‘Don’t be intimidated,’ says money expert who paid off $173k in student loans in less than two years with her seven tips | 6326T90 | 2024-05-01 17:08:01
'Don't be intimidated,' says money expert who paid off $173k in student loans in less than two years with her seven tips | 6326T90 | 2024-05-01 17:08:01
STUDENT loan debt can burden your finances for years after you graduate.
Paying off the debt can feel endless but with the right knowledge, repaying student loans can become manageable and even empowering.
To help you with your student loan debt, The U.S. Sun interviewed a money expert to offer practical tips for lightening your financial load.
Shalae Morgan, a content creator and entrepreneur, is an expert in all things money – from shopping to saving to Social Security.
She shares financial knowledge and tips with her over 511,000 followers on YouTube (@shalaemorgan), and she spoke with The U.S. Sun to provide helpful information for those looking to pay off their student loan debt.
She paid off her $173,000 in student loans in less than two years and offered tips for those in a similar situation.
STUDENT LOAN TIPS
In her video, Morgan discussed how she paid off her thousands of dollars of student debt and offered seven tips for her followers.
- Check the National Student Loan Data System
Morgan said the first step for paying off student debt is knowing how much you owe.
She suggested borrowers check the National Student Loan Data System, or NSLDS, which provides an overview of the student loans you have and colleges you attended.
"Don't rush, don't pass out, don't be intimidated. You're not the only one. You're just now one of the statistics," said Morgan.
"You're doing what most people won't do – you're looking at [the debt] and trying to get in front of it. So just log on and get the number and it will be okay."
<!-- End of Brightcove Player --> 2. Devise a Plan and Conduct Research
Once you know how much money you owe, the next step is to devise a plan.
Morgan suggested figuring out how much you want to pay off and over what period and then researching programs that can help you accomplish your goal.
"I have found the most effective way to reduce my student debt is by researching the programs that I qualify for and taking serious action toward paying it off," Morgan told The U.S. Sun.
Her initial goal was to pay $25,000 yearly towards student loans.
Morgan advised borrowers to thoroughly research for any state programs, such as student loan forgiveness or student loan repayment programs.
She also looked to see if her work offered student loan repayment assistance but noted that neither her employer nor her state, Alabama, offered any programs.
Morgan noted that she qualified for a federal student loan forgiveness program because she is an active member of the military, but was deterred by a 10-year wait period.
However, Morgan's research proved fruitful for her private loans, which have a different set of rules than federal loans.
"You can call for private loans and see if there's anything or any circumstance that you can file for. And this took off a big chunk of my money," she said.
She explained that borrowers can submit applications for private loans to request relief or assistance based on mitigating circumstances, disabilities, or if they have filed for bankruptcy.
Morgan called Navient, a student loan servicer, and informed them that she had served in two wars and is in the military.
She was told that she did not qualify for anything, which she refused to believe was true. Morgan ended up calling the company every other day.
Eventually, a representative informed Morgan that assistance was available for her because of her work in the military. She could submit a letter on her behalf asking for loan forgiveness.
After four to six weeks, Morgan was approved for a discharge of $25,000, which knocked one year off her initial repayment goals.
"For the time that I took to research it yielded me $25,000 so it was definitely well worth me doing the research," said Morgan.
Other calls similarly helped to reduce Morgan's student loan debt.
"I was fortunate enough to speak with an agent who informed me about a specific military student loan reduction program that I qualify for," she told us.
"This helped me to shave off $60,000 from my debt, and the military paid an additional $50,000. With the help of YouTube, I was able to pay off the remaining $130,000," she said.
3. Sign up for Autopay
Another piece of advice Morgan offered was to sign up for autopay and have your student loans debited from your account.
She signed up to have her loans automatically deducted from her bank account, which helped reduce the interest rate on her eligible loans by 0.25%.
"Even though it was not a lot of money, it was some reduction. It's better than zero," said Morgan.
4. Enroll in School to Stop Interest
Morgan suggested that, if you have the option available, to consider enrolling in school to stop the interest on your student loans.
<p class="article__content--intro"> Paying off student loans can feel endless, especially with the interest they accrue. </p> </div> </div> She clarified that she did not take out any more student loans but that her employer offered to pay towards a degree-seeking program.
By enrolling in school, it stopped the interest rates and her payments on her student loans.
Depending on your enrollment situation, federal student loans typically go into "in-school deferment," meaning you are not required to make payments and interest may not accrue during this period.
"Not all servicers will still charge you interest while you're enrolled in school," said Morgan, advising borrowers to research and confirm the specifics of their situation.
5. Sign up for Bi-Weekly Payments
In addition to signing up for autopay, Morgan suggested signing up for bi-weekly payments so money automatically debits out of your account every two weeks.
This allowed her to curb her spending habits because the money was essentially deducted from her check before she had access to her check.
Additionally, any time Morgan received a bonus at work, tax refund, or extra money, she would put it towards her private loans first.
"I utilized the 'snowball effect' by paying off the smaller amounts that were under $500. Each paycheck or extra money I had, I would pay off a loan. By paying off those smaller amounts first, I could see that I was making progress in paying off my loans, and it motivated me
to keep going," Morgan shared with us.
6. Search for Free Money
Another piece of advice from Morgan was to look for opportunities to secure "free" money to put towards your loans.
She gave several examples of how she made money without taking on a second job, including writing an essay for her local news station.
It was paying people to write essays, such as a teacher of the week story, so Morgan entered the competition and ended up winning $1,125.
Morgan managed to score thousands in free money by entering an essay contest, flipping items, reenlisting in the military, and making YouTube videos[/caption]
Morgan also scored shopping bargains and deals at retailers and flipped them for a profit on Poshmark, making $1,891.
Additionally, she received a $10,000 reenlistment bonus from the military.
Other ways to score free money include participating in research or making YouTube videos.
"It was not really anything that was out of the norm. I did not have to go clock in another job. I did not have to give my left kidney away," said Morgan.
7. Capitalize on Free Services and Barter
The last tip Morgan offered for saving money and more efficiently repaying your student loans was to make the most out of free services and bartering.
For example, she signed up to be a hair model for a local beautician and in exchange received a free haircut.
She also traded her videography services for free things at local stores or boutiques and would exchange YouTube videos for free clothing from retailers.
Additionally, Morgan runs a small blog. She noted that when events came to town, they would reach out to local bloggers and she could score free tickets in exchange for a blog post.
She also suggested capitalizing on work trips and turning them into vacation trips so you don't dish out extra cash on travel.
Following her own advice, Morgan managed to pay off $90,000 in 11 months.
She then paid off her remaining $83,000 in student loans within five months, with her next goal being to pay off her house.
"It gives you that momentum. It gets it going for you where you're just like, 'Wow, I can do this thing.' And if I can do it, I know for a fact you can do it," said Morgan.
The U.S. Sun previously spoke to a budgeting expert, who discussed why the popular 50/30/20 rule doesn't work and an alternative.
Plus, read everything you need to know about student loan repayment.
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