Inching out, happily

It's the small victories that prevent me from jumping out the window

Can I take this moment to tell you I’m doing pretty well? Since starting this blog I’ve upped my net worth a bit. I am paying down my debts. I am spending less on frivolous purchases and better controlling my urges to splurge. I have not bought any clothes, even though I’m kind of sick of the clothes I have. My credit card debt has not increased. My student loan payments have become more manageable. I did impulse-buy a couple of books today, but a couple of books will not undo me. I can buy two books and maintain my (relative) solvency.

I’m a little proud of myself, and also a bit less stressed about money. To be sure, I have a long, long, tortuously long way to go. But it feels good to know I’m making progress. The little things do matter. They will continue to matter. They will accumulate, amass. As will the big things. Even more with the big things. And then one day I’ll be debt-free.

Next on the list of little improvements: groceries, housewares and alcohol. I must tinker with my habits in those important spending realms. Two necessities and a vexatious, delectable vice: I love them lots but know I should and could cut back.

For now I’ll slowly sip the impromptu cocktail I mixed for myself (six fresh cherries, seeded and smashed; a single ice cube; a shot of Grand Marnier) and find solace in the fact that, for me and my bank account, the future looks a bit less bleak.

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Posted by Erin at 12:29 am.

Dealing with student debt: Forbearance and Deferment

So it happened: the dreaded day when my student loans all entered repayment. I was slammed with a $544 bill from one of my lenders - a third of my take-home monthly salary. Last weekend I applied for a consolidation loan from the U.S. Department of Ed., but have yet to receive that loan. I cannot afford to pay my lender $544, especially when my other lenders will charge me a couple of hundred dollars more for other loans. What should I do?

When your loan payments are too high to handle and are eating up a large chunk of your income, it is possible to put the payments off for a while.

Your options: Deferment and Forbearance.

Deferment, if you qualify, is less financially damaging. With deferment your loan payments are put on hold for a while - and your federal subsidized loans stop gaining interest.

But you can only qualify for deferment under certain circumstances, such as:

  1. Unemployment
  2. Going back to school at least half-time
  3. Active military service
  4. Economic hardship, which is defined as making a monthly income at or below minimum wage, or at or below 150 percent of the poverty level for your state. You can also get an economic hardship deferment if you are in the <a href=”http://www.peacecorps.gov/” title=”Peace Corps”>Peace Corps</a>.

For unemployment, active military service and economic hardship, the maximum time you can defer your loans is 3 years, with your qualifications reassessed each year. If you return to school, you can defer your loans until you are out of school.

You will not qualify for a deferment if you are already in default.

So deferment, although it can be a great option, is not available to many underpaid recent grads - myself included. As much as I complain about my income, it’s not anywhere near 1.5 times the poverty line for a family of one. I’d have to be making less than $16,245 to qualify.

My other option - and yours, too - to postpone payment is forbearance. With forbearance, interest continues to accumulate on all your loans, so think carefully before signing on - it will increase your overall debt burden.

That said, here’s how you qualify:

  1. Poor health or other personal problems that make it harder for you to make your payments
  2. Administrative forbearance, which can occur if your lender is resolving a change in the loan’s status or you’ve applied to have your loan status changed and are awaiting a response
  3. Economic hardship, or when your loan payments are greater than 20 percent of your monthly income
  4. Discretionary reasons. Your lender can decide, based on your specific circumstances, to grant you a forbearance, regardless of whether you qualify for the above reasons

Again, interest continues to accumulate while you are in forbearance, so forbearing will increase your overall financial burden. Alternative repayment plans could be a better option - they will reduce your monthly payments and often increase your repayment period, providing you with a bit of relief while also allowing you to continue to pay.

Still, for now, I decided to go with a brief forbearance. I called my lender after receiving the $544 bill and explained that I was awaiting a response from the federal government re: can I consolidate? - a response I hope to receive within the next couple of weeks, after many rules governing student loans change tomorrow. My lender agreed, and my loan payments will be put off as I await the government’s determination of my fiscal fate.

Until then, I can breathe easy(ish) knowing I have at least a third of my salary to spend on utilities and groceries.

Also in this series:

Further reading:

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Posted by Erin at 9:35 am.

The car wash is a lie

The older, wiser and poorer I’ve grown, the more I’ve come to believe that many of the “convenient, time-saving” habits adopted by older generations of yuppies are nothing but lazy, resource-guzzling, ass-fattening wastes of time and money.

Case in point: Taking your car to the car wash vs. washing your car yourself.

When I was a very small child, my family washed our own cars, or at least we did most of the time. I remember filling a bucket with soap and water, lathering up and rinsing the good old Mercury Sable, lugging out the vacuum to suck the dog hair from the seats, scrubbing the tires, Windexing the windshield - and having a bit of fun in the process. My dad, ever the jokester, would spray us kids with the hose, we’d spray him back, etc. Good, wholesome fun it was, especially on a hot summer day.

Sometime in my teens, we became car wash folk. Maybe it was because we had more money; maybe it was because getting out the bucket and sponge seemed too taxing - I don’t know. But in middle school or so, cleaning our car transformed from a chore to an errand. We’d drive a few miles to the car wash, turn our keys over to an attendant and sit, paging through Us Magazine, until our car was made shiny and new-looking, with no exertion of effort from us.

In retrospect, what a waste of time and money!

Here’s the thing: factoring in the time it takes to get to the car wash, wait in line for your car’s turn, get your car to cleaned and then return home, unless you live like micrometers from a car wash, you’re fooling yourself if you think you’re saving anything more than five minutes.

As for money, you’re using gas to get to and from the car wash and paying people/machines to do the (relatively simple, kinda fun) work for you.

Rule of thumb: if it involves someone else’s labor, it’s probably more expensive than doing it yourself. International sweat-shop labor is an exception - I know I couldn’t make myself a tank-top for $7, but somehow H&M can sell me one at that price - but the American service industry, car washes included, inflates the price of the service.

(Not that you can blame them. Car washers have to eat. They have bills to pay and families to feed. So of course paying them to do something for you is going to be costlier than doing the thing yourself. I’m not saying the car wash is evil. It’s just less convenient than I, at least, tricked myself into thinking it was.)

Yesterday I got out a bucket and filled it with water and added some soap and, with my handy-dandy microfiber car-washing sponge, lathered up my red Jetta, scrubbed her down and made her shine.

The upfront cost was about as much as two car-wash car washes, but I have enough supply to wash my Jetta many, many times. All I need now is 20 minutes, gym clothes, nice-ish weather and a bucket of water.

OK, so I also need to not lock myself out of my apartment next time. That kind of sucked, leaving my keys on my kitchen counter and being without a cell phone and having to walk to the nearest bar and borrow the bartender’s iPhone and log in to Gmail to find the phone number of the friend who has my spare set of keys. But whatev. That was idiocy on my part and had nothing to do with car washing in and of itself. I’m all for manual labor, but in the future I’ll try to be less of an airhead.

Oh, and P.S., if they install a Japanese car wash near me, I will use it:

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Posted by Erin at 10:07 pm.

Dealing with student debt: Consolidation

By wsssst, via Flickr

By wsssst, via Flickr

The student-loan bills keep rolling in. Week after week, month after month, loan after loan - they seem endless.

I accumulated nine separate student loans during my academic career, and many of them are on different billing schedules with different monthly payments and different interest rates. I owe money on at least one of them almost every week.

It gets confusing, my billing cycle. If only there were an easier way.

Lucky for me, there is an easier way. It’s called a consolidation loan, and here’s how it works:

Either the federal government or a private lender will take all your loans (or at least all your federal loans), average their interest rates and combine them into a single loan with a single monthly payment. You’ll usually have more years to repay your loan - meaning lower payments - and, if you have variable-rate federal loans (these existed before 2006), you’ll lock in an interest rate until you’ve paid off your debt.

Sounds brilliant, right? I’d say it’s pretty great.

But wait! There are caveats to consider before applying for such a loan:

  1. You may end up paying more in the long run. If you’re on a 10-year repayment plan, even though your monthly payments will be higher, you’ll accumulate less interest over the lifetime of the loan. If you consolidate and enter, for example, a 25-year repayment plan, you’ll likely pay thousands of dollars more in interest during those extra 15 years. So if you can afford your current payments, consolidating, although convenient, may not be the best option.
  2. You could lose the discounts offered by your current lender. If, say, your lender offers an interest-rate reduction after two years of on-time payments, consolidating before the two years are up would get void that discount.
  3. If you consolidate federal loans with a private lender, you will lose some options offered by the federal government. You will not be able to defer, forbear or cancel your loans, and the alternative repayment plans will become unavailable to you. So if you do choose to consolidate, first try to get a federal consolidation loan.

Speaking of federal vs. private consolidation loans, I should probably tell you how to get a consolidation loan. A lot of private lenders have stopped giving them, and because of the perks associated with federal consolidation loans, I’d suggest starting with the federal government’s Direct Consolidation Loan. Application processing is on hold until July 1, when some rules governing student loans will change and a new (and amazing) repayment plan will be introduced. That shouldn’t stop you from applying - just know you won’t be processed until next month.

Note: If you are applying at a website that is not administered by the Department of Education (i.e. one that does not have ed.gov in its url), you are applying for a private consolidation loan. Just FYI, because this stuff is confusing.

To qualify, you must have at least one FFEL loan. I think that’s the only standard you must meet. Private loans, such as those from Sallie Mae and similar lenders, cannot be consolidated under a Direct Consolidation Loan.

Before applying (you can apply online here), gather information about all your loans, including the loans you will not be consolidating, and if you don’t already have one, apply for a PIN from the Department of Education’s loan-servicing site.

Once you have this information, visit the Department of Education’s consolidation application site.

While applying, you’ll have the option to choose one of the various repayment plans offered by the federal government. That’s the part where you’ll breathe a huge sigh of relief when you see that your monthly payments will drop from $687 to $260. I mean, when I saw mine would do that. Phew. Big sigh. I’ll be able to eat!

I’ll have more information on the various options in upcoming posts.

Give yourself about an hour to complete the entire application process - less time if you have fewer loans, and maybe more if you have a lot of loans. I just completed the process - I decided the benefits far outweigh the costs (seeing as the costs, for me, involve being unable to afford to feed myself).

Also in this series:

Further reading:

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Posted by Erin at 2:00 pm.

Dealing with student debt: Student loans, defined

By Jeff Parker, Florida Today

By Jeff Parker, Florida Today

Let’s start with the basics: Which loans are available to graduate students, and how much you should expect to pay for them once you’ve finished school.

I’m not going to spend any time telling you how to get the loans. The Internet is overflowing with information on how to saddle yourself with student debt, so if you’re looking to learn how to apply, I suggest Googling it. Or contacting any number of student loan companies and institutions of higher learning. They will be more than happy to send you the application forms.

Instead, let’s focus on the aftermath: What these loans will do to your finances post-graduation.

My story goes like this: Because I was relatively broke before going to grad school, I qualified for enough loans and grants to finance my entire education, plus living expenses, less maybe $2,000 that I was expected to pay out of pocket. All things considered, the damage was about $80,000.

Eager as I was to escape my crappy job and set myself on a career path, I filled out my FAFSA and signed the promissory notes and went on my merry way, living for a year on Edfinancial Services’ dime and giving little thought to the financial morass into which I had willingly stepped.

My loans are a combination of subsidized Stafford, unsubsidized Stafford and Graduate PLUS loans. Perkins loans, which carry the lowest interest rates, are also available, but I did not qualify for them.

All of the above (except Perkins) are components of the Federal Family Education Loan Program, meaning the federal government guarantees them, sets their interest rates and decides how much of each you can receive per year and throughout your life.

More specifically:

  • Stafford loans carry an interest rate of 6.8 percent, which the government subsidizes while you are in school. Translation: on these loans, interest does not accumulate while you are a full-time student. The maximum annual loan amount is $8,500 for graduate students, and you can get up to $65,500 during your lifetime.
  • Unsubsidized Stafford loans also carry an interest of 6.8 percent, but interest starts accruing while you are a student. The maximum annual loan amount is $12,000; the maximum lifetime amount is $138,500. But that is for all Stafford loans - not just the unsubsidized ones. Meaning if you have $65,500 in subsidized loans, you can have $73,000 in unsubsidized loans. If you have no subsidized loans, you can have $138,500 in unsubsidized loans.
  • Graduate PLUS loans charge 8.5 percent interest per year, and you can get as many of them as you need to cover the cost of your schooling - so long as the federal government determines you can’t afford to cover the costs yourself. The government does not subsidize the interest, which starts to accrue while you are in school.

So those are the federal options available for students who are needy but not impoverished. You can also get private loans, but I know nothing about those.

Once you’ve finished school, this is what will happen: Your federal loans will enter their grace periods, meaning you won’t have to pay them immediately after graduation. The grace periods for each loan are

  • Six months for Stafford loans, be they subsidized or unsubsidized. For the subsidized variety, the government continues to pay your interest. For the your unsubsidized debt, interest accrues.
  • For PLUS loans, there is no automatic grace period - these loans demand repayment right away. But you can get a six-month deferral if you so desire (and if your loan company deems you worthy. I’m not sure how they do this…). Just call your lender and ask politely.

Eventually, depressing though it may be, your student-loan lender will start sending you bills, and you will start sending them money. That’s where I’m at: the sending-them-money part.

You have a few options regarding repayment, and I’ll get into them in more detail in later posts. For now, what you should know is that when your loans enter repayment, your lender(s) will set you up on the shortest possible payment plan, which for federal loans is 10 years.

That means your loan payments will start at the highest level the law allows. This may cause you to freak the eff out, as I did last week. But rest assured, if you can’t afford the high payments heaped upon you at the onset of your repayment period, your loan company will likely amend your plan. Because after all, if you default, they don’t get paid. And they would prefer to get paid.

The total amount you will end up repaying depends on a lot of variables, most importantly how much money you borrowed and which repayment plan(s) you qualify for.

Again, more details will follow, but for now, know this: It’s not unlikely that you’ll end up repaying more than double what you took out, especially if you choose a low-paying career. So take that into consideration when deciding if grad school is for you. Debt can truly be crushing.

Also in this series:

Further reading:

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Posted by Erin at 8:35 pm.

More ways to reduce the heat

It’s 81 and sunny outside, but I’m feeling quite cozy in my apartment, even though it’s 4 p.m. - the hottest part of the day.

During the week I’ve learned some more heat-reducing tips that I think will help save me and my cat from heat stroke this summer. They are:

  1. Close those gaps: Inspect all your windows and doors for cracks that could let cool air out and hot air in. I found a gap in one of my windows, where the upper pane and the lower pane meet, so now when I close that window I shove some insulating tubing in there to stop up the hole. Use similar techniques for door frames and other areas of unintended ventilation.
  2. If you can’t take the heat…: What’s the difference between a stove and a space heater? Aside from their intended uses, not much. Stoves, like space heaters, will heat the heck out of a room. So try to stick to fast-cooking meals and meals that require only one burner to cook. And if you’re using the oven, open the door as infrequently as possible. Even better, eat raw meals or grill outside. This will add no heat to your home.
  3. Those hot, steamy showers create a hot, steamy room. So switch to lukewarm water. And if you blow-dry your hair, turn the heat down to warm.
  4. Turn it off: Lights, appliances, your computer… they all release heat. So if you’re not using them, turn them off.

After making these little changes, I’ve become more confident that I can make it through the summer with no air conditioning. Wohoo! If this works, I’ll save at least a few hundred bucks - money I can apply to much more important (or, maybe, fingers crossed, more fun) purposes.

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Posted by Erin at 4:03 pm.

Introducing: Uncomfortable calculations

Three days into the AC Experiment, I’m sitting in a cozy, well-ventilated room enjoying the fresh evening air flowing through my open windows. My cat seems comfy, too, sprawled along the windowsill, staring at the people mulling in the parking lot of the laundromat across the street. It’s a pleasant night - perfect for open windows even if you have air conditioning.

I was not so content a few hours ago when, upon arriving home from work, my first act was to change as quickly as possible out of my slacks and button-down shirt and into shorts and a wifebeater. Not only were the work clothes restrictive in the early-evening humidity, but the sweat stains they would have acquired would have increased my monthly dry-cleaning expenses, and really, I can’t afford that.

It’s not that bad, really. I just have to suck it up from about 6 to 8 each night, and then the heat dispels.

Still, it would be much easier and more comfortable to buy air-conditioning units and run them throughout the day. It would be much easier to be rich, or at least solvent. Unfortunately for me, frugality trumps convenience at this point in my life.

I miss the days when I could take air conditioning for granted.

Which brings me to the point of this post. I’m not blogging about air conditioning, really, and nor am I writing about the two hours of mild discomfort I’ve endured the past three evenings.

Instead, this post is about the awkward, uncomfortable, rock/hard-place calculations one must make when one is poor. Pay $200 each month for health insurance, or risk a trip to the emergency room. Use your payday loan to buy groceries, or use your payday loan to pay your mortgage. Fix that faulty wiring and get into thousands of dollars of debt, or wait it out and pray your apartment doesn’t burn to the ground.

On a small scale, I made one such decision Sunday night. Forgoing air conditioning, especially during the warmest months of the year, could put me (and my cat) at risk for heat exhaustion or heat stroke, among other scary traumas. When the outside temp tops 90 (or even - gasp! - 100), it will be stifling in my third floor apartment. I will be putting my health at risk.

As a person who grew up privileged, this is new to me, making such decisions. And thinking about the people who have even less - people who live in true poverty, either in the U.S. or abroad - the decisions they must make to ensure their survival must also threaten their well-being and, often, their lives.

As much as I complain about my income, it puts me above the poverty line for a family of five. And that’s without adding in my health benefits. I can’t quite comprehend that.

And with 12.5 percent of Americans living below the poverty line (in 2007, at least. It’s probably higher now), that means many people out there are making decisions far more uncomfortable than I’ll ever have to make (knock on wood).

That is the point of this post: To announce that I’ll be writing an occasional series on the awkward, uncomfortable and sometimes inhumane calculations people must make when they are poor. And I mean truly poor, not just temporarily a bit over their heads, like me.

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Posted by Erin at 8:17 pm.

Highs in the 80s, and I have no air conditioner

Its not just you

It’s a new month, so it’s time for a new experiment. Last month the task at hand was to track my expenses and then analyze them with the goal of creating a budget. This I did with moderate success.

This month, the test will be one of will, physics and heat tolerance.

It’s getting hot in my apartment, and I have neither an air conditioner nor the money to afford one (even a cheap one - they run around $100. And I’d probably need two of them to cool my 500ish square-foot apartment, and one of them would probably cost more than $100 because I’d need a bigger unit for my larger room).

Nor could I pay the electric bills associated with cooling an apartment - even a small one like mine.

(I can’t find any info on how much it would cost to run a couple of window air conditioners all summer long, but I’m assuming it’s at least $10 a month, and probably more. That is a completely uninformed guess, so don’t take my word for it…)

So it comes down to this: Without an air conditioner, can I keep my home at a temperature comfortable enough to avoid heat exhaustion (both for me and my cat)?

My hypothesis is that I can - at least as long as the temps remain in the 80s. I have no idea what I’ll do in upwards-of-90-degree weather (I mean, other than sweat through my clothes) but let’s worry about that later.

In the meantime, to maintain some small amount of comfort, here is my plan:

The sun is the enemy of the cool

As much as I adore the bright summer sun, its searing rays can turn a well-lit room into an oven, especially if you have east- or west-facing windows like I do.

According to a fact sheet (PDF) from the Southface Energy Institute, heat from the sun can increase air conditioning bills by more than 30 percent. Meaning sunlight makes a room way hotter.

Their advice: Close window shades and shutters during the day to block the sun’s rays and, in turn, cool your apartment.

(Sidenote: Minor problem for me is that I have a fair number of plants, and they need sun, so I can’t really close all the blinds. Instead I’ll try to concentrate the plants near the smallest windows and leave those blinds open just enough to ensure my plants get sun. Not a perfect solution, but it’s better than nothing.)

Let the night air in - and keep it in

At 11:15 on this beautiful Sunday night, the temperature outside is nearly that of a perfect room: 71 degrees - mild and cozy, and expected to drop further to 62.

Cool air in the summer should be savored, and so I’ve opened my windows to let that air in.

Tomorrow morning (and every morning for the rest of the summer), I will close the windows to trap that cool air and keep the hot air out.

Emphasize air circulation

There’s nothing better than a cool breeze on a hot summer day.

Almost as good is the artificially created circular air flow wrought by a quality ceiling fan when you’re sweating buckets in your ill-cooled apartment. My ceiling fans have been running 24/7 for a few weeks, and will continue to do so for more than a few more.

The reason: Air in motion feels cooler than air at rest, and running a ceiling fan costs less than running an AC unit.

Beware midday cooking (and computing)

Appliances around the house emit heat, so I’ll avoid using my appliances during the hottest hours of the day. If I must use my computer, I’ll take it down the block to the (air-conditioned) Italian eatery that has free wifi.

Stoves and ovens, whose purpose is to heat food, will have a similar impact. I mean, a greater impact. They were made to heat stuff. Obvi.

Stay hydrated and wear thin, breathable, white clothing

I’ll drink water like a marathoner and dress like a Bedouin. Drinking water keeps you from sweating yourself to dehydration, white clothes reflect the sunlight, and loose clothes allow for more air circulation. That means less heat, more health - and more comfort.

On very hot days, cool, wet towels feels good on your neck, and pets enjoy sprawling out on them on the floor.

If all else fails, stick my head in the freezer, or get out of the house

Not the most energy-efficient technique, but it’s better than heat exhaustion and death. If it gets too hot to handle, my cat and I will hop in my Jetta, crank up the AC and go for a drive.

You get the idea. For more advice on how to beat the heat, check out the links below:

<strong>Further reading:</strong>

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Posted by Erin at 11:59 pm.

Why October scares me. (It has nothing to do with Halloween.)

By stevechasmar, via Flickr

The main source of my financial woes is the more than $55,000 of student-loan debt, the majority of it from grad school, that I must pay off bit by bit each month.

I finished grad school in December, and since then the loan companies have started demanding that I repay them. First the smallish private loans from undergrad, then the equally smallish private loans from grad school, and pretty soon I’ll be paying back a bunch of (much bigger) federal loans, too.

The loan companies have sent me copious amounts of mail to inform me of the terms of my loans and their repayment dates and which companies they’ve sold which loans to and what that means for me, etc., and I must admit the whole process has been a bit overwhelming and has caused me to develop habits of avoidance. Unless it is a bill, I’ll scan the form letter, head cocked, confused, then put it in a pile to deal with it later. More honestly: Unless it is a bill, I generally ignore it.

The letters have increased in frequency and volume in recent weeks, and the little voice in the back of my head has begun telling me I should probably actually read the damn things instead of scanning and stacking and filing them for later. An increase in the frequency and volume of communications from parties to which you owe large sums of cash usually bodes unwell, the little voice says. Erin, you should not ignore those ever-accumulating form letters.

So this week I decided to sift through the stack of loan-company communications gathering dust on my desk and figure out how much I will actually be paying each month once I’m repaying all the loans. That required reading about 40 documents and visiting three loan-company websites (Sallie Mae, who holds my undergrad loans, Ed Financial, who used to own all my grad loans, and the U.S. Department of Education, who bought some of my grad loans from Ed Financial). It took about 90 minutes - far less time than I’d scared myself into thinking it would take.

I also made a spreadsheet detailing each loan’s principle, interest rate and monthly payment.

Then I added the monthly payments. And that’s when life became truly scary.

Bottom line: Come October, I will be screwed.

Combined, my student loan bills will cost me… wait for it… (really, it’s awful)… (you might want to sit down for this, in case you’re one of those people who reads blogs standing up)… a whopping $687 a month once I’m repaying all of them.

Add to that my rent ($500) and my monthly credit card payment ($140), do some simple addition and subtraction and you will discover that I will have (and this is the truly disgusting/petrifying/suicide-inducing part) $229 a month for everything that is not a student loan, a credit card bill or rent.

Oh shit. Holy cow. Put a fork in me. I am done.

Not to mention being stabbed with a fork would be less painful than surviving on $229 a month. That’s groceries, laundry, electric/TV/Netflix bills, food for my cat, gas for my car, savings, my emergency fund, travel, going out, gifts for friends and family, unexpected repairs/vet bills/household needs, toilet paper, toothpaste, tampons, and bottle upon bottle of Advil to cure the acute headaches my life will cause me - all for less than rich people spend on a haircut. And I haven’t even told you about my medical bills.

My first response: I drank a beer. A strong beer. Savored it, slowly, on my couch, alone, while staring at my TV wondering how much I could sell it for on Ebay. It’s a pretty nice TV. I’d get at least a few hundred bucks. Maybe half a month’s worth of student-loan payments.

Then, it was research time. I know there are ways (other than bankruptcy) to put off your student loan payments for a bit, or to make the payments lower for a while. I am not the only person in this situation, and the federal government/student loan industry, taking pity on the overburdened, underpaid former grad students who did not take jobs in private equity, has designed some temporary outs for me and people like me.

They are:

  1. Forbearance
  2. Deferment
  3. Consolidation
  4. Alternative repayment options, including Graduated, Extended, Income-Sensitive, Income-Contingent and Income-Based

Easy, right? Umm no. Each option has its own specific parameters, many of them income-based, some based on behind-the-shade calculations made by your loan company, that could permit or prevent you from qualifying.

It’s pretty complicated, in fact. But it’s also important - your choices here could save or cost you thousands of dollars in the long run, so it’s critical to make an informed decision.

To that end, I will blog about this in a series over the next week or two. My hope: at the end of that series, I will have determined the most cost-effective way to put off my loans. Because I cannot survive on $229 a month.

Also in this series:

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Posted by Erin at 4:23 pm.

I have no idea what I bought last week

Dammit. I failed at the final week of Experiment No. 1. Chock it up to laziness or busy-ness or just plain lack of will, whatever the reason, I’m not sure how much money I spent in the last few days or what I spent it on.

What I’ll do to make up for this egregious error is the following:

  • Continue my little experiment publicly for the first week of June, and
  • Continue tracking my expenditures privately for a good long time, preferably the rest of my life. It’s a great habit, and I fear I overspent the last few days (not by tons) for lack of paying attention

Apologies, readers. I’ll be more reliable in the future.




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Posted by Erin at 8:49 am.