5 Things You Need to Know about Student Loans in 2024
ฝัง
- เผยแพร่เมื่อ 25 ก.ย. 2024
- @YourRichBFF is back at it again with the latest update on Federal Student Loan Forgiveness Policies in the US. I will break down the changes in President Biden's relief program, the SAVE Program, REPAYE Plan, and all other related topics to help you be smart with your money.
Timestamps
0:30 What is Student Loan Forgiveness? The CARES Act
3:50 Supreme Court's Decision Explained (2023)
6:40 When does Student Loan Relief End?
7:45 What is the SAVE Program? Income Loan Relief
11:48 What to do if you defaulted on your loans?
Quicklinks
studentaid.gov/debtrelief
About Me
Your favorite Personal Finance & Investing Creator. Let’s talk about money, career, & getting rich. Learn more about my background in Finance on www.YourRichBFF.com and follow me for more smart money tips.
/ your.richbff
/ yourrichbff
/ yourrichbff
/ yourrichbff
Listen to my podcast, Networth and Chill
Available wherever you listen to your podcasts
www.yourrichbf...
Pre-order my book RICH AF: The Winning Money Mindset That Will Change Your Life at www.yourrichbf...
Want more Financial News coverage?
Sign up for my weekly e-mail newsletter enRICHed.
www.yourrichbf...
Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly
Achieving significant returns isn't about volatile stocks; it's about effectively balancing risk and reward. Proper position sizing and leveraging your advantage repeatedly are essential, whether you're a long-term investor or a day trader
Certainly, many underestimate advisors until emotions lead to losses. A few summers ago, during a tough divorce, I sought a licensed advisor who, through diligent work, boosted my business from $190k to around $720k despite inflation
please who is the expert guiding you? i have lost so much as a beginner🥺 investing into stock without a proper guidance of an expert
Do you mind sharing info on the adviser who assisted you? I’m 40 now and would love to grow my stock portfolio and plan my retirement
The Adviser I'm in touch with is *'Jude Ryan McDonough'* , he works with Merrill, Pierce, Smith incorporated and interviewed on CNBC Television. You can use something else. for me her strategy works hence my result. He provides entry and exit point for the securities I focus on
note - I paid my student loans, and I want the next generations to be free of debt, as a nation we are in dire need of an educated workforce, scientists, lawyers, doctors, teachers, finance professionals, nurses, social workers etc. Every other industrialized nation in the world makes education affordable, only in the US are we making access impossible. I believe it is good for our society to completely fund students of any age in the professions of their choice, the future depends on it.
Very well said.
Exactly! What if the person whose intellect could cure your relatives cancer didn’t end up going to school because of the thought of so much debt? We all have our specialties that contribute to our society. I feel like we’re losing our momentum in breakthroughs for science and healthcare because the education for it is becoming so prohibitive.
Completely funding it? No. There must be skin in the game for them. I'm not far removed from colleges and have visited over 80 campuses to meet with student groups. If they don't pay for something in some capacity then they have even less of a worry than they already do of not completing it. I've seen many people, even good friends, who saw college as just a party. They goofed off and by the end of their sophomore years dropped out and had nothing to show for it. They also became alcoholics or some form of substance abuse that was maintained after college. This is due to them developing the bad habit in school because they had little to no financial tie to their education and opted to just party.
I don't think school should come as much as it does, but to say it should be free is wrong.
Well I know a bunch of people use student loans to buy luxury shoes, bags, and even use the money to party.
💯!!!! This country is definitely headed in the wrong direction by making education so expensive!
Regardless of where you fall on this issue, there needs to be more college transparency. You should be able to see the average salary for graduates from the college you are attending based on major. Some still have this idealistic notion that college is for learning and growth, and I agree it should be, but the majority are going for a job. I believe a few years back there was a push for this disclosure and shockingly colleges (even the ivy league ones) pushed back.
If students regularly only enroll in the majors with the most well-paid jobs, we'll end up with a glut of those grads and then the wages for those jobs will go down. Schools just need to lower their tuition across the board. There's a lot of wasted funds in academia.
Universities in other countries don't waste so much because the government regulates their spending.
@@vulpixelful I'm no econ major but doesn't supply demand mean then the wages for the other jobs will go up? More people will then be attracted to those majors etc. moving toward equilibrium.
@@patrick7228 Lol no. When lawyers made less, social worker salaries didn't increase
My alma mater does this, but it only depends on who fills out the survey. People who make less are less likely to fill it out I'd imagine.
@@Username0467 Lol. Even though it's anonymous? That's crazy. Help future grads out.
It seems as if the ridiculous interest rates (much liked credit cards!) are the biggest problem. Why not just reduce the interest rates on what is owed (1 or 2%) and allow folks to pay off their debt without crippling them with the interest?
Two democratic senators are actually looking into proposing that. Hopefully republicans don't shut that down too 🤞🏻
@suelafave6481, your logic need not apply here. I honestly think that this wouldn't have blown up nearly as much if super low or zero interest was in place (without capitalization) to begin with. Pretty sure most folks wouldn't argue about paying back what they borrowed.
That wouldn't account for inflation.
That is exactly what has happened to me. I cannot possibly afford to pay the high payments they want. It is insane.
Yes!!!!
I wonder have they considered forgiving at least interest lol. That would help a lot of people. Interest alone triples the amount.
In an effort to give others some hope- I wanted to share that we (my hubby & I) paid off over $200,000 in student loan debt for our grad schools. We used Dave Ramsey’s baby steps. It is possible and you can do it! ❤
My loans have gone up to 171k. The interest has made it impossible for me to pay. I am 65 and cannot pay 1500 a month. I work for a non profit but it doesn’t help me. It is crazy.
Current student loan forgiveness won't forgive that. Only thing that will forgive that is God & death. I don't think you needed a college degree for that nonprofit job.
@@kevinmanan1304 first of all you don’t know what I need. My job requires a bachelors degree and prefers a masters which I have. My loans should be half that not that and I will most likely die before it is paid so unless you have walked in my shoes don’t make ignorant comments like that. I work in healthcare and because I work in Maryland all hospitals are not for profit. So as far as knowing what I need and don’t need you don’t know crap!
You should qualify for PSLF
@@kevinmanan1304harsh as hell but spitting truefffffssss
I just want to say the federal student loan pause helped me pay off some of my private student loans (after getting over the confusion/mess-up thinking the pause applied to both), & I also received Pell Grants.
At the very least, I now grasp the concept of leverage. Creating wealth and financial freedom isn't as tough as many people believe. Building wealth and remaining financially stable indefinitely is a lot easier with the appropriate information.
Participating in financial programs and products is the only true approach to make a high income and remain affluent indefinitely.
I'm not sure if this is listed anywhere and didn't see it addressed in the video - is anyone talking about the capitalization of the loan interest? It's been hugely debilitating in paying off the loans and it's unclear if it will continue to occur.
nobody blinked when Matt Gaetz got his PPP loan forgiven, entire DUI fella. student loan should still be extended without interest. the PSLF program is a joke also
What most people don't understand about debt forgiveness is that these smaller debts ($10,000 and under) costs significantly more money for the government to service and maintain these loans than the government makes in interest or principal payments. Forgiving the smaller debts would have ended up saving taxpayers quite a lot of money. It's a good day when helping individual people also helps the population at large.
Unfortunately, a lot of people get in their own way. I don't know why both parties can't agree that saving American taxpayers money is a good thing, and allowing people to put more money into the economy and not into the government is a good thing. This is Reaganomics (trickle down theory) 101, it just targets a different population to benefit the larger population. But it's the same concept, less money going to the government means more money going to business and commerce.
I need to add something here. Just because someone works for a
Non profit does not mean they do not need a degree. Most jobs in healthcare do. If you want to make over 17 dollars an hour. The interest alone on my loans make them almost impossible to pay.
I have medical bills and not that it is anyone’s business but no one really knows an individual’s circumstances. So I empathize with anyone who is in this position. You have to pay 10 years of full payments to be eligible and I won’t be working that much longer so there you have it. I have no problem paying for my education but it is the interest that is the killer.
Fun fact, if you’re in the army you can get up to $50,000 of student loan repayment
I have a theory that they were pretending they were going to forgive the loans (dog and pony show), so people didn't pay down their debts faster while interest was paused. Think about all that interest money they were losing out on.
Beautiful, informative, and very easy to follow. Thank you for posting this.
FINALLY! someone who explains this clearly and thoroughly.
It's much easier to keep up with the changes in money, but also getting into the benefits we don't know about in credit and IRS
FANTASTIC overview! Thank you so much. The music made this very stressful, not a complaint, just a comment. Thanks again 🙏🏻.
I’m sick of being crucified because I can’t pay my student loans off because I don’t qualify for SLF!
Biden new student loan program: Estimate your income, (no proof required) and how much you can afford to pay every month (no proof required) and after 25 years the loan will be forgiven.
Hypothetical: OK I make $20,000 per year and I can only afford $10.00 per month.
A much needed video for people like me who don't pay attention to the news
Here is a solution: if you have a student loan over $50,000 and you gain employment that meets 50,000 per year, maybe have some sort of solution that states for every payment you make 20% of a monthly payment will be reduced as long as you hold that employment.(ex: $500 mthly payment actually pays off $600) So it’s a way to essentially make sure these graduates contribute to our economy, while the government in response does some thing that helps these graduates struggle less and stay with that employment for the next 10 years. I would see it as a win-win.
Ps: I have $100,000 for BA and MA. I received $25k in scholarships over undergrad. I’m for paying but having a little help would be nice.
So my married friend owes $ 50,000 and the loan is in her name only. She and her husband file joint tax returns. Therefore, this means when applying for Save plan her husbands income will be included; correct??
There are people who use student loan to party and buy luxurious bags, shoes or even use it to buy a new expensive bicycle
Thank you. I shared with my community. I coach therapist and this is one area that is still a struggle. Thanks so much.
What about those who received refunds for payments during the pandemic? Any details appreciated.
Thank you for all the info. I was trying to apply for the save program a few days ago and i couldn’t find the application. I only found information on the program which is what made me watch your video. Any suggestions? Thank you so much
Per the new SAVE/REPAE plan is the threshold of no payments less than $32,800 based on Adjusted Gross Income, (with deductions) as listed on your IRS Form filing or is it based on the gross income or net amount you receive/earn before and after taxes? Your video was very helpful. Thank you.
So, I'm retired, in my 70s, on a small fixed income low enough that I'm eligible for affordable housing, EBT, and help with utilities. I own no property, no vehicles, no real assets.
I applied for and was approved for the SAVE program, for which I owe $0.00 as my monthly school loan payment. But I see I'm still being charged interest on the balance.
You say interest will stop accruing once I've sent in the first payment, but the first payment was $0.00.
Will the interest accrual eventually stop? Do I have to make some kind of payment first, like on the interest? If I pay anything at all, will it bump me out of the SAVE program?
Currently the amount I owe is increasing, but not through new loans or program changes or even late payment fees; the amount owed is increasing just through accruing interest.
From what I’ve read, yes, it will stop when your “0.00” payments kick in :).
It depends oj the graduation and success rates of the people. If you're 30k+ in the whole and decide college isnt for you, I'm absolutely NOT about to assist in paying your debt off. Call it rude, but Doctors, Surgeons and Lawyers and RN's are neck deep in debt as well and they actually fought a good fight.
❤❤❤❤🙂vlog. Thank you. VG
Did you say the justice department didn't have the interest of the majority of people????
Most people don't have student loan debtt in this country. They certainly don't want to pay off somebody else's debt.
Hi, I've been out of work for about 10 months. Do you have any suggestions with private student loans?
Talk to your student loan creditor. If you're not making an income, they may have assistance programs. Even credit card companies will work with you to get their money back somehow.
Yeah, it’s called get a job.
@@mariusmocan8491 There's really no need to be so callous. You do know that in 2023 alone, we've had nearly 250,000 layoffs?
Paid mine off in full. Saved for 3 years and cut the check last week. 43K, and it's done forever. No excuses.
Is Walden University one of the for-profit schools?
Why doesn't it get renamed student loan stipend?
Because it would be very different than a stipend?
Biden did not take office until January 2021, so the August 2020 dates you cite were when Trump was still in office. But overall, good information. Thank you.
I think she meant August 2023. She misspoke.
Hey BFF, I just watched your video and will do all the things put out on this video! I have a question, I received a letter from the gov. saying I qualified for for a discharge from going to the For Profit School and $6k got discharged but I still have 3X that which didn't not get discharged. It did say it was in default...lm going to do steps to get it out of default and then reapply for the cancelation/discharge. Are there any other steps you could think of that you would do? Or even if you could help me understand why that part of my loan didn't get discharged since these were the only loans I took out for school loans...the info was super helpful! Thank you so much!
Let the loans not survive bankruptcy - lenders will be more careful and do their due diligence and college tuition will go down
My payment is still high on the SAVE plan.😢
How high?
People on the SAVE plan can lower their payments by filing separately from their spouse so their spouse's income is not considered in determining the income based repayment. Another way is to increase contributions to traditional IRA or traditional 401k because traditional retirement contributions are not part of the AGI used to determine income based repayment.
Thank you for your content ✨️💫🙏
Thank you for this video!!
Very informative video ❤ I can't tell you how helpful your video is 😊
Great information!!!!
What else was wrapped up in the debt forgiveness? Like what other points were there?
That the president constitutionally has that level of power. That he can just make multitrillion dollar decisions without any action from congress.
Then there's the fact that federal student loans created this problem in the first place so screwing over everyone to fix their own mistakes is not a good thing.
When you fix people's problems for them they don't learn from them and almost always move onto something else and screw it up in the exact same way.
Forgiving student loans is flat out rewarding people for taking out loans without any plan to pay them back which is not behavior that should be encouraged, and there would be more people taking out foolish loans thinking they would be forgiven in the future.
It will probably increase college tuition even more.
Some economists thought that it might kickstart a recession or cause high inflation.
That Biden knew from the beginning that he didn't have the power to actually do this but lied to people that he could get more democrat votes in the midterm elections.
The SCOTUS commentary was unnecessary. Regardless of how you feel about their political leanings their decision reigns supreme. Sowing division in these videos just isn't necessary.
Just make it fully tax deductible.
Very good video.
I'm in love with your smile
By voting this forgiveness down it will bring this country to a screeching halt.... Smh.
I paid off my school loans amd i dont wish any debt on the next generation. We should have free education anyway
It’s crazy crazy to me that people take out loans to help them pay rent / food / discretionary expenses and expect the loans to pay those expenses and then are SHOCKED with the cost ! Work people ! Pay education costs as you go and end up graduating with OUT debt ! Glenda
Some programs don't allow you to work and for good reason.
Honestly, y’all gonna get what you signed up for. Been hammering down my student loans down to almost nothing knowing I have to pay them back. Everyone out there with tons of student debt it’s hard to have sympathy for them considering they have had 3 years interest free to get those loans down. If you don’t make payments, your credit should be negatively impacted.
That’s really not a helpful outlook you have there. Many people are not in financial/ life situations that allow them to pay back outrageously expensive student loans. Universities charge way too much for education, point the finger at them instead of acting all self-important
@@ericd1022 Helpful outlook? Sorry but if individuals put no effort in paying off their loan during this pause that is on them. 3 years is plenty of time to even pay off high dollar loans, especially since they had no interest. Instead of being responsible and paying their loans, individuals inflated their lifestyles.
I am one year graduated and have used this time to actually make sacrifices and pay off my debt. People who made the poor decision to ignore it, that’s all on them. If you signed up for a “expensive loan” that you can’t afford, that is all on you.
As someone who didn’t go to College if they are trying to wipe out $10K worth of student loan payments for some🤔 Why not deposit $10K to the rest of us who chose not to go to college so we get something too🧐😂
Yea, sure. Let's do that too.
How does this help society?
Clearly this person didn’t get an education because this comment is completely absurd. 🤦🏻♀️
I would have just pulled a 10k per person stimulus package - a la GWB. All these dummies with student load debt would have spent it instead of pay off their debts, but it seems a whole lot more fair!
You can continue to be bitter at people who made the decision to go to college or develop some empathy and understand that student loans are a predatory industry that have an entire generation tangled up in finances. Finally this issue was close to being addressed but the industry was too influential and of course the US put companies over citizens
No student loan forgiveness… pay off your debt like a responsible adult .
The student loan payment was frozen for 3 years and during which the US has regained most of the jobs that were lost during the pandemic. We got to the point where we are at our lows in terms of unemployment.
This means most of everyone (who has graduated from college or not) would have had a job and should have been paying them off in the past 2 years while the student loan interest is frozen.
Why should taxpayers who opted to not take on debt to attend college help fund those who did?
I agree most of these loan balances should have been paid down or off last two years. You get what you deserve if you went to college you should payoff what you used instead of wishing for a free handout 💯
What are you talking about? The unemployment rate is such a crude measure. With corporate greed-driven inflation, stagnant wages and salaries, and increasing cost of living, do you honestly think that paying off student loans is the thing that people are doing? We're not out here spending money on frivolous things - we got jobs in tech and then thousands of us got laid off because companies wanted to increase their stock prices. You know what? Why should my tax dollars go to subsidizing your roads and emergency services too?
"You get what you deserve" Telling on yourself huh 😂 And anyway, most student loan borrowers have paid more than their principal + interest owed over the years because of the different ways servicers screwed them over all these years.
rent went from $725 to $1100. kick rocks
@@ChristianCho17 "Why should my tax dollars go to subsidizing your roads and emergency services too", Do you not use the roads or emergency services that are shared by the citizens here? Also, if you indeed have worked in tech then your income is way higher relative to others in the country and should have no issue of paying back your fair share to the lender. Let me reverse the situation here a bit, can I borrow money from you for my own education and not ever pay your back? Imagine if everyone does that, our financial system will have melted long ago.
In Europe I know tons of people that went to school and dropped out 4 or 5 times on the tax payers dollar. Pay your own debt! Of course you want your debts forgiven just like your abortions paid for by tax payer dollars. You live in America, the richest country in the world. You can make as much money as you’re willing to work for no matter what race or gender you are.
Good for Trump
The one thing Biden did that would’ve helped and it was blocked 🤦🏾♀️