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Lackluster June 2015 Debt Update

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So remember how we had a no-income month of May with hubs’ business?

That really hurt us in terms of our ability to make big debt payments. I even said at the beginning of the month that we were going to cut out some of the debt payments all together (like the car payment and balance transfer loan, which don’t have minimum payments currently due), and pay minimums on everything else.

Well, its one thing to say something and another to actually do it.

And although we really didn’t have the funds to do so (I had to tap into EF funds), I made some payments toward all of our debts for my own psychological satisfaction. That being said, it’s not like I was able to do an awesome job on debt payments this month. In fact, I believe this is our lowest debt payment since I started blogging here (back in March 2014).

And there’s one thing thats certain in regard to debt eradication. If you aren’t moving forward, you’re moving backward. There is no “stationary” option available.

So, unfortunately, I also have to tell you that our debt actually increased this month (not due to new debts, but due to accruing interest on the existing debt).

However, the additional debt has been totally puzzling to me. It’s all from my student loans and, although I have a lot of student loan debt, every single month my debt has been going down. This month I actually made a larger student loan debt payment than normal and my debt somehow went up.

I called Navient to ask about what happened.

How is it that every single month I pay (X) and my debt decreases. This month I paid (X+$67) and my debt somehow increased? It doesn’t make sense that I paid more and somehow my overall balance has gone up?

The person I spoke with had no idea. She took down some information, said she’d file a report, and someone would get back to me. That was two weeks ago and still no news.

I called back another time to try to figure it out.

This time, I was told that even though I’m on income based repayment where unpaid interest is forgiven on my subsidized loans, apparently the unpaid interest is only forgiven on a quarterly basis? Meaning, the interest continues to accrue and is only forgiven once every three months.

This makes no sense to me. Navient is a little bit trickier, but it’s clear as day from looking at all my debt updates (you can go through the archives for yourself), that my ACS loans (which are all subsidized) have had the same balance – to the penny – ever since I applied for income-based-repayment (last August). But my minimum payment doesn’t even cover the interest, so it’s clear that the unpaid interest has been forgiven every month, not just once a quarter. Otherwise, my balance would have continued to rise every month as I make my minimum payments.

My IBR status hasn’t lapsed, supposedly this policy isn’t new (in regard to only forgiving interest once per quarter), and there’s absolutely no logical reason I can think of that explains it.

But with BOTH of my student loan carriers this month (Navient and ACS), my balances have gone up.

Can anyone explain this to me? Pretty please with a cherry on top?

It’s absolutely maddening! It’s such a helpless feeling to know I owe this money, but to feel like somehow I’m getting screwed over – only no one believes me and no one seems to think anything is amiss.

To sum up…

  • I’ve made the same payment every.single.month. My balance has always decreased.
  • This month I made the same payment PLUS an extra $67 payment.  And somehow my balance increased.

Part of me still thinks maybe this is a new policy (only forgiving interest quarterly) and the representative I spoke with simply didn’t know or realize it. Otherwise, how do you explain that BOTH of my loan service providers had the same issue in the same month?

It really makes me want to knock out my car loan debt ASAP so I can start to kill these student loans. They absolutely need to die.

Now that I’ve gone on my rampage, let me show you the actual debt numbers.

PlaceCurrent BalanceAPRLast Payment MadeLast Payment Date Original debt, March 2014
Capital One CC-17.9%-Paid off in March 2014$413
Mattress Firm-0%-Paid off in May 2014$1381
Wells Fargo CC-13.65%-Paid off in May 2014$7697
BoA CC-7.24%-Paid off in June 2014$2220
License Fees-2.5%-Paid off in April 2015$5808
Navient - Federal Student Loan$39088.25%$116June$4687
ACS Student Loans$214117.24%$77May$21035
Navient - Dept of Education student loans$666676.55%$307June$63254
PenFed Car Loan$146422.49%$100June$24040
Balance Transfer student loan (Former Navient 1-01)$53370% (through April 2016)$100June$5937
Medical Bills$60860%$25June$9000
Totals$118,051 (Last month = 117,815)$725Starting Debt = $145,472

I can’t beat myself up about it too much. Next month will be better. Onward.

Seriously though – anyone else on IBR have this issue where unpaid interest was not forgiven this month? Is it a new policy to only forgive interest once per quarter? Why have I never experienced this before?


More Student Loan Drama

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Wow! If ever there was a cautionary tale for staying out of student loan debt, this is it!

First, former blogger Adam explained his issues with his loan service provider, Great Lakes.

Next, I talked about my ongoing issues with my service provider, Navient (formerly Sallie Mae).

Now I’ve got a new grievance to add to the list – directly with the central hub of government-backed student loans:  studentloans.gov

For new readers, my student loans are currently on Income Based Repayment (IBR). I talked a little about the decision here.

Well for any old school borrowers, you’ll know that to access any documents through studentloans.gov (such as filing for IBR, or filling out the required annual paperwork to keep IBR), you used to need a PIN that was assigned by them. Apparently as of March 1st, they have done away with the PIN system. Instead, you now get to pick your own login ID and password.

Seems easy enough, right?

No. Just no.

I created my new ID and password and verified the information by answering security questions about myself. According to FSAid.ed.gov everything is good. Now I can go back to studentloans.gov to actually fill out my IBR paperwork. Right?

WRONG!

Studentloans.gov keeps saying my account is currently locked. I go back to FSAid.ed.gov and unlock my account (by going through the same steps of verifying my account information by answering security questions, etc.) and go back to studentloans.gov. Account Locked.

I literally do this back-and-forth for about 45 minutes, thinking surely I’m making a mistake somehow.

No.

It’s past business hours at this point, so I send an email to the help department explaining the problem. The next day I get a reply saying:

“You can no longer use your PIN, you have to create a new FSA ID and password.”

Yes, geniuses. I know this. I did this. Your site won’t let me in! GRRRR!!!!

I let it go for a few days but came back to it today. Same endless loop of verifying my information on the FSA ID website, only to go to the studentloans.gov website and be told my account is locked.

I call the FSA ID number.

It rings. And rings. And rings. Then *click*

Disconnected.

I try again. And again. And again. Five times in total. Every time ends with being disconnected before even speaking with a human being.

So then I call the number listed on the studentloans.gov website. They actually answer but basically say there’s nothing they can do, that they only help with issues once you’re already logged in. For login issues, I have to call the FSA ID people. And I’m given the same number I’d already tried. I explained that no one answers. I’ve called several times and keep being disconnected.

And I kind of get a “tough shit” reply. There’s nothing they can do. The woman assumes that their system is overwhelmed by call volume and simply disconnects after a period of time. Keep trying, she says.

SOOOOOOOO, I have no option but to keep trying. THANK GOODNESS I didn’t put this off until last minute (my IBR doesn’t actually expire until August). If I’d waited until last minute and was unable to log in and get my IBR paperwork submitted, then when my current IBR expires my minimum payments would skyrocket – nearly a thousand a month (instead of the $350ish current minimum).

So for anyone else in the same boat that will need to reapply for IBR or anything else related to student loans (deferment, forbearance, etc.), BE SURE TO START EARLY!

But if you have the option….just avoid student loans all together.

Work for free as an intern somewhere in exchange for paid college tuition. Work nights and weekends as a waiter to cover your tuition. Go to community college so its more affordable for the first couple years. Stay in-state so you don’t have to pay out-of-state tuition. Get a job on campus in exchange for reduced tuition. WHATEVER IT TAKES – STAY AWAY FROM STUDENT LOANS!!!!!!!!!!!!

There’s your little public service announcement and another student loan cautionary tale.

Have a great day! ; )

Any student loan cautionary tales of your own? Leave me a comment!


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