STUDENT LOAN CASE STUDIES

Carol was an artist, a painter with a degree in fine arts. For many years she made her living as an elementary school
teacher. She managed her student loans effectively, consolidating when rates were low and making regular payments. But
eventually she realized that if she wanted to progress as a teacher, or move into commercial art, she needed more training.
She was admitted to a graduate program in commercial art, quit her job, cashed out her retirement (for living expenses) and
moved east to enter the program. She took out another student loan to defray the cost of tuition and books and equipment,
and began to study once more. Unfortunately, she didn’t thrive in the program and after one year of the two-year program
she was dropped.

Carol had no job and no job prospects. She came to Las Vegas because she knew people here, and she knew Las Vegas is
building schools rapidly and hiring teachers just as rapidly. She discovered that Las Vegas is hiring newly graduated teachers, not experienced teachers who command higher salaries. The best she could do was substitute. And it was summer, so there were no positions for newly hired substitutes. Carol’s consolidated loan came out of deferment as soon as she left school, and her new loan
would go into repayment six months later.

For a while she was able to keep her head above water by burning through her savings, but eventually she ended up homeless.
That’s when I met her.

Because she now had more than one student loan, I was able to advise her to consolidate as quickly as possible, before the new regulations went into effect. Carol was successful, despite her lack of employment, and her new consolidated loan carries a fixed
rate of 4.8% for twenty years. This means that once she finds employment, the payments will be manageable. And because she consolidated, she got back her deferment and forbearance time. Carol relocated to Texas where she had long experience as a
teacher – and her permanent certificate – to look for employment. Because of her financial situation, she was able to qualify for food stamps, which also qualified her for an economic hardship deferment. Carol will take whatever kind of employment she can find. She enjoyed teaching, but she understands she needs to work to support herself. Being homeless wasn’t much fun. Meanwhile, her
loans are in deferment, which is the most effective way she can manage them at this time. If you’re looking for a hard worker in the
El Paso/Las Cruces area, I’ll be happy to pass along your contact information to Carol.
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