I was attempting to prequalify a client for a mortgage, but no matter what I did, I couldn’t make the numbers work. The problem is $31,000 in student loans.
Jeff went to college got a 4 year degree and became certified as a teacher. 4 years later still can’t find a job in the field he went to school for. After 6 months of applying for jobs, he went to work at an auto parts store, starting $8.50 an hour and now is at $11.91 per hour and has been averaging 15 hours of overtime for the last 3 years. His 2013 income was $31,230.
He told me that some of the starting teaching jobs in the area are now starting near what he is making right now working for the auto parts store. So, he tells me he has more upside potential where he is.
I asked him how he felt about the discussion going on about increasing the minimum wage. I was a little surprised by his answer. He said that there is a possibility he would be let go from his job, as his boss would probably have to let a couple of people go.
He said when he started at $8.50 per hour he felt if he worked hard, then he might make more money and get over time. He felt that increasing the minimum wage would put more people out of jobs, rather than the other way around. Very astute young man.
One of his student loans is going to be paid off the beginning of next year and his car loan gets paid off early next year. Then he will be in a good position to purchase a home. He then told me he has one more possibility, he may get the assistant manager position in June. No matter when he is ready, he will make a great homeowner.
