Every week, Student Debt Relief posts a roundup of the latest happenings in all things student loan-related. This week we have four articles, each covering a different article in the news.
Being humble and frugal is how Muneeb Ahmad managed to pay off his $61,000 student loan debt in 18 months. As a graduate from the University of Michigan with a degree in computer science engineering, he knew early the importance of being resourceful and keeping his expenses to a minimum after graduating. Some of the decisions he made to help himself save money were;
- Moved in with his brother after graduating to save money on cost of living
- Kept a tight budget
- Used public transportation instead of leasing a vehicle, despite the fact that he worked at BMW and would have received a large discount on leasing the vehicle
- Avoided Uber & Lyft as they are much more expensive than public transportation
If he could go back, the one thing he thought he could do better was to refinance his high interest student loans earlier on, as well as starting to pay on the loans as soon as he could instead of waiting to graduate. From all of us here at SDR – great work Muneeb! We love seeing people take control of their student loans by educating themselves and taking action.
An Ohio couple entered into a sweepstake by downloading their banks cellphone app. Fifth Third Bank then surprised the couple by providing them what seemed to be a free pizza for the holidays but was instead a check for $37,000 to pay off their student loan debt.
Being paid between $5,000 and $10,000 per procedure, Molly Bryant decided it was not only a good way to help pay down her student loan debt but to help others who cannot have children. As a judicial clerk who didn’t qualify for public service loan forgiveness due to some technicality, she needed a way to start chipping away at her $150,000 student loan debt. Molly had to undergo a psychological evaluation, as well as a health check. Once approved, she was put on a website where a potential couple could choose her as the egg donor. The process for a woman to donate eggs if very difficult and is in no way similar to a man going to donate his sperm. When asked, Molly stated she probably wouldn’t do it again since it was a week-long process and taking time from work was difficult, as well as the process in whole.
H.R. 4372, the Help Students Repay Act is the name of the legislation which Congressman Drew Furguson is trying to push through. The legislation intends to simplify how you pay your federal student loans by having only one income driven repayment plan(IDR) instead of the currently existing four. While the bill may help borrowers by simplifying their decision making, it seems to take away key advantages some of the income driven payment plans have right now. What this law intends to do is;
- Calculate IDR payment at 15% of discretionary income
- Remove loan forgiveness on IDR plans
With the existing PAYE and REPAYE plans, the current cap is at 10% of your discretionary income, as well as have loan forgiveness after making 20-25 years of qualifying payments in that repayment plan. While the Congressman’s plan may simplifying the decision-making process and get more people enrolled in an IDR plan, it certainly increases their potential payment and removes a benefit of forgiveness.
Be sure to check back every Friday at Student Debt Relief for our Weekly Roundup of the latest news and updates regarding the student loan industry!