First of all, your videos are amazing! So glad I found them! Had a question: at timestamp 4:13 you mention that for high earners, this plan might cost more money in the long run due to interest accrued, but I thought that unpaid monthly interest was waved on this plan, so how could it cost more in the long run if the balance is remaining the same over time?
Hi @LindaDulcinea - Around the 4 minute mark I talk about two different groups who the SAVE plan may not be good for - high earners, because your *monthly* payment may be more than on the 10 year plan (but since you're aggressively paying down the loan, you'd end up saving on interest) AND people who aren't having trouble making ends meet on the 10 year plan, because they'd end up paying more in interest over the life of the loan if they got the lower SAVE payment, because they're paying down the principal much more slowly. As to your point, yes, the government will cover any interest *that isn't included in the required monthly payment* - so if your interest accrued is $100 and payment only $60, on SAVE, the government will waive that $40 of leftover interest so your balance doesn't go up. Now, same scenario but your payment is $150: your payment covers all the interest accrued, so you're paying all the interest (and paying the principal down by $50) - there is no leftover interest to be waived by the gov. Hope this clarifies the situation and thank you for your kind words about my vids! -k
SAVE is a great student loan repayment plan but isn't right for everyone - I hope you feel more secure in knowing if you should sign up for SAVE after watching this vid! Let me know all your questions and better yet, leave some glowing comments below!
Hi @nurseadrianern - I have a video that outlines all the different payment plans based on who they’re best for, I think it’ll give you much more clarity on which plan would be best for you: th-cam.com/video/SfuPciHkT1k/w-d-xo.htmlsi=QCeLYNG2fP50ANFI Good luck and thanks for watching! -k
Thank you for the video!! I was wondering what your thoughts were for people who have a somewhat high income (~$200,000 before taxes) but also a very high amount of loans ($500,000+) due to undergrad and 6 years of professional school loans? I was told SAVE might be a good option because under the standard repayment my loans would be half of my take-home income every month so I definitely can’t do that.
Hi @kiwii742 - there is no “one size fits all” for people in this situation- you’ll want to explore your options by 1) seeing what your payments will me on the various plans here: studentaid.gov/loan-simulator/ 2)watching my other vid that outlines which repayment plans are right for which people: th-cam.com/video/SfuPciHkT1k/w-d-xo.htmlsi=QCeLYNG2fP50ANFI Good luck and thanks for watching! -k
I make a little less than 40k per year and have 27k in student loans. Do you think the save plan is right for me? I was debating between the SAVE plan or the ICR plan. Any advice is helpful. Also, I do not plan to get married, but do hope my income obviously increases 😅
Hi @zo6592 - it sounds like the SAVE plan is certainly worth exploring for you. Chances are your payment under SAVE will be lower than ICR which is really only for people with Parent Plus loans. I have a video that outlines the payment plans based on who they were designed for you might find helpful: th-cam.com/video/SfuPciHkT1k/w-d-xo.htmlsi=QCeLYNG2fP50ANFI Good luck and thanks for watching! -k
My loan is now $57,000, it is all interest. My loan started at $18,00.00 I need to know what the best chose for me. I was in the PSLF payment program before the pandemic. I was rising children and now I'm on my own. My income is less than $70,000. Would I be able to be in the PSLF/IDR program? HELP!
Hi @user-bd4mg3qm3s - oh wow, I’m sorry to hear this! I can’t tell you what’s best for you but I have a lot of information to help you decide what’s best for you. Here’s info on how to choose a payment plan (chances are the SAVE plan is your cheapest monthly option): th-cam.com/video/SfuPciHkT1k/w-d-xo.htmlsi=yMp2iiBO8r86lZ8E Here’s info on how PSLF works - it sounds like you have some months that would count for PSLF but you need 120 qualifying months to have your loans forgiven through it: th-cam.com/video/XrJ0D_uIn-I/w-d-xo.htmlsi=hqb8bn7UAXpQWRow You may be eligible for IDR forgiveness which takes minimum 20 years, I have a video on that here: th-cam.com/video/O-2jiqH5KNg/w-d-xo.htmlsi=HMbQjywkevF2MZhJ Hope this helps and thanks for watching! -k
Hi @Diane8181 - kinda. It’s never simple - that would be much too easy!! if your payment is less than interest accrued then the government will waive the rest of the interest. For example: if $100 of interest accrues and your required payment is $25, on other plans they’d add the $75 of interest left over to your balance (thus increasing your balance even though you made a payment), but on SAVE they just waive that $75 interest. Your balance doesn’t go up but it also doesn’t go down. HOWEVER, if your required payment was $125, $100 would go to interest and $25 to the principal. Hope this clarifies it, thanks for watching! -k
First of all, your videos are amazing! So glad I found them! Had a question: at timestamp 4:13 you mention that for high earners, this plan might cost more money in the long run due to interest accrued, but I thought that unpaid monthly interest was waved on this plan, so how could it cost more in the long run if the balance is remaining the same over time?
Hi @LindaDulcinea - Around the 4 minute mark I talk about two different groups who the SAVE plan may not be good for - high earners, because your *monthly* payment may be more than on the 10 year plan (but since you're aggressively paying down the loan, you'd end up saving on interest) AND people who aren't having trouble making ends meet on the 10 year plan, because they'd end up paying more in interest over the life of the loan if they got the lower SAVE payment, because they're paying down the principal much more slowly.
As to your point, yes, the government will cover any interest *that isn't included in the required monthly payment* - so if your interest accrued is $100 and payment only $60, on SAVE, the government will waive that $40 of leftover interest so your balance doesn't go up. Now, same scenario but your payment is $150: your payment covers all the interest accrued, so you're paying all the interest (and paying the principal down by $50) - there is no leftover interest to be waived by the gov.
Hope this clarifies the situation and thank you for your kind words about my vids! -k
SAVE is a great student loan repayment plan but isn't right for everyone - I hope you feel more secure in knowing if you should sign up for SAVE after watching this vid! Let me know all your questions and better yet, leave some glowing comments below!
For higher earners making over $110-125k year which plan ? No writeoffs- with 80k loans ?
Hi @nurseadrianern - I have a video that outlines all the different payment plans based on who they’re best for, I think it’ll give you much more clarity on which plan would be best for you: th-cam.com/video/SfuPciHkT1k/w-d-xo.htmlsi=QCeLYNG2fP50ANFI
Good luck and thanks for watching! -k
Thank you for the video!! I was wondering what your thoughts were for people who have a somewhat high income (~$200,000 before taxes) but also a very high amount of loans ($500,000+) due to undergrad and 6 years of professional school loans? I was told SAVE might be a good option because under the standard repayment my loans would be half of my take-home income every month so I definitely can’t do that.
Hi @kiwii742 - there is no “one size fits all” for people in this situation- you’ll want to explore your options by
1) seeing what your payments will me on the various plans here: studentaid.gov/loan-simulator/
2)watching my other vid that outlines which repayment plans are right for which people: th-cam.com/video/SfuPciHkT1k/w-d-xo.htmlsi=QCeLYNG2fP50ANFI
Good luck and thanks for watching! -k
I make a little less than 40k per year and have 27k in student loans. Do you think the save plan is right for me? I was debating between the SAVE plan or the ICR plan. Any advice is helpful. Also, I do not plan to get married, but do hope my income obviously increases 😅
Hi @zo6592 - it sounds like the SAVE plan is certainly worth exploring for you. Chances are your payment under SAVE will be lower than ICR which is really only for people with Parent Plus loans.
I have a video that outlines the payment plans based on who they were designed for you might find helpful: th-cam.com/video/SfuPciHkT1k/w-d-xo.htmlsi=QCeLYNG2fP50ANFI
Good luck and thanks for watching! -k
My loan is now $57,000, it is all interest. My loan started at $18,00.00 I need to know what the best chose for me. I was in the PSLF payment program before the pandemic. I was rising children and now I'm on my own. My income is less than $70,000. Would I be able to be in the PSLF/IDR program? HELP!
Hi @user-bd4mg3qm3s - oh wow, I’m sorry to hear this!
I can’t tell you what’s best for you but I have a lot of information to help you decide what’s best for you.
Here’s info on how to choose a payment plan (chances are the SAVE plan is your cheapest monthly option): th-cam.com/video/SfuPciHkT1k/w-d-xo.htmlsi=yMp2iiBO8r86lZ8E
Here’s info on how PSLF works - it sounds like you have some months that would count for PSLF but you need 120 qualifying months to have your loans forgiven through it: th-cam.com/video/XrJ0D_uIn-I/w-d-xo.htmlsi=hqb8bn7UAXpQWRow
You may be eligible for IDR forgiveness which takes minimum 20 years, I have a video on that here: th-cam.com/video/O-2jiqH5KNg/w-d-xo.htmlsi=HMbQjywkevF2MZhJ
Hope this helps and thanks for watching! -k
Hi
I thought you said on SAIVE you don't pay interest at all
Hi @Diane8181 - kinda. It’s never simple - that would be much too easy!!
if your payment is less than interest accrued then the government will waive the rest of the interest. For example: if $100 of interest accrues and your required payment is $25, on other plans they’d add the $75 of interest left over to your balance (thus increasing your balance even though you made a payment), but on SAVE they just waive that $75 interest. Your balance doesn’t go up but it also doesn’t go down.
HOWEVER, if your required payment was $125, $100 would go to interest and $25 to the principal.
Hope this clarifies it, thanks for watching! -k
@themoneylibrarian thanks for the explanation. I got it now.