It all adds up

The average home price in this depressed economy in So Cal is something like $400k. This is not a huge house, either, this would be small by Colorado standards. This would be a single story, 3 bedrooms, modest backyard, modest front yard, maybe a garage...... I figure with a 30 year fixed mortgage this would cost about $3700 a month; for approx. 1800 sf.

In order to pay for the house (because every respectable person is supposed to have a mortgage) a person would have to secure a decent job. In order to secure a decent job, the person would have to go to college and obtain a BA (preferably a MBA). The average private tuition is about $25,000 a year; tuition at a state school is considerably less (about $9,000). So, I say that it is reasonable to assume that most of us would choose a private school because it has more networking and theoretically more worth when you graduate. However, they fail to tell you that you will be about $25k in the hole with student loans when you graduate with a BA. If you chose an MBA, it will be about $100k in debt and heaven forbid you become a lawyer or doctor because we are talking $200+ in student loans.

But let's not get ahead of ourselves. I think that most of us graduate from college with a about $20k in student loans, and we are 22 years old. And because we are 22 when we graduate, we have ABSOLUTELY no idea what we want to do when we grow up. Who would put that pressure on an 18 or 19 year old to decide what we want to major in and then go......no looking back! Then we graduate from school and find ourselves in a world of $30,000 in student loan debt, a car we have had from high school, and the cost of living.

So we have a 22 year old with a BA in business. He or she will land an entry level job making little money. In a good economy he would find a job as an assistant desk trader, financial manager, something along those lines. This income, in Southern california would earn a 25 wet behind the ears worker a salary of about $35k in the door. So lets crunch some numbers, shall we? I presume that my business major graduates from USC with a nice degree and a nice entry level job to pay for that. So, our hero will plug the numbers. He is more and more sophisticated and getting to his late 20's. The student loans are following him and he has decided that he needs to find a job. It may or may not be something that will fulfill him as a person, but really, most jobs are a means to the end.

I am guessing on graduation day, there are a lot of expenses being charged on the credit cards. Its time to have an apartment (were you have to pay rent monthly). Its time to go out and get that grown up job which includes waking up early all days of the week and actually having to go to an office. So you go to this mind numbing land o cubicals because that is the only work that the new one's get hired for. I am guesing you are earning about $35k a year (in the mid west this might be dooable). Where I live-No,

Lets talk numbers at this point--

You are 22 -24 years old with about $25-$30k in student loans and you still don't know what you want to be when you grow up. You find an apartment in the area which you can afford- so it's a single which costs you $975 in Koreatown. Nothing wrong Korea town, if you are Korean, They don't like gigantic white broads walking into their turf!

So, I have a $1300 a month rent.....because there is no way that on my $60+ income I could ever ever dream of buying a house and being able to afford a monthly mortgage of $3500! Sheesh. Then all our college cars start to break down and now, especially now, we are all teased with the notion that I too, can own a SOCAL socially acceptable car.

So how are people supposed to make it? How are people supposed to take on a insurmountable amount of debt to get an education; without which I would be unemployable and possibly homeless without. So, what is the right answer? The people that work at Barnes and Nobles appear to enjoy their job They aren't getting rich, but getting by.

Here, in the reality island of LA, people cant afford to buy a house- the lease payments on their land rover is WAY too high to allow for savings. People my aged in this city, are FUCKED. People didn't save money; they don't have retirement aspirations, they have HUGE student loans......
Wonder if I can get a bail out??????? I was properly managed (Unlike GM and Chrysler) and I was not part of a ponzi scheme. I played by the rules and am getting the shaft when it comes to alleviating debts. I took out debts to go to school I would do it again. But I ,know that starting in July I will have to pay back $300 a month in student loans. With expenses like that and a car that is kid of old, I just cant eve afford the idea of dating and having a family. I don't think it is in my financial plan.........bummer.

How the hell does everyone else do it??????