Why You Should Choose SAVE for Your Student Loans
Вставка
- Опубліковано 5 жов 2024
- Christie discusses the SAVE repayment program now that SCOTUS has denied student loan forgiveness proposed by President Biden.
𝗙𝗼𝗿 𝗮 One-on-one 𝗖𝗼𝗻𝘀𝘂𝗹𝘁𝗮𝘁𝗶𝗼𝗻:
𝗖𝗮𝗹𝗹: (𝟴𝟭𝟯) 𝟮𝟱𝟴-𝟮𝟴𝟬𝟴 or
Email: info@christiearkovich.com
-----------------------------------------
Our two attorneys, Christie Arkovich and Barbara Leon, help to reduce student loan debt, file bankruptcy, avoid garnishment and foreclosure and other problems that too much debt can create.
Barbara Leon is a Florida licensed attorney for nearly 20 years in the areas of bankruptcy, foreclosure and student loans. Her practice and experience is well diversified, having gained experience through an internship with the U.S. Attorney’s office, a clerkship with a Federal Magistrate Judge, and both creditor and debtor private practice. This insight helps her to see all sides and find a solution quickly that works for everyone.
As founder of the firm, Christie Arkovich has practiced law for over 25 years. She is a frequent speaker at various consumer-oriented continuing legal education seminars for other attorneys before the American Bankruptcy Institute, the National Association of Consumer Advocates and the Tampa Bay Bankruptcy Bar Association. The firm maintains an AV Preeminent rating and enjoys excellent client reviews and we welcome you to see what we can do for you!
Our channel Student Loan Sidebar is a continuation of a quarterly column that we write for our local bankruptcy attorney bar organization helping people get a handle on their student loan debt. Whenever possible, Christie shares her knowledge about student loans gained working as trial counsel for Sallie Mae, ECMC, and other student loan servicers or guarantors, and her current law practice of over 25 years.
We’re a nationally known law firm who has helped thousands of student loan borrowers obtain a sustainable, affordable payment with an end in sight. Please sit back, check out our awesome client reviews, watch a few videos and see if we can help you!
If we can help:
Christie D Arkovich, PA
1520 W Cleveland St
Tampa, FL 33606
Http://www.ChristieArk...
𝗙𝗼𝗿 𝗮 𝗖𝗼𝗻𝘀𝘂𝗹𝘁𝗮𝘁𝗶𝗼𝗻:
𝗖𝗮𝗹𝗹: (𝟴𝟭𝟯) 𝟮𝟱𝟴-𝟮𝟴𝟬𝟴 or
Email: info@christiearkovich.com
𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗼𝘂𝗿 𝗙𝗥𝗘𝗘 𝗚𝘂𝗶𝗱𝗲: 𝙃𝙤𝙬 𝙩𝙤 𝙏𝙖𝙠𝙚 𝘽𝙖𝙘𝙠 𝙔𝙤𝙪𝙧 𝙇𝙞𝙛𝙚 𝙛𝙧𝙤𝙢 𝙔𝙤𝙪𝙧 𝙎𝙩𝙪𝙙𝙚𝙣𝙩 𝙇𝙤𝙖𝙣𝙨 - info.christiea...
why dnt they let stdents attempt to pay off their orig loan without fees and capitalized interest?? my 28k loan is now 78k?? no way i am going to pay 50K into black hole???
That is a big problem for the older loans. Most went into many years of forbearance which only served to capitalize interest and then charge interest on that interest. The balances go up faster that way. However, the IDR recount is a way to fix that from the past. And the newest SAVE IDR does not accrue interest so the balance never gets larger even if your payment is small. Please consider doing a strategy session with us - the cost is $350 - nominal when you consider the benefits of doing this right and once and for all. Our office number is 813-258-2808 or you can email at info@christiearkovich.com to get that set up. By phone or zoom, and if federal loans, we can address loans all over the U.S.
Agreed. I've literally already paid back what I borrowed. Yet, I owe 2k more than I borrowed.
@@ArkovichLaw I live in California, but could use some advice. Looking into paying for a strategy session. Do you only work with Florida residents?
Just keep your money and ignore the bills and collection calls for 7 years, and the debt goes away. Why make payments on it for 10 to 15 years only to end up owing more than you started off with because of Interest when you can just ignore it for seven years to have it deemed uncollectible and go away entirely.
Same question
I filled out the SAVE application and I was shocked at how much more affordable the payment is. I am very surprised, relieved, and actually feel like this represents a light at the end of the tunnel. My loans have been accruing interest at 7.5% and 6.5%. It's been awful and honestly I could never imagine ever being able to pay this back. I hope that SAVE Is a permanent fix for me. My estimated forgiveness was over 600K!
That's an insane amount of loans. Big spender much?
I thought they stopped the interest? For the last three years?
Look up other videos
Since you have 600k -- you likely have grad loans. Take a look at Paye. While the payment will be a bit higher -- your forgiveness would occur five years earlier. But the forgiven amount may be larger b/c interest would continue to accrue. Depending upon your age, this may be important. PAYE will cease for new entry next July. Reach out to us for a strategy session if you'd like -- there's a lot of money at stake to make sure you're doing the best you can. There are also tips to make sure your SAVE or PAYE payment is as low as possible. (813) 258-2808 or email us at info@christiearkovich.com. We're off this week, back after the New Year holiday.
You'd be surprised at what we see. If years of forbearance, or a default occurred, the balances can get out of hand rather quickly.
I am on PAYE but my required minimum payment is $0 until 2024 and a recertify income… I think I will make minimum payments to avoid the loan growing for now even though $0 is required. If I apply for SAVE I have to recertify immediately (that is my understanding) I can always go to SAVE later. The spouse issue was part of why I went to PAYE but good to see SAVE works too now. Also I rather not authorize auto-certification as I have heard that would include any bonuses I might get, unlike certifying by paycheck
Signed up for SAVE today, payments also count toward PSLF. Also qualify for 20 years service april 2024. best believe, ill call them on the annivesary
Excellent - great news and wish you the best!
Would Save still be a good option for those making 120,000+ a year? I went with PAYE because of the shorter time from and having 74,000 forgiven as opposed to 54,000 and I would pay about 50,000 more in those extra 5 years of payments with SAVE
We'd have to do a strategy session to see. We'd go over some tips to make sure your payment is as low as it can be. One thing SAVE doesn't have is a 10 year standard CAP. For most this doesn't matter though. Please reach out to us (813) 258-2808 or info@christiearkovich.com. We'd also want to know your age/health.
It is absolutely insane how fucking useless these services used to be before they made this change. Our government is a joke
Yep. It was a joke. This is working now, but messy.
These student loans are stressing me out! I see no way out.
Talk to us. There may be a solution. (813) 258-2808 or info@christiearkovich.com for a strategy session where we go over your exact loans.
You’re not telling everyone that they are better off PAYING OFF THEIR LOANS. Why?
For those who do not qualify for any other option, paying off their loan is an avenue. For that I would suggest paying the loans with the highest interest rate first. But many of our clients can benefit from their advanced age or disability which prevents a payoff of the loans, going to a crappy school, too high of loan balances compared to income potential, many years in forbearance finally counting toward IDR as it should have, and help getting a public service discharge as promised and relied upon.
I make more than the salary threshold… should I sign up for SAVE?
What happens in this scenario: your monthly obligation is $300, you accumulate $350 a month in interest normally, and on the 1st of the month you pay your $300 payment, then on the 2nd of the month you pay an additional $100. Does the additional payment go toward that $50 in unpaid interest or will it be $100 toward principle?
I’m trying to figure this out too! I want to try and take advantage of this and make an extra payment that’s not eaten up by interest. I may just have to do it one month and see how it applies.
It will always satisfy the unpaid interest first.. anything above that goes towards the principal.
Unpaid interest for that month is paid first. I'd suggest a yearly principal paydown. Then a small part will go to satisfy that $50 interest for that month, the rest toward principal ($100 x 12 minus $50 x 1 or $1150 in principal paydown). If you did this monthly, you'd pay so much more interest first $50 x 12 and only $50 would go toward principal which would be $600.
I’d say it depends on the loan servicer and how they decide to do it. I’m with Aidvantage and they don’t even add any interest since my monthly payment is 0 and the interest is being forgiven, so when I make payments it goes straight to either previously accrued interest or the principal. However, my husband’s student loan servicer still shows the interest payments accruing each month so I’m waiting for that to be removed before I make a payment so it goes towards the principal and not interest that was going to be removed anyway. If you go by your scenario, but the interest isn’t removed your second payment will still go to interest and principal vs a principal only payment.
People that are going to school for an education in a field that is really needed, should practically be paid for.
A technical skill like repairing aircraft is very much needed and not a lot of new workers on the horizon.
The government should do everything they can to help willing student be trained and employeed in the many skilled occupations that our country desperately needs.
Also, immigrants seem to be here whether people like it or not.
These thousands of people should be pushed into training to fill the occupations AND trained to read, write and speak english, so they can assimilate into our country, the country they have chosen to live in.
This will not only help companies get workers, but it has the potential of drastically raising the income levels and the tax base.
Our country needs to increase its revenue to take care of so many and having them contribute to that operating expense is crucial.
I also wanted to tell you about two other programs. For public service program they will back date any qualify any payments before you applied. So if you ever worked for public service they will count those jobs. I applied for public service last year but when they back dated my payment it left me with only having to pay 2.5 more years instead of 10 years. The other program is for people with 20yrs or later. They will back date your payments back to the beginning of your loan full and partial payment will count. I don’t know the name of the program but this is how all my $50,000 loans were forgiven. I also qualified for Saves but didn’t look into it since my loans were forgiven. Have ppl do this as soon as possible because I heard they may stop approving some of these programs. Good luck
This is called the IDR Waiver/recount program. Announced in April 2022. Going on now. Really helping a lot of people. We have a video on it here. Best for people with older loans and with gaps in their education. We can redate for IDR purposes as if they've been in IDR since their first graduation date where a loan payment was due. Also works as a back door to PSLF. Thanks for mentioning here!
Is this still going on?
What if I already paid off a portion of my total student debt? A few years ago I gathered some money and paid off about 25% of my loan amount. How will the SAVE plan take that into account?
The balance will be smaller now. But the payoff won't help your IDR start date nor decrease your disposable income per month under SAVE. Anyone who has paid off a federal loan during COVID though has until August 31 to seek a refund of the payoff, and then the smaller older loan can be used to move your IDR beginning date back to the earliest repayment date.
Will the loan be forgiven after a certain amount of time if paid monthly? Like 20 years?
There are 10 - 20 - 25 and 30 year standard repayment plans that are fully amortized where you pay in equal monthly payments the principal and interest. Otherwise, there are are income driven plans where you pay less than that based upon your income, and usually after 20 yr for undergrad loans, and 25 for grad loans, the balance is forgiven. Public service is 120 months or 10 years.
What do you think about the ban on choosing PAYE after 5 years and the potentially non-permanent nature of SAVE?
Is this why my husband was on the PAYE, and we were switched to it prepandemic and it looks like we were booted back to a 25 year plan?
Paye isn't permanent either. It's not written into law. Only the old ibr is.
What is “runaway interest”? How much in interest can SAVE be expected to cost borrowers?
Oh that would be having a loan that started at 40k & is now 150k. Don’t ask me how I know…
Uncapped
Why didn’t they come up with this year ago my 84k quickly was over 143k after ten years I was making extra payments but instead of going to principal they went to future interest so I started making minimum payments and stacking extra into a GOOD account so we paid 42k in COVID got 42k left. I’m no longer eligible for pslf but my husband works for govt. Should I move to SAVE and request a return of 42k I had paid?
@@tiffanysteen1845 of course you should common sense
President Barack Obama was the one who said all young Americans have a right to go to College and the government will provide and guarantee this money for each student. I am old and had gone to collage but did not finish, I worked until the age of 72. When I was young not all students that had gone to collage finished for one reason or another. I also believe not all people have the ability and aptitude for a 4 year degree. I also think that many men would be better off learning a trade and if you are skilled and willing to stay the course and also willing to learn work hard learn your trade the pay can be very good. I blame President Barack Obama for trapping America's youth with these staggering bills because with the government guaranteeing this money the collages increased the coast for collage substantially and I believe these students did not really understand what they were getting into.
Under the SAVE program, will my loans continue to accrue interest?
If your payment isn't enough to pay interest that month, the month's interest is waived under SAVE. So no accrual of interest going forward.
If I am consolidating, do my previous years of on-time qualifying payments count towards the "10years of qualifying payments"? Or do I start from zero after the consolidation?
Wondering the same
Right now, you don't lose your prior time when consolidating. That will end though and it'll go back to the old way when you do lose that.
If I switch from IBR to SAVE, my interest will capitalize. Does this mean that interest will accrue on my new principal through July 2024 or will interest stop accruing immediately?
That's what I want to know. The interest on this IBR is ridiculous.
If you’ve been on old IBR for years and have Grad loans, single and no dependents is it wise to switch to SAVE. Does it even matter? I have a $270k balance and only $50k gross income.
What degree(s) did you get?
let me know if/when you get answers, I'm in a similar boat
It would be wise to go with the SAVE program and even better if your job qualifies for public service because the SAVE program can be used for Public Service Loan Forgiveness after 10 years (120 payments).
It's possible that Paye may be a good choice as it's forgiveness period is 20 yrs, while under SAVE for grad loans it would be 25 years. SAVE would be a lower payment though. The fact that you are on IBR is a sign that you may have a larger problem in that your loans may be the older FFEL loans. You need to consider consolidating those to Direct to benefit from the IDR recount and SAVE. You won't lose your prior IBR forgiveness time. IBR though has a payment that is 15% of discretionary income, both SAVE and Repaye are lower. I'd suggest a strategy session with us to go this so you understand and are making the right decision for the best outcome. (813) 258-2808 or info@christiearkovich.com.
What does this matter?
Thankfully I graduated in Fall 2019, the next year COVID hit so I got a break from interest :)
True, no interest on Direct loans during Covid. Now SAVE also waives any interest accrual if your payment isn't enough to pay that. Great news!
I read that any balance over 12,000 they'll add an additional 1 year worth of payments to a max of 20 or 25 years. Does that mean they're adding that to your current loan repayment timeline? I am concerned they're going to extend my repayment terms and I won't get credit for the years I've already been paying my loans under another plan.
No, it’s not supposed to. For the most part it should forgive loans after 10-20 years with Undergrad loans. It’s supposed to take into account your previous loan payments & count that towards your payoff date.
I want to give my degree back. I want a refund. Every penny.
I tried the SAVE option and my lowest payment option is $650 while right now I’m at $278. My income has increased too much I guess.
Perhaps filing a separate tax return to avoid your spouse's income from counting? Use paystubs instead of tax return? Time your certification for lowest income period? Increase 401k, Traditional IRA, HSA or 403b? If you have a business, add your spouse as employee and pay that person from the business to decrease your income? Alternate bonuses/income to every other tax year? Maybe there is some way to reduce your SAVE payment. One of the nice things about SAVE is its 100% interest subsidy. While PAYE can be five years less for grad loans if you are eligible. We can talk in a strategy session if you'd like: please call (813) 258-2808.
I mean one time account adjustment?
the total length of time you have had your loans will all count towards the 20 years, even if your loan was in deferment or forbearance etc.... "This includes conducting a one-time adjustment that counts all prior periods of repayment toward IDR forgiveness, regardless of your repayment plan. When the one-time adjustment is complete, you will need to enroll in an eligible repayment plan in order to continue accruing credit toward forgiveness."
The periods of time that won't count are bankruptcy or in school deferment or very short forbearances that don't add up to 12 months consecutive or 36 months cummulative.
Can you do a video for the ppl who are under the PSLF? Do the SAVE program benefit us? Do we finish earlier than our 120 payments?? I’m so curious. Will I only have 12 payments instead of 120 payments. Help.
PSLF just reduces the normal 20-25 years until forgiveness to 10. You would have to be on either an IDR or the 10 year standard going forward for payments to start. SAVE is usually the lowest payment, although there are variations. We should talk. (813) 258-2808 to set up a strategy session.
Does the balance of loans reset date with Save to qualify for 10 year discharge? Thank you
10 yrs is only if you are working public service and qualify for PSLF. And yes, you can be on SAVE for the 10 yrs in that case. The reset start date would help if you have been working full time, 30 hrs or more weekly, public service during the time. Hope that makes sense!
If you are single and have been laid off in 2022 and still have not been able to find a job aside from EDD, will SAVE be a good route?
Should be. You have to have Direct loans. SAVE isn't for older FFEL loans, Perkins loans or private loans. SAVE has a 100% int subsidy which the other IDR plans do not have so your balance won't grow larger while you are not able to make a payment.
Does the Save program apply to Parent Plus Loans as well?
Parent Plus loans are only eligible for ICR which is a much more expensive income driven plan. You can double consolidate - see our video/blog on that to eliminate the coding for Parent Plus and have a regular Direct consolidation. You have to have enough loans to be able to do the double consolidation correctly. That is currently working to allow those with Parent Plus loans to get into Repaye or soon the SAVE program. That loophole is ending July 2025 I believe, but most people would have made the decision to do that well before then. If you need help or future info, please reach out to us for a consultation. 813-258-2808 or info@christiearkovich.com.
No
How much loan do you need for this ? I have 19,000
0:11 why make payments for the next 20 years when you can just ignore the bills and collection calls for the next 7 to have the debt deemed uncollectible and be free of it. Once it has been deemed uncollectible it will no longer affect your credit score and they can no longer harass or sue you over it. People just need to start playing the system like it has been playing them. FYI, after school, I never paid a cent on my student loans, after 7 years the debt was deemed uncollectible and now I have a credit score of almost 800 in my mid-30s.
How much did you owe?
QUESTION: Hi Christie! I have 6 student loans including: Direct Sub, Direct Unsub, and Direct Grad. All were taken during graduate school, and all were transferred to the PAYE program about 8 years ago. Some have balances ranging from $50k to $9k. Can I pick-and-choose which of the 6 loans to convert to the new SAVE program? Thanks!!!
Remember PAYE is a 20 yr plan, while SAVE is 25 yrs for grad loans. PAYE also never exceeds the 10 yr standard cap, while SAVE is uncapped - in case you have a really good year. Perhaps we should do a strategy session to see what is in your best interest. 813-258-2808 or info@christiearkovich.com
Yes, you can choose which loans to put on the SAVE plan or which loans to consolidate into the SAVE plan.
What exactly is the one time adjustment? ?????
It's called the IDR Waiver, IDR Recount, or one time account adjustment - applies to federal Direct loans. We can explain further, and advise at to the exact impact on your particular loans if you'd like to set up a strategy session with us. We may also have suggestions on how to make this program or another program help you the most. We can help if federal loans no matter where you live in any state, or even out of the country. For private loans, we stick with Florida where we're based. (813) 258-2808 or info@christiearkovich.com. Hope to talk soon!
I'm in a income driven repayment plan. I have 33,000 on original loans and about 4000 in interest. If I move to the save plan will my interest capitalize? I'm worried that I will end up with a bigger original loan and then the republican party will find a way to find this plan unlawful and then I will be moved back to my original plan with a larger original loan.
Same question
Stay on the save plan and you will never get rid of your loan. You’re welcome.
You will if your on PSLF@@Michelle80g
It depends on the loan and if the loan is eligible for the SAVE plan without consolidation. If you consolidate, your unpaid interest will be apart of the new loan. However, if it’s eligible to be moved the previous unpaid interest isn’t supposed to capitalize.
I already applied to save, I’m a SAHM and do my taxes with my husband, I’m afraid that i should have waited to apply, and do my taxes separately??? Is that how it works ??
You can think about filing separately in January for a lower payment that would exclude your husband's income. You can't amend an already filed return to get that benefit. Also you don't need to provide new income yet, there is no obligation to certify for SAVE this year - most are certified through 2024-2025.
So what happens at the end of 10 years? I owe 15k. At the end of ten years if i have 0 monthly payments, because i have a large family, do i then owe the balance at the end of ten years?
10 years is the forgiveness timeline for public service borrowers. Everyone else would be 20 yrs for undergrad and 25 for grad - forgiveness of the balance at that time if in an Income Driven Plan.
It’s supposed to be forgiven, if they keep the program as it currently is. However, since this isn’t an act of congress, but rather something administratively done it can be changed by any administration that wants to remove/change the terms. So there’s no way to truly say. The best thing is to do your best to pay it down as best you can with the hope some may be forgiven in future due to your on time payment history.
If you are on IDR will you automatically be enrolled in SAVE?
For Repaye, yes auto enrollment in SAVE. Not for any other IDR. Those in ICR or IBR, need to evaluate whether a change will help them - it likely will. Those in Paye will likely have a larger payment, but it will last five years less as only 20 years are required for even grad loans. If you have only have undergrad loans, no benefit of PAYE - and SAVE is likely best. We'd go over all this in a strategy session (813) 258-2808 or info@christiearkovich.com
Say for example my current loan amount is 3500$ and the SAVE plan is offering me that amount in forgiveness in addition to 0$ in monthly payments with a payoff date of 2043, does this mean my loan is essentially being forgiven or am I just buying more time? Also will my loan gain interest each month even if my amount due is 0$? I’m tempted to apply but I’m nervous this all sounds a little too good to be true
Yes, for this to work, you'd have to have the same income -- but all would be forgiven in 2043, and the loan will not gain interest if under SAVE.
How about a Paren Plus Loan?
We just learned about a new Parent Plus Consolidation Indicator on the NSLDS. Read more: www.tampabankruptcylawyerblog.com/vote-of-no-confidence-for-double-consolidation/. I'm afraid this is the start of elimination of the double consolidation loophole to put PP loans under SAVE instead of the more expensive ICR.
Im in repay..should i sign up for save??
Anyone on the REPAYE IDR before Covid will automatically be transferred to the new SAVE. It's going to be a lower payment and no interest accrual if your monthly payment is less than the interest that month.
Can someone help me? I am currently under the SAVE payment plan and I notice that interest is increasing daily. When I make a payment would it go towards the principal or interest?
Under SAVE your loans won’t accrue interest month to month if your SAVE payment is less the interest that accrued that month. After 20 or 25 years, any remaining balance would be forgiven whether principal or interest.
You’ll have to wait until your servicer/govt pays off the interest each month before you make a payment if your monthly payment is $0. Otherwise, pay your minimum payment and wait til the balance of interest is payed/removed then do an additional payment.
Don't listen to this lady, get out of debt if you can.
How about pay back what you borrowed- period?
The bank 🏦 lobbyists designed the student loan 💸 industry to be as overly complicated as possible so they could rip everyone off as much as possible. When it’s honest it’s easily understood. It’s functional and streamlined naturally. This absurd number of different types of loans and loan programs are unnecessary for an honest system. Our healthcare system is an overly complicated tapeworm inside the body of our national economy; consuming about 20% of everything we work for I reckon. Student loans and the ridiculously expensive higher educational system is a botfly growing inside our national brain 🧠…eating away. Greed. No other 1st world countries do this, yet fox fake news for foolin folks with false propaganda channel has convinced half of our population that there’s no better way than worshiping mammon through unbridled, winner take all capitalism.
Agreed, it is the most complicated area I've ever seen. It's even hard for me to keep up and we do this every day.
thank you 🌺
You're welcome!
I have tried to apply for the SAVE program both on Federal Student Loan website and on Nelnet, my servicer. I just get run around in circles and never see an actual application. I am on a IDR, a senior widower on 33K SS and want to lower my payment but cannot get connected to the actual SAVE application. Can anyone point me in the right direction ???
studentaid.gov/idr/. Hit log into start, and select SAVE when it gets to the various IDR plans.
My god. Don’t borrow what you can’t repay.
Coddled children
Responsible people don’t accidentally fall into default.