The Truth About Biden's New SAVE Plan For Student Loans

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[@mpm2010lbc]

I paid off my student loans tonight!!!!!!!!! I did it !!!!!!!!!!!!!!! Oh my GOD !!! I'm jumping up and down !!!!!!!!!!!!! After 10 yearsssssssss!

[@janetmcdonald432]

CONGRATULATIONS 🎉🎉🎉🎉!!!!!

[@jroark101]

Great job

[@denmanning3080]

Congratulations.

[@karlmanning2603]

Way to go!

[@Love2Banime]

Congrats 🎉

[@Sistahknit]

I received a letter 3 days ago from the Department of Education. ALL my Federal student loans have been forgiven in full. I just simply praise God. I count this as a real blessing. Yes, I got forgiveness after 25 years.

[@macgamer1973]

That s going happen to me.. 6 more years to .. I’m free from it an the deal and point was we take out loans to get a better paying job. Mac Donald’s and low income was part of the deal. So f paying any of it back

[@bariatasudan]

I’m so happiest for you ❤

[@stevengiuseppetti6555]

How did that happen? Sorry but "God" doesnt pay peoples loans off lol

[@theclown888]

Hope waiting for TWENTY FIVE YEARS was worth it.

[@rsimmons1980]

Girl, God ain't had nothing to do with paying off your loans. Everyone gets forgiveness after 25 years of public loans.

[@PageTurnerr__]

Please reexamine your approach. This SAVE plan is actually the BEST option for anyone using the debt snowball with a goal of eliminating student debt. You can be GAZELLE INTENSE with 0% interest. People with high student loan debt should absolutely take this plan…it’s a great opportunity to pay down principal on student loans, or focus on eliminating smaller debts

[@dungeonmaster6292]

Ramsay crew are shills and are paid to carry the water

[@honeybee3383]

This was suggested to me because I have about $100,000 and I’m in school for my PhD so I’m going to have a few more. I’m a college professor, so I fall under the PSFL too

[@rsimmons1980]

​@@honeybee3383I'm doing pslf on 140k. Got 7 years to go.

[@beyondcleon]

Exactly! Not sure why they attacked the program so harshly when the issue at hand is how people use it But Political bias > their own previous established logic

[@MrChrisPic]

She actually said that in the video though. She said it’s a bad plan if you’re going to kick the can down the road but you can use it to apply the debt snowball

[@Ezunit1991]

Student loans are gone after 20 years for undergrad and 25 for grad. Mathematically paying the least for the longest time is still a lower total. Use your money for retirement. Social security won’t be there.

[@Bromocriptine777]

Is it true that

[@sarahleeblanc8274]

@@Bromocriptine777 I get all mine forgive after 10 years

[@cerbgerm]

@@Bromocriptine777a few years ago yes but they have cleaned up the process and are continuing to improve the process.

[@haronsmith8974]

thank you, Dave ramsey scam shines here.

[@sergetinc1344]

I’m in PSLF and have 3 more years left. My friend just got ALL his loans forgiven. I don’t get why they are saying these programs don’t work. They do work if you know how to use them properly. Them 2 need to do more research!

[@sarahsilva5456]

Same here. I experienced this relief in June last year. 🎉

[@dSho26]

This is absolutely true if you are in a field thats compatible with PSLF. This clip is pretty ignorant.

[@sarahsilva5456]

While I did benefit of my loan being discharged due to PSLF, I believe the points presented in the clip are valid. Not every career would qualify for PSLF. I think they are warning about how quickly the capitalized interest accumulates and there is always the risk that there might be changes to loan forgiveness terms contingent on changes in administration. The only good prospect of the SAVE plan is the way interest terms are going to be structured. I do think this has been necessary and overdue.

[@sarahsilva5456]

PSLF did not work for the longest time in the pay with many people being left hanging due to not very defined terms and conditions. The Temporary PSLF waiver initiative did provide clearer guidance and allowed for thousands of borrowed getting relief since summer last year.

[@dSho26]

@@sarahsilva5456 this is so true. While my profession , which is very pslf compatible, so many aren't and like everyone i see it through my own lens. I just hope pslf isnt stolen from us. I just hope that people are able to find a plan that works for them.

[@An-Engineered-Journey]

My wife and I have paid off 200k in debt since 2020. Just paid off my student loans that have been following me around and feels great to be debt free besides my house

[@dungeonmaster6292]

What a nightmare

[@darrenruben2981]

Yup can live and give now

[@diane7476]

Wow !!!

[@jeanmarieb.8537]

Yayy!!!! I’m gonna say that one day! Congratulations

[@br-otnicholashentzotd-wj3uk]

very cool! honestly curious how much you make annually

[@caleblegis8934]

I’d disagree, this is a pretty good option for people who simply can’t afford the standard payments. Highly critical of the administration here, but I’d say they are trying to make the best of a tough situation. Also very easy to say “federal student loans should be regulated/stopped” but why not present plausible and actionable solutions as well?

[@GeorgeG472]

Just how they implemented this plan, they could've just as easily overhauled the system.

[@theflow6363]

I qualified for loan forgiveness, whereas all Dave Ramsey's show said I wouldn't. The only advice he gave me was to get thirty jobs to pay off my debts. All more employment does is put more stress on your family. Just be carefull and research things for yourself. Thats all im saying.

[@happyhippo1710]

I just had mine forgiven too today. I don't feel any different.

[@owenson7969]

Was it completely forgiven? Genuinely curious.

[@dhill74lax]

Why do they not act like this isn't an improvement to a predatory system. Preventing interest accrual is a big help to student loan borrowers. Anyone that qualifies for this plan should use it. Yes use it for a debt snowball, and no if you have $0 payments don't pay them down. Invest what you can and if the game changes throw that money immediately at the debt. If someone gives you a 0% interest loan with 0$ payments for x amount of time, there's a giant opportunity cost in paying that down during x amount of time.

[@veronicaschweitzer1748]

Exactly!

[@batiso]

They are conservatives trying discredit Biden for no damn reason

[@jackester6742]

Exactly. I dont get why they're bothered by the plan. Zero interest is all you need to hear. Kicking a zero interest can down the road is a good thing! The interest is what makes debt a bad thing. Considering inflation, making tiny or zero dollar payments toward a zero interest loan is actually superior to immediate payoff, because wages slowly inflate over time deflating the relative size of the loan. Zero interest loans are better when longer, not worse. The save plan is super reasonable. Basically perfect.

[@amireallythatgrumpy6508]

They're not trying to discredit Biden. The way to discredit Biden is just let him talk.@@batiso

[@12823matthewkao]

because theyre just evil. some people are just born evil, i deeply realized this during this student loan forgiveness fight.

[@timsmith8506]

I’ve started paying down consumer debt and student loans and even though every nickel is going towards debt I’m starting to feel a huge weight being lifted.

[@CrazyBomber22]

Well done, and best of luck! It will be worth it when you're done, and you will owe no one nothing. Best freedom one can get.

[@youtubekeepscensoringme3357]

I'm $750 from paying off ALL consumer debt. However, my loans start on October 3rd. I literally need 1 extra month. No truck payment and no house payments

[@costco_pizza]

A lot of people are struggling out there. We are suffering and we don’t know where our next meal is coming from. This student debt relief would help a lot of us out to be able to pay bills and put food on the table. Why don’t Jade and Ken want that for us?

[@user-tn4zn4xu9g]

@@costco_pizza Because the government is absolutely NOT going to forgive anything. The odds of that are beyond slim. Left, right, center, up, down, don't care which side promises it. No one is going to actually make it happen. They don't want to see you kick the can down the road and be worse off. Plus as much as this sucks to hear we are the ones that signed up for it and we are responsible for it. Believe me after paying off a crazy amount of student debt I feel very torn. On one hand I want forgiveness, but on the other I knew what I was doing and it's my problem. And after paying so much of it as much as I don't want people burdened with their student loans a part of me would actually be upset if they're forgiven because I had to pay mine and that's not fair to me. Plus if they're forgiven the money comes from somewhere which will mean transferring the debt to future tax payers. In other words making our kids and grandkids pay them. That's not fair to them.

[@mariorta5017]

Well done and good luck to you

[@ElaniaG]

I'm really glad they finally mentioned how an IDR plan can HELP with the debt payoff journey. Everyone who seeks lower/zero payments does not intend to "Kick the can" down the road in hopes that forgiveness finally kicks in. Lower payments free up money for other smaller debts in the snowball and for general breathing room in the budget for things like, electricity and food, for a lot of people. It's a temp form of relief that can really help in the long run if the true intention is to get out of debt asap.

[@Michael-kv7uw]

yea their heavy republican advice is not needed. we are seeking PERSONAL finance advice, which this program is in our best interest. The SAVE plans ability to prevent interest from accruing is by far the best part of this program… and they didn’t want to highlight how beneficial this is to the average american

[@jimmymcgill6778]

These people listen to too much FOX news.

[@joeyrigsby38]

Unfortunately it is based on income that means if you get a promotion or a better paying job your payments go up.

[@TimothyCatan]

Exactly. If anything this plan aligns nicely with a Dave Ramsey philosophy for those with other forms of debt and see this plan as an effective tool to target those other debts more aggressively. I enjoy this show but the panel can get a bit intoxicated by their own kool aid sometimes.

[@ElaniaG]

True, but for those who qualify it's a useful option. Plus my understanding is that the income based payment minimum can't be higher than one's standard payment so at worse, the plan would have to change. @@joeyrigsby38

[@Abby_Ramona]

This is perfect for public servants who just need 120 qualifying payments and 10 years of service 🎉 I don’t wanna pay it off, I wanna do just enough to make it all go away.

[@mrsvr]

Yes!!! I paid the minimum payment for the past 10 years while only working for non profits. I just had my loans forgiven. It shows as paid/ closed never late. My credit score dropped 3 points but I'll take that drop over 108k!!!

[@SAreamusic1]

@@mrsvr same here as government employee for 7 years i keep trying to pay the minimum but they keep raising my payment!!!

[@tkleo2006]

I like the save plan only because as long as you pay the minimum payment no additional interest is added. So, I can continue to pay more than the minimum to pay down the principal without getting hit with more interest.

[@nickt.7305]

Agree, they’ll eventually have to put limits on student loans. If interest doesn’t accrue, colleges can keep raising tuition and everyone will be on SAVE. While I am thankful not to have accumulating interest, more changes to the system are necessary.

[@Bromocriptine777]

So basically SAVE plan is just putting a pause on the principle? Because the minimum we pay goes directly toward our monthly interest

[@petra_fine]

This plan is extremely helpful to me. I'm definitely paying more than $0 per month if interest isn't being applied monthly. Like no duh debt is still gonna be there. The great this is no interest while I'm paying back.

[@sparklingpersonality87]

There is interest, it just doesn’t accrue if in SAVE, if making minimum payment, and only for undergrad loans. So if you pay $200 and your interest is $250 then you still pay all towards interest but the $50 doesn’t go to the next month.

[@DRu.913]

​@@sparklingpersonality87thanks for clarifying this, I guess it's still worth it to save on some interest then just not all of it as some believe

[@richq1318]

All I can say is that I am glad I paid my student loans off years ago when I started listening to Dave. It has been a blessing!

[@MariaSerrano-tm1xb]

Same here! Thankful everyday for the sacrifice

[@963janet]

Me too!

[@amydoran9987]

I gladly, payed mine off years ago.

[@sneakysnake2866]

Dave?

[@jaja32807]

What was his strategy?

[@InnKogNeeto]

The new plan has helped me big time. I’ll forever be grateful to this plan and Administration doing something to get citizens out of debt. More than the previous administration.

[@amireallythatgrumpy6508]

You would be in the minority.

[@mbank3832]

@@amireallythatgrumpy6508 that's racist

[@NatureLover-qm3rr]

Any debt relief this foolish person gets will be paid back through inflation...

[@Tennisnooob]

Lol

[@hairwegoagain8740]

EXACTLY RIGHT!!!!! Thank you Joe Biden!!

[@juliejerrylee]

I paid off my students loan last week and it feels so good.

[@riggs58]

Your argument against SAVE seems to be ideological rather than financial. People are spread very thin right now with the high-cost of everything so I don't understand how lower OR Zero payments on a student loan is a bad thing. Borrowers can always pay more if they want to.

[@GeeW-tf6je]

Yeahs she’s just chatting out of all honesty. Plus as years advance your income may advance as well and you’ll have more saved and could potentially pay it all off

[@amazingeric97]

I have been saving money the past three years when my student loan was not being paid. I made one last payment this month to pay the entire balance of my student loan.

[@jeanmarieb.8537]

Congratulations!!!!

[@unclebenny]

The problem with student loans is the loan itself, not the repayment plan. We don't solve debt problems by figuring out re-payments, we need to focus on costs before its spent. This is the same ole trap the auto dealership puts you in.

[@MrJimmy3459]

"What kind of monthly payment did you have in mind?" - every finance guy car dealer

[@mannyjeanpierre4062]

prices go up because of the loans. There are little to no limitations on how much one can borrow. Schools know this and raise prices accordingly.

[@Me-hf4ii]

Except the car loan can be forgiven in bankruptcy. The car can be repossessed if you fall behind, the loan term doesn’t get indefinitely extended. And if things go wrong, it’s off your credit and no longer collectible after the statute of limitations has passed. None of these things are true with federal student loans. They are treated exactly like criminal fines - except criminal fines can usually be settled for 10% or even less during the course of a normal court proceedings, often alleviated in exchange for community service. Whereas the best settlement you can get on federal student loans is 90%, usually requiring an “adversarial hearing” that can cost 10s of thousands in attorney fees - none of which is actually available to student loan borrowers that are actually struggling. Student loans are unique - not because they are so good for the borrower, but because they place the struggling borrower in real, permanent, debt slavery. They are actually treated with less consideration and compassions than criminal fines. And all the student ever did was believe the DOE’s false promises that college loans are the “best investment you can make in your future.” SAVE does NOTHING to prevent this type of exploitation or irresponsible lending. All it does is lower how much the borrower has to pay back. It doesn’t make lending more responsible. And lenders can (and will) still issue $150,000 in debt to art history majors because the government (via tax money) guarantees the lenders will be paid - even tho those borrowers will make on average, $30k/yr after graduation. Meaning their personal debt repayment would be $0/mo for the life of the loan under the new plan… so who’s paying the $150k? Not the colleges who received the money, and not the student borrower… If we return statute of limitations and simple means tested bankruptcy to student loans, you will see the crisis disappear. Colleges would be forced to bring down costs. Lenders would be forced to actually perform proper risk assessment and underwriting before issuing loans, and borrowers would ONLY use bankruptcy as a last resort - in the same way they use it for home foreclosures and car repossessions. We don’t LIKE to go thru the pain of bankruptcy, and it should be painful. It’s simply a way, when all else fails, to not be trapped in destitution. And it should apply to ALL debt.

[@iamana6295]

Auto dealership is definitely a trap

[@wyattarich]

I'm going to switch to this plan for 0% interest, then pay it off early, LIKE EVERYONE SHOULD! Don't hate on 0% interest if you're going to pay it off early and responsibly! Dave needs to reign in the guest here.

[@johnnnysilverhand9819]

Ramsey Show needs to explore the SAVE program’s 0% interest if payments are made. Does that mean all amounts above the min payment goes to principal? If that’s the case, that is an extremely helpful aid to commence debt snowball because 0% interest is better than 7%

[@sonicr6091]

I really hope the show can expand on this

[@batiso]

I will never listen to them again EVER!!

[@johnnnysilverhand9819]

The issue here is not morality-of-loan-forgiveness or people being lackadaisical and refusing to pay their loans… but rather HOW they will pay their loans and under what plan, whether federal payment plans are better or whether refinancing is better. Private banks are salivating as they stare at desperate student debtors, ready to sweep them up with offers of low-interest-rate-refinancing. But you do that, and you can kiss any SAVE, PAYE, or REPAYE assistance goodbye forever. So if SAVE offers zero interest if minimum payments are made, is that better or worse than refinancing? Because guess what? Students who refinanced with private banks right before the pandemic and student loan interest pause kicked in, and then got laid of? I’m sure some have killed themselves.

[@JazzysStyle]

It isn't 0% interest. They are preventing them from charging interest on unpaid interest from minimum payments. I just checked my account, and if I want to pay off my loan early instead of 20 years, all of the interest added on for the past 8 days was included in the pay off amount. But yes, you do save on interest charged on interest added to principal each month.

[@jeffsbalding1319]

So how it works. If your minimum payment that you are charged monthly is less than or equal to interest payments alone, the government will pay the equivalent to equal the interest. Your principal will never go up. If you fall under this category of people and they dissolve the program then you effectively make 0 progress on your loan

[@solarflayer5833]

The thing about this plan that stands out the most is the 0% intrest. I have only about 15,000 in student loans and with 0% interest I can throw as much money at my loan as I want and it wont keep growing. Its so much easier to pay it off without the interest.

[@GabbyEsq]

Thanks for laying this out. I was confused. So if I make my monthly payment, No compounded interest? That had been the issue- the interest. The amount has gone so high that I walk around in shame.

[@solarflayer5833]

@GabbyEsq with the save plan its not so much about if you're making payments on time, its more about your income and how much you make per year. It calculates your monthly payment based on income. If you make less than I think 30,000 per year then you don't have to make any payments and you don't have interest either. This is good because then you can take on the debt at your own pace without interest being added on.

[@markcummings6856]

@@solarflayer5833ok, I do make less than 30k. So NO payment, no interest. So, my loan balance just goes away??

[@JazzysStyle]

It isn't 0% interest... because i'm on this plan and I can see the accrued interest. if you want to pay it off early, it looks like you have to pay the interest off as well.

[@solarflayer5833]

@JazzysStyle "The plan eliminates 100% of remaining interest for both subsidized and unsubsidized loans after a scheduled payment is made. If you make your monthly payment, your loan balance won't grow due to unpaid interest." From what I read, if you make under a certain amount per year, which I believe is 30-40k per year, then your monthly payment is 0 so you don't have to make a payment which eliminates the interest. For people making over 40k per year then they have to make the minimum payment, and if they make the payment on time then it eliminates the interest for that month.

[@opticallyaustin]

All I know is my wife and I qualified for zero dollar payments which was a huge blessing for us to have breathing room to pay off other debt and take care of our kids. I don’t expect these plans to be around in two years, but for now, I’m grateful. Hopefully will be in a better position financially in two years.

[@trust1952]

The people in this video are clueless. My wife’s normal payment is $584 and it will take 13 years paying $584 a month with interest adding up every month. With the SAVE plan the payment is dropping to $73 a month. So if we pay $584 for 13 years it will cost $91,000. If we pay the $73 a month for 30 years it will cost us $26,000 and no interest. How stupid are the people in this video to not understand that. Even if we paid $73 for 60 years it’s still cheaper and no extra interest. Plus in 10 years that $73 a month will be the costs of a little meal. Lol

[@hairwegoagain8740]

AMEN BROTHER!!!! I'm trying to figure out the problem here!!! I am fully aware that the loan IS MINE and I have every intention of paying them off, but any program that will "buy" me some time and give me some breathing room, I consider a BLESSING.

[@edsonmacaraeg]

I’m late. I just signed up for it today so I gotta wait to see if we get approved for it. Every offer we got was $0/monthly because of income. I’m actually under $10k left owed. How does this work? If approved, should I still make some payment even if nothing is expected from me? I don’t want to assume my whole loan is forgiven. They did say I have to renew every year.

[@sarahleeblanc8274]

@@edsonmacaraegYou should address those questions to the Department of Education not KZbinrs.

[@jlraya08]

Why are student loans still being offered!?

[@proper.role.model.819]

I got approved for the SAVE payment. I'm currently in school BUT I'm one of the weird ones actually paying monthly on my loans while I am in school. I have 5 small loans. I'm doing one per year. Dividing $6000 by 12 months and paying it monthly. I refuse to have these loans when I get out of school. Luckily, I still have my Bachelor's to do so I have time but still. I refuse to let it sit and accrue.

[@rosachavez6394]

How to I sign up for the SAVE plan? I can’t seem to get the application on line and I can’t get anyone by phone to help. Can someone give me direction as to where I can do this ?

[@sazzam21]

Just paid of my student loan debt today! Don't care even if they end up paying towards student debts and I miss out, I know in my heart I PAID MY OWN WAY, and that alone is the feeling of accomplishment you cannot get any other way than paying your own debts...every...last...penny...PAID! You were my inspiration, Dave! Thanks!

[@Bromocriptine777]

What if you enroll in the SAVE plan & also pay off debt aggressively?

[@EvangelismforGod]

Thank you President Biden for making sure those of us who work in public service had their loans forgiven if one met the requirements. And I was one of them! And thank you President Bush for implementing the program back in 2007. Folks these programs out here do work. Just find the one that work best for you.

[@Ezunit1991]

This.

[@JordanKase]

Thank you.

[@sarahsilva5456]

As a social worker, my student loan of $72,000 was forgiven in June 2022 after completing 120 payments of $44 monthly. I have been in the receiving end of the relief, but this was a very specific Public Service Loan Forgiveness Program for employees of qualifying NGOs or some areas of the public sector. I am grateful, but I am also very conscious that the SAVE repayment plan doesn’t equal such relief and might just perpetuate indebtedness if not approached strategically to implement the snowball.

[@EvangelismforGod]

@@sarahsilva5456 congratulations and thank you for your service!

[@Ezunit1991]

@@sarahsilva5456 if you pay 44 dollars monthly for 20 years for under grad or 25 for grad, that’s still significantly cheaper.

[@jimmymcgill6778]

These people act like you can choose how much to pay them. It does not work that way. You have to apply for it and submit paychecks so they can see how much you will have to pay. And that have to be done every year.

[@Hi-qh8zt]

True

[@caitlynhardy2264]

That's pretty obvious. But a lot of people qualify for low payments with save. Even $0 payments. I do. Tax information submitted and everything. It's gonna stop my loans from gathering ridiculous interest while I pay my smaller debts off. The income limits for different payment amounts are clearly displayed on the federal aid website. You can pretty well guess what payment you'll end up with. Not to mention the people who are already on an income driven repayment plan. Their payments would likely decrease more under the save plan. So I don't think anyone thinks they get to chose their payment. They probably just have a good guess at what they'll end up having to pay per month.

[@ernstjacques7540]

Just paid off my remaining student loan balance yesterday

[@mikesforza7991]

Congratulations that's awesome.

[@jazziepha206]

Congratulations!!! 🎉🎉

[@HOLDXSTEEL]

Ok want a cookie? Who cares 😂

[@tubenachos]

Niiice 🍻

[@handleyobusiness]

Fantastic!

[@lilylife4426]

My financial advisor wanted me to do repayment plans for decades and invest my income instead, but I listened to Dave Ramsey team and started aggressively paying off student loans. My final payment was a month ago. I cried tears of joy and finally felt free. I have been working as a physician assistant for 8 years. Despite selling my little house to be able to get rid of the loans, I am immensely happy. This Dave Ramsey team is gold! Thank you so much for all you do!

[@user-le6fs8ty3e]

Should've listened to your financial advisor instead of people who make money off your attention. You would've been much further ahead. You would've been borrowing at 0% and investing risk-free at 2% (and up to 5% in the last year). This team is fools "gold" at best.

[@lilylife4426]

@@user-le6fs8ty3e Nope, my student loan interest rate was 9%. My ex listened to the adviser and lost 200K in the stock market and still has 260k in student loans. No, thanks!

[@sarahleeblanc8274]

Listening to Dave Ramsey biases BS?

[@a-schott4150]

I’m 32 with $60,000 of student debt. I’ve paid off $8,000 in private loans but the government loans I’ve never even touched. I’ve never made enough money, according to the IDR results, to have to pay more than 0$ a month, and I never have. I’ve lived in deferment. Yes it feels crippling. And the worst part is I majored in English Literature. Three years ago I was in a masters program to get certified as a teacher, but I dropped out during Covid because I hated “online learning.” I feel stuck and I don’t know how to make the money to dig myself out of this hole. Sincerely, Waiting for Jesus to Bail Me Out

[@stars8924]

I was in the same position. Now working at USPS as a Maintenance Mechanic (troubleshooting machines inside the plant)with a base salary of 68k plus I can work OT. They train you. You do have to study for a test and prepare for a panel interview but it’s good money. I had NO EXPERIENCE starting out lol

[@njpme]

You spend all that money to get a useless degree 😂😂

[@savinghistory642]

You spent it do not look to me to pay it back.@@njpme

[@markcummings6856]

You can do it, you are just choosing not to. Shame on you. Get a second job. Cut expenses. Grow up and be responsible.

[@aprilm4423]

Have you ever heard of a career in airline dispatch? You're still young enough to get into a quickie program and retrain. I'm not young enough anymore, otherwise I would do it. I have other answers for you, but that's truly the best--and most lucrative--answer I have for you. Good luck and I hope you keep me posted on here some how, some way.

[@richtalksmoney]

“I cannot physically imagine having that there for the next 25 years” .. whew I felt that

[@vickieclark5931]

Yeah, some of these people carry a student loan balance longer than a mortgage. So ridiculous.

[@jeneze1]

If you are working in Public Service or Non Profit Organization you will benefit from the SAVE plan. Your monthly payment will be reduced and after 10 years / 120 payments your loan will be wiped away.

[@stevenwoo8161]

I feel like they are not talking about better money management. If you have $10k loan and have the funds to pay it off, why not put the $10K into a high yield interest (+/-4%). Pay the minimum loan payment without the interest accruals to bring the principle balance down while your money is growing at a +/- 4% interest income?

[@UtotheJ]

I don’t care about lowering my monthly payment, but genuinely wondering if SAVE plan eliminates accruing interest for the time being.

[@steveno7058]

Pay your debts. Stop looking for handouts

[@kman20]

@@steveno7058even if you’re on the SAVE plan, you’re still paying the debt (unless your payment is 0 which means you’re not making enough)

[@kratostomatoes8587]

Interest accrual starts back up for everyone. You had 3 years to pay them off.

[@UtotheJ]

@@steveno7058 I was told Ramsey audience are simple minded imbeciles… exhibit A

[@Rashaadthegr8]

@@kratostomatoes8587 * 3.5 years

[@rikkifashionhouse6592]

I signed up for it to help provide some relief during snowball. I will most definitely be paying it in full right after I finish my car payment.

[@livinglou7140]

So to get this straight, if I make at least the minimum monthly payments on the SAVE plan, then the interest stops accruing month to month? I am paying my loans off super fast and throwing more than the minimum at them. If the interest does not accrue then that will help me reach my goal of being debt free sooner.

[@cucar8363]

Oh yeah I got the letter and I said what the heck is this?!? Went straight to the paper shredder. I am finally in my $1,000's to pay off!

[@royalservices9882]

Well I just got a letter saying my loan has been forgiven. I logged on to my Mohela account and it's true. I'm so glad I consolidated my loans years ago and was on IDR. I did miss a few pymts due to cut backs. And mine still got forgiven. Now I'm debt free. 🎉 Thanks to Biden's Administration

[@JordanKase]

I just got my forgiveness letter as well. Congratulations to you.

[@cruztorres7746]

Let me tell you the Ramsey show has helped pay of my credit card debt and I just payed off student loan MAY GOD BLESS THIS SHOW Also just started using every dollar at first I didn’t understand it but Rachel Cruz helped me so much. GUYS ITS POSSIBLE ANYTHING IS POSSIBLE WITH THE GRACE OF OUR LORD JESUS CHRIST

[@Mrqwerty2109]

This feels perfect for debt snowball. My federal loans are split up into multiple accounts and I have a $0 monthly minimum. Like she says in the video, I'm using the money that would go to the minimum to go to debt snowball.

[@tonyrobbins6]

I initially used the deferred repayment to get my loan discharged, then COVID hit. With the monies sent for COVID relief, I used it to pay off debt. I even got a 5k payment later on, that I used for debt. Now, with lower monthly payments, I still pay much more than required. I do like the fact that if something terrible happened, I would not be strapped. I know I will not live long enough to pay it all off, but I will try to my best ability to pay as much off before that happens.

[@zamir7932]

You won’t live long enough to pay it off? Bro, go enjoy your life. Student debt isn’t transferred to your children or spouse after death. If you truly have no hope of paying it off put everything you own in a trust for your family so it can’t be taken as collateral and live your life buddy lol

[@medinasFamily]

this game is actually beneficial if, like you said, play it right. What's great about the SAVE program is that if typically your monthly interest on your monthly payment is for example: $170 and your total monthly payment is $230, you will be paying $80 towards your principal balance. On the SAVE program your monthly interest is capped at the same monthly payment you get with your income/household situation. So if on the SAVE program your monthly payment is $20, then that is the total interest they will charge you for that month! and all extra money you add on top of that will be bringing your principal balance down, instead of paying over $100 of interest. This program all it does is caps your monthly interest. So if your payment is literally $0 a month, then anything you pay on top of that you are paying your principal and no interest. Yes, call your loan servicer and find out for yourself. I am a math wiz and it's either this Program or getting a personal low interest loan. However, not many people like me have excellent credit to get those low interest loans. So this program is actually great "if and only if" you make extra payments on top of your regular monthly payment.

[@coolpopular4life]

That’s what I’m doing. I got PROFFESIONAL school debt, some at 7%. With the $0 payment everything aka every payment I make while on SAVE is going to this principal, then I’ll allocate it to my 6% interest loan!! Finally to the 5% loan. From reading Reddit and comments like this I think SAVE will work for me

[@jasonk446]

I used the freeze to focus on my debt snowball as the rest of my debt had lower balances and carried interest. Now all those debts are paid off. I am focusing on my student loan.

[@Viper4ever05]

why would you pay the smallest debt when you should be paying the higher interest rate first

[@tee8257]

Agreed

[@iamkesha.]

Congress and the Senate should introduce a bill to allow people with student loans to be able to sue the colleges who sold them a faulty service. Since Democrats are so concerns about, “working and middle class families need this relief to come as soon as possible. We urge you to continually find ways to use your authority to bring down student debt, address the rising cost of college, and make postsecondary education affordable for all students who choose that path.” This bill will make colleges to be forced to be held accountable and not tax payers for that debt which can make colleges rethink their financial model. I don’t know which committee will be responsible but this should be introduced as when they return to DC.

[@ZFKATNBADGER40]

As a compassionate conservative, I think this plan coupled with Dave’s debt snowball, can really help people get adjusted in the next couple of years, they’ll be better off financially and ready to attack the remaining debt once this plan gets revamped if there is a change in administration.

[@Sparkle-ButterFly]

This is slightly off topic but 5:00 is how a 30 year mortgage should be treated. You go in with a plan to throw a lot of your extra income towards the principal since the monthly payments will be low. Your mortgage can be paid off in 5 years. A coworker of mine approached me and asked how I paid off my mortgage and I told her. She and husband bought a newly constructed house and paid it off in 5 years. It makes my heart happy knowing that someone actually listened to me and joined me in debt freedom.

[@blackworldtraveler3711]

That’s how I did it. Made sense to me. Also didn’t buy the big home like my coworkers. Bought a very nice much smaller place I could truly afford and more to my lifestyle. No second mortgage and other financial nonsense. No HELOCs. I was laughed at and criticized for doing it back then but not anymore. Paid off in nine years in 2008 while still saving,investing,and maxing my 401K and IRA each year. That additional $1500/mo. has been going to personal savings,investments,and 401K ever since.

[@Sparkle-ButterFly]

@@blackworldtraveler3711 Kudos to you!! Good to know that it also makes sense to you to get a 30 year mortgage with low payments and pay it off as fast as possible. Your story is pretty much a carbon copy of my story. I bought a nice small house that didn't cost much and I didn't refinance. Of course I didn't have any cheerleaders in my corner so I just completed my debt freedom journey alone. I'm happy and that is all that matters.

[@nicoletuck9283]

In 2012 my graduate loan repayment on about $80K (at that time lawdy as its $144K now 😞) before income driven plan was $1120/month. I distinctly remember thinking at that time as a renter that I would literally be paying a mortgage every month. This is what I call my repayments now, my mortgage as I live in a 30yr old paid trailer and drive a hood rusted 13yr old truck. Living like no one else!!!!!!

[@velmacoutee2613]

Okay so my question is I did get a payment statement telling me that my amount is $0.15 a month. So do I make an arrangement to how much I will be paying or just leave the $0.15 and pay more?

[@tracyk920]

I used an IDR because I found myself in a situation with being divorced with no financial help and 4 kids in tow. Back then intereat still accrued. Now I believe interest wont be accruing. Yes it was always a huge weight but I managed to follow all the rules for 23 yrs and I earned my forgiveness in my account adjustment. When i found and started Dave's plan in 2017. My children ar the time were aged 22, 19, 17, and 13. I was already working 2 jobs to support my family and I had 84k non student loan debt and after capitalized interest my 32k student loans (graduated in 2000) balooned to 126k. My FFELP loans never saw pandemic forbearance. I agree sometimes an IDR is necessary. And today I can report I am down to 17k in consumer debt and have increase my income by just over 27k per year and now luckily, No student loans because of the account adjustment. What I can say for sure is that taking out a student loan wasnt worth the headache in the long run!

[@lianna1869]

I'm so happy your loans have been forgiven! It must be such a huge life changing situation for you and your children!

[@J_pearce01]

Thinking about paying my student loan off stresses me out but I know I need to do it. I have 59k to pay off and I’ve managed to save 35k this year so far. I’m going to throw all of it except for 1k when payments resume. Gonna be painful

[@MariaSerrano-tm1xb]

Painful but worth it! Husband and I paid off our student loans 2019. We pinched and sacrificed. It was so hard but so worth it. I don’t regret it.

[@J_pearce01]

@@MariaSerrano-tm1xb my comment motivated me to go make my first payment. Paid the three biggest ones off for about 28k. Just have to keep working at it

[@dungeonmaster6292]

Just stop paying and move on

[@J_pearce01]

@@dungeonmaster6292 what’s the strategy there

[@thebestindewest]

Wow

[@beccapol8744]

If I apply for the SAVE plan, does that mean I won’t have to pay interest? I’m Using the debt snowball, hoping to pay off my student loans in 6 months, but I would prefer not to have to pay interest if I can help it. No interest = more money to reduce debt.

[@UnknownWarriorZz]

So why can’t you just apply for the SAVE plan and pay it off faster? This way if you ever run into a situation where you can’t afford the payment you have the SAVE plan to fall back on…I don’t understand their point. This doesn’t prohibit you from Paying off your loans faster…

[@michael88366]

So it does help people who focus on paying their loans back as fast as possible by lowering their interest while they do so. You admit as much at the end.

[@serenequeen1125]

Exactly. That’s major.

[@shachede6828]

What was the point of this comment when that’s what she said? 😂. I hope you’re making very low income to qualify

[@michael88366]

@@shachede6828 At first they say its useless and then they say it does help. They contradict their own talking points. This saves money for people that qualify if they try to pay their loans as fast as possible.

[@amireallythatgrumpy6508]

In other words it is helpful for nobody. @@michael88366

[@edwinortiz1262]

You don't need low income to qualify. Well I guess it depends on your income but I make 110k and qualify. I'm only saving like 1k in interest but it's interest @@shachede6828

[@MannyPain]

5:55 Jade provides a valid reason to use the SAVE plan that makes sense. However it should only be used in this context. Bring the student loan payment down to free up that money to throw at the CC's, Tahoe, & HELOC's. But do not believe for one second that extra money should be used for more doordash or getting a daily $15 latte.

[@lafekete1953]

I like the temporary option you threw out there. Thanks, because right now, I need to snowball my debt.

[@user-fw6yz8zp5x]

If interest is not going to accrue and there are no other debts to pay, i would hop on the save plan w the lowest possible payment plan and still continue to pay down the principal as much as i can. That way, im not too worried about going overdue.

[@lianna1869]

Remember, after 20/25 years of payments (even $0 payment), the loan is forgiven. There are hundreds of people on Reddit saying their loans that have been a burden their entire adult life saying their balances are no zero.

[@lianna1869]

Now zero*

[@SmazzitSEOTrainingInstitute]

@@lianna1869Mine was a burden my who life too until they were finally discharge early this week after 24 years. At 8% interest rate, my student loan got bigger and bigger.

[@zamir7932]

@@lianna1869so the forgiveness is real? If so why would anyone pay it back lol. If the forgiveness works there’s no way I’m paying back 400k

[@PepeToTheMooon]

More than enough to send to ukrane but nothing to give to people here but crumbs

[@joebidenisyourpresidentget2481]

We haven’t even sent Ukraine 3% of our military budget. If you want more food stamps then vote blue.

[@IHateNicolasCage]

@@joebidenisyourpresidentget2481 3% of WHOSE military budget?

[@joebidenisyourpresidentget2481]

@@IHateNicolasCageAmerica has a defense budget , so far we have sent Ukraine 3% of it. I don’t know about you, but defeating Russia with 3% of our military spending is incredible return on investment.

[@IHateNicolasCage]

@@joebidenisyourpresidentget2481Who gives a shit about either of them? Let them figure it out

[@ASLunar]

European countries have donated a larger percentage of their defense budget to Ukraine than we have. Sending them money is by far the smartest option.

[@jimmymcgill6778]

So Jade used an IDR, but complains when other people uses it? Saving an extra $400 a month, is a lot.

[@IHateNicolasCage]

You aren’t “saving” it, you’re just extending the amount of interest you pay on your loans by paying them off in a longer time frame.

[@Astro95Media]

Bingo. She even says it just kicks the can down the road and should only be used to get ahead on other debt, which is what she clearly says she and Sam did. Jimmy didn't really listen to her commentary, apparently.@@IHateNicolasCage

[@jimmymcgill6778]

@@IHateNicolasCage IDR also lowers the interest. You have to reapply for it every year.

[@jimmymcgill6778]

@@Astro95Media I know what she said. That $400 can be used for other debt.

[@niner4life.155]

​@IHateNicolasCage wrong. If you get in a plan like the pslf program its a income driven repayment plan with no intrest abd after 120 payments its forgiven. It's a no Brainer to get enrolled in this plan. And I dint want to here you ramsey juice drinking followers saying " the loan won't get forgiven " it was almost impossible to get this loan forgiven but now with the new changes biden made millions are getting there loans forgiven. I have seen it first hand. I just watched my sister have 41k in loans forgiven. It's funny how they only talk about the loans thar dint get forgiven and reas these articles to prove their point but completely ignore the articles that prove how millions of people are now getting their loans forgiven

[@h2g9]

I just paid my in full. I didn’t trying these programs. Cause I didn’t wanna be tied it anymore. If it’s helpful for those in need great. But for me, personally I wasn’t looking for anything with zero interest. I needed a zero balance

[@axelstruelove]

From what I have read SAVE is the best approach especially for people doing the avalanche method like myself. The lower the monthly payments that would go toward the interest, the more I can pay towards principal which cuts the head off the snake! So if my minimum monthly is $34 that is going towards INTEREST but anything EXTRA ( say $670) goes towards principal. So that 670-34= $636 going towards me and not straight to the bank's pocket for lending me the loan. I can pay it off faster. The plan isn't intended for lollygaggers but people who are serious about aggressively paying it down but SAVE us from extra interest so the loan doesn't grow as we are trying to chip away at the true loan.

[@youtubekeepscensoringme3357]

I'm glad you said that!!! I was planning on postponing repayment for a few months so I can literally finish up my other debt. Mid December I can take on student loans full force as that is truly my only debt

[@sparklingpersonality87]

You have to still make the minimum payment otherwise your interest accrues. All this 12 month thing does is those who make no payments won’t be in default and won’t have their credit affected. What I’m seeing is the SAVE program benefits (if you’re paying) start immediately and then the lower amount starts mid-2024. Interest starting accruing 9/1, so if you want to avoid interest accruing, pay the minimums.

[@sparklingpersonality87]

@@youtubekeepscensoringme3357my mistake was that the loan is not called default. But “But as is the case with a forbearance, [under the 12 month plan], interest will continue accruing on your debt while you don't make payments. As a result, Kantrowitz recommends borrowers start repaying their bills, if they can. "Doing otherwise will eventually hurt them," he said.

[@jennserrano1657]

Please don’t create panic, many people are struggling to pay their student loans

[@zamir7932]

If someone went to med school or dental and have 300k worth of debt why not utilize this and potentially pay back even less after 20 years? Just gotta worry about the tax bomb. Serious question

[@macgamer1973]

3:18 hate people comparing their loans to other people loans. 11, 000 is easy to repay back . Some people here have 100k + student loans. I borrowed 30,000 it up to 87,000 now. After college had 75 job interviews with employers told me over qualified for the job. I now have own business as IT consultant

[@IHateNicolasCage]

I used the SAVE plan once. Back in 1973, Jill and I went to the circus. Corn Pop was there and he said “Hey Jack, I just lit your cat on fire in the kitchen” so I used the SAVE plan to save my cat, went down to the pool, and let kids rub on my leg hair. Not a joke!

[@PepeToTheMooon]

Was his corvette safe at least?

[@jimmymcgill6778]

@@PepeToTheMooon As long at the documents are safe.

[@unclebenny]

"Not a joke" is the tell his story is false.

[@monikaw1369]

LOL!

[@JCtheComicGeek]

I just got a letter from my student loan provider that my student loans have been forgiven with a 0 balance due to me paying over the last 20 years on $88k (w/interest)! So im not sure whats going on but im happy atm

[@handleyobusiness]

Damn, 20 years in debt is brutalll

[@JCtheComicGeek]

@@handleyobusiness yes was paying minium payments

[@stewart2898]

@@handleyobusinesswell I can’t imagine his debt is cleared just cause student loans were forgiven. Prolly got several debts with that mindset

[@laverdadluzmundana7904]

​@@JCtheComicGeekYou need to make sure the letter said "forgiven" and not that the lender was changed. My student loan was held by Great Lakes and a few months ago it was changed to another company. My credit report stated it had been paid in full but then a few weeks later it showed that an account was opened with the other company. So I still owe the money. The only reason why I knew about the change was because I was on top of all the emails these two lenders were sending me. So I advise you to read that letter again, verify that it actually says the loan was forgiven, and make sure they didn't do what they did with me.

[@JCtheComicGeek]

@@laverdadluzmundana7904 my lender got switched last year to a new one as of 7/31/23 I owe $0 on my Student loans per the letter as of now.

[@Siaynoq8]

I want to continue my payments but have them be interest free under the SAVE plan. Would it work this way? Similarly to the deferment covid era? I didn't owe anything each month but I could still keep paying down my principal every month.

[@gif24gt60]

225% of federal poverty limit to qualify for $0 payment. Should be 400% factoring in inflation and so many low paying jobs. Employers dont want to pay.

[@natersalad889]

This is perfect for us, we meet the income requirements for family of 5 for $0 payments and no interest accrual. This lets us knock out our smaller debt faster by adding that would be payment to my smallest debt. Then when we get to the student loan we can be gazelle intense on it too but while not having interest accruing. Win win!!!

[@15KHPCLUB]

Or just sell the Dirtymax and pay it off.

[@christianjeffries75]

Thank you for saying it is smart to lower the payment while paying off lower debts. That is exactly what I am doing!

[@blackloki9]

So is it OK to get income driven repayment plan and pay more targeting specific loan

[@emmanuelvaldovinos-castane6981]

What about temporarily using the SAVE Plan to pay off smaller sized loans but ALSO INVESTING the difference ($$$ remaining that would have gone to loans) into a ROTH IRA ?! Is a good or bad strategy?

[@barnabusdoyle4930]

They should change the student loan structure so what the college gets paid for the degree is based on what the degree holder makes for the next 10 years with that degree.

[@monikaw1369]

Great idea! I can’t believe what they do in high school. They make 11th grade students take the SAT, sign up for FAFSA, etc. They do not talk to the students to see what they want to be. The SAT test is important and studying is a must. They take it during a school day with no preparation. Makes me furious! I use to talk to my students about trades and how much they pay. Becoming entrepreneurs!

[@barnabusdoyle4930]

@@monikaw1369 Yeah, its actually one of the main reasons home prices have gone up so much recently. Our country has a massive shortage of skilled labor. All the students are being pushed into college while trade schools aren’t even talked about. Add in the immigration policy of the past few years that has sent away most of the skilled immigrants and we have a new construction home waiting 3 month for a licensed electrician to come in and wire the house. It’s only going to get worse too

[@UpYourArsenal]

10 years?? I got a Master's degree in Engineering for less than $25k total. Made quadruple that my first year out -- but you want to give them more than a million dollars for the same degree.

[@zamir7932]

10 years is way too long 😂😂 a doctor and dentist would have a 1 million dollar tuition. 2 years is more reasonable

[@barnabusdoyle4930]

@@UpYourArsenal I’m not saying you should pay 10 years worth of your salary, that would be crazy. The system should be structured like Europe’s where the cost of the degree is based on what the graduate makes after earning it.

[@sbkpilot1]

I think they key thing that people DO NOT UNDERSTAND is that the next administration can change the laws again, or it could be challenged legally etc., at which point all these people who have NOT been paying and letting their loan balance grow are going to be in a MUCH worse situation. The point I am making is that 10 years is a long time for forgiveness and anything can happen with the laws in the meantime, nothing is guaranteed.

[@ramonsixtos4131]

so lets say my payment is 0, could I take advantage of this 0 payment and the interest not accruing and then attack as much as I can, once next year rolls around and my income is assessed for the 10% and for my new monthly payment and just keep paying above the minimum and the extra amount goes directly to the Principal????

[@basedgod8636]

Everyone these people are trippppppin! You can always pay more on SAVE you aren't stuck at that number but 0% interest accrual is the number one thing that should be said.

[@amireallythatgrumpy6508]

And it's no longer relevant because interest began on September 1.

[@ronhamm]

The debtor is SLAVE to the lender!!!

[@cameronmcfarrin4587]

I usually sign up for a repayment plan to get me a bare minimum payment so I'm not in default, but I plan to pay higher than the minimums. The thing is, I want this debt off my back as soon as possible. Aid (dis)advantage says I don't have to pay one of my loans until September of 2024 since I have paid a lot ahead of schedule to cut the debt down. I will not allow that interest to accrue, so that loan will be coming down!

[@May-qb3vx]

I also have Aidvantage and so far it’s been fine for me. I’m pushed out to 2026 for my official first payment since I’m so ahead, but really I’ll be done by the new year. Can’t wait!

[@cameronmcfarrin4587]

@May-qb3vx yeah don't wait until 2026 to make payments. They want that so more interest accrues. It's great you'll have this mountain of debt paid off!

[@rohinisingh6856]

Exactly content!❤ keep it going guys.😊

[@Cloudyconfusion]

This girl is on fire and I love it, she’s smart to advise that you take advantage of power payments AS LONG AS YOU plan to pay it off after your other debts you work on in the mean time. To bank on getting lucky and maybe never payment isn’t smart

[@tincou7694]

PSLF sounds like a viable option for many, though.

[@tubenachos]

Ask Dave one more time about forgiving student loans, I dare you 😂😂😂

[@gr86er]

If they would cap the interest rate a

[@johnmcownage6179]

Why not apply for the SAVE plan and make the same payments you're making right now? Y'all don't make any sense with this one.

[@G360LIVE]

Whatever politicians name a plan, you can bet the plan will have the opposite effect. So the SAVE plan will end up costing you money rather than saving you money.

[@jasonpierce1980]

They set it up to make it think you're saving. But the interest they're making off you over 10 years 🤦

[@Ken-jg9kp]

These people are unbelievable. If you have outstanding debt, inflation is probably your best friend as the value of your debt decreases over the next 20 - 30 years. The SAVE plan is amazing if you're PSLF eligible. And it's also amazing if you're struggling to make payments due to your lower income/or due to the high amount you had to borrow to become a general doctor (hint: your PCP is probably not rich) because your INTEREST won't accrue like former income-based plans where even after making $50k in payments, you owe more than you borrowed. Don't listen to these political puppets. Everyone's situation is different and will evolve over time. Rich people have the most debt and they're not rushing to pay more than they have to.

[@amireallythatgrumpy6508]

LMAO inflation is NOBODY's friend. So few people are eligible for PSLF that it's barely worth mentioning.

[@Ken-jg9kp]

@@amireallythatgrumpy6508 Two statements which are not true. Say you owed your parents $10,000 in 2003 and you repaid them in 2023. The equivalent amount you borrowed in 2003 would be $16,600 today. And if inflation were higher, you would have more of today's dollars to repay "yesterday's" debt. That is why we have interest rates to compensate for the loss of value. Inflation isn't our friend for other items we need today, but regarding debt, it very much is so. And there are over 9 million public sector workers with eligible student loans for PSLF. I think you're not very well informed.

[@migsbaradainvesting4802]

Should I just pull the trigger and stop hoping for any forgiveness? I can pay my loans in full literally RIGHT NOW. A forgiveness would allow me to use some of that "saved" cash in the stock market

[@kelvinreyes64]

i paid $47k of student loan and credit card debt into 2.5 years, worked 7 days a week, no days off. Ppl pay off your student loan debt(s) and stop relying on the government.

[@diane7476]

Congratulations 🎉

[@Me-hf4ii]

Or we could just restore bankruptcy and statute of limitations to student loans, as it was pre-2005. The same protections these loans had since the 60s, and the same protections exist for all other types of debt… then the people who CAN do what you did, will do it, and those that can’t do what you did can still get relief rather than being stuck in perma-debt. If Donald Trump had been told what students are told about his $900 million casino business that didn’t go how he’d planned, rather than being able to declare bankruptcy, there would be NO Trump dynasty. That woulda been it. And that’s the case for many “successful” people - if they had been unable to find relief in bankruptcy, they never woulda had the successes they became known for.

[@amireallythatgrumpy6508]

Being able to file bankruptcy on student loans is stupid - there is no collateral on the loan, which is how bankruptcy SHOULD work. If you file bankruptcy you should lose the thing that you got the loan for (which is physically impossible for a student loan - they can't take knowledge skills away from you). The fact that bankruptcy no longer works that way just shows how badly America has lost its way. They did in 2005 what they should have done when student loans were first introduced. @@Me-hf4ii

[@Big_delta]

At the end of the day, this is a free lunch. 👍 If you have federal loans it's forgiven after 20-25 years of payments. If you qualify for $0/m it looks like it counts as a payment. Some people might qualify to never have to make a payment and have the entire balance forgiven. 😂 When it's forgiven under this program it's also tax free to the borrower. Imagine sacrificing everything to pay back the federal govt when they're offering to forgive it. 🙄

[@Aaron-nw7qx]

The full "forgiven" sum will be taxed as income in year 25 of payments. The subsidized interest will not be.

[@lianna1869]

I only took these fed loans now eligible for SAVE. I live abroad so I can at any time make $0 taxable income with the FEIC. I don't use the FEIC though and in fact file HoH single mother and am therefore eligible for $0 payments. My loans will be forgiven hopefully by 2028.

[@dungeonmaster6292]

Ramsay be shilin

[@danamarie8718]

Exactly. And similar programs have been around for a long time. The American taxpayers have been paying for others’ student loans for years and it is only getting worse. The more loans are made, and forgiven, the more costs go up.

[@mariamonshae2711]

So y’all Does it make sense to sign up for SAVE so the Interest won’t accrue and then put more money on the loans?more than your payment.

[@briannguyen4078]

I have about 100k of student loans and projected to make about 72k a year net. What is the best way to tackle this loan? Should I enroll in Save and not pay back the loans as much or work nonstop for 1.5-2 years to pay of as soon as possible?

[@damarionjames1068]

Genuine thanks to Ramsey for a guide to a dept free life style

[@amireallythatgrumpy6508]

Now you just need to learn the difference between "debt" and "dept"

[@serenequeen1125]

Idk after a while it gets forgiven. That stress of it being there doesn’t other everyone the same way especially when focusing on maintaining housing and putting food on the table. The lack of interest is a major aspect. From what I’ve researched, it seems like a great option.

[@shachede6828]

I guess the key is is your income low enough to qualify for the low payments

[@aaronfranklin2387]

My goal is to go back to graduate school next year. Apply for the save program, so that I can have more money per month to throw towards my credit card debt and pay off my car. My goal is to use the snowball method to pay off my smaller debts first, so that I can have more money to pay off my student loans. Thank you for the information!

[@user-dv1hp5fp2x]

Social security is us bailing out the oldies. Time for a change.

[@officialGATABOYZ]

Why would you not recommend a plan that lowers your minimum payment and takes away interest if you plan to pay it off anyway? That makes no sense