Author: No Debt But Love

Why You Should Pay Off Your Student Loans Early

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Hello and thank you for stopping by to support No Debt But Love! This site represents a movement to live out Romans 13:8 as we leave no debt outstanding, but the continuing debt to love one another. This means we will pay off all our debts: student loans, home mortgages, car loans, and credit cards.

My personal struggle has been student loans as I have been on this repayment journey for 8 years. I would like to recognize a supporter of No Debt But Love. She is a fellow YouTuber and blogger. Her name is Mary, and her YouTube channel is called “A Merry Life, On A Budget”. Check out the links to her channel and her blog below.
YouTube Channel:
https://www.youtube.com/user/amerrylife
Blog:
https://amerylife.com

This blog entry will feature a friendly critique of an article I came across titled, “Why You Might Not Want to Pay Off Your Student Loans Early” published by the Motley Fool. Here’s the link below. have also featured this article in a previous post.
https://www.fool.com/personal-finance/2019/06/29/why-you-might-not-want-to-pay-off-your-student-loa.aspx

The first reason the article gives for not paying off loans early is due to borrower protection and the possibility of getting debt forgiven after 10 years of public service.
However, 99% of applicants for student loan forgiveness are denied. This prospect doesn’t sound promising. Here’s support of my perspective provided by Forbes below.
https://www.forbes.com/sites/zackfriedman/2019/05/01/99-of-borrowers-rejected-again-for-student-loan-fworgiveness/#173bad7db16b

The 2nd reason…The interest rates on your student loans may be lower than other debt. In my frame of reasoning, debt is the amount you owe to someone else. If any debt you have accrues interest, this means compound interest is working against you and not for you. Lord forbid you experience a layoff, resulting you to defer payments.

The 3rd Reason…You could potentially earn a better return on your money by investing it. Whenever you invest there is risk associated with financial instruments we choose to purchase. Usually, the greater the rate of return, the greater the risk you subject yourself to. It would be wise to consider the opportunity costs should you choose to invest as opposed to not investing.

The fourth and final reason…You’ll be giving up a tax deduction (if you qualify.) To this I would say, why hold on to debt to get a tax deduction? If you are a high-income earner and or owe a substantial amount of debt, the $2,500 would either phase out or wouldn’t make much of a difference. Wouldn’t it be better to have your student loan debt paid off and not have interest payments to make?

This concludes this blog post. What do you think? Should you pay off student loan debt early or on the 10-year standard repayment plan? As for me, I hope to have my student loan debt paid around this time next year, concluding 9 years of torture lol. video… Well until next time everyone… Stay Strong… Fight On… and have No Debt But Love, Peace and Blessings.

A YouTube video corresponding to this blog post is in the works! Stay tuned!

As student loan debt mounts, high schoolers ‘shockingly’ unaware of aid options

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July 9, 2019

By Brittany De Lea
For Fox News

Exorbitant college Opens a New Window. costs are a significant problem for Americans, but new research shows prospective college students are unaware of how the financial aid Opens a New Window. process works.

A new study from ACT, which surveyed about 1,200 last year, found that many students “lack the most up-to-date … debt-related information” needed to make enrollment and financial aid decisions.

That’s particularly troubling at a time when outstanding student loan debt has surpassed $1.5 trillion, second only to mortgage debt.

Meanwhile, tuition and fees for the 2018-2019 school year averaged $35,830 at four-year private, nonprofit institutions, according to data from The College Board. At public four-year in-state institutions, the average was $10,230 – and $26,290 at public, four-year out-of-state colleges.

The average borrower has nearly $40,000 in student loan debt.

Here’s a look at what most college students surveyed did not know about the financing process.

  • An “overwhelming majority” didn’t know that the U.S. government subsidizes a borrower by paying interest on existing loans while the student is still in college.
  • A majority of respondents did not know about loan repayment options, which allows students to repay loans based on their earnings after college.

To Read More, Click the Following Link:

https://www.foxbusiness.com/personal-finance/student-loan-debt-aid-options

No Debt But Love: Sunshine Blogger Award Nomination

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Hello and thank you for visiting the blog No Debt But Love, where we strive to live out Romans 13:8!  I had an AMAZING weekend with my family, and this week is getting off to a great start.  Why do you ask?  No Debt But Love has been nominated for The Sunshine Blogger Award by Mr. A @ https://barbariangentlemen.wordpress.com/.

Mr. A discusses topics on manhood, fitness, social skills, and style… just to name a few.  You all know what to do, visit his blog and show him some love and tell him No Debt But Love sent you!

When I started this blog, the thought never crossed my mind that I would receive award nominations.  Especially, given my topic-student loans.  The Sunshine Blogger Award is peer recognition for bloggers that inspire positivity and joy.  Mr. A. has asked me a few questions, here’s my attempt to tackle them lol.

Image result for sunshine blogger award

1. The goal is to love life, not to endure it. If you’re bound to repeat an endless cycle of your life, are there things you wouldn’t want to repeat for eternity? If there are, have you done anything to change them now? What are those things?

One thing I certainly wouldn’t want to repeat for eternity is student loan debt 😂😂😂.  Student loans are the worst!  I’m currently paying these blood suckers off.

2. Have you ever thought of doing something, but didn’t try to pursue it? Are you glad you didn’t pursue it? Tell us about it?

I thought about pursuing my doctorate.  I regret that I didn’t push harder for it, but perhaps maybe one day.

3. Is there someone out there that you follow with no question, even thou you know they’re wrong? Tell us who and why do you follow?

Perhaps maybe family members?  I support particular individuals because I love them.  If you don’t have family in your corner, who else do you have… right?

4. Is there a thing you’ve been waiting to do? Why are you waiting? Are your concerns realistic?

I’ve been waiting to visit my wife’s home country of Trinidad.  I don’t have any concerns about visiting… well there’s the stress of in-laws.  They are WONDERFUL people; I’ve met them a few times during their visits to the U.S.

5. Tell us something that is you’re supposed to be committed to, but found yourself half-assing it? Why are you holding back? How can you give it everything you have?

I’m committed to working out, but I don’t like to lift heavy weights too much.  This is problematic as I would like to bulk up, the other issue is… I love running.  So as soon as I gain weight, I lose it fast haha.

6. What is your ideal haircut for men that you find very irresistible?

The haircut that’s irresistible for my wife is an all-even with (1.5 guard with the grain).

7. How is your net worth? Are you still living from paycheck to paycheck?

I can disclose my net worth is positive since 2016 and growing.  I am so grateful to not live paycheck to paycheck any longer.

8. What is a guaranteed way to get a better night’s sleep?

Prayer and the Bible set my mind at ease.

9. What are the red flags that you look out for in a romantic relationship?

The big red flag for me is a significant other’s inability to address themselves in a respectful manner.  I don’t condone shouting matches haha.

10. Is there anything that I have written that you consider poor or irresponsible? Is there a topic that I’ve written that you don’t agree on?

Mr. A, keep rocking dude.  Your perspective is unique and very comical.

11.  Mr. A has graciously made question 11 optional!  You are the man, Mr. A!  My wife would kill me haha.

So that’s enough blah-blah from me…

 

Here are my nominees for the Sunshine Blogger Award.

https://myconcealeddepression.com/blog/

https://theuberpharmacist.wordpress.com/

https://rjs.social/

mikedittenber.wordpress.com

https://triciajots4jesus.wordpress.com/

https://millenniallifecrisis.org/

https://plantingseedsingodsgrowinggarden.wordpress.com/

https://knittingwithheart.wordpress.com/

https://drawingclosertochrist.com/

https://legendpalour.wordpress.com/

https://tafadzwaprivyblog.wordpress.com/

Questions for the nominees:

  1. Why did you start blogging?
  2.  Is there a story behind the name of your blog?
  3. What is your favorite vacation spot?
  4. What is your favorite movie?
  5. What is your life’s greatest accomplishment?
  6. If you had to eat one food for the rest of your life, what would it be?
  7. What is the title of the last book you have read?
  8. What is one way you relieve stress at the end of the day?
  9. What cities or towns have you lived in?
  10. Where do you find inspiration for your blog posts?
  11. Do you own any pets?

Sunshine Blogger Award Rules:

Thank the blogger who nominated you.

Answer the 11 questions the blogger asked you.

Nominate new blogs to receive the award and write them 11 new questions.

List the rules and display the Sunshine Blogger Award in your post/or on your blog.

Notify the nominees about it by commenting on one of their blog posts.

 

Thank you again for visiting No Debt But Love and please send Mr. A at Mr. A @ https://barbariangentlemen.wordpress.com/ my regards!

 

Why You Might Not Want to Pay Off Your Student Loans Early

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July 2, 2019

By Christy Bieber

For The Motley Fool

Owing money on student loans can feel like a major financial burden. After all, you have to send money to lenders each month and tons of debt shows up on your credit report.

While you may be tempted to get rid of your student debt ASAP by making extra payments and throwing as much cash at it as you can, this may not actually be the best financial decision. In fact, there are a few key reasons why paying off your student loans early might be a bad idea indeed. Here are four of them.
Student in graduation outfit with dollar sign hanging from tassel.

Image source: Getty Images.
1. Federal student debt comes with borrower protections you can’t get with other debt.

With most types of debt, lenders don’t really care if you’re facing financial hardship — you have to pay back what you owe on schedule. And you can’t just change your payment plan to reduce your payment so it matches your income, nor can you expect to get some of your debt forgiven if you do work that serves the public.

If you have federal student loan debt, on the other hand, there are unmatched borrower protections available to you. Depending on your situation, these borrower protections include:

Eligibility to get loans forgiven if you work in public service and make 120 on-time payments
The option to put loans into forbearance or deferment, and pause payments if you go back to school, are unemployed, serve in the military, join the Peace Corps, or meet other qualifying requirements
The ability to change repayment plans and pick a plan that caps payments at a percentage of income

The government may even subsidize interest on some of your loans during periods when payments are deferred.

Putting extra money toward paying down loans with all these borrower protections rarely makes sense. After all, if you could pay a small percentage of your income for 10 years and get the rest of your loans forgiven because you work for the government or a nonprofit, why pay off your loans early?

Click the Link Below to Read
https://www.fool.com/personal-finance/2019/06/29/why-you-might-not-want-to-pay-off-your-student-loa.aspx

JPMorgan’s Jamie Dimon: Student lending in the U.S. is a ‘disgrace’ and it’s ‘hurting America’

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June 28, 2019

By Julia La Roche

For Yahoo Finance

JPMorgan Chase (JPM) CEO Jamie Dimon says student lending in the U.S. has been “a disgrace” and it’s “hurting America.”

“Is there an issue with student debt? There is, but you’ve got to stop the creation of bad debt,” Dimon told Yahoo Finance’s Andy Serwer in an exclusive interview at the unveiling of JPMorgan’s new flagship bank branch in Midtown Manhattan.

Dimon added that the government has “irresponsibly” lent more than $1 trillion since taking over in 2010.

“And now they want to forgive it,” he said.

Student loan debt has soared over the last decade. (Graphic: David Foster/Yahoo Finance)

 

Student loan forgiveness has become a focal point of the 2020 election, with Democratic contenders rolling out plans. This week, Sen. Bernie Sanders (I-VT) unveiled a sweeping cancellation plan that proposed taxing financial transactions.

“I think they should look at all parts of student lending, fix the broken parts, and then forgive those people need forgiveness, and then help people get into school, and then make sure the schools are responsible in getting the kids out,” Dimon said. “And what we’ve done is a disgrace, and it’s hurting America.”

He pointed out that a tax on financial transactions would be paid by investors.

“How they go about taxing, I’ll leave that to the politicians to figure that out,” he said.

To read more, click the following link:

https://finance.yahoo.com/news/jpmorgan-ceo-jamie-dimon-calls-student-loans-a-disgrace-171749043.html

The Givling trivia app claims to help people with student debt. Players say it’s expensive and risky

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June 26, 2017

By Annie Nova

For CNBC

ABRA BELKE WAS IN LAW SCHOOL when she came across the Givling app, which calls itself “the world’s most incredible trivia game.” It promised winners payments toward their student debt.

Belke was interested. Her student loan balance was more than $100,000 and she had previously won $62,000 on the syndicated game show, “Who Wants To Be A Millionaire.”

“I’m a trivia buff,” Belke, 37, said.

However, she quickly realized it isn’t knowledge on a variety of topics that makes a player competitive on Givling. It’s money.

H/O: The Givling app
Caption/Credit: The Givling app

The app’s most-coveted $50,000 payout is awarded every seven to 10 days to players who reach first place in the game’s queue, which currently has more than 450,000 people, according to the company. To climb in that ranking, players need to accumulate queue points. That can be done by watching ads on the app, buying Givling merchandise or coins and using its paid sponsors, which include Uber Eats and eyewear maker Warby Parker.

Belke did it all. She rose up in the queue and hovered in the top few spots.

To Read more click on the link below:

https://www.cnbc.com/2019/06/21/givling-trivia-app-offers-student-debt-payouts-players-say-its-risky.html

Your Credit Score & Student Loans: $67,916.64 Paid, $17,391.43 Till Payoff

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Here… Take My Money, All of it.

The financial burden of student loans on the lives of young professionals is well documented.   I’ve been on my personal repayment journey for eight years now.

I have been fortunate to have had the ability to make timely payments throughout, and this has improved my credit score substantially.

However, this wasn’t always the story.  Six months after graduation, my mailbox was stuffed full of payment due notices.  The letters came from ACS, Nelnet, FedLoan, and Brazos.

I requested electronic notifications, and began making payments every month.  It didn’t take long to get a letter of 30 days delinquency from a new company-University Accounting Services (UAS).  I was infuriated, I thought everything was taken care of.

What. In. The. World. Was. Going. On???   

I overlooked notices from UAS under the mountain of loan servicer paperwork.  I threw up my hands and wanted to give up already.  Out of curiosity I checked my credit score and sure enough, UAS tacked on a “missed payment” notification onto my credit report.

Thankfully, I was able to get the servicer’s contact information.  To my surprise, UAS was collecting the debt on behalf of my alma mater Abilene Christian University.  I own my mistake of falling behind on the student loan payment.  ACU regularly makes donation calls, a courtesy call regarding this debt would’ve been awesome. HaHa.  Well… as I said before, this was my mistake not ACU’s. I’m STILL a little salty to this day.

 

So Here’s What I’ve Learned

  1. Sort and organize mail from student loan servicers.
  2. Check your credit report regularly.
  3. Don’t be so hard on yourself, we aren’t perfect.

Below is an update on my student loan debt.  Until next time everyone, stay strong, fight on, and have no debt but love! Peace and blessings.