Kids live at home while paying loans?

[Anonymous]

Ridiculous, I hope the hot chicks get taken for marriage by the time junior is done sucking off the financial teet

[Anonymous]

My brother is 29 and still at home "saving" for a downpayment.

Sort of like that movie "Failure to Launch."

[Anonymous]

Let's see... what would it cost to share an apartment/house let's say w/at least 2 roommates, more likely 3 or 4. What $500? in an absolute no-frills area. If that's saving the young adult $7,000/yr, I don't know, I don't think it's worth it to live with Mom & Dad. I don't think it's worth it for Mom & Dad! Yeah, it's probably a lot more pleasant to live where Mom & Dad are living. But I'm not sure the $7,000 is worth it to let them move back in.

[Anonymous]

My son moved back home to attend medical school after he'd moved out for college. It's actually less about money for him/us and more about him having as much time as possible to study and sleep when he's not in school, rather than having to do all those little things that keep your life running smoothly.

Aside from cooking a little more food for him when he's home, he's no extra work, and he's helpful when he has time. I secretly love having him home, and it's lovely for all of us to have him around and saves him money and stress.

[Anonymous]

Not a secret, really.

My nephew is home "saving up" - while his parents pay for his food, his phone, his car insurance, his utilities, his housing...

He "checks in" to a different restaurant every night on Facebook, and has spent 3 of the last 4 weekends at the beach.

[Anonymous]

I'm completing my masters and moving back to my family's farm. I can live rent free, pay off my $10k loan, and get established in a job. I don't want to live there permanently, but it is the best idea I have right now.

[Anonymous]

Anonymous wrote:If I were to do this with my kids, I would set it up so that they are required to put what they would be paying in rent and food directly to loans. And I would check and make sure that was happening.

How does this teach independence if you have to monitor?

[Anonymous]

If you haven't taught your kids to want independence by the time they're 25, you have no intention of cutting the strings.

Listen to how many moms here want their "kids" to live at home as long as possible.

Hint: Anyone with a degree and five-figure debt is not a "kid."

[Anonymous]

My belief is that woman are never to live in a house without their father or husband. So going away to college or moving out is not an option until you are married. If you never get married you can never move out.

[Anonymous]

Anonymous wrote:If you haven't taught your kids to want independence by the time they're 25, you have no intention of cutting the strings.

Listen to how many moms here want their "kids" to live at home as long as possible.

Hint: Anyone with a degree and five-figure debt is not a "kid."

But what "lesson" are you actually teaching your kid by forcing him to live outside the home? I'm sure the student loan creditors love this "shame", as all it does is prolong the interest payments.

The whole point of living at home is to increase their long term wealth by paying off creditors faster. This is a no-brainer. The fact of the matter is that it costs $80K to go to a decent public university for 4 years as an in-state student. We are hampering the youngest generation with student loans, the consequences of which are coming home to roost.

I'm in my early 30s, make $100K and pay about $750/month in student loans. I'd LOVE to eliminate rent from my life, as it would allow me to more aggressively save for a down payment and pay off student loans quicker. I'm currently paying $1500/month in rent and will be downgrading to live in a house with friends so I can pay $1000/month. If my family lived in the area, I'd live with my mom in a heartbeat. She's lonely and would love my company, would love to have me around to fix things, and would love to help me save money.

I feel sorry for your children.

[Anonymous]

OP here. Some of you seem to think I'm talking about letting kids live at home indefinitely while they pretend to save. That's not what I'm talking about at all. I'm talking about one year. During that year, almost all of their money would go toward student loans, and I would pay the rest of their bills (car ins, phone). They would get to keep a small amount of cash for recreation. I would definitely expect them to do much of the work around the house as well. In fact, it would be a great time for DH and I to do a lot of traveling since we would have someone at home to take care of the house, family pets, etc.

Just think about how much they could pay off in a year. The average entry level salary is currently $43,000. I think they could realistically be expected to put $38,000 toward loans, and that would give them $5,000 (appr. $100 per week) fun money. If they aren't out after the one year mark, I would cut them off. They would be paying all the "real world" expenses, including paying me fair rent. Most 23 y.o. would not want to stay in that situation very long.

[Anonymous]

Anonymous wrote:OP here. Some of you seem to think I'm talking about letting kids live at home indefinitely while they pretend to save. That's not what I'm talking about at all. I'm talking about one year. During that year, almost all of their money would go toward student loans, and I would pay the rest of their bills (car ins, phone). They would get to keep a small amount of cash for recreation. I would definitely expect them to do much of the work around the house as well. In fact, it would be a great time for DH and I to do a lot of traveling since we would have someone at home to take care of the house, family pets, etc.

Just think about how much they could pay off in a year. The average entry level salary is currently $43,000. I think they could realistically be expected to put $38,000 toward loans, and that would give them $5,000 (appr. $100 per week) fun money. If they aren't out after the one year mark, I would cut them off. They would be paying all the "real world" expenses, including paying me fair rent. Most 23 y.o. would not want to stay in that situation very long.

It seems you might be forgetting about taxes...

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP here. Some of you seem to think I'm talking about letting kids live at home indefinitely while they pretend to save. That's not what I'm talking about at all. I'm talking about one year. During that year, almost all of their money would go toward student loans, and I would pay the rest of their bills (car ins, phone). They would get to keep a small amount of cash for recreation. I would definitely expect them to do much of the work around the house as well. In fact, it would be a great time for DH and I to do a lot of traveling since we would have someone at home to take care of the house, family pets, etc.

Just think about how much they could pay off in a year. The average entry level salary is currently $43,000. I think they could realistically be expected to put $38,000 toward loans, and that would give them $5,000 (appr. $100 per week) fun money. If they aren't out after the one year mark, I would cut them off. They would be paying all the "real world" expenses, including paying me fair rent. Most 23 y.o. would not want to stay in that situation very long.

It seems you might be forgetting about taxes...

Well, yes. Clearly I'm oversimplifying, but just trying to point out how much of a dent they could put in those loans. I am also about 10 years away from this, so the average salary will be quite a bit higher by the time my kids are at this place. Some kids will earn much more in their first year, some less. Not trying to give exact numbers here.

[Anonymous]

Anonymous wrote:My brother is 29 and still at home "saving" for a downpayment.

Sort of like that movie "Failure to Launch."

So is my SIL who is 45 (although there really isn't any talk of her moving out any more). Even my kids think it's odd.

[Anonymous]

I'm not opposed to the idea of people living at home while starting off in life to go to school or make a dent in their loans. My brother is currently in college and he lives at home with my parents. He started off going to a private college out of state, but the college was a horrible fit for him and he had a lot of social issues that led to issues with depression, got horrible grades, and my parents pulled him out to go to community college at home because they felt like they were wasting their money.

After a year in community college where he brought up his grades, he realized that he was interested in engineering (he had been at a liberal arts school without an engineering major) and he transferred. It so happened that a state college in the city we grew up in was a great fit for him and had a decent engineering program. So he lives at home and my parents pay in-state tuition. It's kind of a win win for everyone--my brother feels like his life is more manageable with his support network there and my parents don't have to pay room and board. The city where they live also has job opportunities for his major. It works for him.

For me, I don't think it would have been as good of a fit, but I'm a lot more comfortable in new situations than my brother. It would also be extremely limiting to my career because fewer job opportunities in my area exist there. I think the degree to which this works really depends on the person's personality and what line of work they are in. Sometimes being restricted to one geographic area can close a lot of doors for entry level positions, and you really don't know what the employment picture is going to be like until your kid graduates.