This is a bit too stream of consciousness. While some of what he says is correct, it leaves out too many details and is very repetitive due to not being a well organized talk. He doesn't say why an IBR payer might have a lower payment than using SAVE, or how the loan amount and income affects this. He also doesn't discuss the PSLF forgiveness program and how SAVE affects that. Basically, this is really sloppy and looks to be intended more to get new clients, than to provide good free advice to people who need it.
Great video! If this helps I was able to call mohela and the rep gave me an estimate of my payment for save vs the ibr that I was on, we found it was cheaper to stay on IBR. There is supposedly a calculator on their website to give estimates but the rep was able to do this for me which was a big help to know that I shouldn’t switch yet.
First 40 seconds of this video you told me exactly what I had come up with myself. Seems like a no brainer, especially if you're making more money now than before. I'll keep my cheap payment until 2025 when I recert, THEN I will consider swapping to SAVE
Is the interest still accruing, though? Like at the end of the 20-25 years, will all of that interest that I didn't have to pay monthly still have accrued, need to be forgiven and then taxed? That's what i don't understand
I did not understand people possibly having lower payments if they were previously on an IDR plan compared if they applied for SAVE. I thought you had to provide income taxes on occasion for IDR. So making more now than you did before Covid pause shouldn’t matter, because ultimately you have to provide taxes. Most people likely link their taxes digitally so that it’s not difficult. Then with the SAVE plan, when you apply it provides you with possible amounts in comparison with other plans and provides the details of how long it will take to pay back. It definitely seemed beneficial for me and a lot of people will be missing out with at least checking it out if there is any negative connotation tied to it. Not saying it’s the best plan for everyone, but I was impressed with the application process unlike past.
My service provider said I dont qualify for the SAVE Plan and ive been paying on my loans forever. Also, I was told I dont qualify for the 20 -25 forgiveness. I'm not sure why I wouldnt qualify for that.
Are your loans Commercial or Direct? If you been on an idr for at least 240 months for undergraduate or 300 months for graduated! Whoever you spoke to at your servicer, didn’t want to help you
please please please just pay off your student loans as soon as possible. pay extra, pay lump sums, etc, just stop getting tied up in these loans and programs and other bullshit, and BE FREE.
Mine was paid off by the government since they didn't properly put me in an IDR program and I made my payments... Forgiveness was signed into law in the 1990s but of course laws are never followed...I think they owe me for over pay also...
That doesn't make sense for everyone though. If you can get govt assistance on interest and forgiveness after 10 years, why would you pay it all in a lump and go broke?
@@gahbah274 youre right it's not for everyone. sure you get a chance to be forgiven but if you've found a decent job because you took a useful degree, would you really be paying $500/mo for 10 years for a chance that interest and the rest is wiped on a 60k loan instead of paying $1000/mo for 5 years and just do other financial goals sooner? also it's a loan, why is it that people expect debt to disappear? you agreed to borrow money and repay it with interest and you want it to just disappear? is it really that easy? how do you think loan forgiveness is sustained in an economy like USA? everyone including you will shoulder this one way or the other. nothing is free, including debt forgiveness.
What about those on disability. My disability check has been garnished. I've had my loan since 1994. The interest is now higher than the amount of my student loan. I have no clue if i need to apply for the SAVE program or not.
@@seand1011 I don't know or know how to find out. Under Biden's forgiveness plan I did and I had a state job. So all should have been forgiven. Interest accrues steadily so I'll never be able to pay on the principal.
PAYE PSLF… payments beginning for first time ever due to deferment this year. Does SAVE benefit me? So far 2 years of deferment has counted towards my 120 months of payment.
Yes. I recently spoke to the Federal Student aid department & you can overpay with no penalty. That’s my plan and I owe over $158k due to school. Praying it all works out for my good
So, as a new grad with $90,000 in grad school loans and AGI of $70,000, I should apply for save, then when it’s time to qualify again, I should be able to use my tax documents from this year and get low payments again? Am I understanding that correctly?
i thought that the interest was only zero if your payment was zero. and that if your payment amount is less than the monthly interest amount, then the remaining interest was paid by the government. Or it just didn't accumulate. Is that incorrect?
Hello thank you so much for your video. I am currently in the process on applying, but when looking at the details for SAVE it shows all of my student loans and next to it it shows the interest rate (some up to 5.50%) and im unsure if this is what I originally had or what i'm about to have if I decide to do SAVE. Just wanted to see if I can get some understanding in this.
Dude you can pay that off in a year. This plan isn't for you. It's 13k, you make more than 3x that. If you can't pay that off comfortably, you need to look at your spending. Ramsey would eat you alive...
PAYE PSLF… payments beginning for first time ever due to deferment this year. Does SAVE benefit me? So far 2 years of deferment has counted towards my 120 months of payment.
Also a factor here is interest... on SAVE the interest is 0 if you make payments, if you have a larger balance that is worth it.
Absolutely!! That’s where the saving is coming from. Interest is a beast.
Thank you for explaining! My payment is comparatively low to other payments I've heard of, so I was nervous to apply for the SAVE program
Mine too. Mine will go up $120 if I apply for SAVE now, however, after July 2024 it might be worth it for the interest benefit. I plan to wait.
@@Cnh233can you apply to save program any time? And if there a way to calculate your payments if you apply to the save program without applying?
How can I apply for the SAVE program? When I select to fill out the application it’s not highlighted and I won’t allow me to fill it out
My thought exactly. Thank you for confirming what I was pondering upon.
This is a bit too stream of consciousness. While some of what he says is correct, it leaves out too many details and is very repetitive due to not being a well organized talk. He doesn't say why an IBR payer might have a lower payment than using SAVE, or how the loan amount and income affects this. He also doesn't discuss the PSLF forgiveness program and how SAVE affects that. Basically, this is really sloppy and looks to be intended more to get new clients, than to provide good free advice to people who need it.
SAVE doesn’t affect PSLF! It’s still considered an IDR plan! After dealing learn about SAVE, it’s a great plan
Great video! If this helps I was able to call mohela and the rep gave me an estimate of my payment for save vs the ibr that I was on, we found it was cheaper to stay on IBR. There is supposedly a calculator on their website to give estimates but the rep was able to do this for me which was a big help to know that I shouldn’t switch yet.
Thanks for sharing!
Thanks for this. I have figured out for myself that it is better to just stay on my IBR.
What is mohela.
I'm 10 yrs into my IDR plan. Looked into the SAVE plan and saw that I would start all over. NOT A CHANCE!!
Can you explain more about the interest subsidy on the SAVE plan please?
Good question
As long as you make the MINIMUM payment every month, you pay off the principal (the total amount) and aren't burdened by interest
@@ggangpae4520what happens if you pay more than the minimum? does interest still accrue?
First 40 seconds of this video you told me exactly what I had come up with myself. Seems like a no brainer, especially if you're making more money now than before. I'll keep my cheap payment until 2025 when I recert, THEN I will consider swapping to SAVE
I have yet to start payments so I am unsure which would be better for me. How can I check what my payments would be on the two plans?
Under the SAVE plan my payment was going to go from $200/mo to $473/mo. No thanks.
Is the interest still accruing, though? Like at the end of the 20-25 years, will all of that interest that I didn't have to pay monthly still have accrued, need to be forgiven and then taxed? That's what i don't understand
The Interest does accrue, and it is treated as income payed out by the federal government to you. So you will pay tax on the amount forgiven
I did not understand people possibly having lower payments if they were previously on an IDR plan compared if they applied for SAVE. I thought you had to provide income taxes on occasion for IDR. So making more now than you did before Covid pause shouldn’t matter, because ultimately you have to provide taxes. Most people likely link their taxes digitally so that it’s not difficult. Then with the SAVE plan, when you apply it provides you with possible amounts in comparison with other plans and provides the details of how long it will take to pay back. It definitely seemed beneficial for me and a lot of people will be missing out with at least checking it out if there is any negative connotation tied to it. Not saying it’s the best plan for everyone, but I was impressed with the application process unlike past.
My service provider said I dont qualify for the SAVE Plan and ive been paying on my loans forever. Also, I was told I dont qualify for the 20 -25 forgiveness. I'm not sure why I wouldnt qualify for that.
Are your loans Commercial or Direct? If you been on an idr for at least 240 months for undergraduate or 300 months for graduated! Whoever you spoke to at your servicer, didn’t want to help you
Are you with Navient?
@@tonybennet5312Navient cannot be trusted
I think this made me more confused 😬
please please please just pay off your student loans as soon as possible. pay extra, pay lump sums, etc, just stop getting tied up in these loans and programs and other bullshit, and BE FREE.
Yes!!!!
Mine was paid off by the government since they didn't properly put me in an IDR program and I made my payments... Forgiveness was signed into law in the 1990s but of course laws are never followed...I think they owe me for over pay also...
That doesn't make sense for everyone though. If you can get govt assistance on interest and forgiveness after 10 years, why would you pay it all in a lump and go broke?
@@gahbah274 youre right it's not for everyone. sure you get a chance to be forgiven but if you've found a decent job because you took a useful degree, would you really be paying $500/mo for 10 years for a chance that interest and the rest is wiped on a 60k loan instead of paying $1000/mo for 5 years and just do other financial goals sooner? also it's a loan, why is it that people expect debt to disappear? you agreed to borrow money and repay it with interest and you want it to just disappear? is it really that easy? how do you think loan forgiveness is sustained in an economy like USA? everyone including you will shoulder this one way or the other. nothing is free, including debt forgiveness.
Mines said zero payment and forgiveness when I submitted the app. Idk what that means
What about those on disability. My disability check has been garnished. I've had my loan since 1994. The interest is now higher than the amount of my student loan. I have no clue if i need to apply for the SAVE program or not.
Wouldn't you qualify for forgiveness after so long?
@@seand1011 I don't know or know how to find out. Under Biden's forgiveness plan I did and I had a state job. So all should have been forgiven. Interest accrues steadily so I'll never be able to pay on the principal.
PAYE PSLF… payments beginning for first time ever due to deferment this year. Does SAVE benefit me? So far 2 years of deferment has counted towards my 120 months of payment.
This has been really helpful
Should you pay off your interest in you get accepted into the save plan ?
If one does apply for the SAVE plan, you can always pay extra.
Is that possible?
Yes. I recently spoke to the Federal Student aid department & you can overpay with no penalty. That’s my plan and I owe over $158k due to school. Praying it all works out for my good
So, as a new grad with $90,000 in grad school loans and AGI of $70,000, I should apply for save, then when it’s time to qualify again, I should be able to use my tax documents from this year and get low payments again? Am I understanding that correctly?
i thought that the interest was only zero if your payment was zero. and that if your payment amount is less than the monthly interest amount, then the remaining interest was paid by the government. Or it just didn't accumulate. Is that incorrect?
Wait what? What do you mean 20 years to forgiveness? The article on nerdwallet was saying 10. Is that wrong?
Hello thank you so much for your video. I am currently in the process on applying, but when looking at the details for SAVE it shows all of my student loans and next to it it shows the interest rate (some up to 5.50%) and im unsure if this is what I originally had or what i'm about to have if I decide to do SAVE. Just wanted to see if I can get some understanding in this.
If I make $200k, and my wife is still in school with student loans, would my income affect her SAVE plan application?
No, not if she applies on her own. Spousal income is not a factor for SAVE.
@@seand1011 you have to file separatley
It's bullcrap plan. I get 13k loan and 90k a year income. Wont help me.
Then why don’t you just pay it off?
Then SAVE plan is absolutely great for low income borrowers.
@@TheseEyesSeeDarknessClearly7ya
Dude you can pay that off in a year. This plan isn't for you. It's 13k, you make more than 3x that. If you can't pay that off comfortably, you need to look at your spending. Ramsey would eat you alive...
@@KlearChristal apparently math is not you strong point. I make 7x that and I can pay it off tomorrow but I would rather buy a boat
Is the "buy back" for periods of deferments that
didn't qualify for pslf a real change that will go into effect?
Loan forgiveness. Lol!
What a joke!
Can I do your eyebrows…? They need a trim and some shaping. 😬🥴
Lol
Ha!
Basically if you got a useless degree and are making less than someone in stem you shoukdnt do the plan
Uhhh no. If you are making the dough in a STEM job this plan won't save you money because its income based. 😂
@gahbah274 hence the useless degrees making you shit money are the perfect candidates for this.
Your eyebrows are so bushy
PAYE PSLF… payments beginning for first time ever due to deferment this year. Does SAVE benefit me? So far 2 years of deferment has counted towards my 120 months of payment.