Paying the Bill

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

Direct Subsidized Loan payments (Standard Payment for $19,000) $186.99

Direct Unsubsidized Loan payments (Standard Payment for $8,000) $92.06

Average monthly rent for a 1 bedroom apartment in Indianapolis $586

Average credit card payment (based on average of $5,000 debt @15.00% interest)

$110

Car payment (based on $15,000 car @7.5% for 60 months) $304.33

Monthly payments for just loans, rent, credit card and car (excluding utilities, food, insurance, entertainment, etc.)

$1,279.38

Average Indiana Salaries for High Skill, Low Wage (Relative to Loan Debt) Jobs

Job High School Teacher

Elementary School Teacher

Social Worker

Experience 0 years 0 years 0 yearsAverage Annual Salary

$34,000 $32,000 34,000

Gross Monthly Earnings

$2,833 $2,667 $2,833

% Earnings Going to Student Loans

9.8% 10.5% 9.8%

Debt-to-Income AnalysisWith $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.