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Education

Money blogger shares how she paid off $34,000 in debt by embracing 'no spend' months

She paid it off now to enjoy herself later.

via Pixabay/Pexels and TheSavvySagittarius/TikTok

The No Spend Month calendar

Elyse Lyons, a 28-year-old from Nebraska, is a money blogger and budgeting whiz who conquered a whopping $34,000 in debt over two years by having “no-spend months.” During no-spend months, the goal is to spend as little money as possible each day.

“When I was 22, I was in $34,000 worth of debt because I had student loans, car payments, and some credit cards,” she told Good Morning America. “And I knew that if I wanted to enjoy my life a little bit more, I had to pay it off.”

That’s when she devised her no-spend month strategy.

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If you’re looking to save money like Lyons, she recommends buying a calendar and jotting down the few days you might need to part with some cash, such as buying gas for your car or going food shopping. The calendar is also a way to track and celebrate your money-saving wins. It's a fun, visual reminder of your journey to financial freedom.

She also recommends making a list of things you didn’t buy, and if you keep returning to that item, find a way to put it in the next month’s budget. The entire process is all about being intentional and conscious about your spending habits.

“The goal is not to create shame around spending. It's to see who you are at your core and what your actual spending habits are about,” Lyons said. She also said the goal shouldn’t be to restrict yourself to spending $0 daily.

“Extreme deprivation is not going to work for your budget for long,” she added.

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Education

Princeton just made college more affordable by ditching student loans and covering tuition

This sounds radical but it's actually life-changing for students who qualify.

Photo by Joshua Jen on Unsplash

Princeton just made college more affordable.

Many parents know the excitement and apprehension that comes with college application season. We encourage our children to reach for the stars and then sticker shock sets in when they get into their dream school. It's a feeling that will quickly apply the gravity of Jupiter onto any excitement you might have been feeling as a parent, but Princeton, an Ivy League university, is about to change lives. The prestigious school recently announced that it has removed student loans from its financial aid packages and will cover the tuition including room and board for students whose families make less than $100,000 a year.

Whoa! This is huge news, but this isn't the first time Princeton has done something like this. Even before announcing this monumental change, it has granted free tuition for students from families making less than $65,000. The income limit increase will allow the school to help more families afford a higher education. Granted, most kids applying for college won't qualify for entrance to the school due to its highly competitive admissions process. But there are plenty of teens that do qualify and can't attend because the price tag isn't always covered completely by financial aid and scholarships.

Photo by Dom Fou on Unsplash

The current cost of attendance at Princeton for the 2022-2023 academic year is $79,540, which includes room, board and miscellaneous fees. On average, college costs between $11,631 to $28, 238 per year for a public university depending on whether the student is considered in-state or out-of-state. For a private college, the average cost is $43,775. The price difference between Princeton and the average cost of tuition is staggering, but it's Princeton, one of the most prestigious colleges in the United States.

Princeton eliminating the option for student loans in 2001 and now providing a free education for qualifying students will help them graduate without any college debt, likely changing the course of the students' lives. The average student loan borrower owes more than $30,000 in student loans, which has been shown to affect their ability to purchase homes and increase their personal wealth. Eliminating school debt for students from low and middle class households will allow for upward mobility and an easier path forward to building wealth.

But Princeton isn't the only school that took the option for student loans away and offered up free education. Colgate University announced in 2021 that it would do away with what some call predatory student loans and replace them with grants funded by a $1.3 billion endowment. The private New York college also made tuition free for students whose families make $80,000 a year or less.

Photo by Davide Cantelli on Unsplash

Colleges are hearing the concerns about the amount of student debt people have to take on—an issue that causes some people to opt out of college altogether. Yale, Amherst and Harvard have also cut loans from their financial aid packages, vowing to work with parents to provide enough aid through grants that loans won't be needed. If more schools take this approach we could eliminate the normalcy of graduating with mountains of student loan debt that seems to grow no matter if you make timely payments or not.

Sure, it's Princeton and other Ivy League schools that are using their deep pockets to give their students the best start, but if they can do it, what's stopping other schools from reworking their numbers? Student loan debt relief shouldn't begin and end at elite universities. Taking a hard look into the student loan crisis and finding tangible ways to address it at the colleges themselves could lead to an economic shift in the future. Hopefully other colleges continue to take note.

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Education

I escaped generational poverty by amassing college debt. Loan forgiveness will change lives.

My own children have never experienced coming home to no lights or running water. They will never have to escape from poverty because they don't come from it and I don't know that I'd be able to say the same if I didn't make the choice to accept student loans.

Photo by Jasmine Coro on Unsplash

I escaped poverty by going into debt.

I don't come from money. In fact, I come from the stark opposite. My mother was one of nine children who grew up in an abusive household that was well below the poverty line and her mother grew up poorer than she did. This cycle of poverty goes back as far as I can trace, so it's no surprise that I also grew up poor. There were days when the only thing we had to eat was peanut butter on a spoon during the day to keep us satiated until dinner because it was the only meal that day.

That's not for lack of trying on my parent's part. My stepdad worked a full-time job and lived the hustle life before it became coined by millennials and slapped on a mug. The one thing that was consistently impressed upon me by my parents was the importance of going to college so I could do better than the generation before me. But there wasn't a roadmap for me to follow. Neither of my parents had gone to college at the time and really didn't know the requirements to get in nor the process of applying for financial aid. Since this was before Google, there was no information readily available at my fingertips. There was no financial literacy to pass down to their children when their only goal was survival.

The Biden Administration has done something unprecedented in the history of the United States by forgiving $10,000 of student loan debt for Americans making less than $125,000 a year (less than $250,000 if married or head of household). If you received Pell Grant assistance while in college, you qualify for up to $20,000 in student loan forgiveness. To qualify for the Pell Grant you have to be in great financial need, which means I also received this money to assist with college expenses. But contrary to what some believe, the Pell Grant isn't a large sum of money, so loans are still necessary, even for people like me who worked while in school. Escaping poverty is expensive and exhausting and a program like this will help others break the cycle.

Photo by JESHOOTS.COM on Unsplash

While most are focused on the loans being forgiven, there's a piece of information being overlooked that could make a big impact on people's lives. Under the new debt relief plan, people who are on an income-based repayment plan can now cap their monthly payments at 5% of their income. Previously the repayment amount was capped at 10% of a person's income.

Obviously such a big move has set off a firestorm of conversation around who should and shouldn't get it, or if it should be done at all. But the conversations around student loan forgiveness don't account for the fact that not everyone starts from the same place at the starting line. It's easy to say people should know what they're getting into when signing up for student loans if you grew up with a different set of circumstances.

Photo by Kenny Eliason on Unsplash

For people like me, student loans were the only way out of poverty and I'd do it again. Because I took out debt to pay for a college education, my children won't have to do the same. They will now have a financially literate parent to walk them through the process, explain complicated forms and help them find more cost-effective alternatives. My own children have never experienced coming home to no lights or running water. They will never have to escape from poverty because they don't come from it and I don't know that I'd be able to say the same if I didn't make the choice to accept student loans.

While forgiving $10,000 to $20,000 worth of student debt for a select group of people isn't ideal, this could open up the door to future borrowers. The awareness around predatory lending to students, the continuously growing cost of college and the stagnation of wages could lead to real policy change that would impact everyone. No student should be saddled with insurmountable debt just for getting an education and this is hopefully the first step toward ending this practice.

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Education

Her mom was helping pay off her student loans. When she passed away, the debt had doubled.

Photo by Towfiqu barbhuiya on Unsplash

person holding brown leather bifold wallet

College is expensive. Parents work multiple jobs, put pressure on their children to perform at the top of their class in order to earn merit scholarships, all in the hopes for college to be mostly paid in full. Inevitably many students and parents have to take out student loans in an effort to fill in the gaps left by financial aid.

In the case of one Twitter user, Michelle Miller, her mother agreed to pay back half of Michelle’s student loans to ease the burden on the new graduate. After graduation the daughter owed approximately $30,000 and, split between the two of them, it meant they would each need to pay back $15,000.

Michelle lamented on Twitter about how her mother insisted on paying back her agreed-upon portion of the student loans though the daughter offered to take over payments. When Michelle’s mother informed her that the original $15,000 turned into $40,000 after interest, Michelle decided to save money in preparation to take over payments. However, her mother refused to allow it. Miller’s mother was expected to pay $400 a month on the student loans, but this would cut into her retirement, leaving her below the poverty level. To her mother, it was worth it to hold up her end of the bargain. Unfortunately her mother became unexpectedly ill and passed away before she was able to retire or pay back the loans. When going through her mother’s paperwork after her death, Michelle was met with a shock.

The loan amount had doubled. Michelle’s mother hid that the interest rate on the loans had brought the grand total to $80k that she could never afford to pay back. But this story is not unique. Many borrowers go into debt thinking the benefit of the degree will outweigh the burden of student loan debt but the cost of an education continues to skyrocket and the interest rate on loans makes paying it back nearly impossible. When you go to school and take out loans, you expect to be able to afford monthly payments and hope to pay it back in a timely manner, eventually freeing up income, but that’s not always the case. A lot of people find themselves in a similar situation as Michelle’s mother. They take out a dollar amount that is repayable, only to look up and see they’ve repaid the original balance but they still owe more than they originally agreed to borrow.

man wearing white top using MacBookPhoto by Tim Gouw on Unsplash

If stories like Michelle’s are the norm, why aren’t we doing more to regulate student loan companies? Presidential candidates like to talk about student loan forgiveness, and some have come up with actionable plans, but it doesn’t solve the long term issue of student loan practices. The truth of the matter is that children who three months prior had to ask permission to use the bathroom are now expected to understand the long term implications of borrowing money from a company that doesn’t care that the average person can’t pay it back plus interest.

Seventeen- and 18-year olds with a dream of attending college and questionable loan practices is a perfect storm for continued crisis in the student loan arena. Until we can figure out how to better regulate the lending companies in charge of student loans, the next generation will repeat the cycle. People shouldn’t have to choose between pursuing their dreams and taking debt to the grave.

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Free college is becoming a reality across America as 30th state is set to pass funding bill

Photo by Leon Wu on Unsplash

Graduation is easier to celebrate when you're debt-free.

Taking on college-related debt is something that most Americans now expect when graduating high school, especially if their parents are middle class or working poor. There are only so many scholarships to go around and so much you can earn from work study. In fact, the average millennial has just under $40,000 in student loan debt and Americans owe around $1.7 trillion in student loans. Taking on large amounts of debt fresh out of high school has become the norm, but that may be changing soon.

Some states are already offering two free years of college for graduating high school students, and now the 30th state is ready to sign on to do the same. Some states are taking it further than two years of free college and extending it to four years with the option to use the program for trade and technical schools as well. In New Mexico, the Opportunity Scholarship provides free college to its residents and expands that even further to include adult learners, returning students and immigrants regardless of immigration status. That last provision is unheard of, because, contrary to popular belief, undocumented immigrants are not typically able to participate in any sort of government funding or programs due to their lack of social security number and other documentation needed for participation.

The long-term effects of free college could be massive for the average American. It would open up the door for other opportunities that may have otherwise been hindered by holding so much college debt. Homeownership would be easier to come by for graduates due to an inherently lower debt-to-income ratio. It could also allow college graduates to save more money for retirement, a down payment on a house or to open their own business because they wouldn’t have to spend a large portion of their earnings on student loan payments. This could help bridge some of the wealth gap between higher earners and people that went into a lower paying profession such as teaching or social work.

Thirty states signing on to this type of initiative would bring us much closer to having universal college. And this would help give a fighting chance to those who may feel like they started life on the lowest rung. New Mexico’s Higher Education Department Secretary Stephanie Rodriguez told CNBC, “We want to be the national example of how you create a higher education ecosystem system that’s inclusive and accessible, so nobody is turned away from the opportunity to go to college.”

Maine would be state number 30 to allow for free college if the bill passes. Governor Janet Mills has proposed a plan that would make two years of community college free. When speaking to CNBC, Morley Winograd, president and CEO of the Campaign for Free College Tuition, said "If we get to 50, it's mission accomplished." Most are “last dollar” scholarships, which essentially means that any federal aid and private scholarships would be applied first, and the state-funded scholarships would cover the remaining balance.

If all 50 states signed bills similar to the ones in the other 29 states, it would make free college a reality and many families struggling with how to afford to send their children to college would rejoice.

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New Mexico approved free college and people are calling on all states to follow their lead

Governor Michelle Lujan Grisham/Facebook

New Mexico has passed the most wide-ranging free college legislation of any U.S. state.

The student loan crisis that has been brewing for decades has reached a fever pitch in the U.S. The cost of college tuition has been on a steep upward trajectory since 1980, far outpacing wages and resulting in many student borrowers being buried in mountains of debt they have little chance of repaying.

Since 1980, college costs have increased by 169% \u2014 while earnings for workers between the ages of 22 and 27 have increased by just 19%...source: https://www.cnbc.com/2021/11/02/the-gap-in-college-costs-and-earnings-for-young-workers-since-1980.html\u00a0\u2026pic.twitter.com/UGBq8Vwi2e
— Caroline Schagrin (@Caroline Schagrin) 1637606950

In fact, many students end up not making a dent in their loans, even after paying on them for years. One report found that even among students who made voluntary payments to their Navient loans during the student loan payment freeze, 63% were "underwater," meaning they owe more on their loans than what they originally borrowed. Some even owe more than 150% of the original loan amount. And these are people who are actively trying to pay down their loans, making payments when they technically didn't even have to.

It's truly a crisis, which is why we saw such a push for student loan forgiveness being put on the agenda during the 2020 election. That hasn't happened, but at least one state is taking a big step toward mitigating the college debt problem.

New Mexico has passed a bill that makes all in-state public and tribal colleges—both 2-year and 4-year—free for all residents, as long as they enroll in at least six credits and maintain a GPA of 2.5. That means residents can take classes part-time or full-time without worrying about tuition.

The New Mexico Opportunity Scholarship Act, which Gov. Michelle Lujan Grisham signed into law March 4, makes New Mexico the first state to waive tuition for all public colleges and universities, regardless of a family's income. Some states offer free community college programs and a handful of states have state-sponsored scholarships for some students at state universities. New Mexico has just upped the game, waiving tuition across the board.

And people are loving it.

The signing of the law was received as "good news" by those who advocate for affordable higher education.

Some bright news during these dark times: New Mexico has become the first US state to implement state-wide tuition-free college! Can't believe so little attention was paid to this monumental achievement.https://twitter.com/GovMLG/status/1499876403885395969\u00a0\u2026
— Austin \u738b\u4e4b\u822a \ud83c\udf39\ud83c\udf4a \ud83c\uddfa\ud83c\udde6 (@Austin \u738b\u4e4b\u822a \ud83c\udf39\ud83c\udf4a \ud83c\uddfa\ud83c\udde6) 1646714075

Hey! Yes, you. \nStop your doom scrolling. \nAll we seem to hear about are the terrible, inhumane, cruel laws republicans pass, but while we were busy doom scrolling, NEW MEXICO JUST SIGNED INTO LAW a bill that makes COLLEGE TUITION FREE!
— Hairball \ud83c\udd98\ud83c\udf0a \ud83c\udff3\ufe0f\u200d\ud83c\udf08 \ud83c\uddfa\ud83c\uddf8 \u0423\u043a\u0440\u0430\u0457\u043d\u0430 \u043d\u0430\u0437\u0430\u0432\u0436\u0434\u0438 \ud83d\udc99\ud83d\udc9b\ud83c\udf3b (@Hairball \ud83c\udd98\ud83c\udf0a \ud83c\udff3\ufe0f\u200d\ud83c\udf08 \ud83c\uddfa\ud83c\uddf8 \u0423\u043a\u0440\u0430\u0457\u043d\u0430 \u043d\u0430\u0437\u0430\u0432\u0436\u0434\u0438 \ud83d\udc99\ud83d\udc9b\ud83c\udf3b) 1646697122

Good News Alert:\n\nThe state of New Mexico has signed a bill to make college tuition free.\n\nIt will waive tuition for any students attending any in-state public school or tribal college, including community colleges.\n\nSome 35,000 students are expected to benefit this year alone.pic.twitter.com/Q8oqLKqxQT
— Goodable (@Goodable) 1646792704

Some asked why all states or the federal government don't do the same.

It's not an unheard-of idea, by any means. More than a handful of countries in Europe and some in South America, Africa and Southeast Asia offer free college education.

If New Mexico can make college tuition free, why can\u2019t all states do this ? Why can\u2019t , or why won\u2019t @POTUS pick up that pen and #CancelStudentDebt for all , not just some?pic.twitter.com/QcyTYuTytb
— Lisa Johnson (@Lisa Johnson) 1646701704

It\u2019s official! Free CollegeForAll!\n\nThank you, @GovMLG. Now it\u2019s time to make public college free, nationwide!https://kvia.com/news/new-mexico/ap-new-mexico/2022/03/04/governor-signs-free-college-bill-expands-coverage/\u00a0\u2026
— Rep. Melanie Stansbury (@Rep. Melanie Stansbury) 1646435692

In her speech given prior to signing the law, Governor Michelle Lujan Grisham explained how the law will help provide flexibility and opportunity to people from all different backgrounds and circumstances and remove so many of the barriers that prevent people from getting the education they need or desire.

"College is too damn expensive," she said.

Indeed, it is. Congrats to New Mexico for this historic move to make higher education more accessible for everyone.

Watch Gov. Grisham speak at the 20:30 mark:

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Nicki Minaj is a lot of things — rapper, business mogul, and now, the patron saint of cash-strapped students.

Minaj just announced the winners of her Student of the Game contest, all of whom will receive financial assistance for school straight from the "Chun-Li" singer herself.

After narrowing down finalists, Minaj chose 37 people to support — with money going toward everything from tuition to equipment to helping pay for some students' AP tests and get others back into school (because you know the FAFSA isn't all it's cracked up to be).

The reactions to her act of generosity were more than just a little enthusiastic.

Here's just a selection of responses to the announcement:

— (@)

And a special congrats to this person, who said they were winning something for the first time in their life and really hitting that jackpot:

— (@)

How did this begin? In May 2017, a fan asked Minaj to pay for his tuition, and it started a movement.

Minaj was promoting a contest for a fan to join her at an awards show at the time. And after she let it be known that she could fly anyone from anywhere to hang out with her, one fan hit her with an important question: Could you help me with my tuition payment instead?

The tweet was (mostly) a joke, but Minaj not only paid the fan's tuition — after she verified he was picking up straight A's — but started paying off other fans' tuitions, too. She helped more than a dozen students at that time.

This makes me so happy. [A few from the other day] I'll do another impromptu payment spree in a month or 2 but pls know that I'm launching my official charity for Student Loans/Tuition Payments VERY SOON! You'll be able to officially sign up! I'll keep you posted! 🎀
A post shared by Barbie® (@nickiminaj) on May 12, 2017 at 10:34am PDT

Imagine making a joke and getting that phone call.

And Minaj isn't done yet. She's said she's going to keep the scholarship running — hopefully until there are no applicants left or she runs out of money.

The artist has always been outspoken about the importance of education. She's been preaching at her fans to stay in school since the beginning, sometimes even telling them to skip her concert if the choice was between watching her perform and planting their butts firmly into their chairs for first period.

Here's Minaj yelling at her stans to stay in school from a moving vehicle:

And at a 2012 concert in Denmark, Minaj asked "Where my girls in school at?" "Don't you drop out of schools, barbs, OK?" she implored.

The scholarship proves that she's not just paying lip service to the message. I can't wait until a college names an entire wing after her.

student loans

Money blogger shares how she paid off $34,000 in debt by embracing 'no spend' months

She paid it off now to enjoy herself later.

Princeton just made college more affordable by ditching student loans and covering tuition

This sounds radical but it's actually life-changing for students who qualify.

I escaped generational poverty by amassing college debt. Loan forgiveness will change lives.

My own children have never experienced coming home to no lights or running water. They will never have to escape from poverty because they don't come from it and I don't know that I'd be able to say the same if I didn't make the choice to accept student loans.

Her mom was helping pay off her student loans. When she passed away, the debt had doubled.

Free college is becoming a reality across America as 30th state is set to pass funding bill

New Mexico approved free college and people are calling on all states to follow their lead

37 fans got a life-changing surprise from Nicki Minaj: lots of money for school.

Nicki Minaj is a lot of things — rapper, business mogul, and now, the patron saint of cash-strapped students.

The reactions to her act of generosity were more than just a little enthusiastic.

How did this begin? In May 2017, a fan asked Minaj to pay for his tuition, and it started a movement.

And Minaj isn't done yet. She's said she's going to keep the scholarship running — hopefully until there are no applicants left or she runs out of money.

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