Latest Updates on the SAVE Plan: What You Need to Know
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- Опубликовано: 13 сен 2024
- We're with another update on the SAVE Plan. In this video, we’ll cover:
• How forgiveness will work under the new circumstances
• What's happening with pending SAVE Plan applications
• Unexpected options for credit towards loan forgiveness
• Crucial updates from the Department of Education
📚 Resources:
• www.ed.gov/Save
• www.tateesq.co...
• studentaid.gov...
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🎥 Credits
• Hosted by Stanley Tate
• Edited by Helena Santin
If you ever run for public office, you have my vote kind sir. Thank you for explaining this mess in a way that makes sense. Bonus points for calming my nerves with your soothing baritone voice.
I’m 64 years old! I need these payments to count! I can’t work until I’m 80!!
I've been dealing with my loans for decades, and researching every option along the way. My conclusion is I need to win the lottery. The fact that the government can hold a person to a debt for most of their life is oppressive. When I started repaying the loan 30+ years ago they refused to give me an affordable payment plan and then demanded full payment of the loan, which was impossible. Years later, thanks to Obama, I was able to get out of default and enroll in an affordable plan. But as it stands now I'll be in my 70s before I get loan forgiveness and I borrowed the money when I was in my early 20s. A debt for 50 years? Is this a first world democratic country or an oligarchy?
You can file for bankruptcy if your a hardship, many people are unaware of this
I’m right there with you. Same for me.
@@Interesting70no you cannot
Im in the same boat. 😭😭😭
@@Interesting70you can’t bankrupt your student loans. The bush era republicans took care of that option.
I just got my email about the forbearance today. I feel so freaking lost when it comes to all of this, but you, sir, are a gem. 💎
Thank you for taking the time to explain these things and calm me down- I was ready to jump into a different IDR plan right away, but it seems pointless to do so when there’s going to be such a delay processing it.
Your voice is so calming during these stressful times… MANY THANKS 🙏 I appreciate you 😊
Glazing
I just received an email from ED about possible scenarios of forgiveness basically what Biden stated in April and deadline for opt out is August 30, 2024. I’m tired of getting my hopes up about payment accounts, partial forgiveness etc and just wish this mess was done and over like it was supposed to happen back early summer.
Thank the hateful Republicans who keep filling lawsuits and then vote blue in November to stop them.
@@leslielewis40- My young friend, do a little bit of research on the arguments for blocking student loan forgiveness. Sounds to me like you do not understand the implications of this going through.
@@Mavryck_Tha_Myghtythe implications are that congress should undo the legislation they passed if they think its detrimental. Biden was following the law. Don’t like it? Use congress. This Supreme Court is choosing to legislate from the bench and its disgusting.
@@Mavryck_Tha_Myghty What are the implications of helping out the middle class? Please tell me how you can sit by and watch republicans give breaks to the rich that amount to hundreds of billions of dollars and leaving us behind? Please, make it make sense. The SAVE plan isn't even a full forgiveness plan (unless you've been paying into for x amount of years). The main power of the SAVE plan is to ensure that Americans aren't being subjugated to predatory interest rate tactics. I know this because I am on the SAVE plan. And because of it, I have nearly all of my Private loans paid off (3000 dollars left). And once the private loans are gone, I can focus on my federal loans.
What about those who consolidated for the Apr 30th deadline to get biggest benefit of one time adjustment but got put on standard repayment despite having selected SAVE /IDR for PSLF and now are stuck in limbo with a new loan that isn't eligible for PSLF?
Amen!
I’m in the same boat
I’m in this sinking boat with you all and yet to find any answers.
I’m sitting at 105 certified PSLF payments. So my counts are very important to me, however I don’t want to jump the gun and enroll in a more expensive plan if I don’t have too. With inflation on everything who can willingly pay more??!!!So I guess I’ll just sit and wait and hope the PSLF buy back doesn’t go away!
I only see uncertified payments until April 2024….
Thank you for all the videos, I am literally 4.5 years away from 120 payments PSLF forgiveness on my IDR plan.
Why can't the government just leave it alone let it be and have to ruin it for everyone else? I'm on the SAVE plan and its helping me save money and put more money into different amount of loans I have. I already paid off one and trying to pay off the next keep going like using the snowball method paying off this huge debt.
1000% The SAVE plan has helped millions of Americans like me and you. Because of the SAVE plan, my cash flow has increased, and I am now able to pay off my private loans. I have 3000 dollars left on my private loans. After that, I'll start putting my energy into my Federal loans. This has been a net positive for Americans. Even if someone is against 10,000 dollar forgiveness, the SAVE plan is something that all of us should be for. Honestly, I find that people who are against the SAVE plan don't really even understand how it works.
This has to be one of the best videos i have seen about the subject. Appreciate the video and you got some real skills when it comes to speaking to people and engaging even if it is a one way video lol
These videos are life saving. Thank you. Can you please do a video on repayment strategy for higher earners with large student loan balances?
What would you like to see in that video?
Basically whether there is a way for high income borrowers with large loans to still benefit from forgiveness and minimize monthly payments. For example, I went to med school and am making around $250k/year but have just about $300k in student loans. I am incredibly grateful to have the income that I have but the size of student debt that comes with it still makes life challenging.
EDIT: And would also love your thoughts on when it makes sense to consolidate!
@@xangieILYOO are you working at a hospital? If so it is most likely a non for profit which may qualify you for student loan forgiveness through the PSLF program.
Thank you for this. I wasn't understanding the buyback. I'm cancelling my payments immediately. I should have qualified for forgiveness on prior loans that got paid. This crap show on my ones I still owe, I only want to pay what I'm supposed to. Every other debt in the US people can get out of. Why the courts want to continue punishing students and stomp on anything meant to help them pay their debts or meet the PSLF that was promised to many and crapped on for the last couple decades is beyond me. Don't they have something better to do?
Man I had two student loans. One I had 15 years of payments on. The other I hadn’t started making payments on yet. I was told to consolidate my loans because when they did the one time recalculating of payments, if I consolidated both loans would receive credit for the 15 years of payments because it would go by the one I had been making payments on the longest. Now because of this I face starting all over with 20 years worth of payments all over again?!? I want to cry.
I thought that started for anyone consolidating after July 2024 make sure you speak to your processor there is lots of misinformation out there.
Thank you for this. I’m riding this out… and seeing where this takes us….
The Interest is accruing though. I spoke to Mohela and they said that it is pending that the interest acrued will be erased. FAFSA said if that is what Mohela said than that is what it is. If this is true it is poor phrasing that Department of Education said the interest would freeze. Does anyone else notice this?
Yes I noticed it on mine too. I asked Aidvantage about it and they said all unsubsidized loans accrue interest in forbearance. But I told her that it was administrative forbearance (meaning I didn’t request it) and she said the Dept of Education had no wording about interest not accruing. 😢
So there goes another $500 in interest alone being added to my bill for 2 months of forbearance. 😭
I just want to get back on the SAVE plan so the interest is covered by the government like it did before!
@@valeriewoodard8501 I'm sorry to hear that. So does that mean its because its on Administrative Forberance because it says mine is for 14 more days.
This is happening on my loans as well. I believe the collectors are banking on the SAVE plan being completely undone. Which means they can add interest up now then put it in the total, or take it out after we find out later from the ruling. Basically, if SAVE is eliminated, I think it will be turning back our loans to the same as it was before the SAVE plan ended the capitalization and runaway interest being compounded on the loans. I believe they could and possibly will add the months interest we had SAVE protections for as well IF SAVE is eliminated. I'm not 100% for sure, but I wouldn't doubt these lenders could as they have screwed my loan totals for over a decade now.
@@valeriewoodard8501I was told interest accumulates, but then “falls off” at the end of the month.
Right! Noticed it accruing on Nelnet and Aidvantage.
I'm voting you for President... 🤭, Thanks for the update bro.
I could use some advice. I saved enough to pay off the rest of my loan. Should I try to wait it out to see if the $20000 loan forgiveness passes?
How can we apply for forgiveness on Parent Plus loans. Thanks for this valuable information.
With all this going on, are there any projections or thoughts about whether the IDR recertification of income dates will also be pushed forward again?
Dept of Ed put me on a Forbearance and notified me by email over a month ago. So why is Mohela charging me interest if this is a no interest time period. Ugh this is so frustrating.
I called them about that on Friday. Within the next few weeks they are supposed to wipe out the interest back to 7/18. Keep track of your balances. It sounds like you are.
@@KaiBrown38 this is fantastic information I sincerely appreciate your response and that you contacted them 🙏 I do keep track probably more than I should it can become a time and energy waster and well let's face it it's emotionally and mentally draining going down that rabbit hole. But nothing good comes out of a pessimistic attitude or mindset so let's just stay focused and be ready with a plan B, C, etc 😉 thanks again!
I have 141 qualifying payments under PSLF program. I have a letter about it from MOHELA from months ago and I still have not received a forgiveness letter. There is still a balance though when I log into student aid . Gov. This is an extremely confusing and frustrating situation. Right now I am on a forbearance I see in regards to the balance and have been for months now. When does it end😩Any advice??
so during last days of July the student finally get out of default. now the student want to be in some program related to income derive program. He should wait or enroll in any program related to income until the storm settles.
Curious- what do you think about those who were on SAVE and had their loans forgiven already. Could those be at risk to have forgiven loans reversed in the worse case scenario?
I was wondering the same thing, loan was forgiven weeks before the courts ruled against it, under the save plan, because it was 25 years old and my balance says zero and paid in full on my credit report
@@treblebass2130 , I actually read in the latest rules on August 9th, they cannot role back the clock on loans already forgiven, I feel bad for everything that had the save plan fangled in front of them, got on the plan and then had the rug pulled out and are probably worse off, because they consolidated and interest was capitalized...
I just graduated and will be working at a non-profit hospital starting this month, and was hoping on taking advantage of the PSLF. My first payments are not due until December. What plan would be the best for me?
I haven’t made one single payment
You are so helpful! Thank you so much!
If I make a payment now while in forbearance and not accumulating interest - would interest be carved out of the payment?
Is there any advantage to making payments while in forbearance?
I’ve been making payments all the way through forbearance and it has not served me well. They were still charging me interest. I know the rules have changed again this month (July 2024), so it could be different now - but before, they would tell you the government was footing the bill in terms of the interest - when in reality this was false.
Thank you so much for doing this video!
while in forbearance and you make payments will it only go to the principal? Can you choose to apply it to the runaway interest? Once this all kicks back up extra payments will go to the outstanding interest making hard to pay down the principal. It's the interest that's killing people .
I just need to know when my next payment is? Literally about 92% of my payment goes to interest.
What if my loans are set up on an automatic withdrawal? Should I assume that my account will not be drafted by MOHELA? But what is really bad for me is I worked for 14 years as a public defender but was not enrolled in the PSLF plan. I had made my loan payments faithfully for those years without taking any forbearance or having any missed payments. I then retired in late 2021, and was hoping to get the balance forgiven by the Biden administration in 2022, but the application stated that I must still be working for a nonprofit at the time I applied. I was later told by a representative of my loan servicer that I would’ve been eligible but that the loan paperwork was wrong and I should have applied anyway. This was in 2023. That is when I enrolled in the SAVE plan. I am sure that I am not the only person in this situation so any retroactive PSLF forgiveness would be great if that is possible.
I have MOHELA. I removed my auto pay information. They should not have taken out my October 2023 payment so I asked for a refund. They also tried to take out my July 2024, but I removed it before they could. Both of those months were forbearance months. I’m not signing back up for autopay until they sort this out.
I would go back to work temporarily work for a qualifying non-profit and switch over to one of the IBR payment plan options make a payment or couple at the same time submit your application for PSLF. Do not stop working or paying the student loan payment until you get confirmation (in writing) that your loan has been forgiven under PSLF. If you made you 120 payments - then you only have to be “employed” with a non-profit or qualifying PSLF organization. And over payments you should be able to get refunded. It’s worth to be done. I would go work at goodwill some where qualifying for PSLF for minimum wage to keep payment really low or heck might be one of the one that have monthly payment set at zero. Get all the paperwork for employment verification from those organizations and submit for my loan forgiveness.
They had a Temporary PSLF program you might have qualified for, but I think the deadline has expired. Look into that. Because the main qualification is that you would have to be on the correct IDR plan. There isn’t one specific to PSLF, just be on one.
@@cinnaminstixx how long did it take to get your Oct 2023 refund. I have MOHELA also and they owe me a refund for June 2024 payment and never told me I was in Admin. Forbearance.
@@gigijohnson5800 still waiting because even though it was in Oct 2023, I wasn’t notified about it until June 2024 and had to wait until July 2024 for my account to be transferred to the new website to even ask for refund!! If you call MOHELA, there’s an option for refund in the phone tree
I was a volunteer firefighter for 18years while my daughters were in school. I took out all parent plus loans, Can I apply for Save or the emergency responder payback? I have 100k accumulated in interest and my icr payments are 1700/month. I am 65 and want to retire before 90. Any suggestions?
The interest is still accruing though, I even asked Aidvantage about it and they said the loans still get interest even in forbearance.
So there goes $500 being added in interest alone to 2 months of being in forbearance. 😭
Exactly! In my experience, it took them 5 months to answer one question for me about that, and they answered it dishonestly when I finally did get an answer.
Interest is still accruing. How can all of this be so disorganized? Can’t help but laugh at the madness. 😅
The email I got from nelnet said interest doesn't accrue. Why would it be different for each servicer?
@@zeep32696 - yeah, Aidvantage also TOLD me that interest wasn’t accruing. Then I went into my payment history, and every single payment I’ve made over the past year has indeed had interest charged to the account.
Do not trust these people. They will lie, even after you show them receipts.
@@zeep32696 No idea. I reached out to Aidvantage again and haven't heard back from them yet.
@@zeep32696 Just checked my email. They don’t have the power to change the interest so they’re letting it accrue but once the loans exit out of administrative forbearance, they’ll remove any accrued interests.
Like…just change it to 0% like it was during COVID.
Question! Is the buy-back credit guaranteed to live into 2025? Or is that highly dependent on who wins the election?
depends on who wins per what happens after november
Will payments made under the SAVE plan prior to the block still count? The processing of my payments were paused in April while my services switched over to ED. I was actually on track for PSLF this July. Now I don’t know what will happen or what to do.
We did a consult back on April 30. I consolidated my Nelnet loans before the 4/30 deadline. Base on our conversation i just about have 25 years of payments . So I am waiting for my "one time accounting correction" I see different accounts on the internent it was to be completed before September. My loan amount actually went up . I paid the first month then Nelnet put it in for a admin deferrment then put a payment for Aug...
I had chosen income based repayment. Thats why my payment went up. Nervous i am going to miss out and some court system will say I am not eligble for any forgiveness.
Should i give up? I heard from comments hear that if I chose IDR type consolidation I may not be able to apply for PSLF?
During your consult you mentioned I could apply for PSLF because i had employment and current employment that could finish off anything that was not corrected in 1 time adjusment.
Should I try for PSLF or am i ineligbile. ? Did any of these court decisions stop the adjustment for loans in payment for 20/25 years?
I have two consolidated loans…one of wish is significant low enough for me to get pay off through help from my job….my question is how will paying off that loan aid in my loan forgiveness with the second higher loan since this SAVE plan seem to be a death trap
Will you receive the one time account adjustment in September if you are enrolled in SAVE plan?
I think we're all wondering the same thing, but I can't see why the account adjustment wouldn't still occur. The account adjustment is related to any direct loan consolidation that enrolled in an IDR and not just to SAVE plan consolidations. We're all in a similar spot... we just want the payment count audit done and to never have to watch another student loan video again.
My payments were cut in half and now in forbearance.
I’m on the SAVE plan and I have automatic withdrawal but it says I owe $0 a month. Does that mean I’m on forbearance? Also, my account is still accruing interest. Help! I need to fully understand what’s going on
Which servicer do you have? Nelnet?
But back credit does not work for direct loans FYI.
I tried to get disability discharge but they basically said my cancer is not their problem
Guess My loans will be going back to default again Lol if they block the save plan
My student loans balance is only slightly less 10 years later. If I consolidated my loans the new balance would be higher than the original loans. Would a consolidation application help loan forgiveness in my case?
They are not letting you do that online currently, and that is a good question, with the save plan it would, but with the ruling against it, you might not want to , because they would capitalize the interest and you would owe more, I don't know what all these people that believed this was legitimate are going to do now, they could be worse off and owe even more money.
What is the difference from PAYE and SAVE? I think they switched me from IBR to PAYE and then a few months later cancelled my loans entirely. How is SAVE better than PAYE?
SAVE has the interest subsidy meaning any interest accrued over your monthly payment will be paid by the government loan terms are undergraduate only 20 years and graduate loans 25 years- PAYE doesn’t have the interest subsidy however you repay for 20 years regardless of undergraduate or graduate loans..PAYE also has specific dates attached to it which you have to had repayment during those dates
@@SmecaWash thank you
I think the discretionary income is 225 percent of the poverty line on save and if you make less than 32,000 your payment is zero...I think all that is gone now, so it is 10 percent of your gross or like 150 percent of the poverty line.
I'm in forbearance and it's still collecting interest. I graduated in 2005 and I owe 70K. $20k is just interest.
where the PDF?
36 months away from PSLF on a public servant Water Treatment Operator salary of 65K per year. I just want to be able to keep paying my payments which were 300 bucks a month and I switched to SAVE and my payment went to 240 per month and I ended up in a shit sandwich. Switching to another IDR plan would mean payments of 500 per month until this shit show gets fixed. Im in a holding pattern, but at least I'm saving 350 per month and socking it away to pay back payback what I can pay as a public servant shit plant operator. I could make little bit more money in the private sector, but I love my job which NO ONE really wants to do. PSLF is needed to get people to my career choice. Same with teachers, nurses, police etc. You have to entice people into these critical shorthanded career paths and PSLF is the way.
The VE part of SAVE stands for Valuable Education, which is pretty ironic considering this student loan mess. Still glad you majored in Film Comedy? (Frankly I prefer that to the thought of our future scientists and engineers and doctors who don't have enough math knowledge to understand how compound interest works, or our future lawyers and executives who don't realize how important it is to read a contract in full before signing it.)
Guess who has 2 thumbs and is leaving this F**king country? 👍👍