How to Get Help if Student Loans Make You Suicidal | Student Loan Planner

How to Get Help if Student Loans Make You Suicidal | Student Loan Planner


Let me be honest. Sometimes it’s really
difficult being in a student loan business of any sort because there are
some really serious mental health challenges that happen when you have
huge debt and maybe you already have existing predispositions for depression
or something like that and the debt makes you feel trapped. So one example
that I have for you is I recently got an email from someone who stated a specific
bridge that they wanted to jump off of because of their debt and they were
legitimately suicidal over their student loan debt. And if you ever have anybody
in your life that even remotely displays depression or anxiety about their
student loan debt where they’re thinking about hurting themselves, then you would
want to refer them to 1-800-273-TALK. So that’s 1-800-273-TALK. Now, that is the National Suicide Prevention Hotline, and we here I think can agree that you want to have student debt never ever ever be a contributing reason why somebody takes their life. It is a very serious tragedy, suicide, and it’s all too common. Every one of us knows somebody, whether it’s in our extended group of friends and family, or maybe even closer than that, that, you know, has lost someone to suicide, and here’s why it’s a problem. Physicians, dentists, other healthcare professionals, tend to have a suicide rate that’s two times the national average. Veterinarians have a suicide rate supposedly that’s four times the national average. Lawyers, other professionals with graduate degree programs, a higher than average suicide rate. Why
is this? I think one reason is you spend so much of your life becoming this particular professional, that you already feel very committed
you already feel like you’ve spent tons of your life pursuing one path, and when
you combine that with, you know, the long hours that these fields have to deal
with and the underappreciated feeling that you can have sometimes when people
don’t understand what you went through to get there, and then also
the big debt that you’re facing that makes you feel even more trapped in this
particular profession. It can really create a sense of hopelessness, and if
somebody’s already dealing with mental health concerns then that can be
exacerbated. So let me share with you five reasons why student loan debt
should not be something that makes you depressed and why you can actually, if
you’ve ever felt suicidal for your student loan debt, why you should never
feel that way again. The first option is you can leave the country, and I’m not
kidding. If you leave the U.S. then you can utilize something called the Foreign
Earned Income Tax Exclusion. If you utilize this, you can exclude up to $100,000 of income that you earn in a foreign country from your
U.S. tax return. Now you can use that u.s. tax return to pay $0 a month
on your student loans. I’ve got a lot of clients in New Zealand and Australia
right now, that may be married or met someone that they’re dating, they moved
there, and they’re paying zero dollars a month on their student loans and they’re
gonna plan on having their loans forgiven and paying a tax bomb in 20 to
25 years. So that’s certainly an option. Option two would be to utilize
forbearance until your mental health improves. So you get up to three years of
forbearance that you can utilize really for most any reason, and
that will allow you to put your loans on pause if you’re going through a
particularly hard time in your life where the student debt is just something
you cannot think about. So that forbearance option is not something
that’s free, you’re gonna accrue interest during that period, but at the very
least it’s going to help you so that you do not have to stress about your student
loan debt. Option three is to utilize forgiveness. A lot of people don’t realize that you can work part-time and still benefit from student loan
forgiveness. If your income is not nearly as high as your debt is, then you
can pay 10% of your discretionary income on the PAYE or the REPAYE plan, and then in
20 to 25 years have your loans forgiven. Now, yes you’ll pay taxes on that in most
cases, if you’re not utilizing the tenure public sector PSLF program. But this
forgiveness can allow you to minimize your debt so that it’s always a
percentage of your income. It’s a tax, not a debt. And then that allows you to
not feel the full weight of the debt psychologically that you would feel if
you actually had to pay it back. Option four is to drastically cut your housing
and your car expenses. When someone has financial problems, I typically see that the main culprit of that is spending too much much on housing, or spending too much on
cars, or some combination of the two. So, if you cut back on your housing expense
by getting a roommate or renting out an extra room in your house, then you can
get way more money to spend in other areas of your life to put yourself under
less financial stress. If you have a new car, you can take that to Carmax and
try to trade it in for a lower car payment on an older vehicle, or better yet
try to pay down some of the car loans so that you can just sell it
outright on Craigslist. If you buy a car on Craigslist, you can also get a way cheaper
price that you would pay than if you went to the dealer. Option five is to work less
so you can enjoy life more. All you have to do to deal with your student loan
debt is pay that 10% of your discretionary income, plus pay the tax
bomb. Now, the tax bomb if you do not have assets that are greater than your
liabilities, you actually might benefit from the insolvency rule at the end of
the loan forgiveness and you might not actually even owe the
taxes on the forgiveness. Now, that said, you know, if you’re a professional that can earn $40,000, $50,000, $60,000 part-time, you know, that’s the full-time
wage of a lot of people out there. So if you limit your budget, you keep your
expenses kind of low, and you focus on slashing your expenses, then you can work
part-time and get more hours of your life back to improve your mental health
and do the kind of things that you want to do to make yourself happier and more
fulfilled. So you do not have to work full-time just because you have this big
student loan debt. It’s a big misconception. So, let’s talk to somebody
that’s struggling right now. Just be there for them. Tell them that their
student loan debt is not a problem. If you’re married to someone or dating
someone who has student loan debt, you know, try to make them feel not as bad
about it and try to encourage them, and let’s all just be there for one another
to try to lower the incidents of suicide with student loan debt
because it’s a big problem, and it’s way underreported and it’s not talked about
enough.

2 thoughts on “How to Get Help if Student Loans Make You Suicidal | Student Loan Planner

  1. my friend killed himself.. one of the major reasons was his student debt.. His parents were very overbearing, physically abusive asian parents (we're both korean) his parents were putting so much tremendous pressure and would also emotionally abuse him calling him useless and made him study medicine.. he was working while going to school and he was failing school… debt no degree.. he killed himself..

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