Author Topic: Hair on Fire Over Student Debt  (Read 2255 times)

Cubanissima

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Hair on Fire Over Student Debt
« on: February 07, 2015, 01:06:20 PM »
If you didnít ask the question:
"Hello, we are a married couple. One of us is an actress (earning $22K [gross] per year) and the other is a social work supervisor employed by the federal government (earning $86K [gross] per year) and a part-time commercial hairstylist/makeup artist (earning less than what I put into it). Our combined net worth is -199K. Most all of this is due to our student loans. One of us is in the Public Service Loan Repayment program (student loans will be wiped out after 120 qualifying payments) We do not own property. We do not have car payments (we do not own a car [federal job provides public transportation subsidy]), but we sometimes use UBER/LYFT for travel that requires more than 3 bus changes, or very late at night. We have no other debt, except for a few hundred dollars on our credit card, which we pay off every month. One of us filed for bankruptcy nearly two years ago, in April of 2013 and had a short sale (stupidly) just before the bankruptcy. We have 40K in a TSP account, but now only contribute $50 a month to it because we are putting most of our money unto paying down student loan debt.  We rent a studio for $925 a month in Los Angeles. We've been working hard to follow MMM minimalist principles and short of our "cheap dive ethnic food," addiction and expenses/purchases towards our acting and hairstyling/makeup artistry endeavors (which we write off of our taxes, as much as possible), we pour everything we earn into our student loan debt. Questions: Overall, what are we doing right/wrong? Biggest question: Should we buy a small, 500 sq. ft. mobile home (in Los Angeles, close to federal job and acting gigs) for $45K in a rent-controlled (land lease) park? "

marblejane

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Re: Hair on Fire Over Student Debt
« Reply #1 on: February 07, 2015, 01:24:27 PM »
Hi Cubanissima- for the best advice, please review the "How to Write a Case Study" sticky: http://forum.mrmoneymustache.com/ask-a-mustachian/how-to-write-a-'case-study'-topic/

We will need to know your student loan interest rates, etc to really advise you on your specific situation.

Blonde Lawyer

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Re: Hair on Fire Over Student Debt
« Reply #2 on: February 07, 2015, 09:14:48 PM »
Hi Cubanissima- for the best advice, please review the "How to Write a Case Study" sticky: http://forum.mrmoneymustache.com/ask-a-mustachian/how-to-write-a-'case-study'-topic/

We will need to know your student loan interest rates, etc to really advise you on your specific situation.

Agree with MarbleJane.  For the fed employee, see if IBR works for you in addition to forgiveness.  You make a lot but if your loans are high enough you might still have a smaller monthly payment.  If you have private loans or loans with high interest rates, consider a refi.  There are threads on it.  See my sig and my name should link to a post I wrote about refi'ing mine.

mozar

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Re: Hair on Fire Over Student Debt
« Reply #3 on: February 08, 2015, 09:25:20 AM »
If you want to buy a mobile home, just know that it will depreciate. So if you buy for $45k if you sell it in the future you will have to sell it for less. I would pay off your student loans and have a sizable down-payment before you consider buying. 925 is a good deal in LA.