HELP! My daughter has more than 60,000 in student loan debt. She has consolidated these three loans and one of the three is a loan that will be paid back in 10 years and what is left is forgiven. Between rent, car payment, and living expenses she cannot make ends meet. Do not know what to do or where to look for help! She is working and making about 60,000 per year. Loan payments are in excess of $900 per month. Any ideas? I can take money from my 401K but it would be in the form of a loan as I am not old enough to remove otherwise.

Terry Says:

Oh, this is such a terrible situation.  It’s too late to look back, but obviously she didn’t have any idea of how much debt she was piling up.  The good news is that she has a job and is making good money.  Has she tried refinancing her loans at www.SOFI.com.  That is definitely the place to start, and she might be able to do something with the higher rate loans.

Please do NOT take a withdrawal from your 40l(k) to help her.  It will lead to a second disaster — yours!  The only other solution is so obvious that I’m surprised you didn’t mention it.  Why is she paying rent???  Maybe moving back home for a year or two would save her enough money to make a big dent in those loans.  Or else she could try a weekend job — not necessarily in her career path, but as a waitress or store clerk or helper to a senior citizen — to get some extra money to pay down those loans.

These solutions aren’t exactly pleasant — but that’s life.  HER life!

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