If we take out 7k of the gross $46,0000/yr for healthcare and retirement…
$5,700 for federal taxes, another k for state taxes…
That’s about $2692 a month, net. Subtract the just over $2k a month listed, there’s another $400 a month for… Utilities, phone, transportation, entertainment, savings, emergencies.
Even as rent is under 25% of income, pretty tight. Doable. But very tighter. You will never retire saving $4000 a year. You can never get sick. You apparently walk to work.
Pretty much have to get a roommate until the student loans are paid off.
Talk with the student loan provider. Get on income based repayment plans, you end up paying more in the long run, but less each month (or none at all) so you can at least eat.
This was nearly 20 years ago, but when I dropped out (two years in college, so don’t even have a degree), it was all spread across 4 loans (something weird, I dunno, I was a kid, but it was like a new loan for each semester? That didn’t even count the parent loans my mom took out for my schooling - thank god they just wrote those off entirely when she died). The repayment ticket book I received was $55 per week for each loan. That was $880 a month they wanted. For about a total of $50k of debt. With the sharp increase in tuition costs since I was in school, I wouldn’t be surprised if $1000 total per month is on the low end if you just pay what they ask you to. They don’t really tell you that you are taking out multiple loans by going to school, not just one big one.
I did as the above comment said and got on an IDR (Income Driven Repayment) plan, it basically refinanced my 4 loans into 1 and my monthly bill was now $57 a month, and it adjusts each year around tax time based on the previous year’s income. I’m currently paying about $80 a month.
That sounds like it sucks, especially to take on when you still don’t know what you are doing in life. I am glad you have since sorted it to be lower.
Do you get the same situation over there where interest increases the size of the loan more than you can pay it off with the lower amount now? In the UK most students expect to never pay theirs of before it gets cancelled around retirement age.
That’s much higher than normal. A quick google suggests between $200-$500 is more in line with a normal student loan monthly payment, which is still a burden on someone just starting out.
Only speaking from my own experience, but that sounds in-line with what the monthly payment is for each loan, but when I came out I had 4 separate loans that they came collecting on.
If you have any hope at all of keeping the interest from ballooning the principal beyond the original loan amount, yes.
:(
Or do what my cousin did.
Have uncle take out loan entirely under his name.
Make minimum payment on it.
When he dies, the debt dies with him.
My daughter went to one fucking semester and is paying $900/mo for two years. We tried to talk her out of it but she wouldn’t hear reason. She’s going to go back to school a little wiser next year.
I got through college with no loans. But I had a scholarship for a few years that paid 75% tuition. I ended up taking 7 years to graduate because when the scholarship ran out, I cut back on my class load to work full time as a bookkeeper to pay for my living expenses and tuition. I could’ve done a lot better if I had gone to a community college for at least the first two years but I got duped by university “prestige”. Being in the workforce now, I know employers don’t care what school you attended.
I want a single bedroom apartment for 850.
You can get one a lot cheaper than that, but you’re going to have to move somewhere you probably don’t want to live.
I live near one of the worst Philadelphia suburbs to live in (Chester) and even there you’re not going to find a one bedroom apartment for $850. You might find a room in a house for that little. On the flip side, I own a small two bedroom house in a very nice suburb that I rent out for $1400 a month. If you can find at least one other human being that you can cohabitate with peacefully, you can do a lot better than trying to find your own place. Easier said than done, I know - I hate living with other people.
In Russia we have plenty of single bedroom(they are just called single room) apartments for rent much less than 850. Even in Moscow.
Also don’t be worse than Russia. Please fix.
The old USSR did an excellent job of surveying the future population demands and building housing accordingly. This was called Central Planning and Americans scoffed at it as a thing that couldn’t work, because it didn’t immediately and immensely enrich the landed class.
Then the USSR collapsed, the Russian economy went into a nose dive, and Russia experienced an enormous population contraction as mortality rates and emigration surged. Suddenly, they had more housing stock than they knew what to do with, and even the newly implemented property class couldn’t squeeze people on the scale of your average Trumpy New York / LA / Dallas landleech. So now you’re still wildly overpaying what you’d have spent on housing thirty years ago, and the conditions have only deteriorated since. But you’re still somehow better off than some poor sap living in a Detroit slum or a San Fransisco closet or a Miami favela, paying twice as much.
These conditions aren’t going to last in Russia. But as Putin pivots back to a more command oriented economy (trading out old school soviet internationalism for new school national socialism) it does appear they’re positioned to avoid the American Techbro system of “Everyone must live in the pod and eat the bugs” that we’re currently headed towards.
The old USSR did an excellent job of surveying the future population demands and building housing accordingly.
Indeed. What USSR did really well is housing, healthcare and education. And looked into future. “We need to build school here because 30 years later current kids will have X kids that need to go to school”. Not that it didn’t have own downsides.
These conditions aren’t going to last in Russia.
I have to agree here for now. Degradation of education system is glaringly obvious. Healthcare in regions too. Housing… slowly deteriorates.
But as Putin pivots back to a more command oriented economy
Except Putin’s command economy will exist only to build more yachts for him and his oligarchs.
The system has made it impossible to live alone. You pretty much have to pair up with someone and split finances, whether that’s a romantic partner or a roommate or whatever. You have to be absolutely killing it to be younger than 40 and living alone right now.
American Capitalists: “Communism doesn’t work.”
Also, American Capitalists: “Live in a large shared space, cook meals together, and maybe even do a little farming on the side to supplement your diet. Also, don’t use the traditional professional trade system. Learn by doing! Become your own mechanic, have friends cut your own hair and do your own dentistry, home school your kids, and dig your own well for water. Basically, become a 1950s Maoist.”