and pay all of your day to day bills? At the end of the day, that's the measure of how you're doing right now... Are you making smart choices that will provide for your future? From what it seems, you're doing just fine.

[bjl584]

I may consider getting rid of one of the vehicles if feasible. I've owned more than one car in the past and it gets to be a pain.

But, overall I think that you are doing fine. You will probably end up with around $20K in SL debt upon graduation, which will be a payment of something like $150 to $175 a month for 20 years. As long as you have a plan for this you will be fine. One thing that I would do is pay the interest that is accruing on the loans as you go through school.

[riverwed070707]

I may consider getting rid of one of the vehicles if feasible. I've owned more than one car in the past and it gets to be a pain.

But, overall I think that you are doing fine. You will probably end up with around $20K in SL debt upon graduation, which will be a payment of something like $150 to $175 a month for 20 years. As long as you have a plan for this you will be fine. One thing that I would do is pay the interest that is accruing on the loans as you go through school.

Is it now standard for SLs to be drawn out over 20 years? I graduated not that long ago and all my federal loans were automatically setup on a 10 year plan but I see a lot of posts here talking about 20-25 years. Can't imagine financing my education for as long as a house...

[debtupset]

You're doing good. The income and debt is good. Like Brian said, I might get rid of one vehicle just for the hassle they can be.

Student loans are a pain, and despite having a low APR, they tend to have greater principles so it takes forever to pay them off. At least you will only have two years worth!

I'd say you could do a few things to help. Sell one vehicle and offset tuition or books with what you make. Try to pay interest toward your loans while still in school if you can so your payments will be lower after. I was offered this option and didn't take it. I regret it. I know you said you can't work full time, but can you earn more at another job? Maybe you could raise enough so that you only needed two of the three loans.

But overall, you're in a better spot than most college students! When you have a degree, you'll be able to earn more too.

[breathemusic]

Is it now standard for SLs to be drawn out over 20 years? I graduated not that long ago and all my federal loans were automatically setup on a 10 year plan but I see a lot of posts here talking about 20-25 years. Can't imagine financing my education for as long as a house...

I think it depends on the loan. My federal loans are 10 or 12 year loans, but my private loans are 20 year loans.

[BMEPhDinCO]

Can you sell one of the cars and then work to earn another $3k or so over the summer/on breaks? Then the second year would be loan free...

Otherwise, depending on what job you are planning on pursuing when you graduate, I think you are doing fairly good and I agree you shouldn't depend on your parents (although if they want to give you gifts, cash would be best!).

[LMA]

Why the credit cards? I understand the convenience of having them but having three is asking for trouble. I would suggest to close the newest ones and keep the oldest. There is no need to have more than one credit card.

I would suggest you work as much as you can to bring the most cash possible to the table and avoid furthering your student loan debt.

I don't see anything wrong with your parents helping you to pay for college. I understand you don't want to burden them but your education is also part of their responsibility and I am sure they would like you to be as debt free as possible.

[Petunia 100]

LMA, I disagree that parents are responsible to pay education costs for a 23 year old adult child. Adults are responsible for themselves. If parents want to pay and are able, that is fine. Nef357max has already stated his/her parents are not able to help.

[dontgopoor]

Agree with the other posters that you should sell one of the vehicles (unless there's a true monetary benefit to keeping both that you've just not shared).

Re: the SLs, are you confident that your degree will allow you to get a job that will pay for the cost of the degree? That's the biggest mistake I see young people make - they borrow money and the degree does not return to them enough to cover the cost of the education.

[ecoadapt]

I think you'll be fine. Since it seems you have fix plans ahead.

[Shewillbemine]

The fresh approach when someone asks if I'm pregnant: "are you saying I look fat?" The nicer approach: "there are three things you never ask a woman--her age, her weight, and if she's pregnant." Then walk away. The sassy answer a question with a question: "are you?"

Seriously are you just a bored noob? You're answering topics that are old. The original poster doesn't care what u think anymore.

[TheKayla]

Is it now standard for SLs to be drawn out over 20 years? I graduated not that long ago and all my federal loans were automatically setup on a 10 year plan but I see a lot of posts here talking about 20-25 years. Can't imagine financing my education for as long as a house...

For federal loans, typically the term will be a 10 year repayment plan if your loans are under $30k combined per account. So, for example, I have just under 30k in Direct Loans in my name, and just under another 30k that I pay that are Parent Plus loans in mine and my mom's name. Since they are separated, neither qualify for 'over $30k', so I can't refinance to a longer term and must pay it back in 10 years or less.

So to answer your question, your debt seems manageable now, but keep that in mind that it needs to be an amount you will likely need to pay in 10 years. Also, great mindset in who would even want to pay longer than 10 years for a degree!