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.
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.
The IBR plans are aggregated against all your federal loans. So, unless there are some weird private loans in there, that’s the upper limit in sum total based on the income we’re discussing here.
They aren’t on an income based repayment currently (or there is no evidence stating they are or aren’t I guess), so he would be dealing with all the separate loans sending him bills currently. Definitely needs to get on one though, it would help a lot, more than likely.
In the United States, there’s a federal loan option called Parent Plus loans that can allow parents to take out loans for their children’s education. Private loans could be taken out by just about anyone to pay for a student’s education, depending on the institution.
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.
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.
Is $1k/month student loan repayments in America usual?
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.
The IBR plans are aggregated against all your federal loans. So, unless there are some weird private loans in there, that’s the upper limit in sum total based on the income we’re discussing here.
They aren’t on an income based repayment currently (or there is no evidence stating they are or aren’t I guess), so he would be dealing with all the separate loans sending him bills currently. Definitely needs to get on one though, it would help a lot, more than likely.
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.
How are they taking out education loans in someone else’s name? Sounds like fraud.
In the United States, there’s a federal loan option called Parent Plus loans that can allow parents to take out loans for their children’s education. Private loans could be taken out by just about anyone to pay for a student’s education, depending on the institution.
That’s because it is fraud.
The educated kind of fraud 🧐
A regular work day for corporations.
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.
edit Didn’t mean to double post the same comment - internet at work sucks :(