Please answer the following question My husband and I have been married for four
ID: 2808979 • Letter: P
Question
Please answer the following question
My husband and I have been married for four years. When we graduated from college we were able to find entry level positions in California, but things were difficult because it is very expensive to live in California. After two years of marriage we decided to move to Omaha, Nebraska, believing that we could earn California wages without paying California housing prices. We bought a 900 square-foot condo for $317,000. We love the place and it's in a great neighborhood, but buying the condo took our savings, and that meant we had to take out a student loan for my husband's graduate school. He works in education, and with a $42,000 salary, it infuriates us that his graduate schooling nearly costs us what he makes in a year. Although we carry no credit card debt and continue to drive our very old cars, it worries me that when it comes time to pay back student loans, we are going to still be very tight and only be paying near the minimum credit card payment. My husband's career goal is to work in school administration, which pays more that what a classroom teacher makes. But it could take several years for that to happen, and we will need to sit tight until then. I am grateful that we have, for the most part, lived within our means and have made an effort to save a small amount of money. But if either of us loses our job, we could be in the same boat a lot of people are in. I hope this economy turns around so I can stop losing sleep about it!
Based on the above scenario, list one problem the couple above is facing. At this point what two things can they do to correct the problem?
Explanation / Answer
Answer:
The problem that is faced by the couple is that they have economic problem where they have used all their savings in buying home. If they had not used the funds for buying home, the same could have been used for his studies. Hence again he has to take loan for his studies. The problem is that if he approaches the financial institutions for the loans, they ask for security or sometimes the educational institution where he wants to study may not be a recognized one in which case, the banks may reject the loans. Considering all these problems, it may not be that easy to get an education loan, even if he gets the loan, it wouldn’t be that easy to repay them unless & until he gets a good job in a school administration with a good salary.
Two things that can be done: