Is 200k in debt serviceable on a 90k a year job? Forum

[sunynp]

Just wondering, have you done a detailed budget?

[Anonymous User]

Just wondering, have you done a detailed budget?

I've been trying to figure out what taxes would be on 90k. Single, no dependents. Any help?

[justonemoregame]

It will depend on the state you work in --

salary paycheck calculator: https://onlinepayroll.intuit.com/extern ... lators.jsp

FL $68,500
PA $65,000

[dingbat]

To be able to figure out monthly payments, we would need to know more (what interest rates its at, are they variable, etc). However, at first glance it looks manageable.

OP Here.

67k is federal governmental loans

103k will be grad plus

(I assume 170k will accrue interest to 200k)

I assume governmental loans are 6ish % and grad plus are more

Not taking accrued interest into account and assuming 6.8% and 7.8% loan rates gives you a weighted average of 7.41%
This means a monthly payment of roughly $1250 to $1475 (depending on how much accrued interest) on a 25 year payment plan.
Hope that helps

Edit: this doesn't take IBR into account

[Anonymous User]

To be able to figure out monthly payments, we would need to know more (what interest rates its at, are they variable, etc). However, at first glance it looks manageable.

OP Here.

67k is federal governmental loans

103k will be grad plus

(I assume 170k will accrue interest to 200k)

I assume governmental loans are 6ish % and grad plus are more

Not taking accrued interest into account and assuming 6.8% and 7.8% loan rates gives you a weighted average of 7.41%
This means a monthly payment of roughly $1250 to $1475 (depending on how much accrued interest) on a 25 year payment plan.
Hope that helps

Edit: this doesn't take IBR into account

OP Here. Thanks!
On 90k salary, would you guys go the 25 year route and pay $1250-1475 or the 10 year route and pay $2100?

[dingbat]

On a 10 year plan, it'll cost between $2000 and $2375 per month.
I would ask for the 25 year plan, but pay a whole lot more into it, every penny you can spare
This gives you the flexibility of variable payments, so that if you have something expensive coming up, you can pay less for a (few) month.
That does take a lot of discipline to not pay less and less over time

[justonemoregame]

On a 25 year sked, you'll pay a total of $440K on the loan

10 year sked -- $280K

I guess there are other options - 15, 20

But I would shoot for 10 and try to pay it off even sooner by sending in a few hundred extra each month, if possible. OTOH, dingbat makes a good point about flexibility.

A bankrate.com loan calculator will let you play with these numbers to see how much you save by making additional payments per month on various schedules.