Biden's New SAVE Plan: Lower Student Loan Payments with Forgiveness

Рет қаралды 6,808

Michael Ruger - Greenbush Financial Group

Күн бұрын

With student loan payments set to restart in October 2023, the Biden Administration recently announced a new student loan income-based repayment plan called the SAVE Plan. Not only is the SAVE plan going to significantly lower the required monthly payment for both undergraduate and graduate student loans but there is also a 10-year to 25-year forgiveness period built into the new program. While the new SAVE program is superior in many ways when compared to the current student loan repayment options, it will not be the right fit for everyone. In this article, we will cover:
• How does the new SAVE Plan work?
• How does the SAVE program compare to other student loan repayment options?
• How are the monthly payments calculated under the SAVE program?
• What type of loans qualify for the SAVE plan?
• How do you apply for the new SAVE plan?
• How does loan forgiveness work under the SAVE plan?
• Who should avoid enrolling in the SAVE plan?
• The new Fresh Start Plan to wipe away defaults and delinquent payments in the past
www.Studentaid.gov has excellent resources available:
www.Studentaid.gov/save for information about the new income-driven repayment loan plan
www.Studentaid.gov/restart: for borrowers who were in repayment before and are going to resume payments
www.Studentaid.gov/firstpayment: For borrowers who haven’t made a payment before
Call Studenaid.gov for info on your student loans: 1-800-433-3243 (1-800-4-Fedaid)
Contact Michael Ruger with Questions: 518-477-6686 or mruger@greenbushfinancial.com
Visit our website: www.greenbushfinancial.com/
Subscribe to our channel for more financial planning tips: / @greenbushfinancialgroup
#studentloans #greenbushfinancial

Пікірлер: 43

@jjpark4075 3 ай бұрын

This info is very helpful. I did FSA consolidation for undergraduate and graduate loans. About $200000 forgiven for my loan and $250000 for my husband. We still have balance to pay under new SAVE plan. I can finally be qualified to purchase home. I am very grateful to SAVE plan.

@trentonkraczek 2 ай бұрын

Thank you for giving us this information. Very helpful.

@sparkle9482 Ай бұрын

Great Information!!!!!

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@aprilulrich1949 9 ай бұрын

Excellent! Thank you so much for this information.

@Baseeeet 4 ай бұрын

Thank you

@JoelCordova-nz8ie 4 ай бұрын

You have provided so much valuable information. Thabk you man

@yaritzagonzalez9100 Ай бұрын

very very helpful thank you

@SPORTSREACTIONS 9 ай бұрын

Thank you for this info. I had a quick question…. The interest rate on my current student loan is 5.125%. If I did the start program would that enter me into a new interest rate that is current to todays interest rates? Like would it go up to 7% or more?

@Boscovius 3 ай бұрын

Government subsidized interest accumulated under the SAVE program is added to the forgiven amount and reported as income.

@RyneO-p7m 6 күн бұрын

Do you have to recertify your income under the SAVE plan every year? I had to do this under the IDR plan. But I thought you did not need to under the SAVE plan. Does anyone know?

@dwhirsh82 2 ай бұрын

You mentioned all payments made previously are counted towards the new save plan. Is that accurate? We’ve been on a graduated plan and extended payment plan and according to other sources only payments made on other IDR plans, 10 year standard payment plan payments or those other payment plans equal to the standard repayment plan monthly payment. Neither my nor my wife’s payments are close to what the standard would be and we’ve never been on an IDR so does that mean all our payments would not qualify as a qualifying repayment towards the save plan?

@jason-bz2pt 8 ай бұрын

My original balance i borrowed was 16000, after capitalization it was 26,000 will the 10 year forgiveness be for the original amount?

@laurab9518 5 ай бұрын

I’m kicking myself because I just made over 5k in payments in my loan in last 6 months. I originally took out only 6k in my loan and it ballooned to 8,500 but I made payments and was never late. I wound up paying most of it.

@megantafoya2606 5 ай бұрын

in the case of forgiveness and the remaining balance becoming taxable income, is the amount taxed the original loan (borrowed) amount or what has accrued in total after the 25 years? For example, the original loan amount was about $34,000, according the the calculation on the website it state my total estimated amount forgiven would be about $53,000. After 25 years, would the $34,000 be the taxable income or $53,000?

@greenbushfinancialgroup 4 ай бұрын

It’s my understanding, that the actual dollar amount that’s forgiven, not the original loan balance, is the amount subject to taxation, depending on what the tax laws are the time of forgiveness. (common is for education not advice)

@janekendall1104 3 ай бұрын

I never got any reprieve of making payments due to Covid. AES told me I didn’t qualify for this reprieve because of the “type” of loans I have.

@bobprahl7010 9 ай бұрын

What happens if both spouses have student loans and file taxes jointly? Say 100K joint AGI, subtract the 225% of $19,370 which yields a monthly payment at 5% of $235. Do both spouse then have that same payment for a total of $470?

@greenbushfinancialgroup 9 ай бұрын

Yes. The same combined income is reported for both SAVE applications individually. (Comment is for education. Not advice)

@yolandagomez9255 3 ай бұрын

My loan servicer said that it will be forgiven after 25 yrs but I would have to reapply for this every year, so after one year of paying which is now 24 yrs to pay, if I reapply will it go back to 25 yrs?

@Dwall828 3 ай бұрын

You don’t reapply every year. You have to file a recertification every year which is how they monitor your income and calculate payments. This is because people may earn a pay increase that means they should be paying more. The opposite is of course true too, but you can file a recertification at any time if you lose income and need a reduction in payments. Just be aware that not filing a recertification may affect forgiveness eligibility at the loan’s maturity date.

@xursssulaxx 2 ай бұрын

this seems fishy to me

@buixote Ай бұрын

Total Student Debt is 1.6 TRILLION. Typical Democrat Proposal: day late, dollar short. Nevermind the Genocide, have some crumbs.

@ryang3564 9 ай бұрын

It's the latest Democrat scam.

@huntingtonbeachanthony4957 5 ай бұрын

Explain in detail.

@jsun7972 4 ай бұрын

@@huntingtonbeachanthony4957 basically make it seem like they are giving you something around the time the election is coming so you vote democrat, and then you realize you aren't really getting anything and they get your vote. I fell for this myself. I'm ignoring all this stuff and just paying off the rest of my loan. I'm almost done anyway. If anyone gets any help from this, then god bless them.

@aeroz2804 3 ай бұрын

Allowing working people to buy food and necessities instead of paying down high interest debt because boomers created a work culture that requires a bachelor's degree to be a coffee barista = scam. There did it for him.

@Kuvyogkuvyaj 4 ай бұрын

If your payment is 0, how will this loan ever get paid off?

@greenbushfinancialgroup 4 ай бұрын

Depending on your balance at some point, you’ll either reach forgiveness, or to your point, you will have to start making payments. Otherwise, your balance will never be reduced, even though interest is not being charged. (Comment is for Education. Not advice)

@lindaparish9000 Ай бұрын

I am on ICR and payment is 0 but interest is adding up at 8%. My loan is Parent Plus. So I am going to try and pay off. Any advice?