Hello all,
Basics
- 27 year old male
- Undergraduate in Communications and Marketing
- Graduate Degree in Communications with a focus in PR
- Experian Credit Score: Fair @ 592
Throughout all of my schooling I accumulated $90k in federal loans (~4%), and 94k in private loans through Wells Fargo (11%). No need to rib, I get it. I spent about 4 months living with my parents trying to find a job following graduate school, and found one in Atlanta. Here are my current expenses:
Current Monthly Outgoing
Rent: $1230 (outside of the perimeter of Atlanta, includes water trash, etc..)
Electricity: $30 - $100 (don't use heat in winter, AC in summer)
Internet: $49.99 (lowest)
Gas: $40 / 3 weeks
Spotify: $14.99 /monthly
Credit Cards (14%): $125 ($3800 balance)
(No car payment, driving older diesel VW , and live 2 miles from work, and telecommute twice / weekly)
Current Incoming
Monthly paycheck: ~720 net with all taxes and insurance taken out
Annual Salary: $50,000 gross in Marketing at automobile company
Plan
- I asked for forbearance on federal school loans, which was granted. Due to my low income during school (Graduate Assistant), I qualified for $0 for a year on my IBR. Begin payments of $285 month next August.
- I took the initial oath of enlistment within the US Army to take advantage of the Service-members Civil Relief Act (SCRA) which caps previously existing loans at 2%. I ship off to basic in mid-January.
- Applying SCRA to current apartment, and waiting to see if approved for Wells Fargo (currently on Irregular Ready Reserve) and to credit card. Requested Military Deferment to Wells Fargo, not confirmed.
- While in Basic Training, OCS, I will be making roughly $2,088 monthly (9 weeks, no food or housing costs) until I reach OCS (same as Basic) where I will be making $2,278.00 base pay (12 weeks). Once I graduate OCS, then I will at $3,188 not include Off-base housing (roughly $1300 untaxed, depending on locale) and food pay (unsure, but untaxed).
- While in Basic and in OCS, I am hoping to have my family member monitor my finances and pay as much of the credit card off as quickly as she can. Then tackle the private student loans at 2%, and apply for the PSLF and do that for 10 years.
I'm mainly joining the military to get out of this insane debt that I found myself in. With everything said, is this a solid plan? I value the opinions on PF and hope to have someone poke holes.
Submitted September 11, 2019 at 08:22PM by PerFinStuLoan https://ift.tt/2Q47kxP
