Adjusting the Sails (Living with Intention)

Moving forward, I am going to aim at an overall tone of positivity for this blog as well as its accompanying Twitter account. Instead of pointing my finger at ole’ Aunt Sallie, I will try and point my finger towards meaningful things that bring hope and have a chance at making an impact in the lives of those who read this blog.

 

Make no mistake, I am not agreeing that the repayment system is no longer unfair and stepping down from the fight; that is not the case. However, now that I myself am out of the deep waters and can begin to see land, I will lock in my line of sight straight towards home. Straight towards home INTENTIONALLY and with a POSITIVE attitude by my side. Looking back to where I was, I think I found great comfort in searching for and joining the online team of ‘Sallie Mae haters’; there was a common level of understanding within that community. I think what I really needed to know, aside from the fact that there were other people aboard, was that intentional living and positive motivation on a constant basis would be the extra power that would steer my boat safely towards shore.

 

It is easy to have hate in your heart. It is easy to point the blame. It is easy to get overwhelmed. You have to decide to make the switch into beast mode and challenge the peanut butter and ramen noodles out of yourself. And beast mode is indeed what it takes. Thankfully, I have found both Suze Orman and Dave Ramsey to be very relatable, and that is the reason I have stuck with it; you may not find any hope or inspiration in their words, and if that is the case, I encourage you to seek out other financial advisers/approaches until you find one that motivates you.

 

My hope is that this blog can now serve a community of people who have chosen to live an intentional life of positivity all for the purpose of getting their boat to shore. I for one know that I was completely fed up with sitting out in the middle of the ocean with a bunch of other motionless boats just waiting in anticipation for the next storm. Something clicked and I realized I had to be the captain of my own boat and do something DIFFERENT if I had any chance of getting to shore. My love for those still remaining motionless out in the ocean runs deep; to them I send out this blog as an SOS received in hopes that they too can implement the necessary steps to have their compasses point them home.

 

I don't plan to delete any of my previous postings as it helps for me to read about my darkest days so that I have a reminder of just how far I have come. I know this struggle has made me a stronger and much wiser person. Believe me when I say I am not to shore yet, (I still need about 40K more to get me there) but the fact that I can see land is something I will never take for granted. Since intentionally staying focused and trying my best to think in a positive manner has gotten me this far, I am going to stick with it. My hope is that you do as well; because when you do, that also helps me to do the same. Together we can get to shore; besides, what fun is it going to be if I get to shore and am the only survivor?

 

Stay positive. WE GOT THIS.

"It's not only moving that creates new starting points. Sometimes all it takes is a subtle shift in perspective, an opening of the mind, an intentional pause and reset, or a new route to start to see new options and new possibilities."
― Kristin Armstrong
“Impact is never about knowing all the steps ahead, but about taking one intentional step after the other.” 
― Bidemi Mark-Mordi

“Empowerment is the intentional absence of negativity.” 
― Stephanie Lennox 

I Chose A Road

I consolidated! Let me say that again: I CONSOLIDATED! I was actually approved for a private student loan consolidation :) I cannot explain to you the joy and relief the words, “you were approved” brought to my soul; I cried a happy tear or two at my desk then texted my mom and a few close friends about the news. It took 6 years to get this. Although I have a decent stretch of road to travel in front of me, I am hoping that the ride on the latter half of this journey is a bit smoother.

The facts: I decided to go with Charter One/Citizens Bank. The reason being: interest rates. The only other real option in my mind was Wells Fargo; however, Charter One’s interest rates were approximately one point lower on both the fixed and variable options. Also of note, I have been denied consolidation from Wells Fargo on more than one occasion, so I figured I would try Charter One first to take advantage of the lower rates and if denied, try my luck over at Wells Fargo again. Thankfully, Charter One gave me an approval.

The only way I would accept a refinance would be a). approval with no co-signer b). a low interest rate and c). no early re-payment penalty. Based on my debt-to-income ratio (which is finally no longer inverted) I was approved to refinance without a co-signer. Based on my credit score, which they reported was 809 (they source EQUIFAX), I was offered their lowest interest rate. The only thing left for me to decide was the term length as well as a fixed or variable interest rate. This was a tough decision because as I stated in the previous entry, I was torn as to whether or not to embark on this refinance journey if I was only going to be reducing my interest rate by a point or two. Before I tell you which option I picked, allow me to lay out the options I was given to choose from:

Term, Type of Interest Rate, Interest Rate, Monthly Payment, Total Amount to be Paid:

20 Years, Fixed, 5.44%, $299, $71,919.13

15 Years, Fixed, 5.19%, $349, $62,831.51

10 Years, Fixed, 5.04%, $460, $55,314.88

5 Years, Fixed, 4.99%, $813, $48,835.84

20 Years, Variable, 2.82%, $239, $57,438.50

15 Years, Variable, 2.67%, $294, $53,004.60

10 Years, Variable, 2.62%, $411, $49,375.23

5 Years, Variable, 2.57%, $766, $46,019.30

 I went with the 20 year/variable term for merely monthly payment/total amount to be paid reasons. Although the cap is astronomical, there is a cap on the variable interest, but it is so huge (like upwards of 25(ish)%) that should it ever get that high, I am in some deep water. All of my previous Sallie Mae/Navient loans have been variable interest rates, and they never changed. I know many financial experts state to not choose a variable interest rate when a fixed is offered to eliminate any and all risk. However, in my case, I am pretty confident I will stay crazy committed to paying this baby off. I may look back on this paragraph 2 years from now and hate myself for it, but for right now, in this moment, I feel okay about my decision.

What this means for me: To begin, I did indeed get the remaining 6K paid off from the original 14K I talked about in my last entry; this put me right where I imagined, financing approximately 43K through Charter One. This does significantly reduce the amount of interest I will be paying each month, but in no way is this a cop-out in regards to my repayment responsibility. I will still get this debt gone as fast as I possibly can. I have sacrificed my money, time and freedom for far too long and am more than fed up with this burden; I believe my annoyance and sacrifices in combination with the fear of a rising interest rate will continue to fuel my inner crazy to keep putting every extra penny I come across towards this loan.

Although I am out from under the shadows of the MONSTER that is Sallie Mae, I am not going to rest. I am going to look at this consolidation as a ‘job well done so far’ high-five and KEEP RUNNING. I hope you all will continue to follow me on this road to debt freedom and I pray that soon, we will all be able to hang up our running shoes, take a seat, and have a glass of sweet lemonade together. Happy spring, people!

At A Crossroad

What should I do now? I'm really not sure. Let me catch you up with where I am since my last post in May...

In August of 2013 my total student loan debt was $78,950.18 and today (January of 2015), my total student loan debt is $47,828.42. In a mere 18 months, I have put $30,808.19 towards my student loan debt.

I am down from my original 6 loans to now 2 and a half (thank you, Jesus!) I have my 2 highest principal loans remaining (26K & 17K) as well as over half of my 14K paid down to 6K.

I plan to have the remaining 6K paid off in the next few months. That will leave me with 2 loans totaling about 43K. My interest rate is 8% for the 26K and 8.50% for the 17K, I have been reading reviews about the various companies out there who are currently offering private loan consolidation. It seems like, for the most part, unless I have an above average income, the interest rates offered are about the same as I am paying now.

I am not sure what to do here - do I go for it and try lowering my payments by a minimal amount (I am talking maybe a point or a point and a half of interest) or keep them where they are at Sallie Mae? Maybe the above is thinking pessimistically, but with my credit score (which is currently 761) and an average income, I am unsure the point difference in interest wouldn't be anything impressive. Is it worth the attempt of applying, having multiple pulls on my credit score, and the hassle that we all know dealing with these companies can be? Maybe, anything to save a buck, right? Not sure which road I will sashay down, but at least the latest and greatest update on my progress is documented. Happy New Year, folks! Hard to believe I started this blog in 2010, and I am where I am now, still writing to you in 2015; thanks for the emails and support thus far :)

As always, let me know your advice: comment below or email me at ohthesestudentloans@gmail.com

Oh yeah, and as for my opinion of the best resource to research consolidation places, click here, just in case you yourself would like to gander :)


Ojohthesestudestudentntloans@gmail.com

The 'Why Me' Heebie Jeebies

I went to a friend’s condo recently, and her place reminded me of my other friend’s condo, which is similar in the luxury department.

Both girls are my age.

Both girls do not have roommates.

Both girls have a nice car.

Both girls do not have any student loans.

Both girls have ‘normal’ jobs.

Both girls seem to think they are just great with money, but what both girls don’t realize is that…

both girls have fairly well off parents that are able to help them out :) Not trying to dish out any insults to those whose folks are blessed and willing to help them, i'm just saying. 

Everyone starts out somewhere, right?! At least I’ll be a stronger/wiser person after all of this repayment - or so they tell me.

This here, readers, is what I would like to call envy. And I’ve made up a new move in the face of said envy. Ready for it?

It’s called, ‘The Breathe & Pray.’ You take a deep breath, you say a quick prayer of thanks for what you do have, and you move your self-pity party on down the road in your Honda :)

Comparison is the thief of joy, folks!

Financial Sweatpants

Today I paid off the first of my two federal loans! This, my readers, is what I would like to call unbuttoning and unzipping my tight business slacks. This loan was the one that was sold to the Department of Education when my other one stayed under the same Sallie Mae name. Although it was under another name, I believe Sallie Mae still had some sort of ownership over it because I was still paying on it through their website. I chose this one as my second loan to pay off because it was the lowest of the 2 federals; both started out at $4,500, but where the other one had a 0.5% higher interest rate, its total balance was higher. I will tackle that higher one sitting at a little over $4K next.

If you had told me 2 years ago that I put down almost $17K towards my student loans between March of 2013 and May of 2014, I would have a). told you to walk away, you've got the wrong person or b). figured I hit it big while gambling during the Vegas bachelorette party I knew I was about to attend. I would not have thought it was from budget discipline based around some financial dude’s theory.

It has not been the easiest, especially during changing seasons when I would rather give my hard earned cash to Macy’s over ole’ hag Sallie. However, I know that in the end I will be glad I chose the road to financial sweatpants.

2 down, 4 to go.

Snowball (since it’s winter and all)

Unfortunately, as this is my ‘I’m all grown up now’ blog, I am not talking about a literal snowball, but rather Dave Ramsey’s theory on paying off debt. And let me tell you, it works. It is a realistic, hands-on approach with a surprisingly fast turn-around time in regards to results. A positive attitude can take you far, and for a while that is all I (somewhat) had, but there comes a point when you realize all of your rainbows and butterflies are about to get repossessed.

It is around this point of realization that you begin to accept the fact that a change needs to be made. Making the minimum payment amount each month on an enormous pile of loans, especially when the minimum payment is being applied to interest only, will get you nowhere fast. Excuse me, it will get you somewhere – into more debt. I now understand why Sallie Mae welcomes ‘Interest only’ payment plans with open arms to new graduates as it significantly increases their revenue. Allow me to demonstrate:

I borrowed (in 2007-2008) = $68,545.00
I owe (as of March 2013) = $78,950.18

For those of you without a calculator handy, that’s a $10,405.18 INCREASE of debt in a matter of approximately 5 years.
I have PAID out of pocket (starting in December of 2009 – March of 2013) = $22,510.32
Amount of $22,510.32 that went towards my private loan principal = $0
Amount of $22,501.32 that went to my federal loan principal = $875.85

In summary (5 years):
Sallie Mae gets = $32,039.65
Jessica gets = $875.85

Nauseating.

This seemingly unethical situation is indeed legal and is WAY too common than I care to realize. It looks as if my rainbows and butterflies will not have any friends to play with here soon if people in my similar situation do not make the proper financial adjustments. I created this blog not only as an outlet for myself, but as a publicly visible flashing bright neon warning sign to all parents/students out there to read before entering down the same road I did. Why travel for 20 to 25 years down a bumpy gravel road when you have the option of a shorter ride?

I could write pages upon pages on how much I detest the above situation and how many hours of hard work it took and how much I had to sacrifice in order to be able to pay Sallie Mae the bare minimum each month. And I have pretty much done just that in my prior posts, but as I stated in the beginning, maintaining a positive attitude surrounding a situation you loathe can only get you so far. In reality, it is little ole’ you against a beast that gains size and momentum at a daily rate. You shrink smaller and smaller as its monstrous shadow alone expands over you until you eventually shrivel up and freeze to death. Like literally, your mind fast forwards and you visualize yourself as an educated homeless person freezing under an overpass, huddled up in your cardboard box waving a ripped white T-shirt as your surrender flag. Okay, I know that was a tad dramatic, but I would be lying if I said my mind never went there for a split second. I mean, cardboard box/parent’s house, potato/potato :) Only joking mom & dad, but once you calm the hate in your heart and decide you want to survive and fight for the lifestyle you went to school for, what once seemed like an impossible solution, starts to seem possible. A sort of survival instinct kicks in when you take your blinders off and stare your debt in the face.


My baby snowball:
My total monthly expenses: $1,625.00
My total currently in savings: $5,000.00

I should have approximately $600 to put into my savings account every month. In a year, I can save $7,200. This does not include the money I will get from work bonuses or tax returns. Also, my income is somewhat variable as my second job is waitressing so I have more of an earning potential than just the minimum I factor into my monthly income number. That in combination with time and a half for overtime at my day job, I can again increase my monthly income. If I really stay focused and put every dollar I can into savings, I can start to make a dent or two. On the flip side, I will have things happen that will increase my monthly expenses such as doctor appointments, dentist appointments, car trouble, ect.

My rules:

-          I will not let unexpected expenses get me off track as it is not failure on my part for not contributing the entire $600 each month; I can make up for what I lost by saving more than $600 some months.

-          I will never let my savings account fall below $1,000.

-          I will not use my credit cards without paying off the entire balance each month. 

 

My car and credit cards are paid off, and I rent my house so I aimed at the lowest dollar amount private loan (debt) to tackle first - $12,400.00. In order to get my monthly payment on that loan down a little, and to avoid having what is a mountain of money (to me) just sitting in my savings account, I plan to put money down on the loan in increments of $4,000. It will be a tight rope, but little by little I should be able to get my debt down to somewhat level with my income. I made this plan in March.

It is now December 30^th and I am happy to report I have paid off my $12,400.00 loan in a shorter time span than expected! I did have dentist, doctor and car bills pop up, but I picked up extra shifts at work and stayed late some nights at my day job in order to get overtime pay. My best friend moved out of state in May so that helped cut out dinner, movie & going out expenses. It took 9 months, and was very painful to watch chucks of 4 grand be handed over to Sallie Mae; but I knew if I didn't start this now, it would hurt much more in the long run.

1 down, 5 to go.

So, you should sign this petition...

Tonight I signed a petition to The United States House of Representatives, The United States Senate, and President Barack Obama which says:

"Total outstanding student loan debt in America has passed the $1 Trillion mark.

Exceeding credit card and auto debt, it is the only kind of debt that actually increased during the "Great Recession." And the problem only continues to worsen.

Reclaim the American Dream for more than 37 Million student loan borrowers - Support the Student Loan Fairness Act (H.R. 1330)!"

Our last petitioning efforts didn't produce action like everyone had hoped, but our voices were most definitely heard. Let's make round 2 roar even louder. Will you sign this petition and join the fight? Click here (It only takes about 2.8 seconds to sign):

http://signon.org/sign/support-the-student-loan-6?source=s.icn.em.mt&r_by=899250