The Harsh Reality

I haven’t posted much at all this week, primarily because I have been getting back into the swing of everything. University started back up, our final loans went through, W2’s have been rolling in, full time teaching internship started back up, lesson planning, getting started on my edTPA (teacher assessment for license). It has been a great endeavor. Always is the first few weeks.

So, with the new (and last) semester, our final loans went to our school. So we calculated the totals and came up with our grand total that we will be paying back. It comes out to a whopping, shocking, amazing total of $147,333.90!!!

Isn’t that crazy! Now note, that this is the total for two people. It took my husband and I both a total of six years to finish college. My excuses are different than my husbands, and he is very honest about his why. I was in a car accident and everything, academically, got thrown off by a semester. I was slotted for spring methods, which they then did away with and only allowed up to take fall methods and spring student teaching. I rushed through, cramming in 20 credit hours for two semesters to get into fall methods. I stressed myself out, and was still recovering from my accident. I then spent last academic year trying to finish up my minor, I’m two classes short and I’m okay with that. The classes have done wonders for me and look great on my resume. Husband is honest, he didn’t do his best in his classes. Plenty smart, just didn’t see a point in going when he knew the material. He would have an A in most of his classes until they applied attendance requirements. He did struggle with one class and took it three times trying to pass it. After the third time he took it he switched majors. I think he would have been fine if he had taken it later in his college years and not in his freshman year.

So what are we going to do about this total amount of debt? Well, our goal is to pay it off in 5 years. Okay, stop laughing. I know it sounds crazy. We would have to make $2,456 monthly payments each month. I don’t know how likely that is. But we are going to do our best. Once we graduate husband has a set income. For a while mine will still be variable. I’m looking at picking up another part time job this summer to make a total of 40 to 48 hours a week. That will help. While we are at our training location I will sub, going to apply for 4 to 5 districts near us (this academic year the district we will be living in is in dire need of subs…hopefully this continues for next academic year as well). I’m also planning on picking up a part time job as well. Something that is primarily in the evening and weekends so I don’t have to worry about conflicts for subbing. I’m also thinking about applying for a work from home job for a competitor for the company I currently work at (I can’t take my current job with me. I’ve already asked a few dozen times to make sure). Only issue with that is it is a contractor position, so I have to do some research on the tax law with that.

In any case, I know we are defeated by out total amount of debt. We are putting what we can towards it right now. It isn’t much but $50 bucks a month is better than nothing. We are snowballing our debt. We are paying lowest debt to highest debt. We are bouncing around the idea of debt consolidation but we aren’t positive on that. The primary difference would be our interest rate. It would be nice to have one set interest rate, rather than trying to figure out what the rate is based off all the different loans we each have. We still have some thinking and feeling around to do. But the current game plan is simple;

1) Husbands salary (which start in June) will be for living expenses.

2) Any extra goes towards the debt snowball

3) My income goes towards debt repayment

4) Until a full time job is set for me subbing and part time evening work

5) Through all of this we are still going to be putting away 10% of our income for investing/savings.

A lot of you will disagree with number 5, but it is important to us. It is 10%, noting major, and we are in our mid 20’s. It is a good time for us to start putting that money aside.

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