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Impostor Syndrome-The Progress Continues

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I didn’t intend to write and post on a holiday break from work.  However, it weighs heavy on me.  Today, the United States commemorates the life and accomplishments of Dr. Martin Luther King Jr.  He was a man who stood firmly for what he believed in, that we are all created equal by a holy and sovereign God.  His dream was for a united America, not just for unity’s sake but under a righteous God.

It’s interesting to recount how little regard I have placed for the sacrifices of the nation’s founders and my forefathers.  In my ignorance I have failed to understand the significance of the freedoms enjoyed today.  In my freedom, I believed it gave me license to ignore, disrespect, and berate.

You are seen as hateful if you have a different opinion.  Dr. King had a radical difference of opinion.  The truth is what guided him were the traditions of Judeo-Christian values, he was a Baptist minister.  Today, these values are under attack.

Politicians and their constituents are believing that the United States isn’t “that great” or ever “great” to begin with.  If that were so, what were tears shed, blood spilled, and lives lost for?  Besides every day people suffering and dying for ideals, Presidents have paid with their lives as well,

This country has a long standing tradition of seeking to improve the lives of our fellow brothers and sisters.  Let us not fall victim to…

There are days I want to give up.  There are even more days doubt sets in about my capabilities, but then I remember the following.

We can’t correct the hurts and harms of yesterday, but we can enjoy today’s freedoms.

The Case for Community Colleges: $55,645.14 Paid, $29,662.93 Till Pay Off

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Lively lobbies, Silent Offices

I started my career in academia as a community college Admissions Specialist and later, Academic Advisor. I remember the numbers of students and their families huddled like cattle in lobbies, waiting to discuss class registration.

Once inside my office, scowl-wearing parents with arms crossed, stood directly behind students plopped in chairs with faces buried in their hands.

Too often, community colleges are students’ backup plan for the following reasons:

  1. Not getting into college of choice
  2. Unable to afford college of choice.
  3. Failed out of college of choice.
  4. Not knowing what to do in life.

Universities offer their share of many advantages, the purpose of the blog entry is to help cash-strapped students/families to make informed decisions, and avoid big student loan debt as I incurred.

 

The Case for Community Colleges

  1. The community college offers a smaller class setting. I remember my first class in a university lecture hall of 150 students, it was intimidating.
  • The largest class size at my place of employment, a community college, is maxed at 47.
  • Although many universities may boast this same benefit, these institutions will cost students more.

With smaller class sizes, teachers are able to respond to the needs of students faster. Universities rely heavily on TAs (teacher’s assistant), who are highly competent, but are students themselves with their own academic stresses.

  1. In the wise words of Warren Buffett, “Price is what you pay, value is what you get”. Lately, people in high student loan debt don’t view the price paid for education as highly valuable.
  • As of 2018-2019, a local community college in my area of residence costs $59 per credit hour. Therefore, a 3 and 4 credit hour course will cost $177 and $236 respectively.
  • A university in my state will cost you $1,338 per credit hour this academic year; making 3 and 4 credit hour courses cost $4,014 and $5,352 respectively.

Oh yeah… this doesn’t include prices for books, food, lodging, and transportation. God bless you if you are able to meet this educational request without debt. This is blog is for those who may find this request challenging. Haha!

  1. Universities don’t grow legs and walk away. They will still be there once you complete your desired school’s “Basics”.
  • Basics are classes required for all students regardless of major (English, History, Political Science, Mathematics, Natural and Social Sciences courses). If your student is unsure about their career, basics are a great place to start versus changing majors frequently.
  • Academic advisors have transfer guides needed to transfer work towards your university degree.

Furthermore, bachelor’s degrees are usually 120 credit hours and take 4 years to complete. Community colleges have articulation agreements which allow students to complete 45-60 credit hours, which is equal to the first 2 years of a bachelor’s degree. Therefore, community colleges allow students to complete half of their university requirements at a fraction of the cost.

  1. Scholarships abound for students transferring from community colleges to universities.
  • Hidden gems on community college campuses are the honor societies such as “The National Society of Collegiate Scholars” and “Phi Theta Kappa”.
  • For more information and eligibility criteria:
    https://nscs.org/member-eligibility/

  https://www.ptk.org/About/Membership/Eligibility.aspx

Feel free to visit the “Scholarship Resources” tab of this blog to view other great college funding opportunities.  The first link features resources for my home state, “The Lone Star State”-Texas. Other resources are links to legitimate scholarship search engines and honor societies.

 

Exciting Updates

Below is my student loans update. I am blessed to see the light getting brighter and closer at the end of tunnel. Thank you Jesus Christ for always providing for me in seasons of employment and unemployment, and I am confident you will continue to do so.

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!

The Valentine’s Day Crashers: $51,133.40 Paid, $34,174.67 Till Pay Off

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Come On Man!

I walked through the door tired from work, annoyed from sitting through traffic, and brow glistening with beads of sweat. My phone rang, “Hello?” I puffed. It was my wife on the line she asked, “Can you text me a copy of the car insurance policy?”

Confused I asked “Why, what happened?” The response I got made my heart sink. In the heat of the moment, I didn’t handle my wife telling me she’d been in an accident well. Thankfully, she was close to home, being in route from work/picking up our daughter from school.

As a self-described slowpoke driver, I floored the gas pedal to reach my wife and daughter. Rushing to the scene of an accident was foolish, being already tired from work and hangry. Haha!

Upon arrival, I noticed my wife had rear-ended a car. I was relieved to find our daughter smiling in my wife’s arms and no structural damage to our car. I then inspected the other driver’s car and took pictures, and found it too had no visible damage.

You Are Kidding… Right?

Later, the driver of the other car decided to call the cops. Before we knew it, our eyes were accosted by red and blue lasers from ambulance, firetruck, and police squad cars. The lights seemed to reflect off everything, including my wife’s face. The whole time I thought, “Is all this necessary?”

Prior to first responders showing up, the driver’s passenger was coherent and mobile. However, once the paramedics asked her if she was okay, she expressed pain in her neck and back. Lol. So in the most dramatic fashion, she asked to be placed on a stretcher and admitted to the ER.

Adding Insult To Injury

Come on man, you gotta be kidding me! To make matters worse, it was Valentine’s Day. So our romantic evening was scrapped for filing an insurance claim. Neither my wife or I had ever been in an accident, and full coverage was $86 monthly to insure our cars.

You better believe the insurance company jumped at the opportunity to raise our premium to $131. Being the frugal person I am, I declined and took my business elsewhere. Haha. I am happy the claim was resolved without issue. I am more excited for the continued progress in paying off my student loans. Check out the updates below.

I have a request for you all, pray that I finish this race strong while serving my family, friends, and community in integrity. Do you have any failed Valentine’s Day stories to share?  Until next time, be blessed and fight on.

Busy, Yet Productive: $41,507.06 Paid, $43,801.01 Till Pay Off

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It Feels Like Forever:

Hi everyone! This post feels long overdue. Work has been very busy and having things to do at work is job security. As stated in the last post, I’ve picked up another teaching job.

When I’m not advising students on career choices, I am grading, and replying to frantic emails at unholy hours in the morning. The emails and office visits from students energize me, so I’m happy to assist in any way possible.

In addition to job duties, I have made the decision to torture myself by returning to school. On top of this, my daughter is crawling now. While I’m studying, she gets into EVERYTHING; so it can be fun finding her, but scary when she hurts herself.

Student loan repayment hasn’t stopped. Check out the updated balances below.

Reminiscing On Love:

My wife and I just celebrated another year of marriage, pray with us for many more. As the years roll by, I realize the importance of not taking her for granted. We’ve been through so much in our little 6 years and can’t believe she has stuck with me this long. I’m awestruck when meeting couples who have been married for 20 years or longer. A long list of joys and sorrows are undoubtedly present when loving someone.

Love Isn’t Easy:

I remember fondly my first job out of college. The pay and benefits were great and the feeling of accomplishment swelled in me everywhere I went. Being recently married, next on the agenda were children and a house.

Then One Day…

I was given the ultimatum at my job, leave or be fired. Being young and dumb I quit voluntarily. Now thinking back on it, I would’ve allowed my employer to fire me, for unemployment benefits lol. Naively I thought having a college degree would exempt me from hardships.

I imagined my voicemail box full from employers offering even higher paying jobs than the one I left from. My next job wouldn’t be found until six months later, washing cars.

No Love Lost:

My wife loved me before I had the high dollar job and she loved me after it was gone. She remained consistent in her affection toward me, and for that I am thankful.

Student Loan Advice:

  1. Expect and plan for hardships along the journey- A friend once told not to worry. Citing a theologian he said, “Worry is interest paid on trouble before it comes due.” So it’s best to do what you can when you can, don’t fret.
  2. Believe-To do the seemingly impossible you must believe in the impossible. Someone had to eventually create the first plane, then came breaking the sound barrier, next was space flight.
  3. Stay Consistent-Learn as much as you can and learn to fail. When you fail, never give up because it is your “First Attempt In Learning”. Things take time to improve, with each payment there’s less interest and hopefully less principal owed.

Feel free to comment below and share your warm and fuzzy memories. The next post will be titled, “House Hunting”.

 

 

Pressing Forward: $39,333.96 Paid, $45,974.11 Till Pay Off

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Thankfulness
Hey folks! Thanksgiving is almost here and I am thankful for the veterans of this great nation.  Regardless of who’s in office, the responsibility of changing my life for the better is mine.   I am also thankful for my education.  It has exposed me to opposing thoughts and opinions, stretched my view of the world, and equipped me with tools to solve problems.  Student loans are one of my problems, let’s address it together.

Financial Advice
The best financial advice I’ve received was to “Act Your Wage” by Dave Ramsey. This means to only spend what you can afford. I have to admit– it’s pretty difficult living this way, when I want to make my first home purchase, take extra vacations, or frequent the barbershop.

To me, purchases represent the time we spend on jobs, toiling for things we are privileged to enjoy. Had student loans not been as easily available, the prospect of years of repayment would have directed me to other less costly schools. It is no one’s fault but my own. Making purchases beyond my financial means is a mistake I don’t anticipate doing again.

Improved Outlook
Things continue to improve and I anticipate continued growth in 2017.  I resolve to have at minimum $10,000 of principal balance paid off.  This goal will not be easy given my current salary, but anything is possible coming from $85,308.07. So far this year, I’ve repaid $5,038.35 in principal.

This will be accomplished by sticking to the family budget below. Childcare is now $400 instead of $680. A family member has graciously volunteered to keep our baby girl during the day, and we are in turn blessing them. Needs for the baby are significantly less going forward.

november-budget

Also, as mentioned in the last post, we were waiting on the final delivery bill for the baby. Our initial out-of-pocket expense was $1,500 and could have been more after filing with the insurance. Thankfully, we were recently informed that everything was covered under that fee. Although family health coverage of $798 per month is a significant portion of the budget, I remain happy with the benefits.

Perkins Loan Repayment
It gives me great joy to announce that I am weeks away from paying back my Perkins Loan. Perkins loans are offered to students with financial need, with the school serving as the lender. The original amount owed was $8,200. Needless to say, I can’t wait to type in “0” in the place of the fourth loan account! You can see the updates for all the loans below.

loans-update-november-2016

Contentment
After 5 years of repayment, I am beginning to learn the true meaning of contentment. To get ahead in life we must start with an attitude of gratitude. There will always be someone we perceive as possessing more talent, resources, or influence than us. We need not exhaust ourselves chasing after other folks’ blessings, look in the mirror and see what you have been blessed with.

You guys have a safe and wonderful Thanksgiving and Christmas Holiday. Until next time, continue the fight.

It Takes A Village: $38,125.17 Paid, $47,182.90 Till Pay Off

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PhotoGrid_1472670834765

With A Heart of Thanks:

I want to start this blog entry by saying thank you. I am at a loss for words to describe the generosity my family has received from many people far and wide. Thank you to the ladies who encouraged my wife during the pregnancy, ensuring her she would be the great mother as she has turned out to be. Thank you to the guys who prayed for me, offered Godly wisdom and parenting advice.

My Baby’s Arrival/Health Benefits:

My daughter arrived on Sunday, August 7, 2016.  The experience of witnessing the birth of your child is life changing (and expensive too lol). Right now we are awaiting the final delivery bill to determine how it will impact our budget. One thing’s for sure: I don’t want to add any more debt.

With that said, healthcare in America is costly.  Initially, it was cheaper for my wife and I to have our employer/school provide insurance separately.  With the addition of our child, it has become less pricey for the three of us to be under my employer plan.  Thus, our health coverage will cost $798 a month, but the benefits will be well worth it.

Daycare, Baby Needs & New Budget:

On another note, diapers, wipes, baby clothes, car seats and cribs may cost you little, or it may cost you lots, but it’ll cost you.  Thanks to the gifts of friends and family, there were only a Baby Budgetfew baby essentials needed.  All my little girl needs is a loving home and I’m sure my wife and I can manage that.

To the left is my family’s updated budget, click on the image for a larger view.  You will notice two new items: Daycare and Baby Needs.  The $2,894.13 featured in Baby Needs is not our monthly budget for her, but is the amount spent for the month of August.  As months go by, we expect to be able to assess a fair budget for our child.

My wife hates giving one thought to daycare, but she understands it’s necessary given our busy schedules. In her own words, “I love having our daughter near and on me”. Sweet huh? Seeing through the warm fuzzies, she understands we must do our best to: 1) pay off my student loans and 2) ensure her graduation this December.

To wrap up this post, below is an update on my student loan accounts as of 08/23/2016. Thanks for following my journey to student debt freedom thus far.

Loan Update

Once again, thank you to those who have shown love to my little family.

 

Almost Halfway Home: $36,487.04 Paid, $48,821.03 Till Pay Off

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I am finally “under the hill”–I now owe less than $50,000 in student loans!  Bring out the bubbly!

Here’s a snapshot of my current loan accounts:

4-6-16 Updatechampagne

If you were to meet me 5 years and told me where I would be today, I would either deem you a lunatic or a liar. Because 5 years ago, my loan balance was nothing to celebrate…

Holiday Blues 2011:

My heart felt heavy with guilt and shame as I drove home from work one week before Christmas in 2011.  The holidays are some of the worst times to feel blue, especially due to job loss.  It was my third time being dismissed from work in two years.  I walked into my apartment without a word after cheerful greetings and a kiss from my wife.

Know How Much You Owe:

Thoughts rushed in at once, “Who gets fired a week before Christmas? How are you going to pay rent?” And the scary one, “How are you going to make your student loan payments?”  I can happily say it has been 4 years, 8 months since I have started this journey.  What helped reduce my student loan debt was knowing how much I owed.  It is possible to track student loan amounts using the National Student Loan Data System’s website.

Taxes & Payment Plans:

If Benjamin Franklin were alive today, his famous quote would read, “In this world nothing can be said to be certain, except death, taxes, and student loans”. Fortunately, for today’s college graduates, Income Driven Repayment plans exist to make repayment easier.

The federal government offers four repayment plans known as: Repaye, Paye, IBR and ICR. Under my current repayment plan, the first three years of interest was waived, and all payments went to principal.  To remain in one of these repayment programs, however, you must submit tax information annually (the processing of which can (surprise!) be incredibly inefficient, but I’ll save that episode for another time).  Thankfully, this documentation can be submitted electronically through Studentloans.gov.

Being enrolled in an “income-based” program made repayment possible during times of unemployment.  In addition, many are eligible to receive up to a $2,500 tax deduction.  This interest deduction has saved my wife and I lots of money, especially since she is now a full-time student.

For more details about the federal government’s income-driven repayment plans, click here.

The End In Sight:
I constantly review my repayment schedule, and in doing so, keep myself motivated as to the finite nature of this “student loan phase” of life. One of the most concrete ways to accomplish this is through using a repayment calculator. A simple, yet effective calculator can be found through FinAid.org.  The website can print a repayment schedule based on your loan amount, interest rate, and loan term. It is a tailored picture you can always revise to help envision your expected payoff date, and gives you the ability to play around with your payment budget and see the effects.

I hope this information has been helpful in providing motivation, goals, and vision.  You, too, can make progress in your repayment journey by:

1) Knowing what you owe,

2) Taking advantage of tax and repayment options, and

3) Seeing the end.

 

Feel free to post any specific questions, or additional advice you have gained on your journey, below!

Until next time, continue the fight, friends.

 

Income-Based Repayment: $28,433.14 Paid, $56,874.93 Till Pay Off

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My Repayment Plan

Grrr… Outrageous loan payments:

It was one of the hottest days ever experienced in my life. In fact, according to the National Oceanic and Atmospheric Administration Summer, 2011 was officially the hottest ever for Texas.  Sweat rolled down my forehead, over the bridge of my nose, and onto my laptop as I reviewed projected monthly loan payments.  My apartment’s a/c unit and ceiling fans were all cranked full blast to no avail, my living room was an oven.  I stared at the number slated to be my undoing and it stared back at me: $981.73, was my projected monthly payment.   Then something happened…

My wife showed her support:

In frustration, I swung my fists angrily in the air and exclaimed through tears, “I have ruined myself financially!”  To this my wife replied, “Boy, you are so dramatic” and let out a hearty laugh.  At this point, there were two things in the world I did not particularly care much for: her and those blasted loans.  She walked over to me said with a smile and said, “Your loans are my loans”.

Unlike me, my wife has $0 debt.  She is currently in her graduate program and owes loan companies and the federal government nothing, I am very proud of her.  Her educational background is also in sciences (Biology and Chemistry), she’s been blessed to have scholarships.

How I’ve tackled repayment:

I soon researched different repayment options through my loan servicers and applied for the Income-Based Repayment (IBR) program.  In 2011, the maximum payment was 10% of your discretionary income; presently, it is 15%.

Below are tables displaying my monthly payments under IBR with each loan company.  The first table below shows the initial monthly payment of $535.90 calculated for repayment.  However, I decided to be more aggressive and pay $402.51 bi-weekly, bringing my monthly total to $805.02.

IBR Monthly Repayment.jpg

Less interest accrues on the principal loan balances with bi-weekly payments as opposed to monthly payments.   This is because there is less time for interest to accumulate.  This is a well known method used for paying mortgages, so I thought to myself, “Why not use this method when I have the mortgage without the house?” lol

Remember, my initial monthly payment was forecasted at $981.73, with complete repayment scheduled after 10 years.  Actual Bi-Weekly PaymentSince I’m currently paying a total of $805.02,  one would assume I’d end up behind on the “standard” 10-year schedule for repayment.  But God blesses me throughout the year to make additional payments whenever possible.  My current progress still slates me to be completed before the 10 year mark.

 So this is my repayment plan.  The next blog entry will discuss my wife’s favorite… our personal budget.  So I have questions to ask you.  Are you currently taking advantage or ever even heard of the IBR program?  Have you found creative ways to speed up your repayment process?