$0 Payment Owed on Student Loans! | My Student Loan Repayment Strategy

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https://www.youtube.com/embed/WyoHDldfw2o smart man has been knocking on my door shes been sending me emails and shes been blowing on my phone however the excellent news is that having $0 payment Im gon na state exactly how I got $0 payment and how you can get a no dollar payment – hi Im Shana so l5 at Cray videos to assist you get rid of debt great income and develop wealth and truth be informed Salameh hasnt been beating down my door or blowing on my phone because I do not have student loans with Sallie Mae however I do have student loans with Great Lakes however the great news is that I really still have a no dollar monthly payment on my fifty 6 thousand dollars of trainee loans Im gon na discuss to you precisely how I got zero dollars to loan payment on the income driven repayment program and how its gon na benefit me to treat my goals of being debt-free so Im going to describe to you all of this once you hit the like button and if you struck the like button is truly gon na assist my channel it allows my videos to be expanded to a larger audience and spreads out the info that we all would like to know to improve our financial resources so we can live our finest monetary life so I really appreciate it if you hit that like button and now Im gon na get directly into the video and inform you exactly how an absolutely no dollar month-to-month payment is gon na benefit me and how can benefit you as well fortunately for me I enter college with the advantage of having the Bill and Melinda Gates Millennium Scholarship which scholarship afforded me the ability to have ten years of education pay for completely all I needed to do was go to a undergrad and they will pay up to 5 years of education and after that for grad school they would pay 2 years in a masters program and as much as four years in a doctoral program if I went into a certifying program I did precisely that I went to Howard University got my bachelors degree and after that I went to Columbia University and University of South Florida where I got graduate degrees in public health and I was able to have the majority of my education paid for with the Bill and Melinda Gates scholarship while I remained in my masters program I trainee loans for the first time although the gate scholarship covered my tuition it wasnt enough to cover my living expenditures so I secured still loans then and after that again tossed to summer season terms of my ph.d program I finished from our ph.d program in 2017 and on September 25th 2019 so simply a couple of days ago I go into payment for the first time and the reason why I am just not addressing payment for the very first time two years after finishing is since I after I finished with my PhD I go into a postdoctoral fellowship and postdoctoral fellowships postdocs are looked at by the government as if youre still in school so I call fi for a graduate fellowship deferment and it runs the like if you are still in school taking classes and you do not crew interest on your trainee loans so now the violent the day lastly hit when my student loans returned into her payment so as I stated I truly secured student loans in 2009 and now here we remain in 2019 originally my principal and my student loans had to do with $40,000 in the past 10 years I have built up about ten thousand dollars of interest so naturally I was fretted about my trainee loans specifically considering that I lost my task in June 2019 so I still have actually not had the ability to secure another job but trainee loan repayment was knocking at the door in just a few months and actually now its here therefore I was questioning how I was going to be able to deal with some loans repayment and likewise have the ability to attain my goals of ending up being debt-free so I take a look at some alternatives and I actually got help from somebody that I fulfilled Bank on and he helped stroll me through the procedure of getting onto a student loan repayment program that was right for my monetary scenarios the person that I met bent on is really a lawyer and Laura who specializes in loans he assists individuals pick their payment programs and likewise address any challenges that they might be confronting with their student loans so based off of our discussion at believe on he believed that I may be qualified for the repay program the repay program falls under the umbrella of income driven payment programs and he was informing me that under the repay program I would receive a zero dollar monthly payment and the federal government would pay my student loan interest over three years so I was like indication me up how do I sign up so after think Ill be done the phone he walked me detailed through the procedure of picking an income-driven repayment program however throughout our conversation on the phone we realized that did not qualify for the repay program due to the fact that I had specific loans that did not qualify and under repair work you need to have just you can only have direct student loans but I had a mix of student loans that were direct and some that were not direct and so we looked at other income driven payment choices and I receive the earnings based payment program so with the income based payment program I still had a zero dollar month-to-month payment so I was incredibly pleased about that since I was a little worried about the earnings piece and being able to settle my student loans offered that I do not have full-time earnings now although I am working as an adjunct faculty Im just working part-time I am NOT making a lot of cash and so I was sort of worried about having to spend a lot of money on my student loans on a month-to-month basis however fortunately I get approved for the earnings based payment program so I applied for the back and Im excellent to go but I began to believe like how is this going to impact me in the long run are they gon na get over on me with all the interest thats going to accumulate from this plan Oh on vibe ran some numbers and I recognized that I in fact might gain from this in the end in September I owed about 56,000 dollars towards my student loans which was based off of the initial principle of what I got and all the interest that had actually accumulated over the previous 10 years so when my repayment date was approaching I was taking a look at various alternatives for how I was going to tackle this financial obligation also given the reality that I didnt actually have much income so I was taking a look at what all takes place when you get in payment and this process cause capitalisation actually happens when you get in payment so what that indicates is that all of the unpaid interest that has actually accumulated on your Sur loans now gets added to the primary balance of your student loans so what that indicates in turn is that youll really tell a lot more money towards your student loans in the long run because all the interest is now being contributed to the principal so I was looking at my options and I was believing I dont want that to occur however I had about ten thousand dollars worth of overdue interest that had actually accrued over the previous 10 years and I didnt have 10 thousand dollars so I was attempting to consider what I might actually do so in the past year I attempted to tackle my trainee loans and so Im really made a payment of 8 hundred fifty dollars towards my trainee loans after I pay off my automobile in May therefore I was taking a look at that and I was believing what can I do to prevent a few of this capitalized interest from taking place and so due to the fact that I paid about eight hundred and fifty dollars towards my trainee loans all of that money went towards interest at that time and I keep in mind that the federal government really has this tax deduction that all the interest that you pay within a taxpayer actually can be ducted from your gross income therefore I was thinking that so win-win for me and so I looked at my bank account and I resembled I have sixteen hundred dollars that can pay to prevent the interest capitalisation from taking place and likewise to benefit me in a tax reduction so I chose to made a payment of 1650 dollars towards my trainee loans to avoid the capitalisation from occurring or a bit of it from taking place and also to benefit me in a tax reduction where do I stand now so now I owe a little bit less than $55,000 after paying that $1,600 towards my student loan as I discussed I was a little concerned about having a zero dollar monthly payment on the surface area it appears awesome since I wouldnt have to spend any money on my student loans while my income is low however on the other hand I would be accumulating interest on a loan that has currently capitalized and I really sort of clear myself back that was what I was believing however then I began to think about it a little deeper when I have a no dollar month-to-month payment and I pay a little bit towards my student loans on a month-to-month basis all that cash can in fact be applied to the principal of my student loan and when you have a regular monthly payment normally some of it is paid towards interest and after that a few of it is paid towards your principal generally at the beginning of your payment a great deal of it goes towards interest and after that a bit goes towards principal but under an absolutely no dollar payment program able to if Im able to pay a bit of money I can put all that cash towards the principal so it looks like a win-win for me as long as Im devoted to paint a little something since I have an objective of being financial obligation totally free one day I likewise looked into the different financial obligation benefit techniques so we have two popular approaches you have the avalanche approach and then you have the snowball method and I was attempting to see which approach would in fact make good sense for me given that I was gon na be paying a bit additional towards my student loans even though my regular monthly minimum payment is set at $0 under the income based payment program so I calculated just how much I would end up paying throughout the life process of my loans using either one of those so in the estimation I use the no dollar minimum monthly payment and then I included an extra payment of about $1,000 so based off of those consider the computation I recognized that under the Avalanche technique I would really conserve myself a couple hundred dollars and under both approaches I will still end up paying off the loan at the very same time with the snowball technique Im believing that given that I dont have a lot of income it might be useful for me on a mental level to really see some smaller sized dips getting knocked off so within my large $56,000 student loan I really have 5 individual loans under that all under the exact same servicer of Great Lakes but when my smallest loan is about three thousand dollars and it could not feel acceptable to have three thousand dollars get knocked off and after that have this other loans remaining as I work through them and that is possible under the snowball technique now if I were with the Avalanche method I would save myself a couple hundred dollars but I wouldnt get that very same complete satisfaction because I have a big student loan of about eighteen thousand dollars under that umbrella of you know the fifty 6 thousand dollars in loan so it will take me a while provided that my earnings is low at the minute to be able to knock that one out so Im still wearing my choices regarding which instructions I wish to go however I do know that I wish to pay something additional every month now just how much extra do I wish to pay Im also not sure about that I am believing ought to I be truly aggressive towards my student loans and pay as much as I can Im thinking I most likely can pay about $1,000 easily every single month towards my student loans considered that I do not have a great deal of other expenditures presently but Im likewise believing that I might be achieving some other goals with the additional money that I have I might be constructing up my emergency situation fund and I could also be investing into my service the well 5 which this YouTube channel falls under and Im believing with my financial investment into my company I would get a larger return on financial investment since I hopefully would make a lot more money than the 6% of interest on paint on my trainee loans so Im kind of weighing how much money I should really pay need to I reinvest into my company a bit or should I not reinvest into my organisation and put a lot towards the loan or ought to I split it up compromise Im uncertain exactly which method Im gon na go by I do know that a person day I will be debt-free and having the no dollar monthly payments actually gon na help me in the long run as long as Im dedicated to paint a little bit extra towards my trainee loans on a month-to-month basis and I will get there I will be debt-free one day Ill show you if I have a lot of concerns and you wish to know why and combine my kid loans and why dont refinance my son lows and you most likely wish to learn a bit more about the decisions that I made concerning my student loans if you do wish to find out more you can capture that info in this video right here and if youre subscribed and you have your notifications turned on Ill have the ability to meet you because video thanks for watching Read More: 5 Secrets to Getting Approved for a Credit Card

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