General Discussion

HiPointDem

(20,729 posts)

100. and i gave you the example of my cousin the recent *nursing* graduate, supposedly a safe field,

Sat May 19, 2012, 11:38 PM

May 2012

who's not been able to find a job in the area where her parents live.

if you didn't say one year, other people did.

i gave a scenario here of the $10/hour ($20K/yr) worker whose disposable income is actually about $16K after taxes.

This grad has debt amounting to 60% of his salary, just like the $150K worker, but it's going to take the lower-wage worker at the very *least* two years to pay off.

That's if he doesn't have unexpected medical expenses (as he can't afford to buy insurance and it's unlikely his $20K job offers insurance, let alone insurance that actually covers anything).

And that's without being able to buy a home (like the Harvard guy in the story is doing), own a car, or do much of anything.

And it's still cutting it fine, because over 2 years, after paying the loan, this person has only $10K a year left.

http://www.democraticunderground.com/?com=view_post&forum=1002&pid=707079

What is an "appropriate" amount of time for this person to repay their loan if they are unable to or don't want to leech off their parents (who may not be that well-off themselves)?

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Wiping Out $90,000 in Student Loans in 7 Months [View all] Johnny Rico May 2012 OP

Great advice... PCIntern May 2012 #1

hee! Liberal_in_LA May 2012 #6

"Get a six-figure job" = exactly. That's 1% territory, especially for recent college grads. HiPointDem May 2012 #11

I seriously doubt it's "1%" territory. 5 or 10, maybe. More likely 20. MH1 May 2012 #18

He paid back $90K in 7 months. Which means he is making at least $12.8K a month, even if he's HiPointDem May 2012 #21

He cashed in his retirement accounts, got a second job, sold a bunch of stuff on craigslist dkf May 2012 #28

Um, he's in his early 20s, how big of a "retirement account" do you think he has? HiPointDem May 2012 #32

He is 29, and a Harvard MBA, so he had professional experience before enrolling Godhumor May 2012 #85

The most employment he could have had was 4 years if he took the usual amount of time to HiPointDem May 2012 #89

I'm 11 years out of grad school and haven't even gotten close to HALF of six figures Blue_Tires May 2012 #26

Most of the population *never* does either. Which is why publishing an article like this as if it's HiPointDem May 2012 #27

Read his blog... dkf May 2012 #30

He paid back $13K A MONTH. I live on less than that A YEAR. He SAID he makes over $100K a YEAR. HiPointDem May 2012 #37

You have a boatload of student loans? dkf May 2012 #46

no, unlike this rich dick, i put myself through grad school with no debt and a 4.0 by working while HiPointDem May 2012 #52

Hey you were even smarter than him by not getting into debt period. dkf May 2012 #55

why is it always prep-school dicks and dickettes that are featured on the evening news telling HiPointDem May 2012 #62

Because its harder for a normal state university grad to incur that much debt? dkf May 2012 #104

Annual cost for 2012 at the University of Illinois, a public state school for undergrads is $30k nt riderinthestorm May 2012 #111

Not worth that, unless you study accounting or engineering. closeupready May 2012 #118

I put that out there for people who think going to an in-state, public university riderinthestorm May 2012 #120

How did you do it without being (or becoming) a 'rich dick'? I coalition_unwilling May 2012 #72

Median income for a male MA = $70K. For a female MA = $54K. Only a minority of MA holders HiPointDem May 2012 #74

The dick cited in the OP probably had an "MBA" and, with coalition_unwilling May 2012 #75

Maybe i'm a dickette for other reasons. How many of those nice wheels are financed, belong to HiPointDem May 2012 #79

I do. $120K to be almost exact... a la izquierda May 2012 #106

what kind of job do you have? CreekDog May 2012 #115

He liquidated his retirement fund. bluestate10 May 2012 #47

Since when do recent college grads have big retirement funds after 7 months of work? HiPointDem May 2012 #50

The guy is a 28 year old newly minted Master Degreed worker. bluestate10 May 2012 #65

If he has a MA, that means that if he was on a normal timeline then the *most* he could have worked HiPointDem May 2012 #76

unless he plans to hire me for a six-figure job, i have no use for him Blue_Tires May 2012 #43

You're wrong. A salary of low 6 figures puts the man in the bluestate10 May 2012 #40

I linked the IRS page for 2009 which clearly shows that the top 10% starts at $112 and the HiPointDem May 2012 #44

He is 28. bluestate10 May 2012 #51

Fine, he's 28. If he graduated in usual time & got a job immediately after, he worked 6 years HiPointDem May 2012 #56

I think the point of it is Blue_Tires May 2012 #91

¥eah, I stopped reading after that part "six figure job". Starry Messenger May 2012 #12

That fact doesn't disqualify the guy if he earns the money through bluestate10 May 2012 #53

Disqualify him for what? Starry Messenger May 2012 #64

I paid off my student loans in around 8 months. bluestate10 May 2012 #68

And other people live that way too, and still can't get ahead. Starry Messenger May 2012 #70

$20K - FICA = $18,760. $18,760 - 7% = $17,447. Cheapest 1-B in very cheap area = $300/mo = HiPointDem May 2012 #80

Yeah, yahoo is painfully obvious in some of their finance stories Blue_Tires May 2012 #25

Yeah, these kinds of articles are infuriating stevenleser May 2012 #98

"It helps to have a low-six-figure salary" pretty much says it all and MindMover May 2012 #2

a high sex figure salary is even better! Liberal_in_LA May 2012 #7

Certainly. And yet few people with those salaries would do what he did. pnwmom May 2012 #8

Baloney. Plenty of people would do what he did if they made $13K a month. HiPointDem May 2012 #23

Many of the posters are so glued to the 1% claim made by some, bluestate10 May 2012 #57

The median income for men with a bachelor's degree = $51K, for women $40K. That's for ALL HiPointDem May 2012 #73

I never said the loans could be paid off in one year -- I said several years. pnwmom May 2012 #90

and i gave you the example of my cousin the recent *nursing* graduate, supposedly a safe field, HiPointDem May 2012 #100

I won't argue that there are many people in way over their heads. pnwmom May 2012 #122

Well, *I* landed a six-figure salary! KansDem May 2012 #10

What type of training do you have? bluestate10 May 2012 #60

These days, you may train for a field that does pay well, Habibi May 2012 #67

It is wiser to train for a field that one loves. bluestate10 May 2012 #69

I trained for a profession I would love doing KansDem May 2012 #108

My young cousin told me today that she hasn't been able to find a nursing job in our area HiPointDem May 2012 #95

"It helps to have a low-six-figure salary..." villager May 2012 #3

Very resourceful KansDem May 2012 #4

Nobody who is serious about reducing debt should *ever* eat fast food. Nye Bevan May 2012 #5

Right. People who eliminate one cup at Starbucks a day could save a thousand dollars a year. pnwmom May 2012 #9

They don't add up to $12.8K a MONTH. Which is what he paid back. HiPointDem May 2012 #24

Plus getting a second job, cashing in all retirement funds, and selling his belongings on Craigslist dkf May 2012 #31

I didn't realize 20-somethings typically had big retirement accounts and owned houses with extra HiPointDem May 2012 #48

I was a 20 something that had more in my retirement account bluestate10 May 2012 #71

Very few people make that kind of money out of college. EOTE May 2012 #77

I am not calling the guy virtuous. bluestate10 May 2012 #81

You very well are. EOTE May 2012 #84

You're saying your mom and dad made less than $7K in 3 years? Because that's what I thought you HiPointDem May 2012 #93

I never said it did. But a thousand dollars is a thousand dollars. pnwmom May 2012 #54

average student loan debt = $25-$28,700, per this: HiPointDem May 2012 #61

Using some of the statistics from the links you posted. bluestate10 May 2012 #78

I just linked an article which said average debt = $25-28K, so what do you mean by "typical"? HiPointDem May 2012 #86

I agree with you that that is doable under the circumstances you mention. pnwmom May 2012 #88

I don't think it's insulting to talk about saving a thousand a year by forgoing Starbucks. pnwmom May 2012 #87

Of course it's insulting, because the assumption behind it is that people other than yourself HiPointDem May 2012 #92

I don't drink Starbucks, a la izquierda May 2012 #107

That is a huge amount of debt you've taken on. pnwmom May 2012 #121

13 years of school. a la izquierda May 2012 #129

I have a friend who does this on a regular basis... Phentex May 2012 #20

He just cost the student loan industry a pile of money. The combat drones are on their way. Zalatix May 2012 #13

If only people realized the best way to get at "the man" is to pay off debts ASAP. dkf May 2012 #33

If you physically can come up with the money to do so, then you're right. Zalatix May 2012 #35

Oh, for Pete's sake. Habibi May 2012 #14

It's all about rugged individualism! If he can do it, everyone can! Zalatix May 2012 #36

Winner, winner, chicken dinner! Ikonoklast May 2012 #45

"Winner, winner, chicken dinner!" LOL!! Zalatix May 2012 #58

I also like the part about liquidating his IRA riderinthestorm May 2012 #15

Have a high paying job. Break the law. Don't spend a lot. Clear out your IRA. If you have one. Or a uppityperson May 2012 #16

Good for him! bhikkhu May 2012 #17

Jesus H. Christ, a six-figure salary??? What a maroon, liquidating an IRA (tax-sheltered) to coalition_unwilling May 2012 #19

Student loan interest is NOT DEDUCTIBLE if you make 75k+ filing single. nt kelly1mm May 2012 #22

Goes to show my income bracket, I guess (<$75 K). But I would coalition_unwilling May 2012 #59

A 25% tax rate and a 10% penalty applies to early bluestate10 May 2012 #82

I thought part of it would be taxed as long-term capital gains. HiPointDem May 2012 #94

I noticed that, too. Marr May 2012 #66

He is not so dumb. bluestate10 May 2012 #83

He had to pay a 10% penalty to liquidate it before age 59 1/2. And coalition_unwilling May 2012 #99

I can attest to restaurant dining (even McDonalds). It adds up quick. joshcryer May 2012 #29

It also sounds as though he has a 3 bedroom house. Did anyone else catch that part? riderinthestorm May 2012 #34

Yes, and paying a note on a three-bedroom, even if it's in a neighborhood less classy than his HiPointDem May 2012 #96

Downpayment, taxes, repairs.... riderinthestorm May 2012 #112

What a clueless, entlited, elitist dick. Odin2005 May 2012 #38

"It helps to have a low-six-figure salary" fishwax May 2012 #39

What a joke. Ikonoklast May 2012 #41

+100,000. closeupready May 2012 #119

Fuck. The Midway Rebel May 2012 #42

DUH, if I had a 6 figure salary DiverDave May 2012 #49

Uh, a lot of people do all that stuff because they HAVE to. Marr May 2012 #63

Insanely stupid to follow his footsteps taught_me_patience May 2012 #97

Next from the Wall St Journal: How to buy a million dollar house without going into debt high density May 2012 #101

The people saying how great this guy is are the same people who'll tell you how "hard" it is for HiPointDem May 2012 #102

I'm looking for a word.... progressoid May 2012 #103

If this is not an Onion article, it should be. Bonobo May 2012 #105

Single guy with a six-figure salary, probably no other debt or obligations-- TwilightGardener May 2012 #109

Excellent, renminds me of Steve Martin's advice. dems_rightnow May 2012 #110

Jealousy rears it's angry head on this thread... the guy went to the University of Michigan then NotThisTime May 2012 #113

Yes, obviously we're all just sooo jealous of him Saokymo May 2012 #114

Spare us the "Class Warfare!!1!!" crap. HughBeaumont May 2012 #117

Wooosh. The article is total bullshit. Ikonoklast May 2012 #123

More libertarian bullshit. white_wolf May 2012 #124

Yahoo Finance . . . the "STFU, Get off Yer Pity Pots & Pull Yourselves Up by Yer Bootstraps!" site. HughBeaumont May 2012 #116

Note: The OP did not make a comment in the OP or reply to a single post in this thread. ellisonz May 2012 #125

There are a number of RW trolls running around posting memes like this. stevenleser May 2012 #127

Heinlein lover. Ikonoklast May 2012 #128

"It helps to have a low-six-figure salary, as Mihalic does working for Dell Inc." ellisonz May 2012 #126