How to Deal with Excessive Student Loan Debt Payments

On July 2nd, 2019, FedLoans had the nerves to send me a happy go lucky letter stating that my student loans contributions have increased yet again to $730 per month. $250 more and that’s someone’s rent. At this point, I’m sure they laughed when they drafted this letter. A slow invisible tear fell from my cheeks, while I clenched my fists. Goodbye, $541.79 per month and the morning $3.5 croissant at Pret-a-Manger. You shall be missed. Additionally, no more Avo Shake from Joe and the Juice.

Damn it, you will also be missed. I must adopt austere measure and the NetMax Financial Plan.

The threats are real!!! $1,040.09

Table of Contents

The Average Debt Problem

The average student loan debt for 2016 college graduates who borrowed to get through school was $37,172. If a 2016 graduate took the standard repayment plan for the $37,172 borrowed – 10 years, at 4.29% interest rate – they would be paying $382+ a month for the next decade or two.

I took out $80,000 and as a token of friendship and through deferment, I added an additional $10,000. After 6 years of payments, I still owe $90,000+. Insanity at its best. That’s the 6% math hazing.

Seriously, where was the Billionaire Robert F. Smith when I needed him most.

My monthly payments were $750/month back in 2014 but I jumped on board with Income-Driven Repayment under the Public Service Loan Forgiveness program. This reduced my payments down to $500/month. It was a HUGE relief for a guy making $64,000 before taxes. But now that I’m making more money, Uncle Sam wants his cut. Since I’m not one to wait for the Student loan full repayment by Uncle Bernie or Aunt Liz, what’s my plan?

Tips and tricks that I Use

Readjust my budget to include more meal preps and less frivolous spending. And get smarter about traveling. Cut corners if I need too and even more Staycation to regenerate as needed.
Got to go hard for this step increase in late 2019 and a hopeful promotion to GS-14 in 2020 by any means necessary. Promotions are often the best way to equalize the shortfall but it will also raise that number again. I really have to do better at tax planning for the future.
Finish writing 15 more articles on Linkedin so that I can finally draft my Net/Max Financial Plan book to earn $50 per month. Well if Oprah reads it, I will be a success in no time. The dreams of an auditor with no windows in his office.
Too old and too stiff to strip so I guess I need to work at Best Buy again during weekends in 2020. Never to prideful not to go back to wearing the blue uniform. The old Sweat Equity.
Study for other certifications so I can garner a bit more respect and a better resume.
House hacking my extra room would help alleviate the burden. The fastest way to more money but not sure if I can survive a new roommate.
Cut Comcast cable down to just internet to save maybe $75/month. Less TV and more creative energy spent wisely?
Sell my services for Resume reviews, Financial planning reviews, and etc on an ad hoc basis. I would need an audience and a solid price point.
Sell random items that I’m not using anymore through Ebay.com. Decluttering the mess and earning much-needed cash.
And finally, pray about achieving my purpose. I’m definitely not down and out about it. The reduction since 2014 was significant enough. I’m not hurting for money and I know that other people have it harder than I do; so I count my blessings that I can make ample adjustments in my lifestyle until the $750 gets reduced in 2021. In the end, no matter what, the PSLF program will forgive the entire loan as of 2025. It will save me at least $30,000 so toast to that.

Some Hard Facts about Student loans

In 2017, 20% of those with student loans were behind on their payments, according to the Federal Reserve up from 18% in 2015 and 19% in 2016. Default rates are set to hit 80% by 2023. I know tons of Black and Brown millennials carrying over $70k worth of student loans. I also know many who don’t talk about it since they are delinquent by over 60 days. While many more have pushed back homeownership and family building. This is truly a sad generation who stuck trying to be adults while spending most of their money on YOLO experiences. It’s all bound to catch up sometime. It’s better to brave your issues on your feet than on your knees…

Quote to Remember

Let me tell you something you already know. The world ain’t all sunshine and rainbows. It’s a very mean and nasty place, and I don’t care how tough you are, it will beat you to your knees and keep you there permanently if you let it. You, me, or nobody is gonna hit as hard as life. But it ain’t about how hard you hit. It’s about how hard you can get hit and keep moving forward; how much you can take and keep moving forward. That’s how winning is done! Now if you know what you’re worth, then go out and get what you’re worth, but you gotta be willing to take the hits, and not pointing fingers saying you ain’t where you wanna be because of him, or her, or anybody. Cowards do that and that ain’t you. You’re better than that! Rocky Balboa

*”I was brought up in Port-au-Prince, Haiti; Delmas, Rue to Foyer. I inhaled the dust. I woke up in Parris Island. And landed in DC. I don’t bend and I don’t break. I pay what is owed. So how much do you owe? And when are YOU paying it back?” LG