January 28, 2022 marked my one year anniversary of paying off my student loans . Reflecting back on choosing to pay off my student loans leaves me with several take a ways that I want to share with you! In September 2020 I decided to become debt free by utilizing the debt snowball method to pay off all my debt. Before this I had struggled to save and really understand basic financial principles. As a first-generation college student, I received a scholarship to attend undergrad for free, but the scholarship did not cover summers. During the summers I took out student loans to cover costs without paying interest rates or how much I was taking out. By the end of undergrad I had amassed a little under $17K. Fast forward to graduate school I received another scholarship that covered my education. At the time I was a teacher in a new very expensive city and I had missed the cutoff to have my paycheck last me throughout the summer. So, I decided to take out a loan for two summers to keep
Alright guys another update on student loan forgiveness is upon us! This time it’s not from Mr. Byron but instead it’s from one of the largest student loan holders in America. Navient formerly known as Sallie Mae will have to fork over 1.7 billion dollars in student loan forgiveness due to a recent settlement that found them to have participated in predatory loan practices that negatively impacted a countless number of student loan borrowers. While 1.7 billion will go towards student loan forgiveness, another 95 million will be distributed as $260 payments.
Figure 1: This is a thumbnail of my latest YouTube video on “Navient Student Loan Settlement” where I have my hand under my chin while looking at the camera. I am wearing a grey shirt with lettering and my hair is short, black, and curly.
Instead of giving it’s borrowers the option to enroll in lower cost plans they were sold on the idea of forbearance which provided little to no help at all. Actually, borrowers were paying even more interest than before! As a result a number of states banned together to sue Navient resulting in this major settlement. Now let’s get to the meats! How will borrowers be affected?
Figure 2: This is a photo of a book that says “Loan Forbearance” with a yellow paper clip attached to the top of the book. There is a blue paper clip and a grey computer keyboard nearby.
Debt Cancellation: Anyone who took out a subprime loan (interest rate was higher than normal) between 2002-2014 that originated from Sallie Mae and were delinquent for seven consecutive months before June 30, 2021.
$260 Payment: Live in a state where the lawsuit was filed, been in forbearance for 2 years, previously qualified for the lower payment plan.
Figure 3: This is a photo of someone holding a sign that says “Forgiveness”.
To see if you qualify for either of these log into your loan account for more information or give them a call. Debt cancellation will happen by July 2022 and you will receive a postcard from a settlement attorney regarding the $260 payment. It sounds like you will receive one or the other but not both. Will this affect you? If so, drop down in the comments and sound off! Be sure to check out my video for more details and subscribe to my email list for any updates. Byyyeeee!
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