Hi,
My husband is in his 3rd of 4 years in a doctoral program, and together we have a six-figure student loan debt. Right now, it just doesn't feel like we can do much until he graduates. However, in another post, someone told me you all could bleed money from stone, and I wanted to post this just in case they were right. I could certainly use all the help I can get!
We have two kids, and finally live in a low cost of living area after spending 8 years in DC (incidentally, where we racked up the student loan debt). We're doing way better than we were, but it still doesn't feel like we're getting anywhere.
Gross Salary/Wages: $6542
Pre-tax deductions: $383 for healthcare, $36 dental and vision, $87 healthcare FSA, $435 daycare FSA
Other Ordinary Income: $200 in the summer to $1050 during the school year (his graduate stipend and two side hustles)
Adjusted Gross Income: $5,801-$6,651
Taxes: About $968/month per the calculation sheet, though I have $1200 taken out of my paycheck
Current expenses: 401k- $327.78/month (plus a $261.82 employer match full match for first 3%, half match for additional 2%)
Mortgage - $730 P&I, $85 property tax, $91 home insurance
Car insurance - $79
Car payment - $227 (more details in Liabilities)
Car/Home Maintenance and Repair - $220
Charitable contributions - $210
Internet - $49.99
Phones - $33
Student Loan payment - $500 (see Liabilities for more info)
Tai Chi - $204 (a non-negotiable for my husband)
Kids Activities - $20 (averaged out cost of play museum and zoo memberships)
Childcare - $640 ($160/week mid-August through early June, $40 to hold the spot over the summer while my husband watches them)
Dining - $36 ($9/week to have dinner at church Wednesday night so my kids can go to music class, ban on all other dining out for now)
Coffee Shops - $10
Trash/Recycling - $16
Electricity - $175 (varies from $150-$250 depending on how much we run heat/AC)
Sewer/Water - $170 (varies from $150-$200 depending on if we use the sprinklers)
Groceries - $400
Gas/Fuel - $180
Netflix - $8.55
Pets - $85
Other Shopping - $100
Christmas/Holidays/birthday gifts - $67
Life insurance - $140
Tuition/Other Education - $150
Savings - ~$400 (varies from $120-$1200 depending on expenses and income for the month)
Assets: House - $185,000
401ks - $57,000
Savings - $3,500
Liabilities:
Car loan $6,546 at a 3.04% rate with 2.5 years left. It's a 2005 Honda CR-V
Student Loans: $126,995 total
- $2,500 with a 10 year term, currently deferred with a 5.31% rate
- $11,590 with a 10 year term, currently deferred with a 5.84% rate
- $15,696 with a 10 year term, currently deferred with a 6.21% rate
- $23,785 with 29 years remaining, currently deferred and all interest subsidized (6.875% rate when in repayment)
- $22,890 with 29 years remaining, currently deferred with a 6.875% rate
- $3000 with 10 years remaining, currently in grace period with a 5.84% rate
- $22,885 with 22 years remaining, currently in repayment with a 6.625% rate; putting $183.10 minimum payment towards it
- $24,609 with 22 years remaining, currently in repayment with a 6.625% rate; putting $191.41 minimum payment + $126 towards it
Specific Question(s):
1) Ive cut down everything in my budget I can think of, is there anything that still seems high?
2) Heres our current plan, does it seem the best way to go? We will pay $500/month towards student loans and throw all surplus income into savings until we hit $10k. After that, well put the bulk of our money towards student loans and a couple hundred towards savings. Once my husband graduates and gets a full-time job ($45-$65k annual salary), well refinance both of our student loans into 7 or 10 year terms, and put the bulk of his salary into paying them down.
If we refinance just my student loans right now, we won't have any extra money to put towards savings.
Thank you!!!