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

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.

In The News: The average millennial has a net worth of $8,000. That’s far less than previous generations.

June 5, 2019
By Abha Bhattarai for Washington Post

Millennials are doing far worse financially than generations before them, with student loans, rising rents and higher health-care costs pushing the average net worth below $8,000, a new study shows.

The net worth of Americans aged 18 to 35 has dropped 34 percent since 1996, according to research released Thursday by Deloitte, the accounting and professional services giant. This demographic is paying more for education and such basics as food and transportation while incomes have largely flatlined.

“The vast majority of consumers are under tremendous financial pressure,” said Kasey M. Lobaugh, Deloitte’s chief retail innovation officer and lead author of the study. “That is particularly true for low-income Americans and millennials.”

The growing gap between the nation’s wealthiest residents and everybody else, he said, is affecting the way consumers spend…

Click link below to read more:

https://www.washingtonpost.com/business/2019/05/31/millennials-have-an-average-net-worth-thats-significantly-less-than-previous-generations/?noredirect=on&utm_term=.269c9363005d

It’s Spring Break, Not Spring Broke: $63,971.03 Paid, $21,337.04 Till Payoff

Dear Parents, Friends, and Loved Ones,

Please pass this along to the college students in your life. Spring break is upon us, and they are being tempted to jump on planes and make it rain with tuition refunds.

Remind Them They Are Students:
Don’t ignore your college work over Spring Break. Use the week to relax from the regular grind, but stay in the habit of studying for school.

I think a lot of us dream of spending Spring Break on a beach with friends. Whatever your plans, use the time to continue being a student.

Encourage to Think Beyond Spring Break:
When I was a student, I found keeping this balance let me enjoy my break while also helping me stay caught up with the schoolwork to come. I was also less stressed when the break was over.

I’m not suggesting you lock yourself in your room and do nothing but school work. That will lead to burnout. Remember, balance is the key. Use the week to relax, but also keep up the routine of having study time:
• Continue doing classwork each day on your regular schedule.
• Schedule time to have fun and catch up with friends.

Prepare for The Next Academic Year & Career:
Besides the no-brainers of exercising and eating healthy, here are a few other things to do during Spring Break. The suggestions below will take time, so extend yourself some grace. For help, visit your college’s Career Services office when it reopens.
• Start working on a generic cover letter.
• Find a summer internship or job.
• Apply for scholarships.

Assess Your Finances:
If you can’t afford to jet set with classmates, just don’t go. Just imagine yourself in your career after graduation taking paid vacations from work. You will soon be a working professional who can afford multiple international trips a year-if you practice good money habits today.

Remind Them of Possible Financial Ruin:
For the last 7 years and 9 glorious months, I’ve been paying back student loans. Do you really want this in your future? Do yourself a favor, sacrifice what you want now for a future that’s a little more comfortable. Below is my balance update. Until next time everyone! Stay strong, fight on, and let’s help the youth have no debt but love.

Tax Time! $63,620.94 Paid, $21,687.13 Till Pay Off

Howdy and thank you for stopping by! Your visit to No Debt But Love isn’t taken for granted. Your presence here greatly encourages and motivates me.

Now Let’s Roll…
Grrrr… I hate giving the federal government an interest free loan. This is what happens when you get an income tax return, you essentially paid too much in taxes. Getting a return is better than the alternative, owing the federal government. Just thinking about these three letters makes me break out in a cold sweat! They are the IRS.

Pay What You Owe
The Internal Revenue Service possesses a very particular set of skills. Skills that make it a nightmare for your bank account. If you are some poor soul who owes years of back taxes without legal representation, the IRS will find you and garnish your wages.

I am grateful to have not owed the government a dime. Thanks to deducting $2,500 paid in student loan interest this past year. I also received a tax credit for the cost of childcare for my children. These tax provisions help immensely, but NOT enough to take out more student debt or have more children.

Am I Done Yet?
Paying off student loans has been frustrating and I grow evermore anxious as my balance gets closer to ZERO. I am instructed to not be anxious about anything, as found in Philippians 4:6-7. It’s weird that I am now grateful to have had the student loan debt in my life.

I have learned to count the cost of things I want; as in hours on my job it will take to pay for something. In this case of student loans- the years exchanged for pieces of paper. I am determined and have plans to not allow history to repeat itself through my children.

Making It Rain
As soon as our tax return hit the bank, my wife agreed to put some it towards my student loan debt.  Below is an update of my loan balances. I am blessed to watch my debt shrink each month. I am grateful and can’t stop thanking the Lord for it.

Until next time everyone! Stay strong, fight on, and have no debt but love.

Student Loans Are Stressful!/I’m Going Bald: $60,548.56 Paid, $24,759.51 Till Payoff

We have all read the nightmare stories of student loans wreaking havoc on the personal finances of the young and old.  Here’s another thing student loans may cause… HAIR LOSS! DUN-DUN-DUUUUN!!! Haha.  Life isn’t meant to be lived seriously all the time, so I decided to post about my male patterned baldness haha.

Going bald is a pain for me, as I have placed a bit of my identity in the strength of my hairline.  Yeah… kind of silly.   This past November, I stressed tremendously about my son starting daycare with his sister.  I was on paternity leave at the time and the stress wasn’t about missing my son per se… it was the pressure to provide for two kids in daycare lol.

Yet the Lord provided and continues to provide.  My nights became sleepless as I wondered how we would make it with my student loans, regular monthly expenses, and now daycare for 2.  I was prepared to reduce my student loan payment to make things work.  I grew frustrated thinking about all the progress made in reducing the debt to only watch it creep back up.

I was literally going bald at the top of my head due to stress, check out the picture.  

The elders in my family with wrinkly, low-hanging, bubbled lips would say, “Boy, the Lord is never surprised”.  To which I would immediately exhale audibly and roll my eyes.

Soon everything became too much, I broke down and decided to challenge the Lord with Psalm 127:3-5 (NIV), “Children are a heritage from the Lord, offspring a reward from him.  Like arrows in the hands of a warrior are children born in one’s youth.  Blessed is the man whose quiver is full of them”.

I didn’t feel blessed at the time. After I decided to relinquish control as Proverbs 3:5-6 instructs, “Trust in the Lord with all your heart and lean not on your own understanding; in all your ways submit to him and he will make your paths straight”.

My family follows a strict budget and my wife isn’t too thrilled about it.  However, there is more than enough every month.  The provision doesn’t make any sense, as we should be in the negative.  We may not have always have we want, but we always have what we need.

My hair even grew back, check out the waves HAHA.  Hair is a trivial matter in the grand outlook of life, my razor is ready to “Come On Home” and join the pantheon of bald greats-Dwayne Johnson, Michael Jordan, and Vin Diesel

Below is an update on my student loan balance.  I have no choice but to give thanks to the Lord, for he is good!  His faithful love endures forever. -Psalm 136:1