Are you one of the many college grads in the U.S. buried under a mountain of student debt? Yeah, us too. But fear not! We’ve got the scoop on what your financial advisor should be telling you about navigating the wild world of student loan repayment under the new Save Plan. Buckle up, it’s about to get real.
- Start Paying Up, Like, Now: So, you’ve been riding the repayment pause wave during the pandemic? Time to snap out of it. Uncle Sam wants his money back, starting last October. If you’re still snoozing on payments by September, prepare for a serious hit to your credit score come October.
- Cut Your Payments in Half, Yes Please!: Say goodbye to those sky-high payments! Under the new Save Plan, if you only have undergrad federal loans, your payments are getting slashed in half, from 10% to 5% of your discretionary income. That means more cash in your pocket for avocado toast or, you know, survival.
- Earn Less, Pay Less (or Nothing): If your salary is chilling under $32,800 a year, congratulations! You might just catch a break and skip payments altogether. But watch out, once you start raking in more dough, those payments may be back on the menu.
- Enroll Now, Patience Required: So, you’re thinking, “Sign me up for that sweet Save Plan!” Hold your horses. You need to apply first, and it can take a few weeks for your application to be processed. Log into your StudentAid.gov account and follow the directions. Once you apply, you’ll be able to review the repayment terms that you’re eligible for and pick the plan that’s right for you.
- Not Everyone Gets a Golden Ticket: Sorry, Charlie. The Save Plan isn’t handing out freebies to everyone. If you’re rolling in dough compared to your loan balance, you might end up coughing up more cash than sticking with the Standard Repayment Plan. And if mom and dad took out loans for you? Yeah, they’re stuck with their current terms.
But wait, there’s more!
The Right Tools for the Job: Financial advisors in the know are using Finology Software to craft personalized, laser-targeted student debt repayment strategies. In a world where college financing is as wild as a rollercoaster, staying ahead of the game is key. With Finology Software, advisors can crunch numbers, simulate repayment plans, and even track progress towards loan forgiveness like a boss.
And there you have it, folks! Five golden nuggets of wisdom straight from the advisors’ playbook.
Figuring out your next steps can be confusing, even if you’re sporting a new PhD. We recommend pairing up with an advisor who can help. Already working with a financial advisor? Ask them to help you create a plan using Finology Software.
Looking for an advisor who’s a student debt genius? Look no further. Let Finology Software connect you to an experienced advisor at no cost to you.
Now go forth and slay that debt dragon like the financial wizard you are!
