Welcome to Michelle is Money Hungry, a podcast focused on having real and empathetic conversations about the intersection of money, policy, and politics. In my view, personal finance and money isn’t just about working hard. I’m spending the ENTIRE SUMMER talking about the potential for student loan forgiveness, the cost of education and is this policy an overreach or necessary? In this episode I speak with Ja’Net Adams of Debt Sucks University. She shares how she paid off $50,000 in debt, has a fascinating take on how people perceive other’s lifestyles and the impact on policy and some down to earth advice everyone needs to hear about affording college. Seriously, student loans suck and it’s time to talk about it.
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CashFreely
As a result of my debt experience, I was really skittish about ever getting another credit card. I hate to admit that when it was finally time to sign up for my first card in years-I chose badly. I hate this new credit card and I wish that I had known about CashFreely when making this decision. What I love about this free tool is the following. It helps credit card users stay organized when using different cash back programs.
You don’t have to worry about leaving cash on the table. CashFreely helps credit card users optimize the different cash back rewards programs that may be a part of current cards you’re using or future cards that you may be considering in the future. And just maybe, that extra cash can be applied as an extra payment on your student loan. Again, this is a free app or you can use the website and I think you should check it out. Click on the link in my show notes
Listen to the Episode
Student Loans Suck with Ja’Net Adams
Ja’net-I am Ja’Net Adams, I am the owner of Debt Sucks University and I talk to people around the world about how I paid off over $50k in over 2 years.
Michelle-Could you share what that debt was and how you paid it off.
Ja’Net-When I got married I found out that my husband came into the marriage with $25k in student loans and $25k for a car.
Michelle-What happened that made you think you should pay this off? Most people don’t mind this amount?
Ja’Net-I got laid off in 2008 and I had a one year old.
Michelle-What did you do to pay this off?
Ja’Net-It was basically survival mode and it took about 4 months for me to find a new job and we cut everything out.
Michelle-With this backstory, why are you “pro” Student Loan Forgiveness? What are the things that you’re hearing about this policy? Why is this a “yes?”
Ja’net-It was put in place during the Bush administration-2007 and only 1% received their forgiveness and other administrations weren’t keeping their promises. Every time I share something on social media about student loans, it gets a ton of engagement.
Michelle-Why do you think this has become a multi-generational issue?
Ja’net-It starts in high school and you have a parent or guardian who doesn’t tell you “no” and people get caught up in the prestige going to certain college and you get people borrowing Parent PLUS loans as well. Students and guardians get sucked into this.
Michelle-I was thinking about student loans in terms of long-time graduates vs. Parent Plus loans where relatives borrow on behalf of their dependents. My question would be-why is it that people are saying “yes” vs. saying “no” Do people these loans are financial risk?
Ja’Net-We’re trying to impress other people and parents and guardians have a hard time saying no without realizing that everyone is doing the same.
Michelle-I didn’t go to college because I cared about what other people were doing, I went to college because this was an opportunity. What would you advise people to do to better their lives absent a student loan.
Ja’net-I’m a first generation grad. I was asked if you could do it over again would you go to college? I told them, of course I would. But, I would say you could go to the cheaper school.
Michelle-What are people getting wrong about Student Loan Forgiveness and what are they getting right?
Ja’Net-This was put into law. This is not a whim. I ask people “How would you feel if the promise that was made to have social security and it’s not fair to any one else.”
Michelle-It is clear that there is a problem with the cost of college. But, nowadays we have technology where people are really talking about the cost and ROI. What about the people who are long past college and it is clear that something went wrong.”
Ja’net-There are several repayment programs that are now available for people to use. And, the campaign promise from President Biden of $10k, that’s the only way that I currently see people receiving some relief. On the flip side, people showing their lives on social media is all about the fun. People are going on trips, buying stuff, etc. We need to look at policy regarding-they were made these promises.
Michelle-If you were designing this policy, what would you do?
Ja’Net-I would find a way to keeps schools accountable for price. What about the people who are currently in school now? Lastly, teach financial literacy in high schools. To help educate students on attending schools that they could actually afford.
Michelle-What would be the responsibility of the school? I tried to get a feel for why this is happening before working on this project. I used to study in Paris I spent $4,000. When I think about the cost of college in the US, it’s expensive. What’s the responsibility of the university regarding cost.
Ja’Net-There has to be accountability on the part of the university and some do opt to send out “debt letters.” That are taking that step. In order for that to be a universal measure, Congress would have to do something about this. If higher ed was held accountable there would be a lot more preemptive measures vs. just The Government being on the hook.
Michelle-What is your feeling around the $10k student loan forgiveness and how borrowers would react to that number. I feel like this administration may have hurt themselves with that amount as a speaking point on the campaign trail.
Ja’Net-There are 4 different student loan forgiveness programs currently available and the current administration has to clean up what the previous administration chose not to do. The Department has multiple scopes of responsibility ranging from ADA, etc. And millions of dollars have been forgiven already. I know of a young lady that got $140k forgiven under permanent disability. Please know that it’s an election year. You may get $10k or you won’t.
Michelle-One of the things that has come up is the lack of awareness around the different programs around what is available to people NOW.
Ja’Net-This is really frustrating for me. So many people could get money forgiven. It infuriates me because employers should have had workshops with their employees to help them get their paperwork in. If you’ve been working since 2007 and people don’t even know that. Have until October 2022. We’re trying to reach as many people as possible. You need to do this ASAP.
Michelle-If you were to give advice to someone over 30 listening to this series.
Ja’Net-Make sure you look at ALL of your options. You also have to make a financial plan to pay it off. I tell people to look at student loan debt like any other debt. Find extra money and pay towards the principle. It’s the same process, it doesn’t matter what the debt is.
Michelle-I hadn’t considered that the optics of how people live may impact how people view a policy.
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