How are we Going to Pay for College?

Higher education in America is no longer as simple as getting good grades, getting into a school fit for you, possibly taking advantage of a realistic sized loan or scholarship, graduating, and entering the workforce. Today in 2013, Millennials alike myself, a 4th year undergraduate student, have many more worries upon graduating than generations before us. 

As I approach graduation time, I can only hope that I have a job to repay my student loans. However, hundreds of thousands of Millennials will try to shove our way onto the workforce escalator. Traditionally, as senior level executives stepped off of the escalator each year, room was cleared at the bottom of the escalator for recent graduates to take entry level jobs. Everybody who was already on the escalator, climbed up a few steps to take more senior level positions. Our workforce escalator worked this way for many past generations. Currently, my Millennial peers and I are in enormous trouble with our student loans because the escalator has come to a halt. Senior level executives are returning to work thus pushing everybody beneath them down the escalator. Additionally, the trend of people waiting longer to retire, leaves even more people on the escalator - people who would have traditionally stepped off the escalator long ago. 

This unfortunately leaves me and thousands of my fellow Millennials dreary eyed and standing at the bottom of the escalator trying to use a microscope to find any space to get ourselves onto the escalator. 

The combination of delayed entry into the workforce for recent graduates and the rapid increase of the cost of higher education should panic everybody. As a result of that, I will be introducing a new series on behalf of Credit Advocates, dedicated to steering prospective and current students and their concerned guardians in the right direction on the topic of Student Loans. 


Get to Know Your Loans 

Before you take any action to alleviate your debt burden, you need to know what type of loans you have. Different loans have different payment plans, so knowing what type of loan you have is imperative. Look up your loan on http://www.nslds.ed.gov/nslds_SA/ . If your loan is on that website, it is a federal loan and NSLDS will tell you which type. If it is not on the website, it is a private loan. 

There are many less options for those with loans with private banks. Private lenders are not obligated to work with you to accommodate your financial situation. You should always try to contact your lender anyway. Everybodys situation varies greatly, however you should prioritize paying off private loans before federal ones - they typically carry a lower interest rate. You could even chose a payment plan for your federal loan which allows you to put more money toward your private loan and pay it off first and ASAP. 


Budget, Budget, & Keep on Budget 

Credit Advocates recommends everybody to live by a budget. Having a budget and sticking to it is imperative for those paying off a debt. You need to live the lifestyle you can afford NOT the lifestyle you can put on a credit card and pay for later. Living the lifestyle you can afford and paying off student loans consists of budgeting your money. Think about what you spend the most money on, your impulse purchases (and how to eliminate these), and what you can cut back on. Think about how you can spend less to put that money toward your student loan payments. The faster these loans are paid off, the less interest you will ultimately pay. Options range from turning down a few invitations for drinks to spending time outdoors for free or even moving in with family members to allow you to get your finances in order. 

Living with your parents is never fun. But you know what is? 
Sending in your last student loan payment... and having that extra money every month which you would have had to put toward a loan. 

Another option for those who have weekday jobs is taking up a job on the weekends. This way you will be making money and won't be able to spend it on weekend outings! 

CACC highly recommends everybody to fill out a budget, even if you don't have loans to pay off. Being able to visualize your budget and see where all of your money goes can be an eye opener for many. 

Click here to go to CACC's site and do an online, interactive budget. Remember to be honest!! These numbers are meant for you to see where your money goes and help you budget. 
Change Your Payment Plan 

If you have federal loans, there are several payment options available for you. If you never spoke with your lender, you were automatically enrolled in the standard payment plan. This costs the least in interest, but has higher initial payments. And if you're like thousands of our fellow Millennials... that won't work for you. What you need to understand about payment plans, and repaying anything with interest, is the longer the payment plan is & the lower the monthly payment is, the longer you'll be paying back your loan and the more interest you will ultimately pay. 

Lowering your monthly payment should not be an impulse decision. The longer your payment plan is, the more interest you will ultimately pay. 

Click here to go to the Federal Student Aid website and view a chart of the different repayment plans for federal student loans. 


If there are ever any questions about what was covered in each blog post, feel free to e-mail me at rsimon@creditadvocates.org and check out Credit Advocate's website at creditadvocates.org for an interactive budget worksheet & debt calculator. 
Check back soon for more information on repaying your student loans! 

Information is power so don't be left out of the loop! 




email: rsimon@creditadvocates.org | website: creditadvocates.org 

There's No Place Like Home - Part 4

Credit Advocates is dedicated to educating tenants on their rights with a continuation to the series: There's No Place Like Home 

Make sure any agreement you have with your landlord is in writing & complies with current laws

If your building is sold to another landlord, he/she may attempt to gain control of your apartment if the agreement you had with the previous landlord is unenforceable. At the most simple level, all agreements must be in writing in order for you to prove that agreement even exists. 

Speak to other tenants

Multiple complaints from several tenants within the same building can not only strengthen a case, but you can save on attorney’s fees and make the landlord’s abuse clear to the court.

Act Quickly

Landlords know that tenants won’t fight hard to hold onto apartments if they’re in bad shape. That’s why it’s imperative to address bad conditions immediately and take aggressive action to protect your rights.

If you have a rent overcharge complaint, don’t go to Homes and Community Renewal 

Things may be improving, but still if you claim an overcharge at the HCR, you won’t be able to challenge the rent amount in Court if your landlord sues you. For decades, the HCR has been the target of major lobbying efforts by landlords, and became the worst forum for tenants. If you've already made a complaint to the HCR, check with a Tenants’ attorney about withdrawing the complaint and bringing your case in Court, where there’s a possibility for a much better outcome.You cannot make the same complaint in both courts - always make it in Housing Court and NOT Homes & Community Renewal. 

Don’t get blacklisted

If you are sued by a landlord, you can be blacklisted when you try to rent another apartment. Housing Court sells the names of all tenants who are involved in Landlord Tenant proceedings to background checking agencies. However, don't panic about getting blacklisted. Typically, unless you have committed a felony in your apartment, this will not happen to you. 

Rent-Regulated Apartments

You and your landlord are at war. Your landlord has a large financial incentive to get you out of your apartment. If you vacate your apartment, your landlord will get a ~20% increase on a two-year lease for a new tenant. This means if you were lucky enough to secure a rent controlled apartment, you need to be vigilant about protecting your rights.

Avoid revealing too much to your landlord & neighbors

If your rent-stabilized or rent-controlled apartment is not your primary residence, you can lose your rights to rent-regulated status and your landlord can evict you. If you have other real estate interests such as rental property, a vacation or second home, don’t let your landlord know it.

If you’re a senior citizen or disabled, look into freezing your rent

Senior citizens and the disabled can freeze their rent if they’re below a certain income ceiling. Often times, the tenant continues to pay their rent at the time of freezing it, and the landlord is compensated for the difference by a tax abatement. 

Visit this site to see how NYC seniors can freeze their rent and the requirements for doing so: http://www.mfy.org/wp-content/uploads/facts/HousingSCRIE(SeniorCitizens).pdf 

If anybody has any eviction or general housing questions, feel free to e-mail me at rsimon@creditadvocates.org - all questions and answers will be posted here on the Credit Advocates blog! 

And as always, protecting your rights begins by knowing your rights! 

There's No Place Like Home - Part 3

Credit Advocates is dedicated to educating tenants on their rights with a continuation to the series: There's No Place Like Home 

If you’re locked out or find an eviction notice on your door, go to Housing court immediately

It’s important to act as soon as you know there’s a problem. If possible, the first thing to do is call a Tenants’ Attorney, but don’t delay going to court if you cannot reach one. However, if you aren't knowledgeable about your rights and court procedures, anything you do or say, may be used against you. Even if you received a Marshal’s Notice of Eviction, further action can be delayed until the Order to Show Cause is decided upon.

Don’t expect your landlord to be fair, reasonable, or just

Landlords are businessmen and their business is collecting your rent. Landlords tend to blame tenants rather than taking responsibility for the cost of repairs. This is why upon fighting a landlord, is it imperative to document everything. Your landlord may also be aware of an inhabitable situation in an apartment, yet refuse to adequately fix it as a way to get you to move out. Bedbugs are an example of this. Tenants with a Bedbug problem are able to obtain a Court Order forcing the landlord to clean the building and eliminate the infestation.  Don’t hesitate to enforce your rights against a negligent landlord.

Keep a copy of your lease and related documents off premises, in a safe place you have access to any time

If you’re illegally evicted or lose access to your home, you must be able to bring your lease with you to court to secure your rights in court. You never want to be in a position where important papers are in your home, yet you are unable to get them because you are locked out. Keep a copy of your lease, last tax return or an official document with your current address (such as a utility bill) with a relative, friend, or attorney. This is a good idea even if you do not expect to have issues with your landlord. In instances of a flood, fire, burglary, or any unseen circumstances, it can be helpful to have these documents copied in a second, safe location. 


Protecting your rights begins by knowing your rights - Don't forget to visit again for more tips in part 4

There's No Place Like Home - Part 2

Credit Advocates is dedicated to educating tenants on their rights with a new addition to the series: There's No Place Like Home 

If you’ve been illegally evicted, call the police

Examples of illegal eviction include but are not limited to: 

• Being locked out 
• Having the door removed 
• Anybody using or threatening to use violence 
• Discontinuation or threatening to discontinue essential services (ex/ electricity, running water, heat) 
• Removal of your property or appliances 

There are many other methods of illegal eviction depending on your state. 

Be sure to document all offenses and if possible & take pictures! 

What to do if you are illegally evicted: 

• Call the police. Sometimes the police do not like to get involved and will claim it’s a civil matter. However, to trespass, to illegally evict you, and illegal eviction itself are all crimes – so it’s NOT just a civil matter. 
• If the officer refuses to help you, tell the officer, “The law says that under procedure 117-11 (this procedure refers to New York State specifically, however it is law in ALL states - the procedure name just varies), police are required to assist tenants in circumstances of illegal eviction, which is why I’m calling. I would like a police officer to come to my apartment and write up a report.”  
• If you do not get cooperation, ask for the name of the person you are speaking to and the sergeant or supervisor in charge at the 911 call center and speak with that person. If you still have difficulty, call your local precinct and repeat these steps. Write down the names and badge numbers of all police personnel you have contact with.

If the police come to your apartment or you have to go to the precinct, it’s tremendously important to get a police report documenting the incident. You want a written record of your illegal eviction, and any other relevant documents, which your attorney can show in court. Your landlord may even be arrested. If neighbors can back up your story, and the police can take statements from them, that can also help. 

If you must call to restore the utilities, explain to them the situation of illegal eviction and explore your options. Keep a log of everything that happens, along with a list of names, and the date and time of each conversation. Winning against your landlord requires evidence to support your position.

Be sure to have a copy of your lease and your Driver’s License is up-to-date with the address of the apartment you were illegally evicted out of to prove you live there. Mail sent to you at your residence is also proof of residence.

In NYC, if you were illegally evicted and have no place to stay, call the Emergency Unit at 1-800-994-6494 for temporary shelter. 

BE AWARE: If you were evicted with a legal court process and then try to break into your apartment, you become the criminal. Always remember, upon being illegally evicted, the first thing to do is contact the police.

A landlord may try to evict you for using your LEGAL right

A landlord may try to evict you if you have exercised a legal right (ex/ using the right to deduct from future rent the amount necessary to repair defects covered by the implied warranty of habitability – this amount cannot be more than one month’s rent) . A landlord may also raise the tenant’s rent or seek to punish the tenant for complaining or lawfully exercising a tenant right. In both cases, the landlord’s action is called retaliatory.

The law will assume the landlord has a retaliatory motive if the landlord seeks to evict you (or other retaliatory action) within six months of exercising any of these tenant rights: 

• Using the repair and deduct remedy - the right to deduct from future rent the amount necessary to repair defects covered by the implied warranty of habitability 
• Complaining about the condition of the rental unit to the landlord or a public agency after giving the landlord notice 
• Filing a lawsuit or beginning arbitration based on the condition of the rental unit 
• Causing an appropriate public agency to inspect the rental unit or to issue a citation to the landlord 

Protecting your rights begins by knowing your rights - Stay tuned for part 3 

There's No Place Like Home - Part 1

Credit Advocates is dedicated to educating tenants on their rights with this new series: There's No Place Like Home 

Each day, millions of people go to work with the ultimate goal of bringing home a paycheck. This paycheck is used to pay for food, utilities, clothing, education, and many other things. Yet, none of these expenses are more important and influential in a person’s life than a home.

The only way to truly protect yourself against cruel and greedy landlords is to know your rights. The Housing Court has always traditionally been in favor of landlords in many ways. During a time when the Housing Court cannot be depended upon to enforce tenant’s rights by manipulating rent regulation laws, rents are skyrocketing and fueling greedy landlords. Additionally, the practice of the courts reaching resolutions faster, as a result of flooded Housing Courts, often trounces tenants. Landlords have bottomless pockets and have deeply rooted political influence.

To protect your rights, you must know your rights. Most tenants don’t know their rights. Don’t be one of them. If you don’t know your rights, there is nothing to keep you from being taken advantage of. However, knowing your rights is NOT a substitute for hiring an experienced Tenants’ attorney to negotiate on your behalf.

Hire a Tenants’ attorney to represent you

If you want a fair trial, you need to hire a Tenants’ attorney. Most likely, your landlord will bring a well-seasoned, knowledgeable expert to defeat you. Landlord Tenant Law is very complex and it’s too easy to be pushed around Housing Court to be lost and without a lawyer. There are innumerable traps which can mislead you into giving up your rights.

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Only hire a Tenants’ attorney for a Landlord Tenant case

Lawyers who do not typically practice Landlord Tenant law are not familiar with the intricacies of Landlord Tenant law. Don’t hire a criminal, divorce, or corporate lawyer to represent you in Housing Court – this can hurt you more than help you. Even attorneys who practice real estate law are often unfamiliar with the complexity and loopholes of Landlord Tenant law.

You can’t be convicted without a Court process  

If a landlord tries to evict you without bringing you to court, it is called “self-help” – and it’s 100% illegal. A self-help eviction without going to court potentially makes your landlord liable to reimburse you for triple the amount of any costs you sustained. An example of self-help eviction is your landlord changing your locks. If over the next few days you stay in a hotel, must buy food, or use a phone as a result of being locked out, save all your receipts. At Housing Court, your attorney can argue that your landlord used self-help to evict you and show proof of expenses you incurred as a result.

If your landlord tells you to leave, don’t panic. Tell your landlord that only the Court can order you to leave. Only the City Marshall or Sheriff has the legal right to take possession of your apartment without your permission - and only with a court order. The City Marshall or Sheriff is required to give you written notice so you can go to court and get an “order to show cause” to stop the eviction. 

Protecting your rights begins by knowing your rights - Check soon back for part 2 

NY Times Article - The Long Shadow of Bad Credit in a Job Search

Back on my May 11, 2013 I was interviewed in a New York Times article entitled:

"The Long Shadow of Bad Credit in a Job Search"

I will post a follow up to this article on this blog, but thought I would post the article as many of my clients have had questions and request on this particular topic.