One of the benefits of the SAVE plan is that the way they calculate the payment amount different. And another is that even if your income-based repayment is low, the interest doesn't keep accruing. So if you were planning on paying for the 20 years, the total amount paid using SAVE could be less than if you did the old IBR.
It's a loan. These people knew that from the start. If you borrow you pay it back. That is basic adult responsibility. I've never understood why people are shocked they have to repay what they borrowed. It wasn't free money.
Thanks for your comment. I don’t think people are shocked that they have to repay what they borrowed. I think the shocking part is that they were probably 18 years old when they signed the promissory note and didn’t understand how student loans would affect their future or how the interest would compound. People also got these loans based on the assumption that they will get a job that pays enough to cover all of their basic adult responsibilities. It addition to that, it’s kind of discouraging when you owe $10,000 more than you initially borrowed when you’ve been paying on your loans for 10 years. It’s definitely not as simple as you make it seem. Either way, this is a video that shows people what steps to take in order to start paying their loans again after the loans have been paused and moved around for 3 years, not a video about the morality of paying back what you owe.
What questions do you have about restarting your student loan payments? What are you doing in your budget to prepare to make payments next month?
One of the benefits of the SAVE plan is that the way they calculate the payment amount different. And another is that even if your income-based repayment is low, the interest doesn't keep accruing. So if you were planning on paying for the 20 years, the total amount paid using SAVE could be less than if you did the old IBR.
I agree! I just need to take some time to gather everything I need and change my repayment plan.
That's great that you are getting prepared for the change in your budget!
Thanks for watching!
It's a loan. These people knew that from the start. If you borrow you pay it back. That is basic adult responsibility. I've never understood why people are shocked they have to repay what they borrowed. It wasn't free money.
Thanks for your comment. I don’t think people are shocked that they have to repay what they borrowed. I think the shocking part is that they were probably 18 years old when they signed the promissory note and didn’t understand how student loans would affect their future or how the interest would compound. People also got these loans based on the assumption that they will get a job that pays enough to cover all of their basic adult responsibilities. It addition to that, it’s kind of discouraging when you owe $10,000 more than you initially borrowed when you’ve been paying on your loans for 10 years. It’s definitely not as simple as you make it seem. Either way, this is a video that shows people what steps to take in order to start paying their loans again after the loans have been paused and moved around for 3 years, not a video about the morality of paying back what you owe.