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$110,000 in Student Debt; $50,000 Dual Income

Written by Gary North on August 6, 2012

Here is a man who borrowed $110,000 to attend the University of Mississippi — not a top-tier university, and tax-funded. Their joint income id $50,000.

They have one child. So, there are day care expenses.

With so many couples like them, day cares are very profitable when they are run right.

The couple says that they hope their infant daughter will not make the mistake they did: college debt. They doubt that they will have another child.

This is the demographics of student debt: a shrinking population. This will cheep up the Zero Population Growth movement.

The wife was interviewed about their finances.

Do you worry about money?

I’m not worried about the everyday, for example not being able to put food on the table or buy diapers or gas, but I worry about emergencies. I worry that our cars, which are both older models, might give out on us and we don’t have the extra cash flow to fix (them). I worry about something happening to one of us that makes us unable to work, or in some way negatively affects our job situation.

Biggest expenses: (1) student loan payments, (2) day care. That is their “mortgage payment.” They rent.

We could probably find a cheaper apartment to live in, but it is worth it to us to pay a little bit more and not have to worry about the neighborhood we live in, or commute too far to work. We both drive less than three miles to work every day.

They have cable TV. They occasionally attend a movie.

They both have B.A. degrees that have no connection to what they do for a living. The degrees are not entry requirements for their jobs.
They could have gotten into the job market four years early.

If they had, they would now own a home.

They pay $500 a month on the husband’s student loan debt. Yet he did not need to spend a dime. He is in real estate.

They probably will pay until he is 60 . . . unless rates go up. Then he will be trapped for life.

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6 thoughts on “$110,000 in Student Debt; $50,000 Dual Income

  1. "The rich rules over the poor, And the borrower becomes the lender's slave." Proverbs 22:7

  2. collinsj50 says:

    They both have bachelor's degrees and their combined income is $50,000? What are their degrees in, basket weaving?

  3. I'm surprised MSNBC covered this since Obama is preaching that EVERYONE needs to have a college education. Problem is, not everyone is fortunate enought to have some else pick up the tab like Obama, whether it was his foreign student scholarship, or having some saudi sheik pay his way through Harvard.

    A couple goes to collage and currently work in a profession where a college degree isn't necessary. Go figure. That is why I think there needs to be more emphasis on vocational schools…oh…wait…not enough opportunity to brainwash people.

  4. Doesn't anyone go to community colleges anymore where you can take care of the first two years of college rather inexpensively and work your way through before going to a more expensive 4 year college or university which is where the costs go up? Actually, I know many do, we just don't read about them, because they are not in over their heads in college loan debt.
    And this fellow, he must have grabbed every loan offer thrown his way to live high on the hog while attending college. Now he is having to pay for it and working in a field where he didn't even need a degree in the first place. Four years of loan funded party time ends up with debt you pay off the rest of your life. If nothing else, this couple is an example of what kids or adults going to college need to realize and avoid. If you are intending to go to college, realize before you grab every loan offered that some day you will have to pay them off. And get a degree that when you graduate, will pay you enough to pay your loans off. And check before you go to college if you wouldn't rather get a job that doesn't require four years of college and loan debt. My feeling is this man borrowed that much to have one big four year party which indicates to me he is not likely to be a financially reliable husband either. If you have to borrow, borrow only what you have to to pay tuition, and get a part-time job to cover living expenses. That is if you are serious about college and smart enough to realize you will have to pay all that money back. This guy does not seem to have thought ahead at all with his borrowing. Wonder how long that marriage will last.

  5. They could buy bicycles to get to work, and lower their auto expenses – maybe they only "need" one car – and could lower their insurance rate on that one car dramatically by only using it as a weekend pleasure trip vehicle.

  6. Sounds like the lower-income of the 2 parents should be staying home with the child, saving day-care and one car worth of expenses – and the other should be walking to work at least occasionally!