help me think this through...

[onlyuptome]

I recently got a masters degree, and unfortunately the job market in my area is much tighter now than it was when I went back to school.  I can't relocate out of my city because of kids/divorce.  So assuming that I can get a job using my degree, my income will go up considerably.  However, I have no idea when/if I'll get a new job.  It could be awhile. 

Here's how I see my options:

I have enough equity in my house to pay off my student loan debt.  But then I won't have anything left for a down payment on something else.  I could live in an apartment (which would be more than my mortgage) but the savings on my student loans would allow me to save up for another down payment. 

Option 2, I can take out a home equity loan on my house and use it to pay down the student loans.  This ties up my equity in a different way, but at least the interest would be less.

Option 3, I can just make student loan payments, hope I get a job soon, and when I do pay the debt down like crazy. 

I crunched my budget way down like a true mustachian when I went back to school, so I don't really have a ton of room to reduce my budget much further anywhere else.

What say you Mustache Community?

[Jon Bon]

There is 3.9% unemployment nationally.

There are jobs out there for you that pay well enough, get out there! Yeah it might not be the best option, yeah it might not be what you dreamed of, but it prevents you from having to borrow against your house.... I think it is an easy choice.

Both options 1 and 2 take some time to pull off. So by the time you get things organized something might fall in your lap the next day after you sell the house/take the loan.

[Saving in Austin]

You should never pay off unsecured debt (student loan) with secured debt (HELOC/2nd Mortgage/etc.)

You could lose your house.

[Tuskalusa]

I agree with the other posters. While you may not find a job in your direct field right now, there are good opportunities for smart people. Sometimes you just need to get any job. As you start down a path, other opportunities often arise.

Your house sounds like a good situation. I think staying put and keeping your equity intact (no lines of credit) will serve you well long-term.

[Freedomin5]

Doesn’t it also depend on your student loan interest rates? And the interest rate on a HELOC? For example, if student loans are at 15% while HELOC is 3%, I’d probably take out a small HELOC to pay off the highest interest loans. I’d only take out a HELOC if I had enough income coming in each month to pay it off within a reasonable amount of time. You really don’t want to lose your home if your bank calls your loan.

Are there other ways for you to generate income to cover loan payments while you look for a job? For example, could you rent out bedrooms in your home? Could you teach/tutor online while job hunting for something in your field?

[onlyuptome]

Thanks for all the replies.  I am a registered nurse currently, my masters makes me a nurse practitioner.  My geographic region is saturated, which wasn’t true when I started.  So I do have a good job currently, just not as an NP. Hopefully something will come up soon. I just hate having the debt now, in light of the fact that a new job did not materialize as quickly as I’d hoped. 

[ETBen]

Thanks for all the replies.  I am a registered nurse currently, my masters makes me a nurse practitioner.  My geographic region is saturated, which wasn’t true when I started.  So I do have a good job currently, just not as an NP. Hopefully something will come up soon. I just hate having the debt now, in light of the fact that a new job did not materialize as quickly as I’d hoped.

Virtual health services like AmWell are often hiring. It may not be full time but having it on your resume to take virtual visits when you can is helpful.

[Tuskalusa]

Ah.  That must be frustrating. You did all that work and spent the cash, and now the market changed. I can see why you’re going through these scanarios now. I think I’d be doing the same thing.

It’s awesome that you have a good job now, and it takes the pressure off needing to find a job from no job. So now the game is finding the next job and getting a foothold on the loans. The good news is that you’re in a good position to be patient until something comes up.

In the meantime, maybe you could consider posting a case study to see if there are any opportunities to start blasting that loan now. Then, when you do get that next job, you’ll be even further ahead.

Congrats on becoming a CNP. That’s a pretty great accomplishment! 

[Papa bear]

Thanks for all the replies.  I am a registered nurse currently, my masters makes me a nurse practitioner.  My geographic region is saturated, which wasn’t true when I started.  So I do have a good job currently, just not as an NP. Hopefully something will come up soon. I just hate having the debt now, in light of the fact that a new job did not materialize as quickly as I’d hoped.

FNP or a specialty? 

You can travel / locum tenens for some good $$$  you should reach out to a few services.  NP’s are still pretty sought after basically everywhere.




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