Student debt consolidation for restaurant manager

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Topic Author
Singingchef22
Posts: 2
Joined: Sat Jan 11, 2020 6:08 pm

Student debt consolidation for restaurant manager

Post by Singingchef22 »

Hi, this is my first post on Bogleheads. My smart boyfriend has used this site for years and lurks around. I am a 28 year-old rookie restaurant manager wanting to consolidate my student loans and lower my interest rate. Currently, I’m in $44,756.02 of debt for student loans. Here’s the breakdown:

Sallie Mae [my own] $6,855.43 / 10.265%
THEBC [co-signer] $13,373.43 / 6.600%
Nelnet [co-signer] $1,152.55 / 3.860%
$4,736.12 / 4.660%
$5,297.27 / 4.450%
$7,197.30 / 4.450%
$2,653.20 / 5.050%
$3,490.72 / 5.050%

Unfortunately, I’m making the minimum payments right now ($586.74/ mth) because of my salary. I take home around $2,208.00 per month give or take $100-200 more in tips. My current monthly expenses are $1,446,43. With my living expenses added on to the minimum payments, it doesn’t leave too much room for air. Because of this reality, I am also searching for a new job/ career that will give me more take-home pay that can be applied to this debt.

In April I will be moving into a rent house with my boyfriend and we will live off his income of $5,400 per month. My income will go straight towards the debt. This will add approximately $800-$1,000 per month that can go towards the debt. He has no debt. I also have $671 in cc debt, wanting to chip away at that too with an interest rate of 21.74%.

Any advice for consolidating or how to tackle these loans? I am already conservative on my monthly expenses. My boyfriend has suggested studentaid.gov to apply for an income-based repayment plan. I have heard there are a lot of private debt consolidation plans, but we want to know a lot more on everything to make the best decision for us.
Last edited by Singingchef22 on Sun Jan 12, 2020 9:11 pm, edited 1 time in total.
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Duckie
Posts: 7672
Joined: Thu Mar 08, 2007 2:55 pm

Re: Student debt consolidation for restaurant manager

Post by Duckie »

Singingchef22, welcome to the forum.
Singingchef22 wrote:Sallie Mae [my own] $6,855.43 / 10.265%
THEBC [co-signer] $13,373.43 / 6.600%
Nelnet [co-signer] $1,152.55 / 3.860%
$4,736.12 / 4.660%
$5,297.27 / 4.450%
$7,197.30 / 4.450%
$2,653.20 / 5.050%
$3,490.72 / 5.050%
Are there just two loans with a co-signer or seven loans? Who is the co-signer?
I also have $671 in cc debt, wanting to chip away at that too.
What is the interest rate on the credit card debt?
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neurosphere
Posts: 3826
Joined: Sun Jan 17, 2010 1:55 pm

Re: Student debt consolidation for restaurant manager

Post by neurosphere »

What payment plan are you on?

Are you familiar with the income-driven plans such as PAYE and REPAYE, where you will pay no more than 10% of discretionary income towards your loans AND (with REPAYE) you may even get an interest subsidy/rebate?

For example, on a $50,000/year income, minimum payments would be $260/month. You can calculate your payments here: https://www.doctoredmoney.org/paye-and- ... calculator

REPAYE and PAYE plans are only applicable for Federal student loans. But perhaps lowering your minimum required payment might allow for some flexibility if cash flow is an issue. You can always choose to pay more than the minimum payments.
Last edited by neurosphere on Sun Jan 12, 2020 9:47 pm, edited 1 time in total.
If you have to ask "Is a Target Date fund right for me?", the answer is "Yes".
Topic Author
Singingchef22
Posts: 2
Joined: Sat Jan 11, 2020 6:08 pm

Re: Student debt consolidation for restaurant manager

Post by Singingchef22 »

Duckie wrote: Sun Jan 12, 2020 7:57 pm Singingchef22, welcome to the forum.
Singingchef22 wrote:Sallie Mae [my own] $6,855.43 / 10.265%
THEBC [co-signer] $13,373.43 / 6.600%
Nelnet [co-signer] $1,152.55 / 3.860%
$4,736.12 / 4.660%
$5,297.27 / 4.450%
$7,197.30 / 4.450%
$2,653.20 / 5.050%
$3,490.72 / 5.050%
Are there just two loans with a co-signer or seven loans? Who is the co-signer?

My father is the co-signer. The ones listed under Nelnet are all co-signed as well. It's through one account, but different loans through the same company. It might have been different semesters and that's why it is broken up.
I also have $671 in cc debt, wanting to chip away at that too.
What is the interest rate on the credit card debt?
The interest rate is 21.74% through my bank.
User avatar
Duckie
Posts: 7672
Joined: Thu Mar 08, 2007 2:55 pm

Re: Student debt consolidation for restaurant manager

Post by Duckie »

Singingchef22 wrote:
What is the interest rate on the credit card debt?
The interest rate is 21.74% through my bank.
Yikes! That $671 takes priority. Don't chip away at this debt. Make it the priority.
fuddbogle
Posts: 58
Joined: Fri Jun 21, 2019 8:35 am

Re: Student debt consolidation for restaurant manager

Post by fuddbogle »

I'm not sure about student loan consolidations, hopefully someone has good info. Other than the obvious pay off the debt as soon as possible......you need to increase your income. I'd be looking for a better paying position and until you accomplish that I would be looking for secondary work in addition to your restaurant manager job.
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