According to Thomas King, the truth about stories is that's all we are. If this is true, then my story is heavily invested in the debt narrative.
My student loans for grad school are currently in forbearance - I can't afford the payments, which would be $650 a month if I was paying every portion. That's about 25% of my take-home pay. So I'm only paying on my Direct loan from the federal government, which is only 6% of my take-home pay. The bulk of my debt is held by a private debt service company who bought most of my loans. Today, I was paying bills and putting through another request to keep the bulk of my loans in forbearance for another year to give myself a chance to catch up financially and maybe even save some money and I noticed that my loans have risen from a total of $66,000 (principal plus interest since 2006), to over $72,000 thanks to accumulating interest. And that is after I've paid off some of the smaller amounts ($2,500 and under).
Amazing how expensive American education is. But that's not the best part.
In this nation of plenty, I find myself with a really good job - a college professor - a job that comes with a certain amount of suspicion or gravitas, depending on whose opinion is being solicited. I live in a safe neighborhood, have a decent and functional wardrobe, eat fairly healthy foods. But at my job, I and my faculty colleagues still do not have a contract - since August. Therefore, all of my living expenses - from gas to food to rent - have risen, but like many Americans, my salary remains stagnant. I had to do something. Something drastic.
So I'm buying a duplex for $165k. As a first-time home buyer, I receive some rate breaks and with an FHA mortgage, I can put a small amount down as opposed to 20%, which would take me a lifetime to save up. The place I've selected is in tip-top shape - and I don't say that lightly. The mechanicals are damn near perfect - a new roof, new high-energy efficiency HVAC system, and new water heaters within five years. Beautifully maintained. The place won't need serious maintenance for ten years. It's basically a buyer's wet dream.
Becoming a landlord after 23 years of being a tenant might be intimidating, but I am confident I can handle it, especially because this place has a positive cash flow. Fully rented, this place pays for the mortgage and then some - by quite a bit. Once I move in, I will only collect one rent, but that comes within $200 of paying the monthly mortgage, leaving me quite the additional income to pay off bills, save for property maintenance, and save for myself (finally).
Go figure.
Only in America could I be so deeply in debt for my education, have a fantastic job that doesn't pay me enough, and be able to go much deeper into debt in order to increase my salary and be able to afford to live a moderate lifestyle and start really whittling away at paying down my debt.
I suppose it's called playing the game. Gotta pay to play? But part of me also shrinks in horror at the ridiculousness of it. This is some story.
What's your story?
