By Stephanie

For days I have been avoiding this post. I had planned to include the typical table showing our “ideal” budget, and then what happened with our finances in April. Want to know what happened to our budget in April?

Sinkhole. Enough said.

Sinkhole. Enough said.

And on that note, we are headed to our first vacation since I finished graduate school and started working full time again. However, our budget in May should be much more controlled thanks to assigned meetings, travel, and little time for much else given our busy scheduling. See you sometime next week – will send you nothing but positivity from the sand and sun of the Pacific!

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By Eric

We recently discussed how one of the best investments is in yourself through online education. Here are a couple of resources for find the right courses and education for you.

Free online courses:

1. Coursera. This is the one that I have spent the most time with. I am taking Introduction to Finance, but have tried to keep up with a couple others at the same time. My suggestion is to focus on one at a time and not bite off more than you can chew. These are offered by prestigious universities from around the globe.

2. Saylor.org. Saylor offers the greatest number of Massive Open Online Courses (MOOCs). They currently offer 111 courses, but they are tailored specifically for this organization and to increase access to undergraduate level education. 

3. EdX Ever heard of Harvard and MIT? Just kidding. This is the website where some elite schools offer their collection of online courses.

Free continuing medical education (CME) for healthcare professionals: 

4. Reproductive Health Access ProjectIn practice, clinicians learn and hold on to “pearls” of knowledge, of which there are many. The RHAP has created a free email CME resource called Contraceptive Pearls, where readers can earn free credit for updating their knowledge and realizing the latest evidence. Sign up here!

5. List of free Nursing CEUsIf you’re an RN and work life is busy enough, check out this website to find out the best online resources for free CEUs.

Bonus #6: If you already have access to UptoDate.com, you can receive continuing education credit by claiming the articles you have read. Take advantage of that subscription! 

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Then there is the free life and worldly learning received in the great outdoors!

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By Eric

CF asked us several questions through our email address theloanvoice@gmail.com. Here is one and our answer. 

Q: I wondered if you can consolidate a private loan if you only have one… I took two out in college, and finally finished paying off the smaller one this year (yeah!), but the one that remains is a bit of a monster. Did I lose my chance to consolidate?

A: I have great news for your CF! You CAN still “consolidate” your single private student loan. I just confirmed by phone with a Wells Fargo Student Loan Representative the information I found online.

You’ll have to decide if a variable or fixed rate loan is best for you, and find what out what terms your lender is willing to negotiate.

Remember that the way that the payments go down is generally by making the loan longer and collecting more interest over the life of the loan. The end result is that you will pay more, but it makes that monster seem more like this guy….

 

Much smaller monster compared to Godzilla.

 

You might even be able to go to your current lender and tell them you need a better deal otherwise you’ll go somewhere else. And given the size of debts we’re generally talking about, that could be a lot of lost profit for them if they lose you.

Thanks for the awesome questions! And we’ll keep looking for answers to the others for next week!

 

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By Eric

I’ll be keeping an eye on the news each week so that you don’t have to. Here are a few highlights from this past week. 

Loan Voice News Banner

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Student loans: Ben Bernanke’s son medical school debt to reach $400,000

Newsday

What happens when even the best paying jobs in America are out of reach due to student debt?

“…Even Federal Reserve Chairman Ben Bernanke’s son can’t expect to escape the debt burden. The elder Bernanke testified before Congress last year that his son is on track to leave medical school with $400,000 in loans. The figure may include accrued interest and undergraduate costs. His son attends Weill Cornell Medical College in New York, according to the school directory. Bernanke, through a spokeswoman, declined to comment…”

“…The majority of medical scholars — like most graduate students — finance their educations with loans. The interest rate on federal loans for graduate students is 6.8 percent for Stafford or 7.9 percent for Grad Plus, far higher than the benchmark U.S. 10-year Treasury note, which was 1.78 percent yesterday. Congress sets student-loan interest rates, which are typically higher than mortgages and car loans because they don’t require collateral and are given to borrowers who have no credit histories….”

Ben Bernanke sets the interest rate, and even his son is not immune. Credit: Newsday

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Obama and student loans: a closer look
Washington Post

This is an amazing run-down of all the different types of student loans that students might face in the current year and what politics and budget changes might do that affects them. 

“…On Wednesday, President Obama proposed a major shift in the interest rate calculation for federal student loans: tying the rate to the government’s cost of borrowing, which is a variable benchmark. Currently loan rates are fixed by statute. Prospects for enactment of the Obama plan are uncertain. But Congress faces pressure to at least debate loan policy because the rate on a key type of loan will double — again, by statute — on July 1 unless lawmakers intervene.”

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How Much Money Does the Government Actually Make from Student Loans?

The Atlantic

I have been doing some research on this very topic in the last few weeks, and thankfully The Atlantic has jumped ahead of me. There’s a ton of good content in this article, but here’s a gem that I couldn’t pass up. 

“Terry Hartle from the American Council on Education (a leading higher education trade association) broke it down more practically in the Times:

If the numbers are accurate, the government will make more money on student loans than Ford makes on automobiles,” he said. “Using student loans to create a profit center is not what anybody intended.”

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More news to come next week!

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By Stephanie

Eric and I have both been to university. I was the first person in my immediate family to be accepted into a Bachelor program, and the first to attend graduate school. Eric comes from a long line of Michigan men and women. Education means the world to us, to how we have been able to find our way, and to what we have chosen to do in our lives. And we want to go out of our way to encourage everyone in their search for education. If you find yourself with additional funds within your monthly budget, or extra time in your budgeted week and weekend, consider contributing to local education efforts. Here are a few things that have moved me more than usual lately, in both heart and mind.

Those most in need

I recently finished listening to the NPR’s This American Life two-part series on Harper High School in Chicago, IL. In this series, three reporters follow Harper High in its experiences of gangs and violence on the South Side of Chicago. Students and staff alike are struggling to find the way of education in the fury of life and survival. We live in this community – there are people, human beings, seeking education, in a world so very different but so much the same as our own. The Chicago community and WBEZ listeners have been so moved by this series that there is a ‘Friends of Harper High School’ donation page for those interested in contributing. If you haven’t already, absolutely check out. (Bonus: one of the reporters is Alex Kotlowitz, author of “There Are No Children Here.”)

HaperHighSchool

 

 

Update: We just discovered that the Gates Foundation has awarded two students at Harper High School funding as Millennium Scholars. This will cover full tuition and room & board. And if they decide to attend graduate school that will be covered too! Congrats!

The Top-Down, Big Pockets and Big Changemakers

Within the past week, Target started re-broadcasting their “Acceptance” commercial on television, which showcases high school students’ first moments of learning about their admission into college. Perhaps that moment is not as emotional for everyone as for those in this advertisement for Target’s corporate responsibility work, but it was that emotional for me, not just once, but twice. There was that realization of an opening door, an opportunity, not always easily achieved. Target’s work toward corporate responsibility in this effort really hits the mark.

Work with those who worked for you

We are also thankful for an incredibly well-organized alumni organization who reaches out to local communities to bring awesome enrollees into our alumni ranks. If you are not already involved in your university’s alumni organization, this is yet another reason to join in a collective fashion in the name of educational advertising.

UMAlumniGroup

 

As we discuss long term financial planning each week, we do so not with the intention of simply meeting all of our essential needs, but of building a successful life. And for us, that means helping as many people as we can to not have to experience the burden and obstacles that students loans create.

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By Eric

Today is what I am hoping is the first of many beautiful days to come this season, and so I was inspired to write about saving money in the summer season.

1. Water bottles. Some people prefer stainless steel canteens, some like nalgenes, but I prefer store-bought fresh-off-the-self recyclable pre-filled water bottles. I make sure we have a case in the trunk at all times. When I’m in dire need of water, it’s not the container that I value most but what’s inside. Rather than hitting a vending machine, 7-11, or the corner store for a $3.00 bottle of Dasani (and many times, when I’m at this point I need a second, or a friend does), I grab one out of the trunk of my car. Honestly, by buying them on a regular basis, I probably save about $40 over the summer. Now you may be saying, “But isn’t it cheaper to fill up a reusable one?” Well yes, but when you’re at the beach or out playing tennis and there isn’t a place to fill up, you’re out of luck. And if your car begins to overheat, it’s a lot more expensive to replace an engine block than to grab a couple bottles out of the backseat. Savings = $40. 

Also, keep a couple in the freezer to defrost over long car rides or days at the beach.

2. Air conditioning. It’s easy to see a jump in your cooling costs over the summer. A $50-100 increase per month in nothing to scoff at. See if you can optimize a combination of room fans and AC. The average fan will cost you about $3 per month, but potentially save you a lot more. Depending how long you can hold off: Savings = $100. 

3. Happy Hour. When the weather starts getting nicer and the days get longer, I am often attracted to inviting a friend or co-worker out for a refreshing beverage after a long day. A $6 beer, split a plate of nachos, another beer, and very quickly you’ve totaled up a bill that was more than you intended.

Instead, make a pitcher of iced tea or a large batch of your favorite adult beverage in the morning and head to your patio or a park at the end of the day. You’ll probably save both of you and anyone else in your party around $30 that night, and will have just as good or bad a time as if you were in a dark and stuffy bar. Savings = at least $20 per week. 

4. Summer concerts. As most of you know, we try to have a dedicated date night once a week. Fortunately we love outdoor concerts that don’t break the bank. We know for certain that Columbia, MDNew Haven, CT, and Chicago, IL all have a concert in the park series that plays at least once a week. Grab your blanket and a couple of PBJs and enjoy some great live music. If the act isn’t very good, you haven’t wasted any money and you probably enjoyed just catching up. Savings = $50 per week. 

5. Sun block. Now this one isn’t a direct savings, but the alternative is quite costly. Chances are that last year’s sunscreen in your bathroom cabinet is expired by this year. Buy a new tube for this season now! Maybe it will prevent you from buying a new bottle of aloe when you realize the old one didn’t work, or maybe it will prevent a very serious melanoma. I can’t quantify the savings on this one, but it’s just not worth the risk.

Total Savings = a couple hundred dollars.

A vacation, a new bathing suit, Lollapalooza tickets, or (less fun) debt repayment? Whatever you do, put it to good use!

Friends don’t let friends forget sun block! Pete W. helps me reapply without my consent. I was thankful in the end.

 

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By Eric

We found a version of this map that was probably made with MS Paint 1997 and could not even be properly read. I think there are some real surprises here when it comes to the southern states.

Stephanie: “Why did we have to move to a dark state?”

Eric: “You probably made it that way by yourself!”

(laughter on both sides)

Debt Map

By Stephanie

I have come to terms with the fact that I am late in life to popular things. This happens often. The latest meme, and even knowing what memes were. Vadar-ing seems like it was going on in galaxies far far away before it even hit my radar. And last week, a smug Physician Assistant student laughed at me for not knowing that I could check out library books on my iPad and read them, anywhere, for free. Sigh. Then a feeling of triumph for free reading! 

Relishing in my paperbacks, the crisp pages, and my scribbled notes, will continue to occur for my favorite reads. I, however, have a resolution this year to not purchase any new books, and to read my current supply. Unfortunately, a number of new releases are catching my eye, with my wallet snapped shut. Solution?!?!? My library card + the Kindle app for iPad and iPhone. Boom. Done.

Does your library offer the same options? Get thee to a nunnery, er, to a library and obtain a library card, log into your online account, and see if it hooks up with Amazon and allows you to download straight to your device. Smart? A bit, even if delayed. Brilliant?!? YES!

 

CPLdownloads

My gateway to freely staying up on popular literature!

 

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Even the leader of the free world had to pay student loans. And it took writing two best-sellers to speed up the process.

 

 

By Stephanie

women like men cheaperTuesday was dubbed “National Equal Pay Day” by President Obama, to bring further recognition to the work of equalizing women’s and men’s reimbursement for employment, education, seniority, and contribution.

Student loans are distributed at the same frequency, with the same interest rates, and with the same payoff requirements to both women and men. There is no recognition of the difference in pay grades once out of school. Forget how exactly accurate the 77% figure is, and the discussions about adjusting for all factors. The fact remains that women make less than men in equitable positions. It is an interesting thought – we all repay our student loans in the same way, and are expected to meet the same loan repayment requirements. None of this is fair.

Don’t get me wrong. I am in no way arguing that women should have an alteration in how they repay student loans. Rather, I am suggesting that the argument around equal pay consider how equally men and women pay out their earnings, including in paying off student loans. Higher salaries would pay off student loans more quickly, and allow those earners to contribute to national economy at a faster pace. Those student loans pay for an education that enters them into a workforce that values women and men differently. Period. Things need to change.

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