Lydia Haff cut monthly payments by $350 with free NEA tool
Posted: November 16, 2021
When Lydia Haff, a ninth-grade English teacher at Waianae High, graduated with her masterʻs degree in July 2020, she faced a student loan payment of $691 every month.
“When I graduated, I owed around $63,000 in student debt,” Haff said of her combined student debt from earning her undergraduate degree at University of Hawaii–West Oahu and masterʻs online at Southern New Hampshire University. “I was freaking out because of how hefty my student loan was supposed to be with a standard payment.”
Haff said her initial “monthly payment was totally beyond my ability to pay, and the anticipation of this amount per month caused a lot of stress.”
Because of the pandemic, Haffʻs student loans have been in forbearance under the CARES Act, giving her time to explore options for managing her debt.
She found out about Savi, a free online student loan evaluation tool, while serving as the Member Services Committee chair for Leeward chapter at an HSTA conference. The tool, offered in partnership with the National Education Association (NEA), is free for HSTA members.
“Getting set up with Savi was easy,” Haff said. “The website guides you through the process step by step, contacts your loan servicer for you, and submits all the necessary paperwork. I didnʻt have to do anything besides fill out the Savi tool.”
Making loan forgiveness easier
Simplifying student loan forgiveness has been making headlines recently, and for good reason: the U.S. Department of Education is seeking to reduce and eliminate billions in student debt by making it easier to qualify for forgiveness, eliminating barriers for qualifying, and offering fresh reviews of applications that were rejected in the past.
David Negaard, an English teacher at Baldwin High School on Maui, spoke to Honolulu Civil Beat about his experience getting his debt canceled.
“I’ve been treading water,” Negaard said of his $115,000 debt. However, he just recently learned that under the new temporary expansion and reform by the U.S. Department of Education, he is likely eligible for up to $90,000 in debt forgiveness.
Modifications to the long-dysfunctional Public Student Loan Forgiveness Program provide hope to borrowers sinking under the weight of their student debt. Yet, navigating the forgiveness process can still be tricky.
Haff, the Waianae teacher, said, “There are a lot of little things that the federal government requires in order to qualify for loan forgiveness, which explains why I have heard of so many people getting denied when they believed they were meeting all the requirements.”
Haff said when she tried to figure out her student loan forgiveness eligibility before using Savi, she ended up “frustrated and confused” trying to figure out the “hoops” of qualifying.
Taking advantage of the free tool
According to the NEA, members who use the free Savi tool are projected to be forgiven, on average, $32,555 with an average monthly savings of $129.
Now is a good time to take advantage of the tool, as the COVID-19 forbearance on student loans expires Jan. 31, 2022, meaning regular payments will resume.
Haff said, “I will start making payments next year when everyone is out of forbearance, but thanks to the Savi tool, my payments will be significantly lower.”
Haff maintained that the whole process of getting set up with Savi took about 30 minutes. She did research on the payment options Savi recommended for loan forgiveness and made her decision based on the specifics of the income-driven payment options the tool suggested.
Enjoying financial freedom
By using Savi to cut her payments, Haff learned that she will be able to get her loan forgiven in 10 years of income-driven payments.
“I am currently working on becoming better educated in regards to my financial health,” Haff said. “Right now, this means sticking to a reasonable budget and saving a healthy amount of money. The Savi tool has helped me to reduce the amount leaving my bank account toward my student loans, opening up the amount I can put into savings.”
Haff recently used her savings to achieve another milestone: purchasing her own home. “Owning a home is something I thought I would only be able to accomplish once I was in my 40s or 50s,” she said. “I never thought I would be able to afford a home as long as I was a teacher.”
Gayle Enriquez, HSTA Membership Services Committee chair, also encourages teachers to take advantage of Savi.
“We need to recruit good teachers to the profession, and Savi helps educators deal with their debt so they can focus on what really counts — their students,” said Enriquez, a fourth-grade teacher at Pahoa Elementary on Hawaii Island.
To those who havenʻt yet tried Savi and are looking for reprieve from their debt, Haff said, “Use the Savi tool! It will save you a lot of headache, time and stress.”