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.
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.
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June 11, 2019
By Dartunorro Clark
When Michael Sorrell became president of Paul Quinn College 12 years ago, he assessed the dire situation his school was in and made a bold choice: No more football.
“I mean, we’re in Texas. We’re an HBCU in Texas,” Sorrell said. “I got a little flak for that, OK?”
But to him, eliminating the program was the only way the historically black college in Dallas, which was founded in 1872 by a group of preachers from the African Methodist Episcopal Church to educate freed slaves and their children, could get back on track.
Football had cost the school roughly $600,000 to $1 million a year, he said, and scholarships went mainly to the players. Meanwhile, other students struggled, faculty and staff members were leaving, and buildings had fallen into disrepair.
“We were roughly 18 months to 24 months away from closing. We had financial problems. We had academic problems. We had morale problems, and it was the prototypical scenario for an institution that had been struggling for a long time and the end of the road was coming,” he told NBC News in a phone interview.
The challenges Paul Quinn College faced are not unique, experts said, even if its solution was one of a kind.
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