I’ve helped many people who hadn’t paid their loans in years start repaying them so they can qualify for these new loan forgiveness programs. They all shared the same worry: What if I can’t afford my monthly payments?
I understood where they were coming from.
They battled with their student loan servicers and the Education Department for years to find a payment they could afford. A payment that truly reflected the financial struggles they were facing.
For many of them, the only option they believed they had was to stop making their federal student loan payments altogether. That may have been the best thing they could do then. But now it is different. The landscape has changed.
While President Joe Biden’s broad-based debt cancellation faced challenges and was ultimately shut down by the Supreme Court, his administration has introduced the most affordable student loan repayment option to date. The new income-based repayment plan, known as the SAVE Plan, is designed to offer substantially lower payments than previous plans.
Even clients earning over $200,000 annually, with student loan debt exceeding $500,000, have found relief through SAVE, securing monthly payment amounts lower than their mortgage or rent.
But what if you’re still not ready to start paying?