Caution federal student loan rates

CNN/Money reports that unless the President and Congress forge an agreement, federal student loan rates will double. See the following article: http://money.cnn.com/2012/01/25/news/economy/federal_student_loans/index.htm?iid=HP_LN

Worth reading

No, it's not a book about money, but it is a great read to examine the way we tend to live upon this earth. It challenges us to move beyond our self-imposed limits. I highly recommend, Michael A. Singer's, The Unteathered Soul, the journey beyond yourself. I hope you appreciate it as much as I have.

Know how to find joy in your life and pursue it

Last night, Victoria Azarenka beat Maria Sharapova 6-3, 6-0 Saturday night to win the Australian Open and take over the women's No. 1 ranking, all in her first Grand Slam final. Following her victory, Azarenka paid special credit to her grandmother, "the person who inspires me the most in my life." Azarenka has been a top player in recent years, but not yet won a major title before this weekend. Her grandmother shared with Azarenka before the Australian Open,you are not enjoying your life & work. Her grandmother at age 77 still works for a living in Belarus. Azarenka won more than $2.5M for her 2 weeks work! Her grandmother helped Azarenka discover the joy and privilege in what she was able to do, and therefore she was able to accomplish more than ever before.

What more can you accomplish! What do you wish to do with you life? As always, this message is not about earning the most money you can in your life, unless that is very important to you, it is about pursuing your dreams and enjoying the journey.

Home Ownership in Birmingham

The Birmingham News reported Sunday on a disappointing study related to the slow anticipated housing recovery in Birmingham. A hyperlink to this article follows: http://blog.al.com/businessnews/2012/01/birmingham-areas_economic_reco.html
I meet with prospective home buyers every day. Many of these clients are ready to buy, understand the joys, responsibilities, and risks of home ownership. Home ownership is a joy, is a positive benefit for our community when individual buyers are well prepared for this role. If you are considering buying a home, take the time to visit with a non-profit housing counseling agency and speak to them about your readiness. They will help you get on the right road toward becoming a proud home owner.

Medical bills, reduced hours, mortgage challenge, & too much Fed tax withheld

Spent time with clients recently who had fallen 4 months behind on their 2nd mortgage (1 month behind on their 1st). After reviewing client's finances, we found a missing opportunity together. Like many clients, this couple received a large tax refund each year, but had trouble paying bills currently. Clients will adjust their W4 at work to increase their take home pay substantially. As a result, paying their bills will become much simpler. Additionally, by calling their lenders together, we were able to lessen their foreclosure risks, and forge a path toward becoming current on their home loans! 

The joy of meaningful work

A client called today and shared that she will forever remember my help in enabling her to keep her home. This senior was threatened with foreclosure for her reverse mortgage loan for failing to pay her property taxes currently. Let's be clear, there is nothing simple about living on $750 per month.
I reminded her lender that there are @ 29,000 such individual situations in the U.S. I asked how much attention this lender wanted to their handling of this case? The lender accepted our proposed $50 per month payment to catch up on past due amount. Client shared today @ 6 months later that she has maintained this promise.
Doesn't it make sense to work with, rather than in opposition to others. Undoubtedly, we move far more gracefully, peaceably by flowing like water, and being mindful of the ripples we create.

New Year - Make the time to look at your financial picture

Many of us shy away from considering our financial picture. We are even more hesitant to discussing this picture with family or professionals. The new year is a great time to be more open to considering the way we spend, the way we live as reflected in our use of money. For those overdue for a money check-up, consider doing so today. 

A new excited home buyer!

I met with a client in late February related to the IDA Saver program. The IDA Saver is a program of United Way of Central Alabama(UWCA) that provides matching down payment assistance (or funds for a business, or funds for education to qualified, income eligible persons and families). Client is a single mother of three. In late February, client's credit score was in the high 400’s. Client did a great job following guidance, and came back in today December). Her credit score increased to 613. She and I were both thrilled with these results. She will move forward with the purchase of a home with UWCA’s help. It is an honor to be able to serve individuals and families in this manner. 

Another housing retention success storty

I celebrate every success story when clients receive a loan modification that enables them to retain their home. This week was another celebration week. A client experienced a loss in their family resulting in less retirement income (when we lose a spouse our social security income will decline, the living spouse will receive the greater of funds his or her partner received  rather than 2 checks). With reduced income my client became eligible for a HAMP modification. She received a reduction in payment this week of more than $200 per month. This reduction will enable this client to retain their home and live in greater financial serenity.  

Housing counselors can and do help

If you are having difficulty making your mortgage payment, do contact a non-profit housing counselor. You can locate such counselors on HUD's web site by following the attached link: http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm
I share the following story from my work as a housing counselor. I received a call  from a client who had been ill for the past 2 years and during this time, her homeowners insurance (HOI) lapsed due to her failure to pay her insurer a required $30 membership fee (most insurers do not have this requirement). The client's lender, when they became aware of issue, force placed insurance. This means they purchased a HOI policy to protect their interest in the home. Her home payment went from $487 to $854 monthly! The force placed insurance only protects the lender, not the client (this is always true as many learned when tornadoes struck Alabama in April). My client had tried with no success to obtain help from her lender. We called the client's lender via conference call and were able to cure this problem. Her reduced payment was restored within 5 business days as soon as her insurer called the insurance department of the lender affirming that coverage was restored. If you feel wronged by your mortgage servicer seek professional help.    

Recent college grad job search challenges

Here is a link to a NY Times article written by Robert Goldfarb, a management consultant, comments on recent college grad job search and criteria essential to companies seeking new employees. Worth reading: http://www.nytimes.com/2011/12/11/jobs/helping-graduates-find-their-footing-in-the-workplace.html?_r=1&ref=business

Student Loan Debt caution!

I am watching the Suze Orman Show and a call comes in from a NYU dental student approaching graduation. She shares that she has $450,000 in student loan debt and asks Suze how she will pay this debt back. Nearly everyday in my work I see people as a financial coach who have too much student loan debt, are often taking on more debt, and are having trouble meeting their financial obligations including student loan debt. I offer the following observations and cautions:

1. Approach educational opportunities and the financing of same carefully.
2. Understand what the financial outcomes of students in the program you are entering have been. What do people earn, how long before they are able to get desired job, etc. Be a smart school and school financing shopper.
3. Consider if the program of study is within your means and are likely to produce good outcomes for you.
4. Be particularly careful about private for profit education institutions including online institutions. The cost of these programs tends to be high, the student loan default is much higher than non-profit or public schools.
5. Understand that it is very difficult to ever place federal or private student loan debt in bankruptcy.
6. Treat the decision to attend a particular school and program, and in considering student loans, as carefully as weighing a choice of spending limited money in your bank account or wallet. For many, the use of other people's money (OPM) can be much easier to spend than your own. This is a major mistake.
7. Note, I believe in the power of education. I believe well chosen career paths, well chosen schools, well chosen education funding options are in your best interests. Any shortcoming in these choices can be and will be dangerous to your financial and emotional well-being long-term. Life is always about making good choices. Making the right choices for you and your life circumstance.
8. Remember some professions including teaching, social work, and others offer the potential to have student loan debt forgiven after working in a field for ten or more years and paying on your student loan debt during this period.
9. Look into consolidating federal student loan debt, and exploring Income - Based  Repayment Plans if applicable.