Q. I am sharing a two bed apartment with a friend and while she is on a half decent income, I am not. I read where you said your monthly financial commitments should not exceed more than 35% of your net monthly income. My own rent accounts for 40% – and lucky to find accommodation – but I also have a college loan that takes another 15% of my income. How is one supposed to live, have some kind of life and save for a home deposit. I really don’t know what to do. I’m single aged 31, 3rd level qualified with a current salary of € 33k and dejected. Any advice ? Laura – Galway
A. I really do empathise with you Laura. Yes they are the parameters and if each of you are paying say € 1,100 per month on rent, it is on a par with Dublin prices for a two bed ( you can pay more ) Your college fees at € 337 a month is your tipping point. For immediate relief you could negotiate a “holiday” – no interest or capital repayments for up to 6 months while you take a breather and save as much as you can before resuming the payments. Alternatively, you could also renegotiate a structure. Obviously the longer the term of the loan the lower the repayments. Perhaps you are on a short 3 year student loan. You could ask for a longer term perhaps up to 5 or even 7 years. If you improve your income in the interim you can always increase the repayments. In America where the culture dictates that students take out the loans ( not the parents ), after a moratorium during the study years, the loans are repayable over the first 10 years of their working life and normally 30% of their net monthly income ! With 3rd level fees imminent ( in addition to registration fees ) this could be Ireland’s scenario in the years to come. Planning is the answer both for authorities ( parents, government etc ) and students. Keep the chin up. Meanwhile strive to earn more and cut costs where you can.