150K in debt, any hope?

[foreverhopeful]

Hi guys, I found this forum out of necessity, and I am honestly not sure if anybody can help me. Basically, I was going to a professional graduate school, was nearing the end of my fourth year (whereby I'd probably making 6 to 7 grand a month when I finished) and accrued 150K in student loans. My last year, I was arrested for a crime I did not commit, and received deferred adjudication (which got me barred from my field of practice). Basically, I have this huge loan and cannot finish my degree. I am feeling really hopeless. I'm currently going back to a state school for real estate, and have a minimum wage job. What, if any, should be my game plan to one day get this huge mess off of my shoulders? The loan website said if I paid $1600 a month, I'd pay it off in ten years, which is basically impossible for me to do. I am going to go to school for real estate MBA, and hope to be making 100K with that (although this semester is my first semester and I am doing my pre-reqs). I am 25 years old and am terrible at finances/etc. I need to know what I can do to help my own situation out and get out of this debt. Other info is that I have a wife and a child that I support on a $800/ month lease.

[bjl584]

You might want to rethink taking on even more student loan debt right now.

Maybe you should focus your energy on finding a good attorney that can work to clear your name. If you truly didn't commit said crime, then you should be able to have this issue resolved.

[bjl584]

No personal finance plan will work if it’s financed with credit card spending and credit card debt.

In the U.S. this is one of the most detrimental habits of the individual. If you have credit card debt with mounting interest payments, you are part of a vast and growing community.

A 2016 article published by Money magazine summarized that “on average, an American between the ages of 18 and 65 has $4,717 of credit card debt.” They continue, “the average credit card’s interest rate is 15%. At the minimum payment of $189, it’ll take 10 years and a month to pay off that $4,717. The total payments would amount to $22,869. That’s a $18,155 cost for a very small loan.” The privilege of making a purchase with ease today costs us a fortune in the long-term.

Becoming financially stable is difficult and going into debt is far too easy.

So, what does that have to do with OP's Student Loan debt?

Did you even read the original post?

Do you want me to delete all your posts and ban you?

[Joan.of.the.Arch]

Theroux, I'm not seeing where the poster has indicated this is credit card debt, but "150K in student loans."

Foreverhopeful, how are you paying for your new graduate program? More loans? Are all your loans actually student loans, or were some of them credit card loans as Theroux above suggests? Or perhaps some are personal loans? What will your loan total be when you finish? Are you financing other aspects of your life -- food, clothing, shelter, transportation, health, recreation, child expenses, etc?

Is your wife bringing in some income to support the family and to apply to the cost of your schooling?

I lack understanding of how a real estate masters degree (I did not even know there was such a thing) can get you a highly paid position as compared to outright experience in the real estate business.

[disneysteve]

Do you want me to delete all your posts and ban you?

Brian, if you need to ask the question, then the answer is yes.

[disneysteve]

Maybe you should focus your energy on finding a good attorney that can work to clear your name. If you truly didn't commit said crime, then you should be able to have this issue resolved.

That was my first thought. If you got arrested for something you truly didn't do, the focus should be on having the charges dropped.

Do the current charges prevent you from finishing your degree or just from actually getting licensed? If you are still able to finish, why not do that and be all set for when the charges get dropped? You've already put in the time, effort, and money. It's a shame for it all to go to waste.

[Joan.of.the.Arch]

"Deferred adjudication" sounds as if it means that the trial is delayed until some future date, but never having heard of it, I looked it up (internet, of course). It appears to be a special plea that is like an admission of guilt but with, ultimately, no criminal record. Foreverhopeful will correct that if he wants, however it seems that he has already had his chance at a lawyer's help and his day in court. Interesting.

[GoodSteward]

Where there is a will, there is a way. Don't focus on what you can't do, but focus on what you can. Like others have mentioned, try to fight the legal side if possible. I wouldn't think about the debt right now but just keep focusing on trying to find a decent career path to support your family. Stay in school as long as possible to keep the debt on hold until you get something solid figured out.

You can still do this.

[disneysteve]

What was the degree you were going for? Could you still work in the field to some extent even without the license? For example, if you were in medical school, perhaps you could get a teaching job or a research job without the actual medical license. Lots of doctors do research. Unless there is direct patient contact involved, I don't think you need to be licensed. I wasn't when I did pharmaceutical research during med school.

[Singuy]

Are the loans federal or private?

As for federal, you can get on the income based payment program and 25 years forgiveness. Since you make min wage, your monthly payment is essentially waived until you make adequate income. Once you do, it'll be 10% of your gross income. All waived payments, even when it's 0, still counts toward the 25 year forgiveness..so you can make min wage for 25 years and your student loans will be gone.

There's little hope with private loans. A co-worker of mine ended up as a pharm tech with a MD degree and couldn't get into residency for the past 8 years. He screwed up on his board and lets just say he doesn't have the best bed side manners. He had 180k of private student loans...eventually couldn't afford the interest only payments and was racking up CC debt just to put food on the table for his family. I told him to default and be done with it. He is currently in default and there's nothing the private lenders can do since he has no assets but plenty of debt. They tried to settle for 120k but there's nothing this guy can do to pay out 120k. His credit is trashed, but he has a paid off house(gifted by his parents) so it doesn't matter to him what so ever.

[PRICEPLUS]

Deferred adjudication is a form of plea deal available in various jurisdictions, where a defendant pleads "guilty" or "No Contest" to criminal charges in exchange for meeting certain requirements laid out by the court within an allotted period of time also ordered by the court.

The issues you have are much more complex than just finances. Your ability to become employed in given fields is certainly compromised. Your ability to discharge your debt is extremely limited due to the fact it is student loan debt.

I am not your lawyer and so I don't know what it is you are accused of doing nor do I know your prospects of defending against the charges against you. In consultation with your lawyer you must weigh your prospects and take a measured risk one way or the other.

Are you in a state where your rights can be restored if you meet certain requirements?

In any case do not lose hope. I bartended, did moving jobs, and in short did anything and everything I could legally do to make a buck. I was heavily in debt. I am not anymore.

Does the wife work? If she is home with your child can she watch other peoples kids?

Have you cut out all the "luxury" items? Can you move in with relatives without causing a strain on your marriage? Are you willing to relocate if necessary? Can you do manual labor if necessary? Are you willing to learn a skill set that is in demand in the blue collar job market? Can you operate heavy equipment or drive a truck? In short, are you willing to do whatever is necessary not only to get out of debt but to get your life in order?

Always believe in yourself. There are no quick fixes to the situation you're in. You will need to make a game plan and the Mrs. has to be on board. My life motto is, "Use it up, wear it out, make due, do without!" Lots of great ideas for budgeting and cutting costs here on this site. There is a ton of info on the net, the use of which is free at a public library.

I wish I could say it will be easy. I wish there were a magic formula. Sadly, both are not the reality. You can beat debt! You can be successful! Believe in yourself!

[Jovanny]

Firstly you need to be free of the charges against you.

[foreverhopeful]

First and foremost I would like to thank each and every one of you for your replies. Unfortunately, I took a plea deal, not really understanding what it entailed 100% I was under the assumption I would be able to continue my schooling (pharmacy) when I accepted the deferred adjudication. I also was under the impression I would be able to file a motion for non-disclosure (which I later came to find out is not an option for me because of the classification of the felony). I did not commit the felony in any way shape or form and thought this was a great option since I was sick and tired of being on 24/7 house arrest (which takes a mental toll on you if you've never experienced anything like this before) Being inside the house for an hour knowing I was forced to itself was a drain. A part of me just wanted the entire thing to be over with due to the fact I was told I could be sitting at home with no way to work or go to school for 2 years before I'd even have a trial. My wife is currently working on getting her real estate agent license and working although she is currently taking care of our child. I actually just enrolled in the university here and also am going into real estate (having a hard time getting the agent license, but will re-apply later with letters of recommendation/ a degree to show for, once my probation is over). Unfortunately, I tried my hardest and best to fight being thrown out of pharmacy school and it was to no avail, they automatically revoke anybody with deferred adjudication for a class 1 felony and would not accept me back until many years from now, which was not worth it. So, under my lawyer's advice, I withdrew before they could revoke me. I wish going back was an option but unfortunately it's not. I currently am fighting the case though, although I am unsure of how an appeal will go in my case considering I was the one who accepted the deal. If I could go back I wouldn't have accepted it but sitting at home was killing me, and the fear of going to trial was a heavy burden on my mind, although I honestly feel as though I would have been found not guilty (although my lawyer, sadly enough, expressed he did not think so). So with that lack of confidence, I declined to proceed further. That in itself had to have been the most demoralizing and demeaning experience of my life. Knowing I am innocent and having my own lawyer tell me he believes me but that he doesn't think he will win the case at trial based on circumstances. Regardless, I am at 150 K in debt, and am going to school currently for a real estate degree. I see the average salary for an MBA in real estate is around 100K, plus, I think once the probation is over I'd be able to say I was not convicted of a felony and perhaps that would give me some leeway for better job prospects.

[james.hendrickson]

Hey FH - its not the end of the world. Plenty of celebrities have made mistakes and run afoul of the law.

A good example of this is:

Will Smith — aggravated assault, criminal conspiracy
Tim Allen — cocaine possession, drunk driving
Mark Wahlberg — charged with attempted murder
Khloe Kardashian — drink driving
Jay Z — stabbing

Stay focused, work out, and cultivate religion. You'll make it through this.

[foreverhopeful]

Hey FH - its not the end of the world. Plenty of celebrities have made mistakes and run afoul of the law.

A good example of this is:

Will Smith — aggravated assault, criminal conspiracy
Tim Allen — cocaine possession, drunk driving
Mark Wahlberg — charged with attempted murder
Khloe Kardashian — drink driving
Jay Z — stabbing

Stay focused, work out, and cultivate religion. You'll make it through this.

This is honestly the most encouraging post that has made me feel so much better. Great to know I'm not in this mess of a situation alone. Hopefully we all will be fine. Thanks so much.