Debt Free Maple Valley 2010: College Debt!

Just because the folks who gave you the college loan never send you a bill does not mean you do not need to pay it! Many time clients tell me, “Well, I never did get a bill on that loan, so I have not started paying it” I am also hearing tales of folks waiting to get married or not being seen as solid marriage material due to the college debt they racked up to get the degrees. It is important to seek employment if possible during college to pay and keep paying in good faith on the college loans.

Good Faith: College loans are important to pay even small incremental amounts of money on or around the same date each month like a machine….as this creates a track record of Good Faith with the lender and if later you need to show proof of responsible actions you will have it.

Bad Faith: 270 days late is the magic number of days for the loan to go into Bad Faith and the phone calls will start. It is essential that you are responsible enough to call and explain what is happening… ie: illness, death in the family or unemployment and to document your conversation in writing.
The word responsibility means the ability to respond….stay in communication.

Dropping the Ball: If you find you drop the ball on a payment, picking it back up again as quickly as possible is essential.

Recorded Phone Lines: Be couscious on the phone with lenders as you are often being recorded.
Later in a court room situation these conversations can and possibly will be used against you…

Married Filing Joint: Use innocent spouse defense to fight lender attempts to attach Income Tax Refunds. Part of the Income Tax Refund belongs to the spouse who did not default on his or her College Loan debts and the lender has no rights to the money.

Stress Relief: Go to DA.org and sit in circles of support. You are NOT alone…these debts seems astronomical and may be cause for anxiety. Remember you are NOT your debt but are responsible to pay it back…Request help with a Spending Plan and Debt Pay Back Plan ASAP.

Windfalls: Should you receive a gift of cash remember to divide it into thirds….past, present and future.
Past: Repay the loan with a third of the windfall
Present: Enjoy 1/3 of the money in present time
Future: Set a third of the money away in savings for the future…

Remember you can greatly reduce College Debt levels by paying a bit more on every bill and doubling up payments in each month when possible!

For more information feel free to give me a call!
Stanette Marie Rose
206-718-5224