My wife and I got married last year and I knew going into it that she had quite a bit of student debt. Her parents were completely irresponsible and did nothing to prevent her from attending multiple schools of varying price ranges, studying abroad, and all sorts of other expensive things. Yes, I know she is at fault for making these decisions as well, and yes I know that I knew what I was getting into before marrying her.
I thought she had about 70k in debt but she just revealed to me (or maybe just learned herself) that it is actually closer to $140,000 in debt. I'm not blameless either as I have $49,000 in debt from grad school for my architecture degree (which was really important if I wanted to advance in my career).
I could really use any advice from people about how to tackle this debt. Below is all the relevant financial information for us:
- We are both young (in our 20's)
- We currently live with her parents and pay a small sum for rent and utilities and food (~$500 a month), but we might be able to switch to live with my parents in the near future and pay less than that
- Cost of living is very reasonable where we live
- I make $54,000 a year. I am working towards additional licensure (half my hours are done) and the classes get paid for by my employer assuming I pass them. Once I am done 3 more classes, I will be eligible to negotiate a raise. The classes keep me very busy and stressed during non-work hours.
- My wife is relatively unemployed. She got pregnant relatively quickly in our marriage and she never got started on a career. She is currently nannying for $15 an hour ~10 hours a day, but even in the best case scenario she will do this for 4 months and make about $12,000 before needing to be on bed rest for the pregnancy. After the baby arrives and she takes 6 weeks or so, she will start looking for a more serious permanent job.
- Baby is due in August. Due to medical complications, it will almost certainly be a c-section.
- Her parents, my parents, and my sister-in-law are all valid options for childcare after the 6 weeks are up
- My medical insurance plan: Annual deductible $2,700 individual, $5,400 family; 100% coinsurance; maternity 100% after deductible; max out of pocket limit $2,700 individual, $5,400 family
- Other than student loans, no other debt (no mortgage, no car payments, no credit cards, etc.)
And finally, here is the big list of loans and their information:
My loans:
- Stafford Unsubsidized $22,661.59 (5.590%)
- Stafford Unsubsidized $21,352.22 (5.060%)
- Student Plus: $5,324.15 (6.060%)
My wife's loans:
Nelnet:
- $5,787.28 (6.96%) Interest: $375.00
Nelnet:
- $10,000 (6.41%) Interest: $2,565.75
- $10,000 (7.21%) Interest: $1,964.12
- $10,439 (6.84%) Interest: $3,229.48
- $10,439 (6.84%) Interest: $0
- $6,500 (6.84%) Interest $766.86
- $8,500 (6.31%) Interest: $1,348.50
- $8,500 (6.31%) Interest: $0
Great Lakes (consolidated)
- $17,574.59 (4.25%) Interest:$51.39
- $20,449.91 (4.25%) Interest: $6,200
Firstmark
- $6,000.00 (8.5%) Interest $986.55
- $6,500.00 (8.5%) Interest $4,056.59
- $6,500.00 (8.9%)
Please, please, please let me know any relevant advice. I am aware of the general Dave Ramsey strategy ("Spend the bare minimum, put every dollar possible towards the highest interest debt"), but I still can't sleep at night or wake up in a panic worrying about these loans. I don't want to spend the rest of my life paying these off, I don't want to not be able to raise my child properly because of them, I just want any help or advice that anyone has to help solve this problem.
Thank you all in advance.
Submitted January 30, 2018 at 08:42AM by LongjumpingStreet http://ift.tt/2rRUdUl
