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So I (23F) am staring down the rabbit hole of a few pretty critical life changes, and feel as though I have not received the proper financial education to make informed decisions for my long term financial health. I grew up broke but I don't want to live that way for the rest of my life. Help me, internet.

Currently, I'm quite fortunate to have a decent paying career as a college dropout (death of a parent, serious natural disaster, cue my crippling depression) making $52K annually, but there is absolutely no prospect of a raise and I'm simply miserable on my current career track. I want to return to school, and I want to do it right this time. As a young, naive first generation college student- I took on a lot of debt (about 45K private loans over 2.5 years) without really having any sense of what those staggering figures meant. I'd like to think I'm a bit wiser now, but at a considerable cost, no less...

My prospective plan is to enroll in community college for 1 year (August 2019 - May 2020) to knock out as many credits as possible. By the following academic year, I'll be old enough to file my FAFSA independently, qualify for higher aid, and finalize my undergraduate degree from the major university I worked so hard to get into. From there, I'll be undergoing a specialized nursing track which takes an additional 2 years. As there is a national shortage of this specialty, scholarships are plentiful and the programs are relatively affordable. My goal is to not take on any additional debt, and to pay for the rest of my education in cash. Is this reasonable? Is there an alternative approach more suitable for my "big picture"?

My current loans will go back into deferment once I'm re-enrolled in classes in August, freeing up + $700 / month (currently my largest expense by far) in my budget. I understand that regardless of 'deferment' status, private student loans will continue to accumulate interest at sickening rates. Not paying these down aggressively means that I'll be stuck treading water until I'm ready to retire at this rate, but the + $700 / month is more valuable to me as a broke student than it will be as a more financially stable professional, right?

For context, I'll be making about $65K after I finish my undergraduate degree (2021). Once I finish my specialized training (2023), my starting salary will fall at right about $100K.

For now, I'll be able to continue my current job through the duration of my education. Here is what we're working with:

Primary Income: $3,200 / Month (Take Home)
Secondary Income(s): ~ $500 / Month (Cash)

Savings: Student Loan Debt:
$4,500 $43,000

Current Budget: Prospective Budget:
Student Loans: $700 Minimum Student Loans: $0 (?), Tuition: >$5,000 / Year x2
Rent: $200 Rent: $1,200 (this does account for roommates)
Utilities: $0 Utilities: $200
WiFi: $0 WiFi: $60
Car Note: $300 Car Note: $300 (until Jan 2020)
Insurance: $65 Insurance: $65
Gas: $80 Gas: $80
Medical: $120 Medical: $120
Groceries: $300 Groceries: $200
Spending: $300 Spending: $200
Savings: $1,200 Savings: $600

** For clarity, I listed only the minimum due on my current student loans. I pay substantially more per month on my loans currently, and would simply like your insight on what I should budget for my existing loans over the next 4 years of my education.

** Also- I had extraordinary luck in landing a gorgeous, perfectly located rental home for $200 / month plus private yoga lessons and nutritional coaching for my roommate. Unfortunately, said roommate (the home owner) is moving abroad in August and I'll need to land a much more expensive, likely much shittier alternative just in time for tuition being due. In the meantime, I'm saving every cent I can and recently undertaking several side hustles to prepare for higher COL and the cost of tuition.

*\ Finally,* I do understand that I live in a region with notoriously high COL but moving away is not really an option. This city and community I've created here are indispensable, so I'm willing to work more and spend less in order to make it work.

While I have no other debt, this year's government shutdown cut into my savings majorly and served as a reality check to hault frivolous spending. I'm working towards a more stable financial standing every day, though I feel like I'm going through it all with blinders on.

How can I do better?



Submitted May 07, 2019 at 01:16PM by smuttybanananana http://bit.ly/2PU11t5

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