23M with 80k in student loans… how bad is this

So I’ve got no other debt, just 80k in student loans. Yeah, not great…

The deal with my family was kind of unusual. They didn’t have much money when I was growing up, but over time they put everything into buying houses, and now there’s one set aside for me when I turn 30. It’s worth about 700k, so in theory, that’s a huge win. But since all the money went into property, there was no college fund, so I had to take out loans on my own.

The house is amazing, and I really want to stay there forever. But sometimes I wonder if it would’ve been better if they just helped me with tuition instead. I know I probably sound ungrateful, but I wake up every day feeling stressed about this debt.

So what do you think… am I screwed?

Pay off anything with a variable rate first. If you can, consolidate everything at a fixed rate. Try to throw extra payments at the loans when possible, but don’t go into more debt. And yeah, the house is a huge win. Don’t stress too much about the loans.

Is there an actual contract saying you’ll get the house at 30, or is this more of a verbal promise? Seven years is a long time.

Lex said:
Is there an actual contract saying you’ll get the house at 30, or is this more of a verbal promise? Seven years is a long time.

No legal contract, but my family doesn’t operate like that. They wouldn’t back out of something this big, especially with family.

Plus, my grandma lives there now, and she’s already planning to pass it on to me.

If your interest rates aren’t crazy, you’re not in a terrible spot. I had loans under 5%, but I graduated a while back.

Definitely learn more about personal finance, but don’t rely on random internet advice.

That house is a huge asset. Hold onto it and don’t make any bad financial decisions.

80k is doable to pay off. It won’t be fun, but it’s manageable. Once you cross 100k+, that’s when things get tricky.

@Pace
Yeah, 80k doesn’t seem so bad to me. I was a single mom in undergrad, now I’m in grad school, and I’m looking at 150k in student loans. Was hoping for PSLF, but who knows if that’ll still be an option by the time I’m done. :woman_facepalming:

They should have helped you, but it is what it is. Get as many jobs as you can handle and start knocking that debt out. The house is a massive win. Hustle now so you’re not stuck with these loans forever.

So instead of a college fund, you’re getting a $700k house… and you’re complaining? Make it make sense.

Marley said:
So instead of a college fund, you’re getting a $700k house… and you’re complaining? Make it make sense.

Yeah, I know, when you put it like that, I sound ridiculous. But I just graduated, I’m looking at salaries and loan payments, and it’s stressing me out.

Is the house legally in your name already, or is this just a family promise?

Lyle said:
Is the house legally in your name already, or is this just a family promise?

It’s in a family trust to avoid inheritance taxes.

Terry said:

Lyle said:
Is the house legally in your name already, or is this just a family promise?

It’s in a family trust to avoid inheritance taxes.

So wait… you didn’t put any money into it? Your family bought it and put it in a trust for you?

@Lyle
Yeah, from what I understand, the family bought a house instead of helping with tuition. So OP had to take out loans, but in return, they’re getting a 700k house when they turn 30.

Will the house have a lot of equity? If it’s mostly paid off, you could take out a home equity loan to pay off your student debt and avoid student loan interest rates.

Reagan said:
Will the house have a lot of equity? If it’s mostly paid off, you could take out a home equity loan to pay off your student debt and avoid student loan interest rates.

Yeah, it’ll be almost fully paid off by then. I had the same thought, but my family said they’d rather help me refinance my student loans than do a home equity loan.

80k might seem like a lot, but you could pay it off fast, maybe even in two years, depending on your job. The house puts you in a great position.

I had no financial help from my parents for college, housing, or anything else. My dad worked in a factory, and my mom was a nursing assistant, so I knew I was on my own. I picked a solid degree (nursing) at an affordable college where my last year was free.

Your family gave you an opportunity most people don’t get. If you can, try to live in the house rent-free for a couple of years and put as much as possible toward your loans. If you’re making 60-90k a year and keep expenses low, you can wipe out that debt fast.

And be careful with relationships. Some people see guys like you with money and a good family as an easy target. Focus on yourself for a while before jumping into anything serious.

@Morgan
One more thing—avoid dating someone with massive student loan debt unless they have a solid plan to pay it off. My friend married a doctor who had 150k in student loans and some medical debt. She got cancer in her early 30s and passed away, and now he’s stuck with all her loans and the taxes on her sign-on bonuses.

Debt follows you even after marriage and sometimes even after death. Look for someone financially responsible. Trust me.

You’re getting a 700k house, and you’re here complaining? Man, shut up.

Oh no, you’re only starting 620k ahead of most people… tragic.