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Posts tagged with: IBR

Latest Student Loan Update

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I hate student loans. Like, with a fiery passion. I guess they serve a purpose (I would not have been able to get my degrees without them; at least not in the timeframe I did), but there’s just so much wrong with the student loan industry I can’t even start….

*Deep breaths*

Okay. Like I was saying. I hate student loans.

Where does this come from?

Well, my own foolishness, really. I graduated in August 2013. At that time, my loans began accumulating interest. I buried my head in the sand and worked on paying down my credit cards and other consumer debts but didn’t so much as touch the student loans.

And the balances grew, and grew, and grew some more.

It’s disgusting really. When I look at my student loan balances at the end of February 2014 to today, even though I’ve recently started paying more toward the dang things, the overall balance is still up. Of course it is. How could I touch nearly $100,000 of student loan debt when I was so focused on paying down other debts?

I’m not saying I was wrong in doing this. I needed to be consumer debt-free. Needed it.

It was just the motivation necessary to really focus and recommit to get rid of the student loans to begin with.

Let’s back up.

For any new readers, I have a long history of being screwed around by Navient (formerly Sallie Mae). I’ve documented it in what has now become basically a mini-series (see here, here, here). When I last left off, Navient had bought a large student loan I had with ACS. When it transferred over, Navient switched it from a subsidized loan to an unsubsidized loan. This is a HUGE deal to me because I’m on income-based repayment (IBR) and, under this plan, unpaid interest is forgiven on subsidized loans (but NOT for unsubsidized loans). All the electronic records at ACS disappeared and Navient claimed they were unavailable due to the transfer. I had NO proof (besides this little old bloggy) to show that the loans had, indeed, been subsidized the entire time I’ve had them (thus, why the balances had never grown in spite of my measley not-large-enough-to-cover-interest payments. I never even chipped into the principal balance, but since unpaid interest was forgiven, the balances remained exactly the same month after month).

Now Navient is charging me money for interest, claiming the loan was always unsubsidized (definitely not true).

You guys. It makes me so angry that my blood just boils! It’s hard to talk about without losing composure.

I got a third party group involved, the Ombudsman Group. In the meantime I also wrote all my legislatures about my experiences. I’ve spoken with several representatives inside Navient. I’ve jumped through hoops to try to prove these loans were subsidized. Navient had me call the loan guarantor, I had to track down an original master promissory note from my old university (this was a loan from my Master’s degree back in Florida). The list of things goes on, and on, and on. But all of it was pointless, as even the original promissory note does NOT list the type of loan (i.e., subsidized versus unsubsidized).

Ombudsman Group conducted an investigation and after literal months, I got the call. They are siding with Navient. Because apparently the loan on the government’s website is called Loan 07 Unsubsidized.

Let me repeat.

THE NAME OF THE FREAKING LOAN IS ‘UNSUBSIDIZED.’

To me, this is proof of nothing. Any dummy could have labeled or misnamed the loan. Where is any paperwork proving that the loan was unsubsidized? Why can Navient not furnish any of the past paperwork and history of this loan (that was originally through ACS)? Why does ACS simply delete every trace of the loan as if it never existed so I cannot retrieve old records from them either? I’ll mention, also, that I do have some old ACS statements, but they ONLY provide the payment due. They say nothing about subsidized versus unsubsidized, nor do they even provide the loan balance. It literally only gives the payment due amount.

Because of the name that someone typed up for this loan I’m now out hundreds of dollars in interest. The name, which I don’t trust, nor do I believe, lest the government has screwed itself out of interest from me for the entire time the loan was housed through ACS and I’m SURE they’re not just giving me free interest for over half a decade – the loan is from 2009 – unless the loan REALLY IS A SUBSIDIZED LOAN. Only I can’t prove it.

So there you have it. Chapter closed.

The loan is too high of a balance for me to do a full balance transfer on (my limit for the transfer is $7500 and the loan is nearly $18,000). But I’m seriously considering halving the loan by doing a balance transfer on half. This one specific loan (out of my long, long list of student loans) is EATING ME ALIVE. I want to slam my head into a wall over the injustice that is occurring to me and, undoubtedly, countless others in the student loan world. The scary thing is that this could be happening all the time. Before I really started getting out of debt I didn’t monitor my student loans AT ALL. I had a budget for day-to-day/routine spending, but student loans were not a part of that discussion. They were buried away until the day I wrote my first debt update here (that was literally the first time I’d added it all up, as naive as that sounds).

Suffice it to say, I’m awake now. My head is out from under the sand. But I’m still partially buried beneath the mountain of student loan debt. Luckily, I’ve just received a battery re-charge (from becoming consumer debt-free) and I’m furiously clawing and pulling my way up from the depths of the debt-hole.

I know better now. And I’ll pass it on to all who will hear me.

Don’t go into student loan debt. If at all humanly possible, just don’t do it. I wrote about ways to avoid student debt here.

I’ve had a couple people ask about what’s happened with the student loans, so this is the answer. Nothing good, that’s for sure. Time to go into attack mode. I’m still trying to build our savings a little more, but very soon I will be WAGING WAR against my student loans. That’s really how it feels, too. Like I’m about to walk into battle. I hate these things that much. So let me build up my reserves. There’s never been a better time for a relaxing vacation (see: Cruise 2016). Upon my return….I just hope Navient is ready to take the figurative beating I’m about to impart. I want them out of my life and gone. It’s about to go down. Join me on my quest to kill my student loans? While we’re at it, lets kill yours too!

Anyone else have student loans that have been hanging around for a half decade or longer? Anyone else with nearly triple-digit student loan debt? I know I’m not the only one. Let’s join forces (figuratively speaking) and beat down on our loans together! Strength in numbers!!! : )


Oh Happy Day!

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It’s such a happy day for me today, friends!

After many months of slowly chipping away at larger debts (last one paid off was in April 2015, but whose counting?) am able to finally announce that I’ve paid one (albeit small one) off in full!

TODAY, I am cleared of Navient loan 1-06.

The first time I ever broke apart my Navient loans for you was back in March 2015. At that time, loan 1-06 was sitting at $860.80.  For months now (really the whole time I’ve been blogging), I’ve only been paying minimums to this account which has only paid the interest (no reduction in principal). I paid a little extra on my unsubsidized federal student loan (which is not even listed in my Pandora’s Box spreadsheet – that spreadsheet only accounts for my Department of Education loans).

But then I’ve been having some SERIOUS drama with Navient. (mini-update:  there is no update. I was contacted by the mediation specialist who gathered some information and said it would likely be a full month before I hear back again. My loan that was transferred from ACS is still incorrectly classified as an unsubsidized loan and continues to accumulate interest when, due to my IBR status, the interest should be forgiven).

ANYWHO…..all the drama and frustration with Navient just makes me want them out of my life that much sooner! So I decided to also start chipping away at loan 1-06, as its my smallest loan (even though it is also a subsidized loan; I felt the small balance made it a good candidate to knock out quickly). So over the past few months I’ve put an extra $100 here and there toward it. Nothing huge. But then this month I logged into my account and saw the balance due was less than $500. And I just decided – I need this. Let’s go for it!

I talked to hubs (this required re-allocating some of our money a little bit differently than what we’d originally planned), and he was on board so I made the call and paid off the loan in full.

Logging in today I am THRILLED to see that big “No Payment Due” next to loan 1-06.

Screen Shot 2015-10-16 at 7.07.25 AM

I cannot wait until they all read that way!

Just as a reminder, I’m seriously on a mission now to pay off our car. It’s our last remaining consumer debt and my goal had been to have it paid in full by December. In this previous post I admitted defeat on that goal and settled for having it paid as early in 2016 as possible. Well, friends, I take that back again. It’s going to be tough. TOUGH! And we’re planning to travel in December, which makes it twice as tough (since hubs isn’t salaried he only gets paid when he works, plus we’ll be incurring travel costs, etc.). But I’m on a mission. It’s like back when I first started blogging and I was hell-bent on paying off my credit cards. I managed to pay off over $10,000 in credit card debt in three months! I still can’t believe that was me! It’s not like we were rolling in dough and had nothing better to do with it. That came about from a lot of hard work, careful budgeting, sacrifice, extra hours, etc. etc. etc. I’m on the same mission now. We have about $10,000 left on the car. 3 months worth of debt payments between now and the end of the year. Is it likely? Probably not. Is it possible? Maybe. Just maybe. I plan to give it a hell of a shot. I’ll let you know. ; )


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