No Debt But Love
It’s Been A Long Time Coming: $81,023.37 Paid, $4,284.70 Till Payoff
First off, none of this would be possible without God. Jesus Christ! Wow… I can’t believe it. This doesn’t feel real, someone slap me, pinch me because this can’t be real ya’ll. I have really paid off my Fedloan student loan account. When starting this repayment journey 8 years ago, I thought I would die with my student loans. Below is an update of my student loan balance.
I would like to provide 7 tips that have helped me pay off Fedloan. I’m not out the woods yet, as I have one loan left to pay… Nelnet. Let’s get to the tips.
1. Grace Period is not a chill period.
Fedloan gave me 6 months of grace period. A Grace period is the length of time you are allowed to go without making your first loan payment. After securing my first job out of school, I didn’t think about interest accruing each month. Boy was I sorry for not paying towards my debt sooner, as my loan balance grew.
2. Get into a repayment plan that works for your situation.
I lost my job after 3 months and had a hard to finding work that matched that same pay. Quite frankly, no job have I had since has matched that pay. I’ve had to work multiple jobs to match it.
Therefore, my main jobs haven’t paid that well. So I’ve been in the IBR program for the last 8 years.
Your payment is reduced however you must renew year. Don’t forget to renew.
3. Pay as much as you can as often as you can.
To do so I lived like a college student, I didn’t eat out much, and didn’t take frequent vacations, it’s been 2 years since my last vacation. Anyways…As for myself, I used my tax return to pay the remaining balance of $4,333.13 from my Fedloan account. I count myself blessed to receive a tax return, as I know how difficult tax season can be for many people. My first year out of college, I owed 1,200. I cried for real yall. But I got through that uncomfortable time, and you can too. Please consult with an expert, because I am not a tax professional.
4. Pay every 2 weeks.
Don’t take my word for it, do an internet search for bi-weekly loan calculators. Use mortgage repayment calculators to see the impact of paying every two weeks.
5.Keep updated spreadsheet of balances.
Previous servicer ACS added an extra $200 in interest, instead of reducing my principal after 2nd payment of $200. You better believe I argued with them over the phone and email.
I may have said some nice so nice words. Forgive me….
6. With that said…Keep contact info current and stay in contact with servicers.
You may move or your loan may get transferred (Brazos transferred my loan to Fedloan, adding to the total)
It can be scary not knowing what’s going on. Especially if you have a payment due and the servicer can’t reach you.
7. Be aware of processing speeds.
Fedloan usually takes 2-3 business days to process payments. So I never pay my accounts on near the weekend such as Thursday/Friday or on the weekends. Doing so will help you avoid late fees. Yes, loan servicers charge late fees.
My debt is paid always on a Monday or Tuesday to give the servicer more than enough time throughout the week to process my payments.
I also never pay a loan account during holidays such as Christmas, Thanksgiving, or New Year Eve or Day.
We all just get lazy around these times and want to relax. Right before a holiday break is the best time to send a payment, the workers are in a mad dash to get out of town.
Bonus Tip: Celebrate! As you pay your debt down, take a day off, treat yourself to a meal. Before I was married, I took myself out to many dinners and movies. You must be able to celebrate and love yourself for your accomplishments first, before others can. Now that I’m married with kids, I celebrated my Fedloan payoff by taking my daughter to the movies.
Until next time everyone! Stay strong…💪 fight on…🥊💥🥊 and have not debt but love! Peace and Blessings.
New Year, Same Good Fight: $74,735.31 Paid, $10,572.76 Till Payoff
My God is so big, so strong and so mighty
There’s nothing my God cannot do
These are the lyrics to one of my daughter’s favorite worship songs. This past holiday season was tough for me. I refused to delight in the Lord and trust that he would give me the desires of my heart as found in Psalm 37:4-5.
The Backstory
We had our first born after our fifth year of marriage and I wouldn’t have it any other way. To be frank, I miss the alone time we had, and our uninterrupted sleep. We are approaching 9 years of marriage; diaper changes and potty visits rule the night. 
Praise the Lord for our son’s healthy lungs and daughter’s early taking to potty training. I understand this is just the season we are in.
With all these blessings, I was still unhappy. Dear Lord, I am sorry. I complained about the daycare costs, the cost of diapers, and rising medical bills. There are people out there who literally impersonate medical staff to kidnap newborns. Check out a story of such catch provided through the link below.
https://www.cnn.com/2018/06/08/us/florida-kamiyah-mobley-kidnapping/index.html
Blessed, Just Not Always Feeling Like It
I’ve been blessed with two little lives who share my DNA. Now comes the desire to leave property and wealth for my children in the event I pass. My belief is we are all going to die if the Lord doesn’t come get us first. It would be unfortunate to leave my children empty handed; with the parting gifts of funeral and burial expenses. So off to work I go to pay off debt, and to have something to invest after what remains after monthly expenses.
I’m fortunate to have made it this far in my student loan debt repayment. I do wonder what I could’ve done with $85,308.07. The total amount is $106,811.84 when accounting for interest. This is INSANE. Below is an update of my Fedloan and Nelnet accounts.
I hope to have this saga of debt completed by the end of April this year. As a society we must stop buying into the lie that if you grew up poor, then getting an education at all costs will get you out of poverty. My financial situation was made worse after college graduation than after high school graduation. Be wise parents in what decisions you allow your children to make.
Chasing After Something Else
An education will NOT get you out of poverty alone. It takes discipline, sacrifice, and being okay with going without for a period of time-contentment. What got me in this whole student loan mess was wanting what others had (houses, cars, fancy clothes). Not knowing that, “Resentment kills a fool, and envy slays the simple” -Job 5:2.
My true desire is peace in my household. I refuse to sell myself for things others say I must have. I’m only chasing what God has for me. He doesn’t want me to worry, I trust him with my future. On a lighter note, the Lord can take our mistakes and work it out to bring Him glory. But please everyone, let’s be obedient haha. There’s nothing our God cannot do!
Until next time everyone! Stay strong…💪fight on…🥊💥🥊 and have no debt but love! Peace and Blessings.
This Man Got $221,000 Of Student Loans Discharged In Bankruptcy
January 16, 2020
By Zack Friedman, Forbes
Can you now discharge your student loans in bankruptcy?
Here’s what you need to know.
Student Loans: Bankruptcy
A Navy veteran will have $220,000 of his student loans discharged, even though he is not unemployable, not disabled or wasn’t defrauded. A U.S. bankruptcy judge in New York, Cecilia G. Morris, ruled that Kevin J. Rosenberg will not have to repay his student loan debt because it will impose an undue financial hardship.
According the Wall Street Journal, Rosenberg borrowed $116,500 of student loans between 1993 and 2004 to earn a bachelor’s degree from the University of Arizona and a law degree from Cardozo Law School at Yeshiva University. He filed for Chapter 7 bankruptcy in 2018 and asked the court last June to discharge his student loan debt, which had grown to $221,400, including interest. At the time of filing, Rosenberg’s annual salary was $37,600, and after living and debt expenses, his monthly net loss was $1,500.
Traditionally, unlike mortgages or credit card debt, student loans cannot be discharged in bankruptcy. There are exceptions, however, namely if certain conditions regarding financial hardship are met.
The Brunner Test: Financial Hardship
Those conditions are reflected in the Brunner test, which is the legal test in all circuit courts, except the 8th circuit and 1st circuit. The 8th circuit uses a totality of circumstances, which is similar to Brunner, while the 1st circuit has yet to declare a standard.
In plain English, the Brunner standard says:
- the borrower has extenuating circumstances creating a hardship;
- those circumstances are likely to continue for a term of the loan; and
- the borrower has made good faith attempts to repay the loan. (The borrower does not actually have to make payments, but merely attempt to make payments – such as try to find a workable payment plan.)
There are variances across federal districts, but that’s the basic framework. To discharge student loans through bankruptcy, an Adversary Proceeding (a lawsuit within bankruptcy court) must be filed, where a debtor claims that paying the student loan would create an undue hardship for the debtor.
So, Can You Now Discharge Student Loans In Bankruptcy?
This is only one legal ruling. That said, federal judges and Democrat and Republican members of Congress are open to changing the law to make it easier for borrowers to discharge their student loans in bankruptcy. While these tactics may be welcomed by some student loan borrowers, critics may question whether judges should actively try to circumvent the existing law (suggesting that Congress, and not judges, should make the law.
To Read More, Click Link Below
https://www.forbes.com/sites/zackfriedman/2020/01/10/student-loans-bankruptcy/
🎅 How to Overcome Holiday Stress Student Loan Update🎅 | $12,233.69 Original Balance $85,308.07
University of Phoenix to cancel $141 million in student debt
December 12, 2019
By Scott Olson, NBC News
The University of Phoenix and its parent company have agreed to pay $50 million in cash and cancel $141 million in student debt to settle allegations of deceptive advertisement brought by the Federal Trade Commission.
The deal, announced Tuesday, settles a dispute over an ad campaign the for-profit college launched in 2012 touting partnerships with companies including Microsoft, Twitter and Adobe. It suggested the school worked with those companies to create job opportunities for students, even though there was no such agreement, investigators found.
The Federal Trade Commission said the settlement is the largest the agency has ever obtained against a for-profit college.
“Students making important decisions about their education need the facts, not fantasy job opportunities that do not exist,” said Andrew Smith, director of the Federal Trade Commission’s Bureau of Consumer Protection.
The University of Phoenix said in a statement that much of the dispute focused on a single ad campaign that ran from 2012 to 2014. It said it agreed to the deal “to avoid any further distraction from serving students.”
“The campaign occurred under prior ownership and concluded before the FTC’s inquiry began. We continue to believe the University acted appropriately,” the company said.
Apollo Education Group owns the University of Phoenix. The Arizona-based for-profit college chain has 55 campuses across the nation and teaches thousands of students through its online programs. It’s the nation’s largest recipient of GI Bill tuition benefits for military veterans.
To Read More, Click Link Below
https://www.nbcnews.com/news/us-news/u-phoenix-agrees-cancel-141-million-student-loan-debt-n1099681
‘I’m working until I’m 75’: Factory worker describes family’s student debt nightmare
December 2, 2019
By Aarthi Swaminathan
Student debt isn’t just a student problem. Across the U.S., many parents also struggle with the burden of student loans.
A recent survey by Freedom Debt Relief found that 37% of 1,506 American adults said their children’s college education cost has made them feel financially overwhelmed. And 20% said that the stress has contributed to mental or emotional health issues.
More than 40% said education costs impacted their retirement plan, with 31% indicating that they had “given up retiring when they initially desired.”
Yahoo Finance spoke with one parent in a particularly difficult student loan situation: a 60-year-old factory worker from Scranton, Pa., who had cosigned a loan for his son. (The man, whom we’ll call Frank, asked for anonymity to protect his son.)
Frank’s student debt experience began when his son got into a college. As a “middle-class working family” that brings in about $75,000 a year, Frank and his son started borrowing.
The son fell seriously ill after attending the school for one-and-a-half years and dropped out. After his health improved, the son decided to resume his education at a different school. All the while, both father and son continued to borrow.
The expenses began mounting: The family had a refinanced mortgage and credit card debt, as well as home and car insurance to pay. On top of that, they had recurring medical bills. And there was the possibility of more kids going to college.
“[With] some of my bills, I was in no position to barely help myself,” Frank said.
To Read More, Click Link Below
https://finance.yahoo.com/news/student-debt-family-burden-175514385.html
❄️November 2019 Student Loan Update | From Sweepstakes to Snowflakes ❄️
U.S. Education Dept. Cancels Loans for 1,500 Defrauded Students
November 11, 2019
By Stacy Cowley, The New York Times
About 1,500 students who attended two art institutes that were part of the sudden collapse of a career-school chain this year will have their federal loans canceled, Education Secretary Betsy DeVos said on Friday.
It was a rare victory for borrowers seeking debt relief from a department that, under Ms. DeVos, has frozen or curtailed relief programs for students who claim that schools defrauded them. Borrowers who attended the two schools, the Art Institute of Colorado and the Illinois Institute of Art, sued the department last month, seeking to have their loans eliminated.
“Students were failed and deserve to be made whole,” Ms. DeVos said. Students who attended the schools from late January 2018 through the end of last year, when they shut down, will have their loans for that period canceled, the department said.
Borrowers will still generally owe on federal loans they took out before Jan. 20, the department said in an email sent to borrowers on Friday. Some people, however, may qualify to have all of their loans eliminated through the department’s closed school discharge program.
The decision was the latest twist in the messy unraveling of the chain, Dream Center Education Holdings, which owned dozens of campuses under the Art Institutes, South University and Argosy University brands.
Dream Center was owned by a Christian nonprofit that acquired the troubled group of for-profit schools in late 2017. It closed some schools within a few months, and the entire chain abruptly shut down barely a year later after millions of dollars in federal financial aid funds that were owed to students went missing. The money has still not been recovered.
The accreditation for the Art Institute’s Colorado and Illinois campuses was removed by the Higher Learning Commission in January 2018, around the time Dream Center took them over. The loss of certification meant that students risked being unable to transfer their credits to other schools or have their credentials recognized by employers.
Officials at the Art Institutes never told students that the campuses had lost their accreditation, according to court filings and the Higher Learning Commission.
By law, the Education Department is not allowed to release federal student loan funds to for-profit schools that are not accredited. But the department sent more than $10 million to the two schools and, according to emails and other records, told Dream Center officials that it was working to allow schools to become retroactively accredited.
To Read More, Click Link Below
No Debt But Love 