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Question for the Money Doctors

Question submitted on Jan 29, 2014.

Question

We have a lot of education debt, both federal and private loans, and the payments are debilitating. While there's a lot of talk for improving the situation for those who have not yet taken out loans, there seems to be little available for those of us who educated our children, or for those children who went on to graduate school and now have huge loans. My son, who lives in Texas, has about $25,000 in private debt from his graduate degree, and my husband and I have $127,000 in debt from educating our children and for my degree. How in the world do we handle this?

Answer

That is a lot of debt, but you didn't really give me any information about what I hope are the wonderful, high paying jobs that you and your children got as a result of this education. I don't have any details on your living expenses or your budget.

First, your son with the graduate degree should be responsible for his own student loan debt. There is no magical or easy answer. It starts with a budget and living within your means. Stop incurring additional debt and learn to live on less. Pay off the debt with the highest interest rate first, then the next highest, and so forth. You didn't get in this situation over night and you are not going to make this go away over night.


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