By Tom / December 21, 2016

The Raw Truth About Student Loans (What You Weren't Told)

The Live Your Dream Foundation [Proud Foundation Inc.] is a 501 [c]-3 non-profit organization providing grants, career opportunities, and other financial and educational support to help people eliminate their student loan debt or avoid it altogether. How can the Foundation help YOU live your dream

In this Blog post, the 1st in a 4-Blog series, it is my intent to set you straight on the facts about the Federal Student Loan Program, or actually “programs” as they exist today. Then I'll show you how to overcome them.

Here are the other three blogs in this series:
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In this post you're going to learn:

  • How to use certain rules of the Student Loan Program [that may differ from what you may have been told] to your competitive advantage.
  • How to build a proper pre-planning advanced education strategy that saves you money!
  • How to separate the scam-offers of loan relief from the legitimate ones.
  • What legitimate ways are there to wiping out your student loan balance that are the quickest and most beneficial to your current situation.
  • How to get that education you crave with someone else paying the tab!

So, Why Weren’t You Told?

About us, that is.

Or about anything else I may be about to surprise you with?

You thought you knew all there was to know about student loans, scholarships, grants, gifts and other educational assistance. Right?

Or, maybe you just didn’t know enough to look that far. After all, those smiling faces of the people offering you all this “free money” to go to school made it all sound so easy, didn’t they?

“Just sign here and you can go to school right now.”

Great! So sign you did, not really knowing the true ramifications of your actions.

You just wanted to go to school, convinced that with that degree, the world would later open up its welcoming arms and wipe away all of your troubles.

How did that work out for you?

Congratulations graduating class of 2014, you have the dubious honor of being…

  • The most indebted graduates ever with an average student loan obligation of $33,000, twice that of those graduating just twenty years ahead of you!
  • The group with the highest average monthly repayment of $380 at the average of 6.8% on a 10 year loan.
  • Dumped into the highest-unemployment, lowest-paying full-time work environment in decades.
  • The generation least likely to get a home loan as a result of your high debt burden.
  • Part of the post-recession demographic now known as the “Over-Leveraged”. You are now your own constituency.

Thanks a lot! Right?

All you wanted was to advance yourself by getting an education, but now look at where you’re are.

Before you ever have a chance to start your life you are now indebted to the Federal government to such a degree that your life choices may have just been permanently derailed or altered.

And if you are of the fifteen percent that kept borrowing enough to get that graduate degree so that your future was even more promising, you now find yourself in rare air. You are that truly fortunate group to have that six-figure student loan balance.

Quite a way to start out in life, huh?

Now, instead of spending your time developing a new business or finding that dream job, you have to worry about the IRS, the most diabolical collection agency in the history of mankind lurking around every corner of your life.

Those smiling faces that offered you that easy money didn’t bring those realities forward, did they?

And while they were smiling and you were signing, the universities kept raising tuition costs faster than the rate of inflation.

And why not?

As long as the free money was just a signature away, who would notice? Well, you did, right about the time your realization of how much debt you amassed hit you as one of life’s sobering wake-up calls.

It’s truly criminal what the U.S. Congress and the universities have done to force so many of our young people into a life of servitude and indebtedness as one of their first experiences as a young adult.

So, what do you do next?

Not Enough Income? Student Loan Crushing You?

Click Here To  Learn The Secret Way To Relief The Government Hasn’t Told You About >>

First thing you need to do is to cozy-up to the facts about the life you now find yourself tangled up in, and this post is to help you do just that.

Among these sobering truths, the good news is that you do have many options, several of which, I suspect, you will be learning for the first time.

Why you weren’t told about what I am about to share with you will remain a mystery for now, but at least you have come to the right place to turn all that around.

The way I see it, there are several facets of the “Student Loan Experience” you need to understand before you can set the proper course of getting yourself free of this burden.

Which program you find yourself entangled in comes with their own set of rules but, as you will learn from this series, there are things you can easily do to wriggle yourself out.

So, let’s get started understanding what these programs are all about, and what you can do about it.

As a business owner all my life I have developed a systematized manner of building a business, a process not unlike that if I were to embark on the journey of acquiring an education to start a career.

Before any business is built it starts with an idea. That idea is developed into a written business plan that then becomes the blueprint for the construction of the business.

It’s obvious that as many begin their quest of a dream career the common thinking is that acquiring a degree is the first step in acquiring that dream job.

How many people do you know that are currently working in a position that has nothing at all to do with the degree they worked hard for years to attain, and spent tens if not hundreds of thousands of dollars to get it in the process?

Of those that are fortunate to have even found a job...

ONE HALF (51%) of the entire class of 2014 are working in jobs that have nothing to do with their college major.

And that percentage only goes up each year after graduation.

These young people, full of enthusiasm but short on experience and common sense, think only of the “dream”.

They by-pass the “blueprint” stage of career planning and short cut right to the “execution” stage by opting for an immediate education, most times to later find out that many mistakes were made through the lack of proper forethought and planning.

Your 10 Simple Steps To No-More Student Loan Payments

Am I the only one thinking that before they started out on that incorrect life-path they could have been better advised to do some pre-thinking and a lot of pre-planning?

For instance, for your own career and educational path, did you follow a pre-planning strategy like something outlined here?

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If you did follow a pre-planning strategy like is outlined above, do you now regret any of your earlier decisions? Having a chance for a do-over, what would you have done differently?

Are you one of the 51% that rushed to class, borrowed heavily, and are not currently using the education you paid for?

I can only hope that if you are reading this you are one of the fortunate ones that are doing so before you rushed into debt, but if not, let me steer you clearly into financial aid-clarity.

Types of Financial Aid

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See this post for more detail on financial aid:

Financial Aid Tricks To Avoid Student Loans Altogether (Just Discovered)

Here’s a summary:

It costs an average of $100,000 to get a four-year college degree at a top school. If this is your option anyway, then look as closely as possible at grants to reduce that cost.

Do the math. If you want a good return for your college investment you must get $20,000 extra from your job per year. This is to pay the money back in a five-year period, a good return for your invested dollars. But not every college degree or job does this.

What is the value of your degree in the job market? What are the best jobs? (US News & World Report)

There are many types of financial aid available, public and private. According to the government’s Federal Student Aid office there are:


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Scholarships don’t have to be paid back either. Scholarships are gifts for a reason. For example, they reward academic achievement, athletic skill, musical ability, some desirable trade, etc. Sources for scholarships. (U.S. Dept of Labor)


Warning: loans can be easy to get into, but hard to pay back in the long run; a loan can be a trap. They aren’t easily forgiven. But, there is light at the end of the tunnel… The Proud Foundation can be of immense help.

See the post: Student Loan? The No-Payment Solution You Were Never Offered

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  • Subsidized and Unsubsidized Loans called Stafford Loans or Direct Stafford Loans are loans backed by the Federal government.
  • PLUS Loans are federal loans that graduate or professional degree students and parents of dependent undergraduate students can use to help pay education expenses.
  • Perkins Loans are low-interest federal student loans for undergraduate and graduate students with exceptional financial need.

There are a number of ways you can get your loans forgiven. I’ve detailed those options in a separate article.

See this post, the 3rd in my 4-part series:

9 Ways To Student Loan Debt FORGIVENESS No One Told You About (It Wasn’t In Their Best Interest To Tell You)

Ahh, the part you weren’t told about…

​What You Weren't Told?

Now, with all of that behind us, what the government, their minions, or any other non-interested party has not fully shared with you is this:

There are additional private entities that will not just provide you with financial aid, they will provide you further education and guidance to form your “career plan” that adds a level of thought that is much more valuable to you than mindlessly charging into a certain direction without thinking through the plan in the first place.

Many of which will also train you and then guarantee you a job!

Now think about it. Here’s a likely scenario of what has already taken place.

For instance, OK, you one day decide it’s time to think about a career.

The conventional path is you asking someone where to start. That someone leads you to some book or reference that shows you high-paying or in-demand careers.

You think, “hey, that one looks good, but it  requires a degree in such-in-such”.

So, you think, where can I get that degree? You pick a school.

OK, now, you think, “I need the money”. Where can I get it?

...and off you go down the rabbit hole I just talked about.

What that process lacks is a deeper look at whether or not those careers you looked at
  • are going to still be in demand when you would graduate,
  • if that is something you would actually like to do for the rest of your life,
  • how long and at what risk (accumulated debt) would you be exposed to, and
  • how does that career path compare to others, like actually building a business and making money on your own and on your terms?

Are there other jobs you could get involved with that are just as rewarding that do NOT require a degree?

“But Tom, how can I get a job if I don’t first have a degree?”

That is just want the universities want you to think. But the truth is, there are many other lucrative opportunities that do not require a college degree. Don’t think so?

These People Got Jobs That Paid For Their Training AFTER They Were Hired.

Did you know that Michael Dell, Bill Gates, Larry Ellison, and many other people made legendary successes out of their lives without completing college. Not that I place myself in that tier, but neither did I!

Have you ever considered owning your own business? Have you ever thought about it?

Do you think perhaps it might be a good time to consider other options BEFORE you commit 4 to 8 years of your life and spend/borrow tens or hundreds of thousands of dollars?

I can’t tell you how many attorneys and medical professionals I have personally coached, interviewed, or even hired that either hate their careers and want to get out at any cost, or are being forced out because of a changing industry that they no longer want to be a part of.

If this post does anything for you, my hope is that it gives you pause to slow down and actually think this thing through thoroughly. Give yourself some options by taking in some new ideas.

Here are a couple:

A career

For many, a line of work or an area of interest is the driving force behind their career pursuits. For others it is merely the hope of making a living.

What is a “living” to you? Are you to be the primary income earner in your family, or are you a supplemental or second income? How much per month or per year do you aspire to make? What do you NEED to make? What would be enough to satisfy?

Have you considered doing something that is satisfying in its nature while financially rewarding? Does that require a college degree?

Why sacrifice years of your life to land a job that pays no more or just the same as another job that only requires minimal training?

The Proud Foundation, my foundation as an example, is constantly expanding and looking for responsible full and part-time employees. Depending on the level of experience and willingness to learn, we pay our new employees anywhere from $10 per hour to start to upwards of $75 per hour, and the higher range does NOT require a college degree.

Let me repeat that.

With about two months of training that we provide, we move people from a $20,800 annual salaried position to as high as a $156,000 annual salaried position with no prior experience or additional advanced education. How does THAT compare to that job you looked at that required you to go deeply into debt for a four-year degree?

And here’s the kicker: If you had an existing U.S. Federal Student Loan balance you created prior to your employment with the Proud Foundation, simply by working for our non-profit 501 c-3 organization, each month you work with us you get one of the 120 credits you need to qualify to have your entire student loan balance forgiven by the U.S. Government!

You see, what you may not have been told is that under the Student Loan Forgiveness program you can work for a variety of governmental agencies or private non-profit organizations that will allow you, after 120 months of regular employment (minimum of 30 hours per week), to apply for total loan balance forgiveness.

BUT, the choice is yours: Would you chose to work for a government agency for [perhaps] minimum wage, or a private non-profit like ours for as little a s$10 per hour or as much as $75?

Starting Your Own Business

If we place less weight on the “careers in demand”, let me ask you: what are your passions?

Do you really think you can force yourself to “like” to do something for the rest of your working life that is NOT what you are passionate about? Why do you think the majority of degrees are no longer being used today?

Let me make it easy for you.

Someone “thought” they could learn to love something they trained for and got a degree in, but later

  • either could not find a job in that area, or
  • they worked in a job in that area for a while only to learn to hate it, or
  • they found something else they liked better that satisfied them financially.

So now, after all of that time commitment and student load debt incurred, they have this worthless degree that hangs there on their wall as a testament of all of the “Stupid Tax” they paid to get it.

“Stupid Tax”, a Dave Ramsey-cloned term that refers to a financial loss for a dumb or not-so-well-thought-out idea.

My Foundation offers a program that I designed to lead you through a thought, dream, research, and construction phase to explore exactly that – your passion!

  • 10 Simple Steps To A Job You Love
  • 3 FREE Info-Videos & Cheat Sheet


Imagine being able to make money from what you love most: pursuing your passions and loving your dreams that do not necessarily require a college degree. In fact most times they do not.

The example I gave about my Foundation offering full or part time salaried positions to those wanting to make a more-than-adequate living is only one possibility.

Another would be working for my Foundation for the same money, except you do it not as a salaried employee, you do it as an independent contractor running and owning your own business!

A service provided is a service compensated. Whether that be through a salary or a contract makes no difference to our Foundation.

Through our same training program you can learn the skills necessary, in just s few weeks or a few months, to land a good paying opportunity with The Proud Foundation, or take those same skills learned and start your own business doing something unrelated to my Foundation.

I hope you have found this post both informative and eye-opening. In either case, my wish is that it moves you to action, and action that has a better thought-process than the actions you have taken previously.

At least now you can never again ask “Why Wasn’t I Told?”