Don’t Default on Your Student Loans!

Congratulations!!! You have to start paying off your loans within the next month! YAY!!! (OK. I’m sorry for the sarcasm.) Many recent grads are still struggling to find work and making student loan payments may be tough. Despite the fact that you may unemployed or underemployed, whatever you do, do NOT default on your student loans. DON'T DO IT! DON’T…DO…IT! Not paying back your student loans can get you into a lot of financial trouble. The following things can happen if you are delinquent in your loan payments:

• Your entire loan balance will be due immediately.
• You lose eligibility for loan deferment.
• You won’t be eligible for additional federal student aid. (You do want to go to grad school right?)
• Your account will be turned over to a collection agency and you will have to pay additional charges, late fees, and collection costs.
•  Your credit will go down the toilet. Since your credit will be trash, you might not qualify for credit cards, a car loan, a mortgage, or renting an apartment or you’ll qualify for an astronomical interest rate that will cost you more money.
• Forget about a tax refund.
• Uncle Sam will garnish your paycheck if you ever do find a job.
• It may take longer for you to find a job or get a professional license if employers do credit checks.

I understand if you have bills that are high as the sky, but you have options if you cannot afford to make your student loan payments. Remember you can apply for a deferment or forbearance. You can also consolidate your loans or switch your payment plans. There is no excuse for you not to be responsible and take care of your student loans. If you don’t, it will cost you in the future. (I warned you.)

All information presented only relates to Federal student loans and is provided by the Department of Education. If you have private student loans, contact your lender(s).

Don't Leave the Nest Just Yet

OK. I know you don’t want to hear this, but don’t fly the nest just yet. Yes. I know you have lived away from your parents for four years and you don’t want to give up your freedom. Trust me. I know it’s hard. I went through serious post college withdrawal when I first moved back home. I had no job, no friends, and no money. While the transition was hard, I’m glad I was able to move back home. Here’s why:


Free Free Free. My mom loves me enough to not charge me for anything…well almost anything. She does want me to put money towards the gas bill this winter, but that’s nothing compared to the $700 in bills I had every month with my apartment.  I don’t have to worry about food, rent, cable, car insurance, phone, internet, or a gym membership. All I have to worry about is my cell phone bill, gas, and my student loan payment. That’s it. Living at home allows me to save money to put towards my financial goals such as moving and building an emergency fund.


Employment. Because I have solid network in my hometown, I was able to land a job two weeks after I moved back home. It’s a temporary job, but it allows me to continue to develop my skills. Having a temporary job is also better than being broke and being home with nothing to do all day. I have faith that my next opportunity is right around the corner.  


No Financial Stress. I was completely stressed out over my finances this past summer. Between my minimum wage part time job and making one costly mistake, paying the bills was extremely hard.  One day I was so stressed over my money that I didn’t even leave my house and cried on and off all day. I don’t have those worries living at home. All I have to focus on is finding a permanent job and saving money to move out.


Family. Although my mom can get on my last nerve and I hate driving my brother around, this is the last time we will all live together as a family. My brother goes off to college next year. My mom is moving for her job in two years and I’m moving out within a year.  I cherish all our family dinners, outings, and the time we spend with other family members. The memories we are creating are priceless.


As you can see, moving back home allows you to save money, gives you a support system, home cooked meals, and reduces stress. Living at home (temporarily) may not be a bad deal after all.