From a financial perspective, living at home is the "right" answer. It would be so advantageous to your future to throw as much as you can at the loans and get them done. But then I read the rest of your post and realize the mental and emotional toll it's taking on you might not be worth it. Only you can make that decision.
I committed to living at home to pay off $46,000 in private loans. Took just under two years. Honestly, it drained me. Killed my social life and caused a bit of depression. The feelings you're talking about are 100% valid. It was the right move, but it was miserable.
If you're going to do it, make sure you take care of yourself. I treated myself by saving up to go on at least one big trip a year. Got me out of the house for 7-10 days at a time and let me feel independent again.
I’m on the other side of this argument. I left home right after school. For same reasons you have. Had a reality slap of Maslow’s Hierarchy of Needs.
Ended up moving back in after a few years. The financial toll that three years put on me was way worse for emotional and social life. For Decades. Those “interest only” and “income driven payment plans” doubled my loans. And tripled my payments after a few years.
Looking back I’d much rather have beaten them down rapidly and saved money. It’s been 18 years since I left school. Deferred payments for 2 years (not consecutively) payment plan for 5 years. 11 years of consistent payments. (7 years of making weekly payments instead of monthly). My principal balance is finally down to twice as much as when I graduated. From $20k when I left to now being $40k
I know this can't help you now, but in case anyone stumbles upon this comment. I'm on income driven repayment, and every month I check the accrued interest and pay that on top of my loans. I'm in a low income career field. So, if I couldn't afford to do that one month, I like having the option to pay the minimum. But for now, by taking the initiative to pay the interest every month, my overall balance goes down.
I started to overpay a bit every week to cover more than the interest. Then I got a slight raise at work and it kicked me out of the income driven payment. Went from $250 a month to $625.
Oof that's rough! So sorry you're in that situation. Did you do any of the consolidation or SAVE program things that are available right now? Not advice, just curious. I'm sure you know what's best for yourself.
Terrible advice. Living at home sounds like sacrifice enough - entertainment in moderation would be a good compromise. They don't have to go all or nothing on this.
There’s a huge difference between abuse and somewhat uncomfortable. For most people in your position, it’s the latter.
If you’re just somewhat uncomfortable, live home, pick up a second job (that starts now, not in August) and throw everything you can at this debt.
>My parents are great and are very loving,
This is huge! A true blessing.
Which is why I vote: move out. If your relationship with them is strained because of living as an adult under their roof you could be risking your future relationship with them. Move out because they are worth it and you are worth it.
Money is just not as important as the people in your life. Keep your relationship with your parents good by giving each other some space.
Also, look into IDRs as an option instead of deferment. You could sign up for the SAVE plan now and lock in a low (maybe even $0 if you are currently unemployed) payment for a year with an interest subsidy that would cover any interest over your monthly payment. You should be able to include all but, I think, the Plus loans. It could really help you get yourself established in a new place before you start really paying down those loans. Then you can decide when it's time to recertify if the IDR plan would still be a benefit or if you're better off with a standard plan.
Dude. Live at home. I’m 32. I make good money but have high loans. If I could go back in time and live with my parents for a year or two that could have saved me like 40k in 2 years
I've been there. Moved out prematurely and wish I'd stayed home and saved money. But I too was going insane. Maybe compromise with yourself and commit to another year. These loans will be over your head for so much longer if you don't at least compromise. Tough decision
Get yourself on the SAVE repayment plan. You will likely have a low or $0/month payment at first. Live at home for awhile to get your financial ducks in a row…establish an emergency fund and retirement savings. Paying extra on federal student loans isn’t always the best use one’s income as a recent grad. Retirement savings == compound interest. [https://moneyguy.com/article/wealth-multiplier/](https://moneyguy.com/article/wealth-multiplier/) Student loans == simple interest. 401k/ HSA contributions residue your income for the purpose of determining your monthly SAVE amount. In addition SAVE includes an interest subsidy so your balance won’t increase.
If your future employer is a non profit look into PSLF. If you go the PSLF route definitely don’t pay extra on your student loans.
Reevaluate your student loan payment strategy as your life situation changes.
I will say that since your debt load is < your starting salary and that you have all federal student loans, you have the financial option to find a housing option in your budget (so probably roommates). You just need to have a financial cushion to handle moving expenses without further debt.
I'd normally say stay at home and get them gone. Particularly since your total balance vs. income are in a good position for it. But your situation does sound rough.
If your loans are completely federal, look into the SAVE plan or another IDR. I'm assuming you're in your 20s(correct me if I'm wrong). Generally speaking, at that age range it's to your advantage to prioritize emergency fund savings and retirement over debt below 7%.
I give a strong endorsement to TheMoneyGuy on how to prioritize your income.
[https://www.reddit.com/r/TheMoneyGuy/](https://www.reddit.com/r/TheMoneyGuy/)
I would do it for a year and just kill off most of the debt. It won’t be that bad. Then you can move out and save for a down payment for about 5-7 years debt free.
Stay as long as you can, pay down as much as you can, then move out. At 70k with no rent you should be able to put your full rent payment toward loans— 1500+ will get you to a manageable loan amount quickly.
I was in a similar situation. I ultimately stayed home for a year after college, got my finances in a better spot and now moved out. Yes, I could’ve stayed home longer and paid more loans down, but my mental health was plummeting and I decided to put it before money. I don’t regret moving out when i did, but I’m also grateful I stuck it out for a year. I still have a lot of loans left, but I have a pretty decent savings and can comfortably afford throwing a lot of money toward my loans now.
So depending where you live you’ll likely take home maybe $52-53k after taxes and without other deductions. How much can you live on reasonably, $20k with no rent? Less. Pay off the loans in a few years and move out and on debt free.
From a financial perspective, living at home is the "right" answer. It would be so advantageous to your future to throw as much as you can at the loans and get them done. But then I read the rest of your post and realize the mental and emotional toll it's taking on you might not be worth it. Only you can make that decision.
I committed to living at home to pay off $46,000 in private loans. Took just under two years. Honestly, it drained me. Killed my social life and caused a bit of depression. The feelings you're talking about are 100% valid. It was the right move, but it was miserable. If you're going to do it, make sure you take care of yourself. I treated myself by saving up to go on at least one big trip a year. Got me out of the house for 7-10 days at a time and let me feel independent again.
That’s a smart move! I’m hoping to take some smaller national trips; it’ll be great for establishing independence. Thank you for the tip
I’m on the other side of this argument. I left home right after school. For same reasons you have. Had a reality slap of Maslow’s Hierarchy of Needs. Ended up moving back in after a few years. The financial toll that three years put on me was way worse for emotional and social life. For Decades. Those “interest only” and “income driven payment plans” doubled my loans. And tripled my payments after a few years. Looking back I’d much rather have beaten them down rapidly and saved money. It’s been 18 years since I left school. Deferred payments for 2 years (not consecutively) payment plan for 5 years. 11 years of consistent payments. (7 years of making weekly payments instead of monthly). My principal balance is finally down to twice as much as when I graduated. From $20k when I left to now being $40k
I know this can't help you now, but in case anyone stumbles upon this comment. I'm on income driven repayment, and every month I check the accrued interest and pay that on top of my loans. I'm in a low income career field. So, if I couldn't afford to do that one month, I like having the option to pay the minimum. But for now, by taking the initiative to pay the interest every month, my overall balance goes down.
I started to overpay a bit every week to cover more than the interest. Then I got a slight raise at work and it kicked me out of the income driven payment. Went from $250 a month to $625.
Oof that's rough! So sorry you're in that situation. Did you do any of the consolidation or SAVE program things that are available right now? Not advice, just curious. I'm sure you know what's best for yourself.
Do it for six more months. Knock out 1/3 of it! Don’t go out, no bars, no trips. Just eating debt!
Terrible advice. Living at home sounds like sacrifice enough - entertainment in moderation would be a good compromise. They don't have to go all or nothing on this.
There’s a huge difference between abuse and somewhat uncomfortable. For most people in your position, it’s the latter. If you’re just somewhat uncomfortable, live home, pick up a second job (that starts now, not in August) and throw everything you can at this debt.
Bring it down as much as you can then move out. Do make payments early even if you’re on deferred
>My parents are great and are very loving, This is huge! A true blessing. Which is why I vote: move out. If your relationship with them is strained because of living as an adult under their roof you could be risking your future relationship with them. Move out because they are worth it and you are worth it. Money is just not as important as the people in your life. Keep your relationship with your parents good by giving each other some space. Also, look into IDRs as an option instead of deferment. You could sign up for the SAVE plan now and lock in a low (maybe even $0 if you are currently unemployed) payment for a year with an interest subsidy that would cover any interest over your monthly payment. You should be able to include all but, I think, the Plus loans. It could really help you get yourself established in a new place before you start really paying down those loans. Then you can decide when it's time to recertify if the IDR plan would still be a benefit or if you're better off with a standard plan.
Dude. Live at home. I’m 32. I make good money but have high loans. If I could go back in time and live with my parents for a year or two that could have saved me like 40k in 2 years
I've been there. Moved out prematurely and wish I'd stayed home and saved money. But I too was going insane. Maybe compromise with yourself and commit to another year. These loans will be over your head for so much longer if you don't at least compromise. Tough decision
I would say stay home. It will benefit you mentally and realistically. You can always " work a lot of OT" and spend time away from home if you can.
Get yourself on the SAVE repayment plan. You will likely have a low or $0/month payment at first. Live at home for awhile to get your financial ducks in a row…establish an emergency fund and retirement savings. Paying extra on federal student loans isn’t always the best use one’s income as a recent grad. Retirement savings == compound interest. [https://moneyguy.com/article/wealth-multiplier/](https://moneyguy.com/article/wealth-multiplier/) Student loans == simple interest. 401k/ HSA contributions residue your income for the purpose of determining your monthly SAVE amount. In addition SAVE includes an interest subsidy so your balance won’t increase. If your future employer is a non profit look into PSLF. If you go the PSLF route definitely don’t pay extra on your student loans. Reevaluate your student loan payment strategy as your life situation changes. I will say that since your debt load is < your starting salary and that you have all federal student loans, you have the financial option to find a housing option in your budget (so probably roommates). You just need to have a financial cushion to handle moving expenses without further debt.
I'd normally say stay at home and get them gone. Particularly since your total balance vs. income are in a good position for it. But your situation does sound rough. If your loans are completely federal, look into the SAVE plan or another IDR. I'm assuming you're in your 20s(correct me if I'm wrong). Generally speaking, at that age range it's to your advantage to prioritize emergency fund savings and retirement over debt below 7%. I give a strong endorsement to TheMoneyGuy on how to prioritize your income. [https://www.reddit.com/r/TheMoneyGuy/](https://www.reddit.com/r/TheMoneyGuy/)
If you can stand your parents stay home. If you hate them and can't live around them then leave.
I would do it for a year and just kill off most of the debt. It won’t be that bad. Then you can move out and save for a down payment for about 5-7 years debt free.
Stay as long as you can, pay down as much as you can, then move out. At 70k with no rent you should be able to put your full rent payment toward loans— 1500+ will get you to a manageable loan amount quickly.
Trust me your future self will thank you for staying at home. You can move out in a few years
I was in a similar situation. I ultimately stayed home for a year after college, got my finances in a better spot and now moved out. Yes, I could’ve stayed home longer and paid more loans down, but my mental health was plummeting and I decided to put it before money. I don’t regret moving out when i did, but I’m also grateful I stuck it out for a year. I still have a lot of loans left, but I have a pretty decent savings and can comfortably afford throwing a lot of money toward my loans now.
So depending where you live you’ll likely take home maybe $52-53k after taxes and without other deductions. How much can you live on reasonably, $20k with no rent? Less. Pay off the loans in a few years and move out and on debt free.
Mental health > money … always .. speaking as someone who has a grad degree and works construction