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I’m a 29-Year-Old With $235k in Student Debt. I’ll Never Pay It Back.

AlbionGirlAlbionGirl 837 replies92 threads Member
It's hard to have much sympathy for this guy. He's paying $35 per month on his debt while leaving his elderly parents to pay $600 per month for him. Instead of working more or cutting back his expenses he has now dropped his hours to part-time.

Interview
https://www.youtube.com/watch?v=9e7OH9iyDxA&list=PLWsfkEnxdVk_qakjMQbvuOAcExbBZLdYz&index=3&t=0s

Article
http://money.com/money/5647242/student-debt-money-makeover/
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Replies to: I’m a 29-Year-Old With $235k in Student Debt. I’ll Never Pay It Back.

  • ucbalumnusucbalumnus 80224 replies720 threads Senior Member
    Based on the article...

    If he is 29 now, he was born around 1990, presumably attending college during the great recession (2008-2012).

    The $120,000 bachelor's degree at a state school is probably list price for four years in-state, suggesting full pay (either high income/assets parents, or not-so-high in a state with poor in-state financial aid like Pennsylvania), but that he and his parents could actually pay nothing (so they borrowed the whole thing). Then he added a $70,000 master's degree, possibly due to poor job prospects graduating into the weakly improving (from a deep hole) job market of 2012.

    But he only recently reached an income of almost $48,000 per year, suggesting that any major-specific job prospects associated with his degrees are not that high income.

    So it looks like he started from bad luck (the great recession probably kept his parents from being able to pay anything and limited his job options at bachelor's degree graduation; plus whatever situation made him full pay at the state school) and added bad decisions (borrowing the entire cost of residential college to study something leading to a low/medium income career direction).
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  • LindagafLindagaf 9926 replies538 threads Senior Member
    edited June 2019
    What???? And he’s proud of himself, and they’re shaking hands with him like he’s done something good and generous. Wow. What’s the makeover? Lame video, lame guy.
    edited June 2019
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  • AlbionGirlAlbionGirl 837 replies92 threads Member
    According to his resume Galperin received a BA in Journalism and Media studies at Rutgers and MA in Social Journalism at CUNY. In the video he states that his goal is to pay $35 per month on his debt until he dies. He previously made $27,000 annually but received a raise to $65,000. Since then he dropped his hours to part-time so presumably his salary dropped also. When the interviewer points out that by earning more, or making economies Galperin might spare his parents from the $600 monthly debt payment he states "I want to make my life today, not worry about what my life is going to look like forty years from now."
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  • tutumom2001tutumom2001 1218 replies3 threads Senior Member
    OK, newbie to the college loan game here, but how is it even possible to get a student loan for $235K? At some point, wouldn't the lending institution just say no, you're a financial risk?
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  • gwnorthgwnorth 413 replies8 threads Member
    ^ That's the type of comment I expect from an 18 year old kid not a 29 year old adult who is looking to settle down and buy a house.
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  • ucbalumnusucbalumnus 80224 replies720 threads Senior Member
    OK, newbie to the college loan game here, but how is it even possible to get a student loan for $235K? At some point, wouldn't the lending institution just say no, you're a financial risk?

    The undergraduate loans beyond the relatively small federal direct loans require cosigners (i.e. his parents cosigned most of his undergraduate loans).

    However, much larger loans can be gotten without cosigners for graduate or professional school.
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  • momofsenior1momofsenior1 8803 replies85 threads Senior Member
    @tutumom2001 The article says they were private loans that the parents co-signed and now they are stuck paying $600/month for their selfish kid.
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  • tutumom2001tutumom2001 1218 replies3 threads Senior Member
    @ucbalumnus That's insane. I have bachelor's and master's degrees in journalism and make about his same salary. I live in a place with low cost of living and my combined debt (house, car, etc) isn't even half that loan total. I can't imagine taking on a loan like that. And, no, I'm not going to let my college student do it either. Now maybe for medical school if she plans on becoming a neurosurgeon or something that pays well ...
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  • ucbalumnusucbalumnus 80224 replies720 threads Senior Member
    AlbionGirl wrote:
    According to his resume Galperin received a BA in Journalism and Media studies at Rutgers and MA in Social Journalism at CUNY.

    Rutgers' current NPC suggests that full pay for NJ residents starts at parental income around $90,000 per year. But who knows what Rutgers' financial aid was like in 2008-2012.

    Seems like they started in a bad situation (recession, NJ probably-not-very-good in-state financial aid) and made it a lot worse by borrowing the full cost to send him to college to study a major leading to a lower income career path. Adding bad decisions to bad luck unsurprisingly tends to lead to bad outcomes.
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  • ucbalumnusucbalumnus 80224 replies720 threads Senior Member
    Now maybe for medical school if she plans on becoming a neurosurgeon or something that pays well ...

    Medical students should not expect to get into any particular specialty, because many of them are very competitive to get into.

    Medical students are almost assured of eventually getting a well paying job (by most standards, but some specialties do pay much more than others). However, they are expected to borrow up to $360k for the medical school, and then spend several years in residency being paid around $50k per year (so very little possibility of paying down any of the medical school debt, so the well paying job ($170k or so would be the typical expectation) income just means that the physician can start making a dent into the debt.

    It helps to have wealthy parents to help fund medical school. Or be a resident of NM or TX who gets into a relatively lower cost in-state medical school, or be one of the few who gets into NYU or the first few classes of Kaiser medical school.
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  • ucbalumnusucbalumnus 80224 replies720 threads Senior Member
    Actually, a recheck of physician pay suggests that the typical (lower paying) medical specialties pay about $240k, not $170k. Still not attractive if one has to go into $360k debt to eventually get there.
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  • cptofthehousecptofthehouse 29937 replies59 threads Senior Member
    I don’t think the interview focused enough on the financial pain he is inflicting in his parents. If he chooses to keep the loan monkey on his back, that’s his business and his right. However,he certainly does not care about his parents. Unless they are ok paying that $600 a month. If those are co-signed loans, he will owe the balance due when his parents pass away. As he makes more money, he’ll owe more on his loans as well
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