Student Loan Servicer

It’s Been A Long Time Coming: $81,023.37 Paid, $4,284.70 Till Payoff

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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.

relaxed homer simpson GIF

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….

numbers crows GIF by netflixlat

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.

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.

Merry Christmas & Happy New Year! $57,650.35 Paid, $27,657.72 Till Pay Off

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My son just made 2 months recently and I am excited to watch him learn how to express himself. My boy is one happy baby as evidenced by the dimpled smiles, the coos, and flailing arms and legs. My 2-year old is very protective of her brother. Each morning she runs into our bedroom shouting, “I want to hold little man!” or “That’s my baby!”; and is ready to plant kisses all over her brother’s face.

With that said, my wife and I are pleased to announce our family is adjusting well to the new baby. There is so much to be thankful for with Christmas around the corner and recently celebrating Thanksgiving.

First off, I am thankful to have a job that offers paternity leave. My job allows 6 weeks of paid time off to tend to births/adoptions. HOORAY! Also, I have 6 weeks of vacation time that can be applied in addition to paternity leave. It would be a challenge to stay home with a baby for that long lol. Cabin fever will ensue.

However, I am using 2 weeks of vacation to be at home with our new little guy for a total of 8 weeks.

Second, I am grateful for my son’s health. My wife was exhausted after the long (4 hour) delivery, but our son has since grown to a 12-pound baby champ. No amount of money can ever buy good health, even with the best doctors and medicine available. Poor health touches the rich and poor alike.

Third, I am grateful for my wife’s recovery. She is back exercising and is already contemplating a third child lol. I humbly ask she pumps the brakes. Thank you for accepting the challenge of being married to me babe. “I am honored to have the opportunity for you and me to exclusively form a little community of chocolate babies with proper raising.” -Tobe Nwigwe, “Wavy” I can’t take credit for those words. HAHA!

Okay, enough of that. Back to the reason for this blog, the tracking of my student loan repayment progress. Which leaves me with the fourth and final thing I am grateful for. As 2018 comes to a close, I have paid off $11,279.58 in principal. Check out the loan balance updates below.

I will give myself a Christmas present in the form of a student loan payment. The payment amount will be $400. It sucks to think about student loans over the holidays, but this will be $400 closer to debt freedom. The goal to live out Romans 13:8 doesn’t take holiday breaks. Until next time folks, have no debt but love!

Fatherhood Part. 2: $54,321.24 Paid, $30,986.83 Till Pay Off

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Celebrate with Me!

Thank you for supporting this blog! I have an exciting update to share. So my wife and I are expecting our second child. This time a baby boy! We are due October 15th and I couldn’t be happier to welcome him into the world.

You can read how my wife announced the first pregnancy by clicking the following title link, The Sacrifice of a Father.  My debt has gone down considerably since then. Praise the Lord!

The funny thing is she enjoys being pregnant. I’m proud of how hard she works and her passion to stay in shape.

She goes to the gym and even jogs with me. You go Wonder Woman! I gotta brag on her when I can to collect brownie points right?

Bills, Bills, Bills

Thank the Lord, we have saved ahead of our son’s arrival and grateful that medical bills will be covered. It would be a pain to pile on delivery expenses with student loan debt.

I am truly humble to be in the position to pay anything towards my student loans. I just hate seeing money go other places besides my wallet.

With that said, all birthing facilities are not equal. Prices range, and the quality of care can be a hit or miss.

Farewell… So Long

We have moved since the birth of our daughter; in doing so, we had to leave the midwife who delivered our first born. 😦

We loved the care received, but I figured the commute time would be too much. Besides, it would be a messy situation if my wife goes into labor during the hour-long drive. Haha!

Not Distress, It’s Eustress

Researching birthing centers can be stressful.   In our experience, many of the centers fall into one of the three categories: 1) don’t accept insurance, 2) are out-of-network, or 3) beyond our budget.

After phone calls and visits, we have found the right fit for delivery, for the THIRD time now lol.

Pray for my sanity. 

So, here’s an update on my student loans. I am pleased with progress made this summer.

Sincerely, God bless. Stay strong and fight on!

7 Years a Student Loan Debt Slave: $52,785.68 Paid, $32,522.39 Till Pay Off

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Image result for debt slaveryI was afraid when my student loans were set for repayment on June 1, 2011.  Throughout the years, I’ve researched and made my share of mistakes in my student loan debt journey.  Here are a few resources and tips that have helped me along the way.

1)Know who you owe and how much.

Visit www.nslds.ed.gov to get the name of your loan servicer and their contact information.  Communicate  with your loan servicers as soon as possible, missing payments can impact your ability to buy a house.

 

2) Split your monthly payment into bi-weekly payments.

This is a little hack I discovered homeowners use to reduce interest amount paid over the life of the loan.

Make sure that your payments are made before the due date.  If you pay under the monthly amount, you risk accrual of interest and other penalties. Consult with your student loan servicer for more details.

The below tool allows you to see the impact of making biweekly payments.  Click on the link below to view how my loan amount is impacted by making bi-weekly payments.  Experiment with this calculator by entering  your own loan amount and interest rate.

https://www.calcxml.com/calculators/should-i-convert-to-a-bi-weekly-payment-schedule?skn=#results

The standard student loan repayment term is 120 months or 10 years, you can edit this calculator to reflect when you expect to complete repayment. (1 year = 12 months)

 

3) Choose your major wisely.

Consider salaries for jobs within your major. Not every job will pay well for booksmarts and passion, so know your REALISTIC earning potential. For example, social workers don’t earn millions of dollars a year.

Using Finaid’s calculator, you can discover what minimum salary is needed to afford loan repayment. According to Finaid, I need to earn at least $117,807.27 annually to repay my debt comfortably.  Honestly, not making anywhere near this salary minimum has caused for lots of sacrifice and struggle.

Review your minimum salary needed for repayment below.

http://www.finaid.org/calculators/loanpayments.phtml

 

4) Choose the repayment plan that works best for you.

www.studentloans.gov

My loan servicers have calculated my updated monthly payments to be $45.  The reduced monthly payment allows me some wiggle room if I ever fall on hard times.

However, $45 would not cover monthly accrued interest. Not only must you pay the interest, but you also want to pay down a sizeable amount of principal.  Paying more than the minimum amount will effectively reduce your debt load and decrease the amount of time you are in debt.

Which leads us to the fifth point…

 

5) Make extra payments.

I currently make regular payments of $370 bi-weekly through money earned at my full-time job. Additional payments above the $370 bi-weekly amount are from my part-time job.

I have developed a strong hate for my student loans and try to throw as much money at them as possible. I refuse to have student loans when my kids start college.

 

6) Be Honest. Live below your means.

We all want to live in a certain area or drive a nice car.  But at this time for me, the finer things in life aren’t worth the work required to obtain.

It gets difficult at times to tell friends and family members about my financial struggles, but I enjoy very strong relationships.  Everyone won’t appreciate your honesty, get ready to develop thick skin.

 

7) Build a support system.

I’ve learned that you must simply ride the waves of life, as it is possible to feel alone in a room full of people. The key to life, in my opinion, is working to achieve full dependency on someone besides yourself.  For me it’s my relationship with Jesus Christ and right now, I need some Jesus time.

Below is an update on my student loan accounts.  Until next time folks, be blessed and fight on!

Someone Call A Mechanic! $45,645.72 Paid, $39,662.35 Till Pay Off

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College Years & 1985 Chevrolet Cavalier:

Ugh. Car problems are the absolute worst! They always happen at the most inopportune times.  My wife and I usually buy cash cars in effort to keep costs low. However, cash cars aren’t usually in the best shape.

My car issues began while in college, from 2004-2010 including graduate school.  At the time, I owned a 1985 Chevrolet Cavalier.  As shown to the left, is an actual picture a college buddy took of it.  I remember him telling me my car was cool lol.  Thanks for those kind words man, I never forgot them.

My wife who was my girlfriend then, owned a 1990 Honda Accord. To say the least, we both drove cars no one would be caught dead in.

Driving a car as old as me during my formative years definitely repelled the ladies lol. However, my car did attract the girl who didn’t mind being seen with me in it. I call that old Chevrolet Cavalier my “Wifey Magnet” haha.

Getting an Upgrade:

Anyways, I traded the Cavalier in for a 2002 Ford Explorer Sport in 2010. We then bought a 2003 Honda Accord in 2015. We were happy giving our “new” cars extra tender loving care. Despite our best efforts in keeping our cars maintained, both cars decided to give up the ghost the same day in September.

The Ford became impossible to turn due to problems with ball joints and steering rod. My poor wife knew of the issues a few days before, but decided it best to wait on telling me. At the time, we were battling incessant oil leaks with the Honda caused by a shady mechanic. In the end, the Honda’s engine started to make grinding noises due to lack of engine oil.

Enough is Enough:

Finally, I had enough with our car problems. We went to a car dealership and pulled the trigger to finance cars. The intent was to find cars: 1) manufactured in this decade and 2) low mileage.

I honestly feared financing a car, but truth be told, my monthly payment is about the same as I paid to maintain the Ford and Honda. It’s funny how my car loan’s interest rate is lower than my student loan interest rates of 3.03%-6.8%. Anywhoo…

Still Pushing Forward:

Although student loans have been the bane of my existence, they have enforced discipline in the areas of budgeting and saving. Besides car issues, it has been another great year for student loan repayment. I am thankful for the progress made in tackling this $85,308.06 monster.

Below is a running total of loan amounts. How are you guys doing? What goals have you made progress on this year? Until next time everyone, stay focused.

 

Good News!: $44,685.55 Paid, $40,621.52 Till Paid Off.

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Hi everyone!

It has been a busy summer and fall is upon us. Lots has happened since June, so let’s dive in. After coming home from work one evening in August, my wife greeted me with two pieces of mail from Nelnet. My immediate response was to shake my head and groan, “What’s wrong now?”

In years past, receiving mail from a loan servicer meant one of the following frustrations occurred: 1. The servicer had not received a payment. 2. Interest accrued on a loan account; or 3. A loan account was transferred to another servicer.

After staring in space for a while, I reluctantly tore open the first envelope. I have included a picture of the letter below, click to enlarge if you wish.

In summary, the letter says that ACS owes me .01 and the student loan will be transferred to Nelnet. Yippee! ACS owes me a penny, thanks for the mini heart attack.

My interest is piqued at this point, I ripped apart the second envelop and expected to be another penny richer. To my surprise the second letter informed me that another loan was transferred from ACS to Nelnet, and I am owed $225!


Out of all the loan servicers I’ve worked with (University Accounting Services, Brazos, Fedloan, Nelnet, and ACS), ACS made the repayment process most difficult. Tax and income-based repayment paperwork always seemed to get lost with them.

So that’s my good news everyone! I am $225 closer to reaching my goal of repaying my student loans. Check out the updates below.

September Update2

Now I only have 2 loan servicers to keep up with.  Until next time everyone, fight on and keep my hometown Houston in prayers!

Goodbye 2016, Hello 2017: $40,291.38 Paid, $45,016.89 Till Pay Off

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Major Life Events

Since last post, two major life events happened: 1) my wife finished her graduate program, and 2) my Perkins Loan was paid in full. To aid in paying student loans faster, I’ve accepted an extra adjunct teaching position. Below is a loan amount update from my NSLDS (National Student Loan Data System) account.  Click on the image for a larger view.

nslds

 

Everything has gone according to plan until I got some bad news from ACS. When I logged into my account, I was greeted by the following image.

acs

Yes, you read that correctly. On the right-hand side of the image reads “Soon to be: Conduent”.

ACS has been the bane of my existence since graduating college.  This company makes the repayment process convoluted by closing and transferring loan accounts at a whim without notice. ACS has delayed adjusting my principal and falsely reported my account as delinquent 3 years ago. These discrepancies would occur even after paying double the monthly payments.

Mortgage Loans & Student Loans

I recently watched the movie, The Big Short. It tells the story of Michael Burry, a board certified medical doctor turned hedge fund manager. Michael essentially predicts the financial meltdown due to the subprime mortgage crisis of 2008. Prior to the collapse, global sentiment to lending money to Americans was positive.

What happened in 2008 with subprime mortgages is reminiscent to what’s happening now with student loans. Many companies once saw student loans as a guaranteed route to increased profits, just like banks viewed mortgage loans. With the closures of for-profit schools and cancellations of debt, organizations are being more cautious with student loan offers.  Sadly, the damage has already been done: outstanding student loan debt is the second highest U.S. debt burden at $1.2 trillion.

Pieces of Advice

Like many of you reading, student loans were a necessity for me to pay for college– but if you must borrow, keep track of what’s owed and to whom.  One important detail left out of promissory notes is that your lender can sell and transfer portions of your loan amounts. Think of your student loans as a single piece of tissue paper. When you first start out, it’s typically one easily traceable amount with one company.  Over time, what often happens is your pretty little paper gets cut into pieces, over and over again.  Before you know it, your loan amount has become confetti, spread across different entities, in different amounts, and of course… with different website logins to remember.

Even in the face of “loan confetti”, I’m making it my party by paying these babies off. What helps is frequently checking your nslds.gov and studentloans.gov accounts. These websites give you running totals on what you owe, as well as contact numbers if you experience difficulty in repayment. I must admit to reviewing my loan accounts daily– once in the morning and once more at the end of the day. It’s simply part of my routine.

My 2017 Resolution

I will keep my eyes on the prize of one day seeing my loan balance reading $0.00. My 2017 resolution is a prayer for improved leadership skills and good stewardship of resources given to me. Here’s an excerpt from an excel spreadsheet detailing the loan accounts.

loan-accounts

Look there! You see that? It’s progress. No matter how big or small, I’m happy with simply giving my absolute best in this thing called life.

Share some of your resolutions for this year below- here’s hoping we achieve a few!

The Sacrifice of a Father: $37,197.54 Paid, $48,110.53 Till Pay Off

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Why So Happy?
Waking up Monday mornings is always a drudgery for our house. But this Monday morning, as I groggily walked to the restroom to wash my face, my wife wore a beaming smile and greeted me cheerily. Her greeting was contrastingly returned with a slowly motioned wave and mummified growl, “Morning.”

Baby PicDespite my groggy state, I couldn’t help but be suspicious about her extra energy boost. While reaching for a washcloth, in the corner of my eye, was a pregnancy test leaning against the wall. I tried to delete the image of the pregnancy test to shield myself from fear and pain.

My wife and I have been married for 5 years and were coming to terms with the possibility of never being able to conceive. I assumed the pregnancy test would read negative, but out of hope, I took a peek at it anyway.

To my amazement and disbelief the test read positive. Then I thought, wait, this is an April Fools’ joke, why would she do something so mean? But this was in November, April was 5 months away. Then my attention was drawn to sticky notes my wife placed above the pregnancy test where she wrote, “We prayed and God answered.”

Still half-conscious, it clicked.
“Wait… we’re pregnant?!”
Almost instantly, the sleep fell from my eyes.
She grabbed my hands and excitedly screamed, “Yes, we’re pregnant!”
I can’t explain the joy in knowing that my little girl will be here in August; I feel alive again!

Sacrifices of Parenthood
Once the initial elation surrounding my little girl’s arrival wore off, the reality of newfound responsibilities rose to the surface. We will lose sleep, time, and maybe even some friends. And of course, as we all know, raising a child can come with a considerable price tag. Half of me is joyful in anticipation of my child’s arrival, and the other half is anxious. I still have student loan debt to repay and sometimes wonder if waiting longer before starting a family was the better option.
But I am proud to have the opportunity and privilege to raise a child.
Fatherhood is the best gift imaginable, especially since for us, the seemingly impossible became possible. Two little eyes will be looking to me with love every day from this point on, and a little mouth will call me “dada”. Why would I not want the gift I have been given after being blessed with it?

With that in mind, I now prioritize savings over debt reduction in anticipation of the costs of raising a child as well as any birthing complications. Although I want to get rid of student loan debt faster, it would be a pity not to provide for my family first.

New Debt Payment Plan
My student loan accounts are paid bi-weekly, totaling initially $425.51 every two weeks as shown below. I have since reduced the amounts made on the debt to an updated amount of $248.76.

Bi-Weekly Payments2

The principal paid bi-weekly has decreased from approximately $304.99 to $137.31, due to reduction in repayment. It’s a little disheartening to see my momentum slow a bit; but one thing’s for sure, my debt is decreasing.

Bi-Weekly Principal Payment 2

What matters most is my beautiful wife and daughter are healthy and strong.
For all the parents out there, how have you tackled the financial responsibilities of student loan debt and parenthood?

Until next time folks, fight on.