Word. My credit score is pristine in large part due to my million auto payments made and this being my only debt. No way Im fuckin that up unnecessarily.
Biden doesn't want to fight for 50,000 student loan relief. It's too hard
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100% agree. That perfect or good credit score is worth millions in itself.
I woke up yesterday and looked at my email and saw my loans were forgiven. 141k
I felt like going on the top building in Houston and dancing like ODB.
I felt like going on the top building in Houston and dancing like ODB.
Fucking beautiful. Congrats brother.
Hell Fucking Yeah!!! Happy for you bro!!!
Shit why not? Lol I won’t tell you the things I did when I got my email! Lol
Celebrate my brother! Lol
Thanks brother. That shit is a game changer for my life.
@OutlawR.O.C. @DC_Dude
.. so ya'll know I've been waiting to see what my new payment amount would be and they finally dropped it the other day. As of right now it's the same as it was pre-pandemic, but the servicer site (Aidvantage) has a pop-up saying that they're still in the process of making adjustments (they also don't readily list what my current repayment plan is, although StudentAid.gov says I was REPAYE.. so transitioning to SAVE).
It's still a bit of a shit-show right now because I don't think these servicer reps know exactly wtf they're doing. The chick I got on the phone was kind, but I feel like she gave me some half-assed info up front, until I held her hand and we both dug a little deeper into things when asking about my payment amount with the new program.
First, she told me that my current (old) payment amount IS my new amount based on the SAVE plan, and I was basically like "How can that be if it's supposed to be going down from 10% to 5% discretionary income?" .. to which she kept telling me "it's still 10%, the only difference with the SAVE plan is that there is an interest subsidy.." . We ended up both going to the studentaid site to read the specifics, and it DOES say payments are expected to be cut in half to 5%, but everything seems to indicate that it's not happening until "next summer" or "July 2024". Maybe I been missing that part.
Does that sound right? Are they're on-ramping everyone to repayment based on whatever they paid pre-pandemic for the next 12 months... and then waiting until Summer 2024 to recalculate based on 5%? I've got my budget together regardless, but I imagine a LOT of folks are gonna be PIIIIISSSED if that's the case..
.. so ya'll know I've been waiting to see what my new payment amount would be and they finally dropped it the other day. As of right now it's the same as it was pre-pandemic, but the servicer site (Aidvantage) has a pop-up saying that they're still in the process of making adjustments (they also don't readily list what my current repayment plan is, although StudentAid.gov says I was REPAYE.. so transitioning to SAVE).
It's still a bit of a shit-show right now because I don't think these servicer reps know exactly wtf they're doing. The chick I got on the phone was kind, but I feel like she gave me some half-assed info up front, until I held her hand and we both dug a little deeper into things when asking about my payment amount with the new program.
First, she told me that my current (old) payment amount IS my new amount based on the SAVE plan, and I was basically like "How can that be if it's supposed to be going down from 10% to 5% discretionary income?" .. to which she kept telling me "it's still 10%, the only difference with the SAVE plan is that there is an interest subsidy.." . We ended up both going to the studentaid site to read the specifics, and it DOES say payments are expected to be cut in half to 5%, but everything seems to indicate that it's not happening until "next summer" or "July 2024". Maybe I been missing that part.
Does that sound right? Are they're on-ramping everyone to repayment based on whatever they paid pre-pandemic for the next 12 months... and then waiting until Summer 2024 to recalculate based on 5%? I've got my budget together regardless, but I imagine a LOT of folks are gonna be PIIIIISSSED if that's the case..
You know I am going to do my detective work, but I believe the 5% won't go into affect until next year (January 1), but let me look more into this. That doesn't sound right, but what I will say the next time you call, ask to speak to a manager or someone above her even if you have to wait on the phone.
You might want to post your experience on the student loan section in redditt. If all else fails, you could reach out to https://freestudentloanadvice.org/
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Thanks man, will do. I suspect others will be having similar experiences and that we'll be hearing more about those soon.
Did you get any reduction in balance?
Nah, I believe the Supreme Court decision yeeted that... The main carrot now as far as the new plan is the reduced discretionary income calculation, which is supposed to lower the monthly payment amounts.
Yeah apparently this is an issue with alot of the other companies that have service loans....
Same here.
I did mines yesterday and there was a slight increase which I expected since I moved up in the company and have received multiple raises since 2020.
From what I read the SAVE amount won't be in effect until July of 2024 so we'll still be paying under the old rates until then I believe.
If that's the case, and if my estimated payment amount hokds true, then I'm good money because even the current amount pre-SAVE reduction is at least manageable.
Word. I didn't recertify or provide any updated income info... I was waiting until all this sorted itself out (and cuz they said I'd automatically get switched from REPAYE to SAVE). So I guess I'll most likely be paying my old amount and wait to recertify next year when they get they shit together.
I had to recertify since I wasn't previously on the REPAYE plan.
It wasn't as bad as recertifying in previous years but still took a minute since my tax info didn't sync as it was supposed to despite my giving permission. One of many things they'll have to work out.
I forgot to add it also asked me if I wanted to continue my deferment which seemed odd but I clicked yes anyway so I'm not sure how that will affect the potential October payments.
My fault I hadn't considered that (folks who weren't previously in REPAYE being required to recertify as partof the SAVE application).
Looking fwd to the dust selling a bit if/ when the servicers become more seasoned. Because right now it seems like they're about to cause a bunch of unnecessary ruckus with misinformation in the short run.
Oh yeah this is definitely going to be a shit show.
How the fuck are they cancelling 141k for you and not 18.5 of mine?
Glad for you but yeah I'm hating
I found this article which confirms the 5% doesn't take effect until July 2024:
"The SAVE plan fully goes into effect on July 1, 2024, but borrowers can still get some key benefits now before the payment pause ends in October.
Borrowers have to pay just 5% of their discretionary income toward student loans, rather than 10%, starting July 1, 2024."
"The SAVE plan fully goes into effect on July 1, 2024, but borrowers can still get some key benefits now before the payment pause ends in October.
Borrowers have to pay just 5% of their discretionary income toward student loans, rather than 10%, starting July 1, 2024."
New SAVE student loan plan will drive down payments for many: Here's how it works
Student loan payments restart in October after the pandemic pause. Here are answers for borrowers who are wondering if new a SAVE plan can help them.
www.freep.com
I think the email I received is they are cancelling the principal of 56k or 57k and the rest of that was interest.
Yeah that’s sound right because my principal alone for graduate school was 120k but with interest that bitch was almost 300K
The Department of Education has the power to cancel all of our federal student loans immediately through the Higher Education Act of 1965. This first-of-its-kind petition generates an individual appeal to the Department of Education requesting that they exercise that power for you — now.
This brand new tool creates a legal memo requesting that the Department of Education cancel your federal student loans, invoking its authority to “compromise, settle, waive or release” all federal student debts.*1 There has never been an organized effort to apply or ask the Department of Education to use its legal authority to do so—until now. By filling out this form, you are joining a movement that is making history.
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Latest news with my account is the monthly payment amount that was listed on Sept. 1st now says $0.00 due on 10/28. Hopefully they're recalculating in my favor a bit, but who really knows at this point.
I checked the reddit forum and it looks like mad ppl are confused, as expected.
I checked the reddit forum and it looks like mad ppl are confused, as expected.
Yeah they are probably re-calculating under the SAVE program. That's what you are doing right?
Yea... I was on REPAYE and being auto converted to SAVE.
4 million have enrolled in Biden’s new student loan repayment plan
The update from the administration comes as GOP lawmakers introduce an effort to stop the Save repayment plan
Weeks away from the resumption of federal student loan payments, 4 million people have enrolled in President Biden’s new income-driven repayment plan that promises a lower monthly bill and a shorter path to loan forgiveness, the Education Department said Tuesday.
A majority of those borrowers have been automatically switched to the Saving on a Valuable Education plan — commonly known as Save — because they were enrolled in an older plan it is replacing, according to the department. Still, the federal agency said it has received nearly 1 million applications for the program since the soft launch of the online form July 30. The department has touted the plan on social media, through a network of advocacy groups, and by direct outreach to nearly 30 million borrowers.
“We know that student loan bills are challenging … and we want to do everything to make sure borrowers take advantage of the benefits that come with a federal student loan,” Undersecretary James Kvaal said on a call with reporters Tuesday. “The Save plan is the most affordable repayment plan ever created, and it’s particularly useful to borrowers who are struggling because they have high debts or low incomes.”
Republican lawmakers are trying to stop the plan, saying it burdens taxpayers by reducing the debt of people who should repay their loan obligations.
http://www.washingtonpost.com/busin...=mc_magnet-student-loans_inline_collection_19
The Save plan ties monthly student loan bills to earnings and family size, much like the four older income-driven plans. However, the new plan raises the amount of income shielded from the calculation of payments from 150 percent to 225 percent of the federal poverty line. It also caps payments for undergraduate loans to 5 percent of income above that 225 percent threshold, a reduction from 10 percent. People with debt from undergraduate and graduate studies will pay a weighted average between 5 and 10 percent.
The Education Department said that by lifting the income threshold, the Save plan will ensure a single borrower who makes less than $15 an hour will not have to make any payments, and those earning more will save an estimated $1,000 a year. The government will also waive any interest accrual that exceeds a borrower’s monthly payment and automatically recertify their income annually through the Internal Revenue Services.
Under the plan, anyone who borrowed $12,000 or less for undergrad or graduate school would receive loan forgiveness after making 10 years’ worth of payments, instead of the traditional 20 or 25 years’ worth under other income-based repayment plans. Every additional $1,000 borrowed above $12,000 would add one year of monthly payments to the time a borrower must pay before their debt is forgiven.
The department said most borrowers who apply can expect to see the newly calculated amount reflected in their October bill. Student loan servicers will place borrowers in forbearance if they need more time to process their applications. Applicants can check the status of their submission by logging into their account through StudentAid.gov.
Enrollment data on the Save plan arrives the same day as a resolution seeking to end the program. A group of 14 Republican lawmakers, led by Sen. Bill Cassidy of Louisiana, on Tuesday introduced a resolution to scrap a policy they see as a backdoor scheme for student loan forgiveness. A similar resolution was also introduced in the House. The resolutions invoke the Congressional Review Act, which lets lawmakers overturn recent regulatory actions of federal agencies with a simple majority vote in both chambers. A president can veto the measure.
The Republican lawmakers said the Save plan encourages people to take on debt and will turn the federal student loan financing system into a poorly targeted taxpayer-funded grant program. A Penn Wharton budget model estimates that the Save plan will cost as much as $558 billion over a 10-year period.
“Once again, Biden’s newest student loan scheme only shifts the burden from those who chose to take out loans to those who decided not to go to college, paid their way, or already responsibly paid off their loans,” Cassidy, the ranking Republican on the Senate Education Committee, said in a statement Tuesday. “Our resolution protects the 87 percent of Americans who don’t have student debt and will be forced to shoulder the burden of the President’s irresponsible and unfair policy.”
The measure marks the second time in recent months that Republicans have used a Congressional Review Act measure to try to stop a Biden student loan policy. Congress approved a Republican-led resolution to strike down Biden’s plan to forgive more than $400 billion in student loans, but the president vetoed the measure in June. The Supreme Court later struck down Biden’s program.
In a statement, the Education Department called the GOP resolutions a “political stunt to hurt working families,” including some of their constituents who could benefit from the repayment plan.
From $1479/month to $174/month on SAVE
It's worth it to actually call your servicer. I, like most millennials, hate talking on the phone and would rather just do everything online or via email/text. However, when I applied for an IDR plan through the Aidvantage website it gave me a laughably high monthly payment — literally, it was 38% of my net income. My kid likes to eat and have a house to live in (and so do I!), so I decided to just buckle down and get through a call, and I'm so glad I did! Yes, I was on hold for an hour, but once they answered I was done in ten minutes or less. With the same info I had provided online just two weeks ago, I am now qualified for $174/month on SAVE for my $163k balance. That call just saved me over $15k a year! (not that I would have been able to pay the ridiculous $1479/month they originally came up with. That amount is over double my mortgage payment, almost triple.)
reddit.com
It's worth it to actually call your servicer. I, like most millennials, hate talking on the phone and would rather just do everything online or via email/text. However, when I applied for an IDR plan through the Aidvantage website it gave me a laughably high monthly payment — literally, it was 38% of my net income. My kid likes to eat and have a house to live in (and so do I!), so I decided to just buckle down and get through a call, and I'm so glad I did! Yes, I was on hold for an hour, but once they answered I was done in ten minutes or less. With the same info I had provided online just two weeks ago, I am now qualified for $174/month on SAVE for my $163k balance. That call just saved me over $15k a year! (not that I would have been able to pay the ridiculous $1479/month they originally came up with. That amount is over double my mortgage payment, almost triple.)
Reddit - Dive into anything
reddit.com
Yea I'ma def call again when the repost my payment amount..From $1479/month to $174/month on SAVE
It's worth it to actually call your servicer. I, like most millennials, hate talking on the phone and would rather just do everything online or via email/text. However, when I applied for an IDR plan through the Aidvantage website it gave me a laughably high monthly payment — literally, it was 38% of my net income. My kid likes to eat and have a house to live in (and so do I!), so I decided to just buckle down and get through a call, and I'm so glad I did! Yes, I was on hold for an hour, but once they answered I was done in ten minutes or less. With the same info I had provided online just two weeks ago, I am now qualified for $174/month on SAVE for my $163k balance. That call just saved me over $15k a year! (not that I would have been able to pay the ridiculous $1479/month they originally came up with. That amount is over double my mortgage payment, almost triple.)
Reddit - Dive into anything
I re-checked my shit and did some more research, two things I noticed:
2. The payment amount is still the same, which is manageable since I'm used to it even though I was expecting it to be lower based on the new SAVE plan (and it DOES say I'm now in SAVE). I'm going to call again to see if there are any word of mouth updates, but everything I'm reading/seeing (Reddit threads, the SAVE explanation on StudentAid.gov, the video you shared) seems to be saying..
(a) payment amounts may be the same unless you recertify AND change plans now,
(b) starting NEXT year payments will start to get cut in half (once ppl start actually recertifying into SAVE ?), and
(c) you can choose to NOT pay and there will be no credit reporting for 12 months as a grace period/on ramp.
Worst comes to worse I'll probably keep quiet and make my "regular" payments, at the very least I'll have 10 more months built up towards forgiveness .. and then hopefully get my monthly payments cut in half by this time next year. I think that's what I'm preparing for at this point.
**BIG EDIT: I got an e-mail a few mins ago with my updated loan terms. The good news is that they cut my payments in half for until July 2024.. But the bad news is that it looks like my monthly payments more than TRIPLE after that, beginning Aug 2024, based on the numbers that they provided. Not sure if I understand, reading more into it.
.. I think the bigger monthly payment number they listed for next year is based only on my total loan amount, without factoring my income. So hopefully after recertifying next year that number will go come back down to Earth.
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Hell yeah bro! That’s good news!
I’m sure that’s why your payments look like that next year and remeber so much is going to change once systems have been implemented.
Did the SAVE plan help?
For sure. My payments went from $371 to $198. I still have a long way to forgiveness but every little bit helps.
Next years recertification will be interesting since my salary has increased... but going forward I think my monthly payments should stay a good amount less than they were pre-pandemic. Plus, that assumes I stay at my current job which isn't a given (I'm looking to change careers a bit).
Man that is HuGE!!!!! That's almost a $200 savings....An extra $173 over 1 year is like $2000 that can go somewhere else....