A father of two is drowning in student loan debt as a result of putting his two children through college a few years ago.
The man, George Botelho, a Boston resident, depleted his savings in addition to taking out Parent Plus loans over the course of eight years in order to make sure his kids received their degrees. A few years later, his life took a turn when he went through a divorce that left his finances devastated.
In order to make ends meet, and keep up with the neverending student loan payments, he has been renting out his three-bedroom home to Airbnb guests, while he sleeps in his basement as a way of making the required monthly loan payment.
All in all, he makes around $31,000 per year with the bedroom rentals, with most of it going to the student loan servicer, as the loans are some of the most expensive in the country with an interest rate of 7.4% annually.
In addition to the $920 monthly bill, he's also required to pay alimony to the tune of around $1,300 per month and admits money has been tight while trying to keep everything afloat.
Although Botelho was recently approved for the Public Service Loan Forgiveness program through a former employer, he has yet to meet the mandatory payment minimum.
As the Biden administration is considering the next steps on widespread loan forgiveness, Botelho continues to work diligently to repay his debts in the hopes that one day he can leave the basement that he has called home for the past three years.