Student Loans are rather quickly sucking my soul

[BrokeGrad]

I graduated from college about six months ago, and as any college graduate with loans should know, the grace period generally ends within six months of graduation. This might not be such a terrible circumstance were the economy not so poor (it has left me jobless). I let my parents take care of my finances while in school, and to help pay for college they pulled out three loans. Two of those are government student loans. One of them is a private loan (and a big one). My two government loans did not collect interest while i was in my grace period, and have only just started collecting interest now that the period is over and my bills are due. The private loan, however, has been collecting interest the entire time I was in my grace period. Now that I am paying my bills, I see just how much it is collecting. It collects more in interest each month than I am billed for, about $40 more. And the bills are steep--by my calculations, they would comprise a third of my paycheck if I had a job (assuming I had a minimum wage job, which is likely what I'll get, considering it's been such an impossible hunt). This loan will keep me in my parents' house forever, it seems. I have no good idea of what I should do about my current situation. My parents have suggested refinancing (I'm not even sure what that means). I have been looking into teaching programs in low-income areas, since I have read that student loans can be canceled if the graduate goes to teach in low-income areas. To me, this seems like the best option for gaining financial independence, but I haven't found specific information on how the loans are canceled. Because this loan is private, would I still be able to qualify for the cancellation? There is no way I could teach and also have this loan; I would be bankrupt instantly. Any and all answers are welcome.

[disneysteve]

There is no way I could teach and also have this loan

Why not? That's better than having the loan and not working, isn't it?

You need to get a job, any job, whether it is in your field of study or not. Any income is better than no income. If your loans will consume 1/3 of your income, that isn't so bad. You are living at home so I'll assume your living expenses are low. What other fixed costs do you have - car, insurance, etc.?

[Joan.of.the.Arch]

Here is a site listing schools in which teachingmay be met by by loan forgiveness. (In my state there are more than 1700 such schools.) At the top of it there is info as to which loans can be forgiven.

https://www.tcli.ed.gov/CBSWebApp/tcli/TCLIPubSchoolSearch.jsp

[KTP]

Just out of curiosity, what was your degree major?

I think all fields are hurting, but there do seem to be jobs in health care (are there ever NOT jobs in health care???) and actually quite a few engineering jobs (I am finishing up my electrical engineering degree so hopefully things will improve even more in 2 years or so)

[red92s]

actually quite a few engineering jobs (I am finishing up my electrical engineering degree so hopefully things will improve even more in 2 years or so)

As a recently laid-off mechanical engineer with about 3 years experience, I can tell you looks can be deceiving. There are plenty of postings out there, but a lot of companies are realizing they can hire people with 10 years of experience for a job requiring 5, and 5 years experience for entry-level jobs.

[disneysteve]

Also, all job markets are local. National unemployment stats are pretty meaningless. Just like national real estate stats are meaningless.

For example, the national unemployment rate is somewhere around 10%. I read yesterday that the unemployment rate in the town where I work is over 65%! So for anyone to say on a national forum like this that jobs are plentiful in a certain field really doesn't mean much to someone in a different part of the country (unless they are looking to relocate).

[KTP]

Maybe. But electrical engineering is pretty hot right now in the power generation market because of all of the expectations for green modifications of plants and other green energy applications. Couple this with the fact that 99.9999% of EE students for the past 20 years went into software because they could make fat bucks and you are left with only a few people who really know what they are doing. Also, I have worked as a EE without a degree for over 8 years so I can somewhat put that on my resume when I graduate.

But ya, mechanical engineering is having a bit of a rougher time. My friend is an ME and he has been looking for about 2 months. He says there are 5 times as many offers for EEs as there are MEs, at least out here on the left coast.

Oh, and also if I really wanted to, I could bring a product to market solo and make a decent living at it. I have done it before and could do it again if it made financial sense. I actually have a ton of ideas for small products into niche (and not so niche) markets. I even gave one of them away to a friend, which was probably stupid since it has the potential to be mass marketable. I didn't think I would get around to building it so figured what the hell, might as well give the idea to someone else to develop.

As a recently laid-off mechanical engineer with about 3 years experience, I can tell you looks can be deceiving. There are plenty of postings out there, but a lot of companies are realizing they can hire people with 10 years of experience for a job requiring 5, and 5 years experience for entry-level jobs.

[lovcom]

I graduated from college about six months ago, and as any college graduate with loans should know, the grace period generally ends within six months of graduation. This might not be such a terrible circumstance were the economy not so poor (it has left me jobless). I let my parents take care of my finances while in school, and to help pay for college they pulled out three loans. Two of those are government student loans. One of them is a private loan (and a big one). My two government loans did not collect interest while i was in my grace period, and have only just started collecting interest now that the period is over and my bills are due. The private loan, however, has been collecting interest the entire time I was in my grace period. Now that I am paying my bills, I see just how much it is collecting. It collects more in interest each month than I am billed for, about $40 more. And the bills are steep--by my calculations, they would comprise a third of my paycheck if I had a job (assuming I had a minimum wage job, which is likely what I'll get, considering it's been such an impossible hunt). This loan will keep me in my parents' house forever, it seems. I have no good idea of what I should do about my current situation. My parents have suggested refinancing (I'm not even sure what that means). I have been looking into teaching programs in low-income areas, since I have read that student loans can be canceled if the graduate goes to teach in low-income areas. To me, this seems like the best option for gaining financial independence, but I haven't found specific information on how the loans are canceled. Because this loan is private, would I still be able to qualify for the cancellation? There is no way I could teach and also have this loan; I would be bankrupt instantly. Any and all answers are welcome.

Before running up all this educational debt, did you consider what the demand for jobs would be for your major? What the pay would be?

Too often people major in things that pay crud money, and they don't ask these questions until after they graduate. This is why I gave my conditional financial support to my college bound daughters, and depending upon what they chose to major in I would nay or yay my support. I'm not one of those parents that will blindly support everything their children do.

Too many socialogists working at the mall selling shoes; trying to pay down their massive educational debts.

To the OP: Determine what fields can be entered into that pay a lot more $$, which can allow you to leverage the degree and training you already have.

If you want to be happy in your life you got to have options and to have options you got to have a very good paying job that is in demand. I really do think it's that simple.

[disneysteve]

Before running up all this educational debt, did you consider what the demand for jobs would be for your major? What the pay would be?

Too often people major in things that pay crud money, and they don't ask these questions until after they graduate.

While that is often true, I would also point out that OP graduated in 2009. That means he started school in 2005. In case you haven't noticed, the economy and job market are in a very different place today than they were in 2005. What looked like a career with good prospects back then might not be nearly as good today.

[lovcom]

While that is often true, I would also point out that OP graduated in 2009. That means he started school in 2005. In case you haven't noticed, the economy and job market are in a very different place today than they were in 2005. What looked like a career with good prospects back then might not be nearly as good today.

True the ecomony today is very different from 2005, and this could well be the cause of the OP's difficulting in finding a job in her/his major. Even so called hot majors are struggling to find work these days.

However the demographics of labor and jobs, their pay, and outlook over the very long haul, going forward years and decades across recessions are often beneficial regardless if we're in a recession or not. For example, even in good times I'd not want my daughter to major in archeticture like my sister did....even in good times not much demand there, and the pay is not remarkable. She ended up doing something else, and my parent's retirement plans were impacted irreparably, for having paid her tuition.

Wishing the OP the best of luck and in this market one must perservere, and often spend 8 hours a day looking for a job...a job in it's self.

[fivepennies]

I'm in the same boat BrokeGrad. Graduated a year, post poned student loans for 6 months and I only have 6 months left for a forebearance.

My simple solution is take on a second job and work as many as 60+ hours a week. I don't like it, but I got bills to pay and rent! I majored in Journalism and look where that ended up. Publishing is in decline with the rise of online media, so I did exactly lovcom suggested; I gave myself options.

My last semester in school I took an online journalism class, which helped me score an online column. I make pennies but the experience and exposure has been invaluable. One year later, I ended up in Internet Marketing. Still not making anywhere near what I'd like to make, but I'm on my way there. You just gotta dig yourself a hole to China basically. I'd say I'm half way there. haha! Hang in there man, I feel for you. In this economy, you have to be fearless. It's the only way to stay on top and ahead of the game