Author Topic: CNBC: $130,000/year but owe $20,000 in student loans so no marriage  (Read 3452 times)

WhiteTrashCash

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From CNBC:

"Money Woes Force More Couples to Put Marriage on the Back Burner"
https://www.cnbc.com/2019/03/23/money-woes-force-more-couples-to-put-marriage-on-the-back-burner.html?forYou=true

This poor couple. How in the world can they possibly get married when they only make $130,000/year but owe $20,000 in student loans. It's impossible to build a future in that kind of situation!

Meanwhile, I live in an extremely HCOL area and started out owing $74,000 in student loans while making significantly less than this couple until recently and I've been happily married for years now. Of course, I lived beneath my means, prioritized repaying the loans, saving, and investing, and didn't behave like a spendypants.

What a couple of crybabies.

Malcat

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Re: CNBC: $130,000/year but owe $20,000 in student loans so no marriage
« Reply #1 on: March 23, 2019, 01:58:21 PM »
um...getting married barely costs anything...

I literally don't understand the article.

Just Joe

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Re: CNBC: $130,000/year but owe $20,000 in student loans so no marriage
« Reply #2 on: March 23, 2019, 03:29:17 PM »
I'll bet they have payments on something expensive - like luxury cars or a big house. Also can't have the showcase wedding without lots of spending...

penguintroopers

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Re: CNBC: $130,000/year but owe $20,000 in student loans so no marriage
« Reply #3 on: March 23, 2019, 04:25:02 PM »
In all fairness, the article states that both of them have student loans, and only gives her balance at $20k, so they have more than $20k in debt if he had any student loans.

Whining about debt on $130k income as a reason why you canít get married... I agree, itís extreme. Even a $10k wedding is something they can save in like ~3 months.

Not There Yet

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Re: CNBC: $130,000/year but owe $20,000 in student loans so no marriage
« Reply #4 on: March 23, 2019, 09:22:15 PM »
Different categories of debt appear to present different burdens.  A $20,000 car loan is no issue; a $20,000 student loan is an unfair burden that keeps people from moving on with their lives.   

TheGrimSqueaker

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Re: CNBC: $130,000/year but owe $20,000 in student loans so no marriage
« Reply #5 on: March 24, 2019, 08:03:31 AM »
Poor babies. Were they unable to get approval to borrow enough thousands of dollars for the lavish queen-for-a-day wedding they neeeeeeded?

Apple_Tango

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Re: CNBC: $130,000/year but owe $20,000 in student loans so no marriage
« Reply #6 on: March 24, 2019, 08:47:55 AM »
Different categories of debt appear to present different burdens.  A $20,000 car loan is no issue; a $20,000 student loan is an unfair burden that keeps people from moving on with their lives.   

Yes I have noticed this and I canít figure out why! My friend has $70,000 student loan debt, which is a LOT, no doubt. She thinks she cannot ever get out from under this. But then she also has a $30,000 car debt (also a LOT!) and she thinks thatís totally fine, no problem. Is it the difference in interest rate that makes people batty like this?

Raenia

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Re: CNBC: $130,000/year but owe $20,000 in student loans so no marriage
« Reply #7 on: March 24, 2019, 09:28:31 AM »
Different categories of debt appear to present different burdens.  A $20,000 car loan is no issue; a $20,000 student loan is an unfair burden that keeps people from moving on with their lives.   

Yes I have noticed this and I canít figure out why! My friend has $70,000 student loan debt, which is a LOT, no doubt. She thinks she cannot ever get out from under this. But then she also has a $30,000 car debt (also a LOT!) and she thinks thatís totally fine, no problem. Is it the difference in interest rate that makes people batty like this?

Well, obviously EVERYONE has a car loan, so that's nothing to worry about, right?  And you can always default and let the car get repossessed... right?

People are nuts.

Indexer

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Re: CNBC: $130,000/year but owe $20,000 in student loans so no marriage
« Reply #8 on: March 24, 2019, 10:57:50 AM »
I don't get why student loans are seen as worse either.

I would be a lot more worried about a potential mate with 20k in automobile, or especially CC debt, than student loan debt. The student loan was taken with the idea that the degree would increase income, hopefully by more than the payments on the loans. When done correctly(engineering, business, medical, etc. degrees) taking on that debt can significantly increase future income, making the debt worth it(especially once paid off).

If their income is over 130k in their mid 20s it sounds like the student loans achieved their intended purpose.

nick663

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Re: CNBC: $130,000/year but owe $20,000 in student loans so no marriage
« Reply #9 on: March 24, 2019, 11:20:02 AM »
Different categories of debt appear to present different burdens.  A $20,000 car loan is no issue; a $20,000 student loan is an unfair burden that keeps people from moving on with their lives.   

Yes I have noticed this and I canít figure out why! My friend has $70,000 student loan debt, which is a LOT, no doubt. She thinks she cannot ever get out from under this. But then she also has a $30,000 car debt (also a LOT!) and she thinks thatís totally fine, no problem. Is it the difference in interest rate that makes people batty like this?
I think it's because a car loan is "normal" and an expected expense for the rest of someones life.  Like a mortgage, it's just a monthly expense that comes with being an adult.

OtherJen

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Re: CNBC: $130,000/year but owe $20,000 in student loans so no marriage
« Reply #10 on: March 24, 2019, 02:55:41 PM »
I don't get why student loans are seen as worse either.

I would be a lot more worried about a potential mate with 20k in automobile, or especially CC debt, than student loan debt. The student loan was taken with the idea that the degree would increase income, hopefully by more than the payments on the loans. When done correctly(engineering, business, medical, etc. degrees) taking on that debt can significantly increase future income, making the debt worth it(especially once paid off).

If their income is over 130k in their mid 20s it sounds like the student loans achieved their intended purpose.

I wonder how much of the perception that student loans are worse is because they canít be discharged in bankruptcy, unlike a car loan.

Just Joe

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Re: CNBC: $130,000/year but owe $20,000 in student loans so no marriage
« Reply #11 on: March 24, 2019, 06:14:33 PM »
Different categories of debt appear to present different burdens.  A $20,000 car loan is no issue; a $20,000 student loan is an unfair burden that keeps people from moving on with their lives.   

Ain't that the truth. Maybe moaning about student debt is a secret signal that they are part of the same consumerist tribe.
« Last Edit: March 24, 2019, 06:16:37 PM by Just Joe »

WhiteTrashCash

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Re: CNBC: $130,000/year but owe $20,000 in student loans so no marriage
« Reply #12 on: March 24, 2019, 06:36:57 PM »
I don't get why student loans are seen as worse either.

I would be a lot more worried about a potential mate with 20k in automobile, or especially CC debt, than student loan debt. The student loan was taken with the idea that the degree would increase income, hopefully by more than the payments on the loans. When done correctly(engineering, business, medical, etc. degrees) taking on that debt can significantly increase future income, making the debt worth it(especially once paid off).

If their income is over 130k in their mid 20s it sounds like the student loans achieved their intended purpose.

I wonder how much of the perception that student loans are worse is because they canít be discharged in bankruptcy, unlike a car loan.

I honestly truly believe that a lot of people are angry about student loans because they never thought it was actually a LOAN that they would have to REPAY. The entire point of student loans is to take them out so you can use the degree you earn to get income. It seems like a lot of folks think student loans are free money they can use to go party for four (or five or six) years. It's incredible.

Travis

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Re: CNBC: $130,000/year but owe $20,000 in student loans so no marriage
« Reply #13 on: March 24, 2019, 08:37:01 PM »
Does combining your finances somehow increase default risk?  I'm not seeing how paying down debt is preventing marriage.  The first couple talk about themselves as if their lives and finances are already joined, so what's the problem?  I can see debts easily preventing a wedding, but that's not the same as marriage.  You can get married for the price of an oil change - and it takes about as long to do.

Malcat

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Re: CNBC: $130,000/year but owe $20,000 in student loans so no marriage
« Reply #14 on: March 25, 2019, 05:31:56 AM »
Does combining your finances somehow increase default risk?  I'm not seeing how paying down debt is preventing marriage.  The first couple talk about themselves as if their lives and finances are already joined, so what's the problem?  I can see debts easily preventing a wedding, but that's not the same as marriage.  You can get married for the price of an oil change - and it takes about as long to do.

Exactly this.
If not being able to have an expensive wedding is holding you back from marrying someone, then how important can it possibly be to you to marry that person?

Plus, who writes an article about student debt and chooses to do it about a couple with 6 figure income and only 20K in loans??? And they're both under 25???!!!

That sounds like an amazing position to be in.

Linea_Norway

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Re: CNBC: $130,000/year but owe $20,000 in student loans so no marriage
« Reply #15 on: March 25, 2019, 06:36:59 AM »
The second couple paid off her debt before marriage:

Newman, who is a writer in Idaho, sold her car, moved in with her parents and applied the money she saved to her credit card bill. ďBy the time we were married, I was debt-free.Ē

That might be a good step towards entering the marriage equally, in one has debt and the other doesn't.

Spending a big fortune on a wedding with being a princess for one day is a bit of a waste if you ask me. We married in a very simple ceremony and kept it secret for most of the family. But an aunt of mine commented later that we hadn't provide a party for her, which she expected for a wedding. I personally hate such wedding parties, so for me it was a personal goal not to have one.

Malcat

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Re: CNBC: $130,000/year but owe $20,000 in student loans so no marriage
« Reply #16 on: March 25, 2019, 06:51:36 AM »
The second couple paid off her debt before marriage:

Newman, who is a writer in Idaho, sold her car, moved in with her parents and applied the money she saved to her credit card bill. ďBy the time we were married, I was debt-free.Ē

That might be a good step towards entering the marriage equally, in one has debt and the other doesn't.

Spending a big fortune on a wedding with being a princess for one day is a bit of a waste if you ask me. We married in a very simple ceremony and kept it secret for most of the family. But an aunt of mine commented later that we hadn't provide a party for her, which she expected for a wedding. I personally hate such wedding parties, so for me it was a personal goal not to have one.

The second couple said that they delayed their marriage "a few months" in order to change "a few things". Not really significant.

I mean, hell, I delayed my wedding by several months just for the sake of the colour of the leaves during our honeymoon.

But yeah, no one needs an expensive wedding. Plus, if the first couple are making 130K/year and saving nothing, "everything goes out the window", then they have much bigger financial problems long-term than paying for a wedding.

JHoward

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Re: CNBC: $130,000/year but owe $20,000 in student loans so no marriage
« Reply #17 on: March 25, 2019, 02:20:35 PM »
Does combining your finances somehow increase default risk?  I'm not seeing how paying down debt is preventing marriage.  The first couple talk about themselves as if their lives and finances are already joined, so what's the problem?  I can see debts easily preventing a wedding, but that's not the same as marriage.  You can get married for the price of an oil change - and it takes about as long to do.

Getting married would mean that both halves of the couple's income/assets can be taken in the event of a bankruptcy or default. Also being married would affect eligibility for things like income based payment plans for student loans. I'm guessing these are the factors that are actually preventing couples from getting married rather than the price of a wedding.

Apple_Tango

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Re: CNBC: $130,000/year but owe $20,000 in student loans so no marriage
« Reply #18 on: March 25, 2019, 07:46:27 PM »
But why do income based repayment plans if the family salary is $120,000 and the debt is $20,000? That could be paid off in 6 months easily.

Abe

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Re: CNBC: $130,000/year but owe $20,000 in student loans so no marriage
« Reply #19 on: March 25, 2019, 08:24:39 PM »
But why do income based repayment plans if the family salary is $120,000 and the debt is $20,000? That could be paid off in 6 months easily.

Because a lot of people now think that it isn't fair to have to pay for higher education and look for any legal way to game the system. At any rate, it's the government's fault for allowing rich people to game it.