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Paying the Bill

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This analysis explores the financial challenges faced by Indiana graduates with $27,000 in loan debt. It examines average salaries for high-skill, low-wage jobs, such as social workers and elementary school teachers, and assesses their debt-to-income (DTI) ratios. With $1,279 in monthly expenses, the DTI for these professions reaches 45-48%, surpassing lenders' preferred limits of 35-40%. This indicates that future borrowing could be difficult, highlighting the need for effective budgeting strategies to manage student debt and living costs.

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Paying the Bill

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  1. Paying the Bill Simplified Post-Graduation Student Budget for an Indiana Student with $27,000 in loan debt (4 years of Direct Loans):

  2. Average Indiana Salaries for High Skill, Low Wage (Relative to Loan Debt) Jobs • Debt-to-Income Analysis • With $1,279 in monthly expenses: • Total debt to income for Social Worker or HS Teacher= 45% • Total Debt to Income for Elementary School Teacher= 48% • Most lenders prefer DTI to be 35-40%, at 45 OR 48% any money that would need to be borrowed in the future would be extremely difficult to obtain. Making payments would be difficult at this level of DTI, because it doesn't include living expenses.

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