Which student loan repayment plan is right for you - EXPLAINED!
ฝัง
- เผยแพร่เมื่อ 4 ก.ค. 2024
- Which student loan payment plan should you choose? Is the new SAVE student plan right for you or should you go with the 10 year, standard student loan payment plan?
This is your ULTIMATE GUIDE TO STUDENT LOAN REPAYMENT PLANS in 2023!
In this video I explain all eight student loan repayment plans according to who they are best for! (Standard repayment plan, Extended Repayment Plan, Graduated Repayment plan, SAVE payment plan, IBR payment plan, PAYE repayment plan, ICR repayment plan, and ISR repayment plan)
Links mentioned:
⭐ Student Loan Simulator to calculate your student loan payments:
studentaid.gov/loan-simulator
🎁 DOWNLOAD MY STUDENT LOAN CHEAT SHEET THAT GOES OVER 13 DIFFERENT FEDERAL STUDENT LOAN FORGIVENESS PROGRAMS 🎁
Get the Cheat Sheet here: www.msmoodymoney.com/hello
🎁 GET THE AWESOME EMAILS! Be a Smarty Pants - Get my weekly emails full of actionable, useful tips and education so you can stop stressing about money and just enjoy your life! 🎁 (no spam, just the good stuff)
www.msmoodymoney.com/newsletter
Get the 1-MINUTE MONEY MOVES checklist that will help you save more, stress less, and get control
www.msmoodymoney.com/checklist
FILL UP ON GOOD KARMA BY GIVING THIS VIDEO A "LIKE"! Thank you from the bottom of my (ever-growing) Grinch-y heart.
Ms. Moody - former librarian, current financial feminist, and money educator.
Join the club to chat moolah with like-minded women - Scrimpin' Ain't Easy, just like the library, we're talking stacks on stacks on stacks. msmoodymoney/groups/scrimpin
Wanna read a good money book for beginners?
"The Index Card" by Helaine Olen and Harold Pollack
- Get it from your public library: www.worldcat.org/oclc/928750850
- Get it from Amazon: amzn.to/2Lm1iHv (To keep my videos free, this is an affiliate link meaning I may receive a portion of the purchase price - thank you for supporting this work!)
-Get it from a local bookstore: www.indiebound.org/book/97801
...Looking for a book a bit more advanced?
"Dumb Things Smart People Do With Their Money" by Jill Schlesinger:
- Get it at your local public library: www.worldcat.org/oclc/1140204982
- Get it from Amazon: amzn.to/2La9VUN (To keep my videos free, this is an affiliate link meaning I may receive a portion of the purchase price - thank you for supporting this work!)
- Get it from a local bookstore: www.indiebound.org/book/97805
Thanks for watching!
Heads up: All the content is for educational purposes only. Ms. Moody is not a licensed financial advisor; she’s a librarian, money nerd, and educator. As personal finance is personal, to find out what is best for you, consult a financial professional. Users are solely responsible for any actions they take.
This video is protected under US Copyright law. If you would like to reuse any of it for your own work, you must have explicit permission from the creator (Ms. Moody). Please contact me for permission before using any part of the video.
Chapters:
00:00 - 1:00 - intro
1:01 - 1:50 Plans not based on income
1:51 - 2:44 Who should uses the standard student loan repayment plan
2:45 - 4:24 Who should use the graduated or extended repayment plans
4:25 - 5:57 Income driven repayment plans basics
5:58 - 7:47 Discretionary income, SAVE vs IBR
7:48 - 8:20 Problem with SAVE plan
8:21 - 8:42 Best plan for PSLF
8:43 - 9:08 Parent PLUS loans and ICR
9:09 - 10:07 If you have Stafford and FFEL loans
10:08 - 11:00 Problem with IDR plans and what you should do right now
Thank you for laying this all out so clearly and for making a cheat sheet! It really helps when you say generally who should choose which plan.
Hi @LoreleiWakefield - wonderful! That was my goal and I'm so happy I seem to have achieved it! Thanks for watching! -k
Thanks for posting!!
Who else is still confused ?
She did a wonderful job explaining them but I feel like my brain cant take all this right now 😢
Hi @A1b2c3d4e5f6g7h8iish - Thanks for the kind words! It's genuinely confusing, you are not alone.
Maybe your brain just needs a little time to absorb all the info. I'd go to studentaid.gov, look at the type of loans you have, play around with the loan simulator to see what your payments would be on the different plans, and consider your current budget and what's best for you. Then come back to this vid and hopefully it'll make more sense 🤞🤞🤞
Thanks for watching! -k
This was extremely helpful! I was having a hard time navigating through all these options and this made it a lot more simple 🙌
Hi @kassidyswanson8378 - yay! 🥳 I’m so glad I was able to help. Thanks for watching! -k
THANK YOU! It’s so hard to navigate all these plans and what’s best for our ultimate goals. I learned so much more from you than reading that financial aid website. I have liked and subscribed!
Hi @veronicamahathre1243 - so glad I could help, thank you for your kind words and I hope you enjoy the channel!! Thanks for watching! -k
You are amazing! I am well versed, but the all the changes are SO are to keep up with.
Hi @amandahewittdesign - it is hard to keep up with - that's why I make these vids so the average person can understand their options better. Thank you for the kind words and thanks for watching! -k
love your content!
Hi @julievo1991 - thank you for letting me know!! -k
Thank you for the detailed explanation,! what if my income increases or decreases over the years will that change my monthly payment under the save plan?
Hi @helmitrabelsi5418 - your payment will be readjusted yearly to reflect your updated income and household size. Thanks for watching! -k
Great info THANK YOU!!!!
Hi @lizardo02 - you're welcome, thanks for watching! -k
oh wow thank you so much for laying all this out. They should hire you. SO HELPFUL!
Hi @jackieschram - aww shucks, thanks for the kind words, I’m so glad you found this useful! I have a lot of other vids all about different aspects of personal finance, be sure to check them out for more good info😀
Thanks for watching! -k
Thank you for your videos!!! I swear they make this stuff confusing on purpose
Hi @mjroxmysox101 - it is GENUINELY confusing, so glad I’m able to help you make sense of all this. Thanks for watching and let me know if there’s anything in particular you want an explainer on! -k
Thank you!🙏
Hi @thelordraj5412 - you’re welcome, thanks for watching! -k
thank you for this video!! with save- can you make higher payments to pay the loan off before the 20 years? i want to make higher payments than the calculated monthly amount but want to have a lower monthly payment requirement in case i cant make the higher payments on the 10 year plan. also, do you do personal counseling sessions?
Hi @helloalex3174 - you can make extra payments, just be sure to tell the loan servicer that you want the payment applied to the principal OR the next payment (default is to apply it to the next payment)
Yes, I do personal counseling sessions - but encourage people to go the free route first and call your loan servicer or the department of ed. I LOVE helping people, so if you still want to chat with me after trying the free route, you can set up a 45 minute AMA here: www.msmoodymoney.com/services-new
Either way, be sure to get on my mailing list so you don't miss any of my fun weekly emails with actionable tips and money help from a librarian (www.msmoodymoney.com/newsletter)
Thanks for watching! -k
I actually paid off my student loan during July 🎉
Hi @chillbrunchgirl5088 - that’s great, congrats!🎉🍾🥳
Thanks for watching! -k
Cool story bro
I & I'm hatin on you in March😂🎉🎉🎉🎉
Ha! We like to celebrate everyone’s wins here at The Money Librarian - even when they aren’t our own! One day you’ll be able to post this yourself!
Thanks for watching! -k
Awesome job
Thanks!!😊
Thank you!!!!!!!!
You’re very welcome!!!☺️ -k
Ty for sharing 🫡
Hi @kindgdomspouse27 you are welcome! Thanks for watching! -k
Thank you so much for this, you helped break down everything so nicely. If the estimated payment is 0, would it be wiser to get on IBR, as it is capped to the standard 10-year repayment amount? As a drastic single-income change or joint-filled taxes wouldn't raise the payment in the future? Or would SAVE still be the better option as the interest would stop. Also, I currently have around 14k so it wouldn't qualify for SLF in those 20 years regardless, correct?
Hi @alv9356 - if your payment is $0 on IBR your balance will continue to go up as the interest accrues so if you don't want that to happen, SAVE is the only option that stops the balance from rising. You can switch plans at any time and you'll keep your payment count (note PAYE is closing to new applicants summer '24) should you have a drastic change to your income.
You get PSLF forgiveness in 10 years (is that what you mean by "SLF"?) - whatever is leftover after paying on an IDR plan for 120 qualifying payments will be forgiven. I have a vid on PSLF forgiveness here: th-cam.com/video/XrJ0D_uIn-I/w-d-xo.html
Hope this helps and thanks for watching! -k
I think I want to do the SAVE plan but I’m not sure if making large payments will somehow disqualify me. I want the lowest payment possible just in case (I only have $13,600 left) but even if my payment is like $200 I want to make like $500-$1000 payments every month. Do you think that is smart? All my loans are direct undergrad. My goal is to be student loan free within the next year.
Hi @TommieMarie - Sounds like a solid plan if your goal is to be student loan free within the next year! This would give you flexibility to have some cash should something happen, but still pay it down if you choose to use your cash that way.
Thanks for watching! -k
Wow thank you so much for this!! I’m in PAYE (with all graduate student loans) so I wasn’t thinking about switching to SAVE, but I didn’t know about the changes for discretionary income to 225% under SAVE! Thank you for making such a clear video with important points for us to consider!!
I liked PAYE because it did not take my spouses income to account, which kept monthly payment lower. Any way you can explain how thats changing for SAVE? I read that if you’re married filing separately they won’t use spouse information now is that correct?
Hi @MrMaui38 - I’m so glad you appreciated the discretionary income part!!! I was afraid I’d bore people too much!😂
You are correct, according to the press release I link to in my vid about the SAVE program (th-cam.com/video/Iz1C8Ou-Bgc/w-d-xo.htmlsi=9MjJbtjlOiR6pt7V) one of the benefits is that married filing separately won’t include spouse income when deciding on payments with the SAVE plan.
Thanks for watching! -k
@@themoneylibrarian thanks! Now I need to figure out if filing my taxes separately (and losing the filing jointly tax breaks) is worth the lower monthly payments in my case. I’m sure a lot of others will be wondering the same thing! Not sure what your background is, but if you have any taxes experience that would be a really interesting video!
Hi @MrMaui38 - great idea! I’m sure lots of people would be interested in that. Thanks! -k
@@MrMaui38It’s no different. Each file married but separate. Each , individually get a single exemption, which would total same as if together. Pretty sure.
I have a question for you - if I chose the SAVE plan, does the payment I make go towards reducing the principal? For example, I have a $50K loan, my interest rate is 5%, so, right now monthly interest payment would be $208 ($50K * 5%/12). However, due to my income, I would pay $50/month on the SAVE plan. This is obviously way less than the $208 in monthly interest, which the government covers and therefore does not get added to the balance of what I owe (according to what you said) . So, would the $50 I'm paying be applied to the principal of the loan ($50K)? Or, are they just using my $50 to cover a piece of the interest and my principal is not decreasing? Thanks!
Hi @jakelunney2641 - I love how much math your question includes - you’ve been doing your homework!
On SAVE, your payment is applied to the interest first, any part of your required payment that is more than the interest goes to principal. Given the scenario you presented, if you paid your minimum your principal would not go down BUT the gov would cover the rest of the interest so it wouldn’t go up either.
That said, anything above the required $50 will go to the principal (you have to ask them to apply overpayments to the principal otherwise they’ll consider it an early payment) as the gov is waiving the rest of the interest.
I have a vid all about the SAVE plan, you may find it useful: th-cam.com/video/Iz1C8Ou-Bgc/w-d-xo.htmlsi=O61jgl7VVYpPlIAZ
Hope this helps and thanks for watching ! -k
I just submitted the form this is what i needed to know
Hi @hienienguyen6766 - awesome! Good luck and thanks for watching! -k
my loans are consolidated and have been for a long time. I was originally on a 30 year payback plan. the 20 year loan mark is Nov 2024 for me. My loan balances are at $15k @2.7%[it was a good year for interest]. the save plan calculator says I will payoff the full value before the 20 year mark if I switch now because the payments will be 1,600/mo. under a standard plan i would pay 270/mo.
So... my plan is to stay on standard[or graduated] for another 13 months [paying as little as possible since I'm so close to 20 years] then switch to SAVE right at the 20 year loan date and have the 20 year forgiveness almost immediately. Have I understood everything you've said correctly that I can actually do this?
Hi @egary1974 - I suggest you contact your loan servicer as there is a recount going on in 2023 you may need to be on an income driven repayment plan to be a part of in order to get these years of repayments to qualify for the 20 year forgiveness. It COULD be that if you don’t get on an IDR plan this year they won’t count those 20 years of payments if you switch next year but only your loan servicer or the department of education can tell you for sure.
Good luck and thanks for watching! -k
Hi, is it a good idea to consolidate parent plus loan in order to apply for an IDR plan? Thank you in advance
Hi @slycatto2904 - normally you can’t consolidate PPLs to get on another IDR plan but there’s something called the double loan consolidation loophole that you can do before July 2024 to get parent plus loans on another IDR plan. If you want to get payments already made to count towards your forgiveness count then you have to have BOTH consolidations done before the end of this year and consolidations take a month or two to process so you may be cutting it close if you do this now but it’s worth looking into
If, after learning more about this option, you decide this is right for you, Here’s a great video from @StudentLoanPlanner that walks you through the process:
th-cam.com/video/gkdrRaXi7P0/w-d-xo.htmlsi=Vkwh4HD_sjAHBspg
Good luck and thanks for watching! -k
Great video!
What qualifies as PSLF and how long do you have to do PSLF for your loans to be forgiven after 125 qualifying payments?
Hi @Chan12282 - I have a few vids that should answer all your PSLF questions in just a few minutes -
Overview of the PSLF program: th-cam.com/video/XrJ0D_uIn-I/w-d-xo.htmlsi=S-_0D5SvWViwpl91
What to do NOW if you plan on getting pslf: th-cam.com/video/gGX7WOwjMjo/w-d-xo.htmlsi=kiLh_06-o-KDQoVt
Hope this helps and thanks for watching! -k
If you’re married filing jointly, both have student loans, and want to do SAVE or another income-based plan do both spouses have to do the same plan?
Hi @simparq - I don’t believe so but I recommend you contact the department of education so they can confirm. The rules on student loans and married couples can get really complicated, so they can look at your loans and let you two know your options. Thanks for watching! -k
I appreciate your guidance! I have a unique situation that I would like your insight on. I have 1 sub and 2 unsub loans. I am in the military with SLRP where they pay off my loans. They make yearly lump sum payments until my loans are completely paid off. However, I am still making monthly payments. Should I just go for the SAVE plan? The loans will be paid off in 4 years.
Thank you again for your help!
Hi @stu2865 - I am unfamiliar with the SLRP program, do you mean they make a lump sum to the student loan servicer but not enough to cover 1 year's worth of payments so you're still making monthly payments?
Will they be paid off in 4 years based on your current payment plan? If so, changing to the SAVE plan may change when the loan will be paid off.
If you're in the military, you may be eligible for PSLF (after 120 payments, even if they're paid by a separate grant, as long as the payments are made and you meet all the other requirements you should be fine) - I have a video on that here: th-cam.com/video/XrJ0D_uIn-I/w-d-xo.html
Thanks for watching! -k
@themoneylibrarian When I joined the military, I already had existing student loans. One of the benefits they offered was the Student Loan Repayment Program (SLRP). They will pay down 15% of your existing student loans each year over the course of a 6 year contract. I have 3 more years until my loans are completely paid off by the military.
The unusual situation is that I continue making monthly payments even though the military will pay off my loans. I want to apply for a plan so I can pay the smallest monthly. Is the SAVE plan the right move for me?
Hi @stu2865 - From what you're saying, it sounds like they pay 15% of your balance every year in one lump sum, leaving a balance that you pay the monthly cost of (?). This is confusing to me because in this scenario they'll never pay off the loan, only 15% of it yearly, leaving you with the rest so I feel like there's more info here than I'm aware of and am not in a good position to offer assistance.
Here's what I know-
Normally, when you overpay federal student loans you have the option to have that overpayment put to either future payments or the principal. It sounds like they are having it put to the principal leaving you with the regular payments - correct?
If you are looking to get the lowest monthly payment possible, then what you can do is go to:
studentaid.gov/loan-simulator/
to learn what your payments would be on the different plans. Just be very careful that whatever plan you get on still allows for the SLRP to pay off your entire loan balance in the 3 years it's currently still projected to.
Is there someone in the military who can help guide you through this?
Wish I had easy answers for you. Best of luck and thanks for watching! -k
If I already have been paying on ibr, do the total years I have been paying rollover to the new save plan?
Hi @Purplexis - they should but call the Department of Ed to confirm YOUR loans will. Thanks for watching! -k
Hi! I am so confused. I want to do the Save plan. I have direct and indirect sub and unsub loan. I also have Stanford sub and unsub loan..in order to do save plan , I have to condosoliate my loan into one? Do I do direct sub or unsub? How this works? Is it good to consolidate? I have 80,000 remain to pay. Please advise
Hi @jeweljohn2001 - Stafford loans aren't eligible for SAVE but if you consolidate them to become Direct loans then they are eligible for SAVE. I can't tell you what's best for you - if consolidating your loans is right for you or not; there are a LOT of ins and outs when it comes to consolidation, this page may help: studentaid.gov/manage-loans/consolidation
You can contact your loan servicer and ask them about the consolidation process as it relates to your loans.
Hope this helps and thanks for watching! -k
I wanted to know more about the icr for parent plus loan. my mom is a housekeeper and on icr the monthly is $0-56 a month.
Hi @queenev3738 - I can do my best to answer your questions here - but I don’t work for the department of education nor have access to her account so I can’t answer any specifics to your situation.
I’ll put an ICR video on my ever growing to do list! Thanks for watching! -k
I am a 2023 grad with a previously low income as a student and will still have a low income until next year. After next year, I will be high-income. So I think that means I should likely apply for SAVE and consider changing to standard repayment?
Hi @jordanramirez3555 - congratulations on graduating! I recommend using the Loan Simulator I linked to in the description to find out what your payment would be on the different plans.
From what you’ve said it sounds like that’s a good plan! While your income is low, there’s a good chance SAVE is your best option. When your income rises, reassess given your new financial situation. Thanks for watching! -k
Would the loan calculation website you mention be able to tell me the payments of hypothetical situations?
I am trying to think ahead about what the situation might be for us in the future. Hypothetically, let’s say in 5 years we are a family of 4 making 100k a year - How would I figure out the math to see what our monthly payment on the SAVE plan would be?
A second question if you don’t mind…Let’s say out of necessity our family jumps on the SAVE plan and then later our income rises and the monthly payments are so high we are thinking of switching to a standard plan. While I realize you would lose the 20/25yr forgiveness aspect, would the amount of interest that your loan did not accrue during the time you were on the SAVE plan (because the government was paying it) be worth it? To me it seems like the golden ticket that interest would not be accruing and we would pay just the principle of the loan. Our overarching goal is to pay the lowest total over time. I suppose one more follow-up question would be - Would that deal on interest change if our income did go up on the SAVE plan or would our interest still be paid for as long as we are on the plan despite income?
Thank you so much!
Hi @rebekahsummers4953 - The website uses your real numbers, so it doesn't cover hypotheticals. It's easy (from this financial nerd's viewpoint) to calculate yourself though.
According to *2023* poverty guidelines, using $100,000 as income, and assuming 5% discretionary income as payment, a family of four would owe $135.42 a month in 5 years (but this will change as poverty guidelines may adjust).
The math (and I'll be making a vid on this so be sure to subscribe!) is:
($30,000*2.25)=$67,500 (poverty line x 225%)
$100,000-$67,500=$32,500 (income - 225% of poverty line = discretionary income)
$32,500*.05=$1,625 (discretionary income *5% to find yearly student loan payment)
$1,625/12 = $135.42 (divide by 12 to find monthly payment)
And for anyone else reading this - this is the last time I do the calculation for a viewer 😵💫😵💫😵💫 It was easier to show than tell here.
As to your second question, that depends on the interest rate, loan amount, income, and family size. In general, it is a huge boon to anyone whose payment is less than their interest accrued and, in general, I think you're right that if saving on interest is your main goal it would be good to get on the SAVE plan.
For your third question, the amount of interest charged doesn't change, it's who's paying it that will change as your income rises. If your required payment is less than interest, the gov is covering the interest. If your required payment covers the interest - but not the principal - you're not paying the loan down but you're paying all the interest. If your required payment is more than interest, you're paying all the interest and paying down the principal.
Your required payment updates yearly and will change depending on your household size and income.
PHEW! Time to grab some coffee as this was a long answer. Hope it helped and thanks for watching! -k
It helped tremendously! Thank you so much! These answers were sooo helpful for us, and I think we understand better what we are looking at! Thank you!
For some reason, I can't load the cheat sheet. It is telling me the account is closed.
Also, I have Parent Plus loans and have been a teacher at a qualifying school for PSLF many years. However, I don't quite understand what the best course is to apply for PSLF with Parent Plus loans. Could you help with this?
Thanks!
Hi @thomasharper5989 - shoot me an email at hello@msmoodymoney.com and I’d be happy to send you the cheat sheet.
As for Parent PLUS loans, they can be forgiven through PSLF the same way loans to students can - but you need to consolidate them to Direct loans first and if you can do this before the end of the year (2023) your previous payments should qualify for PSLF.
I have a full rundown of PSLF and mention Parent Plus loans in it in my recent vid: th-cam.com/video/XrJ0D_uIn-I/w-d-xo.htmlsi=5g97wMfBXljkvP8W
Hope this helps and thanks for watching! -k
Can you pay off the SAVE loan after 4 years or so? Can you change the save loan to regular loan after 4 years? If we change it to regular type loan what would happen to the interests accumulated for 4 years ?
Hi @user-mv9py8om8z - you can pay it off anytime. You can change payment plans anytime.
If you pay the required amount on time while on the save plan no interest will accrue monthly - and thus there is no accumulated interest. Then if you switch to the standard plan your payments will more than cover the monthly interest that accrues and pay down the principal.
Thanks for watching! -k
GOD BLESS YOU
Glad to be of help ☺️, thanks for watching! -k
thanks for the video! I just graduated this year and have 23k In student loans total. My income isn't the highest so would the SAVE plan be my best option? I'm single with no kids or anything but from my gut feeling I feel SAVE would be my best option but I'm still kind of confused by everything. thanks for the info!
Hi @korsoupp6450 - congrats on graduating!!
SAVE is definitely worth looking into right now as the monthly payment is probably the lowest and usually just after graduation you have fairly high expenses and your income is lower than it will be in the future.
I have a video that explains the SAVE plan in more depth here: th-cam.com/video/Iz1C8Ou-Bgc/w-d-xo.htmlsi=_sd_k7hcw0vbqMY7
That said, in a few years your situation will be different and you’ll need to reassess then.
I recommend you log into your account at studentaid.gov and play around with the loan simulator to help determine what repayment plan is right for you.
Be sure to subscribe too as I’m working on a lot of great videos to help demystify handling money so you know you’re doing this “right”!
Hope this helps and thanks for watching! -k
@@themoneylibrarianthank you very much! definitely will check out my options. appreciate the help
Would you recommend using forbearance until next July if im trying to overall pay less with the SAVE plan and get my loans forgiven with PSLF? I think I saw that no one would punished for using forbearance for the first year.
Hi @christianmartinez6945 - this is the first I’ve heard of this strategy. Do you have a link to where you heard it?
I’d be careful - it’s possible they may have let previous forbearances get counted because of the serious misconduct of the loan servicers putting people into forbearance when they shouldn’t have but I wouldn’t count on that going forward.
I have a video in what to do now if you plan on going for PSLF you may find helpful: th-cam.com/video/gGX7WOwjMjo/w-d-xo.htmlsi=vdm4uSh91NrivbLZ
Thanks for watching! -k
Hi! Thanks for the response! If I do go that route I don't plan on having October 2023-June 2024 count toward PSLF as I will be on forbearance. Here's what I'm thinking: I'm planning on being a classroom teacher long-term and only need 5 more years to qualify for PSLF. My current student loan rate with the SAVE plan is close to $200 so I was thinking of just pushing it off for when it's closer to $100 with the new July 2024 rules plus no penalty due to Biden saying we could take forbearance at no negative impact for the first year. Is there any flaw/con to my thinking aside from not having 9 months of work qualify? I was hoping I kind of found a little bit of a loophole.@@themoneylibrarian
Hi @christianmartinez6945 - ahh, gotcha.
I can’t say what’s best for you, only you can decide that. I recommend you run the numbers, taking your future wages into account (like if you’ll get a significant bump in salary that’ll affect your payment) and the fact that you’re limiting future employment - what if you don’t want to stay in teaching that long?
It appears that this won’t negatively affect your credit score according to this Experian article (www.experian.com/blogs/ask-experian/how-forbearance-affects-credit/)
If you do all this and find this plan still to be a good option, awesome! Hope this helps and good luck! -k
Hi @christianmartinez6945 - I was doing research on a future PSLF video I'm making and found that months where you're in economic hardship deferment, can qualify for PSLF (studentaid.gov/manage-loans/forgiveness-cancellation/public-service):
"You may make a qualifying payment when you are in one of the following deferments or forbearances at any time during that month:
Cancer treatment deferment;
Economic hardship deferment;
Military service deferment;
Post-active-duty student deferment;
AmeriCorps forbearance;
National Guard Duty forbearance;
U.S. Department of Defense Student Loan Repayment Program forbearance; or
Certain administrative forbearances related to local or national emergencies or military mobilizations and or mandatory administrative forbearances provided to borrowers for collecting supporting documentation."
I suggest contacting your student loan servicer to ask them about this option and what you'd need to do to have these months still qualify for PSLF.
Cheers! -k
Thank you! You are amazing! I am a college graduate who is about to commission into the armed forces. That being said, I should be able to qualify for PSLF with my personal federal loans no problem under the SAVE program. My concern is my Parent Plus loans that I had to take out. Should I be able to access those in my own student aid account and not just my parents? The only way I can see them is through nelnet under their account. I don’t know how that would affect the PSLF application and I would like them in my name (or at least on my account as well) without refinancing through a private lender. Do you have any advice for me? I’d greatly appreciate it!
Hi @calebpilot - congrats on graduating and going into the armed forces! The loans in your name should qualify for PSLF (here’s my vid on what to do now if you plan on getting PSLF th-cam.com/video/gGX7WOwjMjo/w-d-xo.htmlsi=BmoddNLoZvBIYb9L)
Because the Parent PLUS loans are under your parents’ names, they are responsible for the balance and would have to be working for a qualifying employer (as well as all the other qualifications) to get PSLF. Even though they are legally responsible for paying the money, if you want you can pay towards it too. As far as I know there is no way to get that balance put under your name.
Hope this helps, thanks for watching!! -k
@@themoneylibrarian Thanks for the quick response! I appreciate the clarification.
What if my parent is a 29 year veteran? Would that qualify him for the parent plus loan under pslf?
Hi! To qualify the parent has to be working in non-profit/gov while in repayment so unfortunately those years wouldn’t help😕.
I have high debt 300k and high income 500k but I have 10 years left until forgiveness since I was broke for so long. Also I don’t want to pay a lot bc I’m a business owner and a lot of that income is directly going back to the business plus my city has a very high cost of living. Which plan do you think works the best?
Hi @ahappyimago - I can't tell you what would be best for you as there are SO MANY variables in your life I'm unaware of but here are some options for you to look into -
I'd contact the Department of Ed and ask them what your options are as they have access to a lot more personalized info than I have. I imagine if you have 10 years left that's because you're on an IDR (income-driven repayment) plan and not through PSLF - so getting on the extended or graduated plans may reduce your monthly payment but you'd lose the forgiveness in 10 years.
One other idea - you could talk to your accountant about your business structure to reduce your AGI and then look into the SAVE plan as that would be based on your income. Hope this helps and thanks for watching! -k
When switching from an IBR plan to the SAVE plan, does the 20 year repayment period start over?
Hi @laketarenal! It shouldn’t (especially if you get on this plan before the end of the year) but please call the Department of Ed to get confirmation for your particular loans before you make any changes. Be forewarned-they are busy! Plan to get some errands done around your home while you’re on hold😂 (still, worth it!)
Thanks for watching! -k
@@themoneylibrarian definitely will be multi-tasking while on hold! 😄
If I am going for PSLF, and start with the SAVE Plan but then later on make enough where payments would be more than the 10 year standard plan, can I switch? or does my 120 payments restart if I switch plans?
Hi @bayleemin1472 - yes, you can switch and payments on both plans would count to PSLF. I have a video that answers all kinds of important PSLF questions I recommend you check out so you can make sure you understand the program and are doing it "right": th-cam.com/video/XrJ0D_uIn-I/w-d-xo.htmlsi=5BzAjmCPtlEaF1q7
Thanks for watching! -k
Could you explain a 7 year repayment plan for a private loan? Is that similar to the fixed rate of a 10 year plan?
Hi @lilyannanieva5225 - every company's private student loans will have different rules so unfortunately I can't shed any light on this particular question. i recommend you contact your loan servicer and talk with them until you're satisfied you fully understand the issue at hand.
Thanks for watching and good luck! -k
If you have to switch from SAVE plan to another plan because you now make more, are you now responsible for the interest rate you didn’t pay during SAVE plan? Or does that go just go away because you were on SAVE?
Hi @Vang4299 - you will be responsible for interest moving forward but not previously waived internet while you were on the SAVE plan.
Thanks for watching! -k
hi! I am newly graduated with a doctorate but dont expect to make tons of money. currently employed and its low but would expect approx 70k next year. FSA is saying SAVE is the recommended plan for me but the PAYE option lists a similar payment (
Hi @elanamegeria9360 - the big difference is that PAYE gives forgiveness for grad school loans in 20 years instead of SAVEs 25 - but SAVE uses a different calculation which offen makes your monthly payment lower than the PAYE payment.
You’ll need to run the numbers to figure out which is best for you but since you have no idea what you’ll make in 10, 15, 20 years, that makes this exercise kinda tricky…
So you know, PAYE is getting sunsetted. If you want to get on it, you’ll need to do so sooner rather than later.
Hope this helps and thanks for watching! -k
Please help , I don’t know what plan to do , I graduated undergrad in 2022 , I owe $32,700 ish in loans and I don’t know what plan to do use. My yearly salary is low, I want a low monthly payment but dont know which plan to use
Hi kristinemyangel33 - congrats on graduating! Your student loans may seem confusing but if you got through undergrad, you got this. I recommend using the student loan simulator I linked to in the description to find out what your payment would be on the different plans.
Chances are, the SAVE plan will be your lowest monthly payment but there are drawbacks. I have a video which explains that one here: th-cam.com/video/Iz1C8Ou-Bgc/w-d-xo.htmlsi=1Czi4QGgySfiXOYd
Only you can decide which plan is best for your life. Good luck and thanks for watching! -k
Im filling out the PSLF paperwork now and I want to choose the standard repayment plan and I dont see an option for it on the form? 😢 what do I do?
Hi @sherylkierna2004 - for PSLF you can’t use the standard plan since that pays off your loans in 10 years you’ll have nothing to forgive if you’re on that plan. You need to be on an IDR plan - you can see your payment options if you log onto studentaid.gov
Thanks for watching! -k
Im currently on the SAVE. My monthly payments are $0 and ive never made a payment. Is interest accruing? It just seems too good to be true. Also, it gets forgiven after 20y
Hi @marissaali24 - it is true! The gov waives whatever interest has accrued over your min payment. After 20 years of you making payments on this plan, if there’s any balance left, it gets waived.
This is great for low and middle income earners but if you become a high income earner you may end up switching plans. Still, it’s pretty awesome.
Thanks for watching! -k
Thank you very much for this video. Graduated last year with 117K. (28 Federal, 89 Parent Plus)
You mentioned the PLUS loans only apply to the LEAST favorable (lol) plan? As a High School graduate, and when I applied for Financial Aid, I presumed this was the only way to get all the applied financial aid (including the Parent PLUS.)
As you say the plan applicable for PLUS loans use the 100% threshold of the Poverty Limit, and all other loans are allowing 225% exempt. Something seems fishy?
Any thoughts on why the disparity?
Additionally, any thoughts on how tens of others I’ve seen comment throughout your videos also mention they are well in the 100K range… how would they be NON, Plus type loans?
Thank you kindly and so appreciate your efforts in sharing your knowledge!!
Hi @markcummings6856 - Congrats on graduating! Let's dig into the Qs:
- Yes, the only income driven repayment plan for parent plus also uses 100% of poverty line to determine Discretionary Income. The only plan that uses 225% is the SAVE plan, the other income driven plans use 150% of poverty line (none of these are available for Parent PLUS though). The reasoning, I can only assume, is that there seems to be a new payment plan every few years which has its own rules and they don't tend to get rid of old payment plans.
- For Parent Plus loans, the other options are the Extended and Graduated plans, as well as the standard 10 year. You can log into studentaid.gov/loan-simulator to find out what your payments would be on these various loans. If you want to have a lower monthly payment but not spend tons in interest, you could get on one of the payment plans with lower monthly payments but pay more per month (tell them to apply it to the principal). That way when money is tight you can pay the minimum but when you have some cash, you can put it towards your loan to reduce interest.
- As for others with loans well into the $100k range, grad school has more money available for the student which I assume is how students graduate with such high loans.
- Parent PLUS loans can be forgiven via Public Service Loan Forgiveness but you have to do a few things to qualify. See more here: studentaid.gov/help-center/answers/topic/repaying_loans/article/are-direct-plus-loans-eligible-for-pslf
I strongly recommend you call the Department of Education or your student loan servicer to find out what your options are. They're busy now so be prepared to be on hold a while!
Good luck and thanks for watching! -k
@@themoneylibrarian Thank you kindly! Did I say thanks?!
Let me do some more research.
Cheers
@markcummings6856 - Yes, i think there was a thanks in there 😉 Happy to help - good luck!!!! -k
I am coming back to binge-watch your videos this weekend. Tonight??? ED Financial??? A so-called...supervisor called me with such a RACKET...in the background. I mean...it was LOUDDD! I told him that I could hardly hear him with the Noize in the background. That SHOULD have been his cue....to tone that down....alert the person who was talking in a foreign accent so Loudly....It almost sounded as if it might have been a recording??? God only knows. Instead....he responded by telling me.... that he apologized, but that the noise level coming from my end was extremely loud also. FUNNY Stuff!! I was totally isolated....in my vehicle....not a soul near me....and even my car wasn't running. It was QUIET...on my end. Then...the same old....we cannot help you to rectify your payments online....and....we cannot forward your call to the financial department nor give you a direct line, because, that isn't how we are set up!!! OMG!!! F-U-T-I-L-E!!!!
Hi @allkindsamusicchick - hope you enjoyed the vids, I certainly have enough on student loans that you'll be busy for a while. If you like my work, my favorite vid that clarifies a very misunderstood topic (which first, pay off debt or save) is here: th-cam.com/video/Y6X2SFw0nnY/w-d-xo.html
As for your experience with this supervisor, 😂 😮💨...ugh. I wish I was surprised.
That, like every interaction you have with them, should be tracked and put into the complaint with the Dept of Ed. This is ridiculous.
Thanks for your kind words, hope you liked the vids! Good luck and let me know how it goes! -k
Can't wait to delve into your vault of gems. Thanks for the response....the sharing, and YES....I've got my work cut out for me!!! Arghhh!! Have a great weekend!! @@themoneylibrarian
Thank you so much for this video! I have a question for you. If I work at a school district and am working toward a PSLF, and my monthly payment after applying for the SAVE repayment program is $0, does the $0 payment still count toward the 120 payments?
Hi @calebnicoll3839 - as long as you meet all the other requirements, those months will count!
Please watch my other vid on what to do NOW if you're planning on having your loans forgiven with PSLF so you set yourself up for success:
th-cam.com/video/gGX7WOwjMjo/w-d-xo.html
Thanks for watching! -k
How do you calculate discretionary income??? A little confused
Hi @El_Nino_VFL - they calculate discretionary income differently for all the different IDR plans. I have a video that shows you how to calculate it for SAVE here that will help you: th-cam.com/video/Ek3ak-93vas/w-d-xo.htmlsi=Z36zTzI8LU8zI02U
Thanks for watching! -k
I just converted my remaining student loans to a SAVE plan from an Extended plan that I was on. I'm gonna be paying more than $70/month less than before but I hope I made the right choice.
Hi @seand1011 - You can call your student loan servicer or the Department of Ed if you have further questions concerning your loans. I have a video all about the SAVE plan here which may help you to understand them better: th-cam.com/video/Iz1C8Ou-Bgc/w-d-xo.html
Next year your payment will be half what it is now on the SAVE plan as they'll be using 5% discretionary income instead of 10%!
Thanks for watching! -k
How long did that conversion take?
Which plan can you pay least interest in? Does interest add every month or per year?
Hi @allison9008 - in general you’ll pay the least in interest on the Standard 10 year plan but that is also usually the highest monthly payment. If you’re having trouble making ends meet, SAVE is probably the way to go as the gov pays whatever interest your required payment doesn’t cover so your loan can’t balloon.
Interest accrues monthly - I have a video that breaks down how federal student loan interest really works here that should make this seemingly confusing subject much simpler: th-cam.com/video/2EmA0O6XKsE/w-d-xo.htmlsi=oleVzXLKFuM1Hxb8
Thanks for watching! -k
My spouse and I are currently both on PAYE and don't have to recertify until 2024 (we are waiting to switch to SAVE because we have very low monthly payments until the recertification date). If we choose to file our taxes as married filing separately for the SAVE plan, then we will not be able to contribute to a Roth IRA because we both make over 10k. That seems like a HUGE disadvantage. I would hate to give up years of compound growth in a Roth IRA just to get our monthly payments lower on the SAVE plan. Both of us are going for 10 year PSLF forgiveness.
Hi @dvnsnclr3 - This is why I always say "personal finance is personal" - you need to take your whole financial life into consideration when deciding on the right payment plan for you. Definitely continue to look at your whole life and run the numbers to figure out what works best for you both. Thanks for watching! -k
You can't contribute to a Roth IRA if you make over $10K?
Hi @stularkin5 - If you are married filing separately and you lived with your spouse for the year then you can't contribute to a Roth if you make more than $10,000 (www.irs.gov/retirement-plans/amount-of-roth-ira-contributions-that-you-can-make-for-2023)
I know, it sounds odd, but I'd be willing to bet it's to stop people from abusing the system. Thanks for watching! -k
@@themoneylibrarian thank you for your quick reply!
Hey, thank you so much for this video! I am very confused how to go about my loans currently. I am 24 years old, graduated from Pharmacy school this past May with 160k in federal loans (2 years of undergrad and 4 years of grad school). I am currently in a 1 year residency which will end in June 2024. I will make approx 60k this year.
After residency, I will make in between 120-160k/year. My goal is to pay the loans off as fast as I can, within reason, and accrue as little interest as possible. My confusion with the SAVE plan stems from the monthly payments I will have to make. If I make the minimum monthly payment so that I do not accrue interest, is that minimum monthly payment going toward the principle? If so, wouldn’t it be wise to do that for about 2-3 years and then pay off the entire loan in a lump sum? I’m not sure if that is allowed. I truly believe I can get it paid off within 5 years at the latest by living below my means. I really just have no idea which program to go with that will allow me to pay off my loans without stressing about accruing interest (most cost effective for my timeline)
Thank you in advance if you have time to answer this! You have a new subscriber :)
Hi @dramaticproductions6155 - your payment goes to interest first and whatever is left goes to the principal.
As with all loans, the earlier you can pay down the principal the better since all future interest is based on that. Rather than saving up a lump sum, as far as saving on interest, it would probably be better to send that money in early as a payment and BE SURE TO TELL THEM TO APPLY IT TO THE PRINCIPAL.
That said, don’t let forget about other important financial aspects of your life - having an emergency fund, saving for retirement (the earlier the better!), saving for big purchases, never getting into credit card debt, etc.
Hope this helps and thanks for watching! -k
Thanks for the response! Based on what you said, would it be practical to sign up for the SAVE program and pay it off aggressively applying as much as I can to the principal each month and paying it off in around 5 years? Or sign up for a conventional ordinary loan and doing that? Thank you!
Hi @dramaticproductions6155 - Only you can figure out the best plan for you to use - I can't recommend one since I don't know A LOT about your situation. (and avoid anyone online who claims to definitively "know" what's right for you)
Since you'll be a high earner, the SAVE plan may not be your lowest monthly payment 😲 - and if the payment covers interest accrued, you're still paying all the interest on the loan anyways, so you don't get the benefit of the government covering interest.
If your goal is to pay it off in 5 years, you can find an online calculator that will tell you how much you'll need to pay per month to achieve this goal.
One strategy you can consider: You can choose whichever payment plan allows you a lower monthly payment - but pay the amount that will get rid of it in 5 years (and make sure to tell them to apply the extra to principal!) This way, if something happens you have some give in the payment amount.
Cheers! -k
I have a 80k balance including interest. Mostly grad school. I'm on PAYE but my income has increased to 115K. I'm honestly not sure how to proceed. I assume it will be smart to switch to another plan once they verify my income again.
Hi @LukoKill - I think the first thing to do is figure out what your payments will be on all the different plans using the loan simulator: studentaid.gov/loan-simulator/
Note that PAYE is the only plan that gives grad school forgiveness in 20 years.
That said, given your high income and relatively low balance, you may be better off not using one of the IDR plans as they could cost you a lot in interest - you’ll have to look at the numbers, your life and all the other things you’ll want to do with your money over the years and decide on what’s best for you.
Thanks for watching! -k
What is considered a high income?
Hi @forevrboo27 - there is no one definition but I'd say in the six figures per person is high-income.
That said, if you have a household income of $120,000 with 6 people in the household, your financial situation is very different than someone who makes $110,000 but lives alone.
I recommend using the loan simulator calculator to find out what your repayment would be on the various plans: studentaid.gov/loan-simulator
Thanks for watching! -k
can you switch back to standard if your income increase?
Nvm, just watched it at 8:10
Hi @ItsTheWells - glad to help, thanks for watching!! -k
Could you narrow your discussion to determining the difference between what is owed versus what is the payoff amount is based on years passed on the loan. For example you have an original loan amount of 50k that has ballooned to 100k over 15 years with interest…now on year 12 you “owe” 100k but the reality is you only have 5 years life before it’s forgiven…so if you wanted a payoff -that payoff would only be based on the 5 years remaining not the total amount owed on your credit report--could you cover this
Hi @openmind6239 - sounds like a great topic but I’m not sure I understand precisely what you’re asking for, do you mean a video about the difference between paying off a loan entirely vs paying the minimum until it’s forgiven? Thanks!-k
@@themoneylibrarian for example if you have a balance of 100k because that is the total for the loan to date (you’ve been in $0 repayment up until this point so there has been no decrease) BUT you only have 4 to 5 years remaining on the loan which will total maybe 15k in payments …you are only responsible for the remaining 15k not the whole balance as stated because in 4 to 5 years the loan will be wiped out…does that make sense
Hi @openmind6239 - ahh, okay, I think I understand what you mean - so it’d be about how forgiveness works, getting into the numbers of
1- what you took out
2- what the loan became after interest
3- what you pay
4- the balance forgiven
Great idea, thank you for taking the time to reply! -k
I have 61k in debt. I am part of the PEBB program through the state I work for, and have worked for the state for 2 years already. So I think like 12k of my debt will be forgiven instantly. Although, I'm not exactly sure how that all works.
My question is, how can make my payments the lowest possible amount? Because agter 8 years of paying my minimum amount every month, my loans will be forgiven through the PEBB program.
Thank you in advance!!!
@f2pscaper4lyfe93 - Sounds like a good program your state has!
The student loan plan that has the smallest monthly payment is usually SAVE for most people but I recommend you play around with the loan simulator (studentaid.gov/loan-simulator/) to see what repayment plan would give you the lowest monthly bill.
I'd talk to someone at the PEBB program to make sure if you do change payment plans that those payments still qualify.
Hope this helps and thanks for watching! -k
@@themoneylibrarian thanks for replying to me! Have a nice rest of your weekend!
hello, what would you recommand? i owe only $28,360.00? I hate that i gotta do this but i need help
edit: payment per month is $294
Hi @jako997 - sorry to hear this! I’d log onto studentaid.gov and play around with the loan simulator to see what your various payment options are.
I have a video that talks specifically about IDR plans you may find useful: th-cam.com/video/Rz38mIVocoA/w-d-xo.htmlsi=2wsaNrF2RyutRf8q
Good luck and thanks for watching! -k
What did you learn from this vid that was surprising or especially useful?
the govt taking the interest away on the save program
It's a really important aspect of the SAVE program - so happy the video was helpful to you @@egary1974 Thanks for watching! -k
does consolidation impact or change anything? (ex. interest rate, principle amount, payment amount per month, etc). Answer YES.
Lets say year 1 you take out loans interest rate is 7.05% and year two you take out a second loan interest rate is 8.0%....
**Will the new consolidated interest rate be whatever the present year's interest rate is?**
If you consolidate the same year you took out my second loan, your new consolidated loan interest rate would be 8.0%?
If you wait 3 years to consolidate... and now the interest rate is 8.05%... Will your interest rate for the consolidated loan be 8.05%?
Hi! The interest rate will be a weighted average of the rates of the original loans, not the current interest rate.
When you apply for consolidation, the website will calculate the weighted interest rate for you before you agree to anything.
Check out this page and the links in the page for a deeper dive on this complicated issue: studentaid.gov/articles/5-things-before-consolidating-student-loans/
Thanks for watching-k
I make 90,000/year. Married. And I owe $35,000. Which option should I choose? I know once I report my income, they will want a lot of money each month.
Hi @lancer717 - that’ll depend on what you’re looking for - if you want to pay the least in interest, the 10 year plan is probably the way to go. If you’re looking for the lowest payment, you’ll need to use the loan simulator to find out what your payment would be in the various plans. If you’re going for PSLF, you’ll have to be on one of the IDR options.
Either way, all big financial decisions should be made with your partner. I have a video you may find useful about money in relationships here: th-cam.com/video/qkvFnV57Fpk/w-d-xo.htmlsi=IuAKgfzEls61SU-4
Hope this helps, thanks for watching!-k
@@themoneylibrarian I honor you. Thank you so much. You’re doing Gods work.
I can't get the cheat sheet. It says "account is cancelled no new subscribers" ????
Hi @mwelc8012 - that's odd, I'll look into it. You can send me an email at hello@msmoodymoney.com and I'll send you a copy. Thanks for watching! -k
@@themoneylibrarian I just got it to work. Thanks!!!!
I tried calling and waited on the phone for 2 hours. Omg. Cannot find a way to ask questions to a human without calling... oh my god
Hi @CB-et6jo - Loooooong wait times are super common right now, definitely be prepared to have some other things you can complete while on hold. Good luck and thanks for watching! -k
As a graduate not a full time student anymore with more then $200k in loan. I am struggling what to pick. 😢
Hi @astudentpilotlife - have you used the loan simulator? Knowing the monthly costs of the various plans may help illuminate your best course of action: studentaid.gov/loan-simulator
Good luck and thanks for watching! -k
@themoneylibrarian yes I did, The income driven plan show $0/month as well some other plan showing $0/month. So I am confuse on $0 monthly. Nothing is free or idk what that mean.
Hi @astudentpilotlife - ha! No, normally nothing is free - the $0 payment just means your payment for this year is $0 per month but that could change next year; although you don’t owe anything per month, your interest may accrue and increase the total amount owed. (SAVE plan waives your interest so the balance won’t go up)
This page gives you a ton of info on the IDR plans: studentaid.gov/manage-loans/repayment/plans/income-driven
Hope this helps! -k
@themoneylibrarian so the Save plan is somewhat repay on my own term as long I keep on "reapply" and must be eligible for it each year while the balance doesn't go up but this plan is for 20-25years.
So my other question is, if my income increases alot to near for an example, six digit. Would that make me ineligible or my repayment be higher?
And since I am still a student and still getting all the requirements for my career. I don't make that much to pay it back but I know for fact that once I do that that career. It will be paid back. I am not able to pay high ammount right now.
Hi @astudentpilotlife - every year they’ll adjust your payment based on your income and household size, if your income goes up a lot, so will your payment on the SAVE plan at which point you can change payment plans if, say, the 10 year now becomes a lower monthly payment. You may want to call your loan servicer or if you’re still in school, talk to financial aid to have them explain your options. Good luck and thanks for watching! -k
😂 It's funny how payments over decades never take into consideration the value of money. Also, when you are starting out-that is when you need the most money. I could have no savings and live very poorly on the SAVE ($600/MONTH or so) or I could save and invest that money and watch the value of what I'm paying on a fixed drop every year. Think of it like a home loan.
Hi @geekworthy7938 there certainly is a lot to consider when weighing your options. thanks for watching!
😮
Thanks for watching! -k
I’m soooo confused
Hi @nkkster - oh no! I know it's a lot, but YOU GOT THIS! First step, use the loan simulator ( studentaid.gov/loan-simulator ) to find out what your payments would be on the different plans. Second step, contact the Department of Ed or your student loan servicer and have them explain your options. Good luck and thanks for watching! -k
department of ed or nelnet won't tell you anything
Hi @mwoods4608 hope the video was helpful then!
You know what's sad about this? You got a student loan and have nothing to show for it.
Hi @AmericanConstellation - there are many who never finished their degree, and now still have to pay back those loans 🙁 but also many who got an education which is hopefully serving them well not just at work but in life.
Thanks for watching! -k
My mom and dad both were college professor. They told me I didn't really need a college degree to be successful. I did go to college but never got a degree. I didn't because I became very successful. I have a 24 year old son. I home schooled him. He didn't go to college. Now he's making over 100k a year working for Raytheon. @@themoneylibrarian
One more thing. I worked with a woman at Raytheon that had a huge student loan debt. She never got her degree and partied all of the money away with her boyfriend. Now she's pissed off that she's got to pay that money back. Ha! What a joke.@@themoneylibrarian
Hi @AmericanConstellation - I agree with your parents, a college degree isn’t necessary to be successful at work, it’s sad that we tend to assume it is. Thanks again for watching! -k
🤣
This administration 👨🏼💼went from vote 🗳️ for me and I’ll wipe out student loan debt. To we’re going to forgive 10k and now to repayment plans 🤣
@moderndaycaveman2519 - it's certainly been quite the emotional roller coaster! Credit where it's due, they have done a lot for student loan borrowers beyond the repayment plan, especially people who were conned by for-profit colleges. Thanks for watching! -k
I’m soooooo weary of paying the rest of my loans because if there IS student loan forgiveness, it would ENRAGE me to have gotten screwed for being responsible while others get a gift for not paying their loans.
Hi @xandercrew6088 - oh man, if it enrages you to hear that people are getting education for free, I'd hate to be around when you hear how much billionaires pay in taxes. -k
@@themoneylibrarian way to divert attention from one issue to another. It's not that it enrages me that "people are getting free education" the UNFAIRNESS of some paying responsibly and others getting an unfair handout is what enrages me. A sentiment shared by many other college graduates that pay their loans. As a "librarian" advertising your intelligence, I did not expect such an emotional and immature answer from you... but thanks for showing me your true colors :)
Hi @xandercrew6088 - I have no interest in arguing with strangers online, there's enough of that already. The only reason I reply to people who comment itchin’ for a fight is because it’s good for the algorithm. *The more you comment, the more this video gets seen, the more people I’m able to help.* Thanks! -k
@@themoneylibrarian I wasn't iching for a fight, I was commenting my real concerns over a real thing that you channel was speaking on - student loans. Besides I'm happy to give the algorithm a point towards your channel, I have nothing against you and think your videos are good. My only comment was on your diversion to my genuine concern and how snarky you became in your response. that's all. I wish your channel success.
Hi @xandercrew6088 - I get a lot of people who just want to rail against politicians/whatever they're mad at whose comments never see the light of day since I approve all comments before they're posted. I like to keep my comments section a welcoming place and limit the vitriol as there's already enough of that online. Since you've shown me you actually have genuine concern on this issue and don't seem to be picking a fight, I'll take the time to give you a real reply.
Here's a story from my life that I think may help you to view the situation from a different perspective. It isn't a perfect analogy, but I think it's useful:
In my town the homeowners used to get a bill from the local government to fix their street that cost $12,000-$18,000 - OUCH (before the recent housing inflation this was probably 10% of the cost of their homes). Most people had to take out loans to cover this sudden cost and it was a huge burden.
A couple years back, the city council proposed adding $20 on everyone's yearly car registration if you lived in town limits and getting rid of this bill on individual homeowners.
The people who had paid the high bill railed against the proposal saying "I had to pay this awful bill, so should everyone else!" They were angry and understandably so - they saw it as an unfair system that burdened them while others got off easy. But the thing is the argument that "I did it and so should you" - perpetuating a bad system simply because you had to go through it and want others to feel similar pain - *doesn't fix the problem, it only perpetuates a bad system*.
Don't bother to poke holes in this analogy, it isn't perfect but I hope the point comes across.
All that said, I feel like you have a choice between two general options:
1) You can choose to be angry about things outside your control and perceive it as others getting off easy while you didn't. That's an understandable reaction which many are having. Over time though, in my experience, anger only only serves to hurt you.
2) You can view it as slightly-righting a bad system that preys on 18 year olds who are told by trusted adults that to be successful they have to take out tens of thousands of dollars of loans (meanwhile we don't even trust them to drink alcohol), and *be happy for others* who have a huge burden taken off their shoulders, even if you don't get anything from it.
Hope this helps and thanks for your kind words in support of my channel. -k