New Rage: Loan-Payoff Parties
When Cherie and Brian Lowe of suburban Indianapolis threw a party last spring, 150 well-wishers came bearing casseroles.</br></br>This was no birthday or anniversary bash. Mr. Lowe, a lawyer, and Ms. Lowe, a stay-at-home mom, both 36 years old, were celebrating an accomplishment: paying off $127,482.30 in debt, mainly student loans.</br></br>Partygoers came from as far as 200 miles away. Some had never met the Lowes but followed their quest through a blog called Queen of Free. Guests won prizes such as personal-finance books, museum passes and homemade cleaning supplies. One friend sang "Sallie Mae Is Not My Lender" to the tune of Michael Jackson's "Billie Jean."</br></br>Americans are struggling with student loans like never before. Outstanding student-loan debt hit a record-high $956 billion in the third quarter, and 11% of student-loan balances were at least 90 days behind on payments, according to the Federal Reserve Bank of New York.</br></br>Some borrowers are fighting back, using a combination of extreme frugality and extra part-time jobs. And a few who win the battle by retiring their bills early are marking the triumph in style.