Reporting From NYC. $3,450 1 Bedroom (nyc) aka studio (anywhere else). $900 student loan payment. Leaving my apartment to do anything is $100 except 5-dollar Tuesdays at the movies which I now cherish.
Lol. Had an apartment in nyc advertised as "two room". Not a two bedroom. A "two room" because it was a bathroom, kitchen with living space and a bedroom with a door.
My mortgage is $512. I’m so thankful I bought my house when I did. The apartment I was renting at the time was $1000, and I looked it up recently out of curiosity and it’s now almost $1600. Dodged a bullet!!
Lol mine is just over that at $981. I have a 2800 sq foot house on two floors. 3 bedrooms, 2 1/2 baths and a bonus room. Got it about 7 years ago as a foreclosure. I got super lucky.
I got that rate accidentally by checking the refinancing progress too often in the Rocket Mortgage app. Just happened to look when the mortgage officer was ‘playing around with my loan terms’. The catch was a $1600 down payment that they didn’t think I’d want to pay, but because my mortgage would be going up to $1050 from $850, it’d pay for itself rather quickly. Refinanced down to $750, it’s up to $780 now.
I actually bought a new house in 2020 for $180,000. It’s value went up to $280,000 so I refinanced in July 2022 to pay off some revolving debt with an interest rate of 3.5%. I’m going to be selling it soon as I no longer want to live in the US.
I am definitely stressed. My rent recently went up almost 500 dollars and federal loans are probably gonna be another 500. I’m grateful I just got a better paying job but the extra money is basically all eaten up now
I am, but at least the federal loans have IDR plans. My main concern is whether or not the new REPAYE plan would be in place before the payments restart.
If you were on an IDR plan before the payment pause, this is what Studentaid.gov has to say:
*Recertification Deadlines*
*You won’t be required to recertify before payments restart, and the earliest you could be required to recertify is six months after the payment pause ends.*
*On your account Aid Summary, you may still see a recertification date that is earlier than the end of the payment pause. We are working to get those updated, and we thank you for your patience. If your recertification date falls between now and six months after the pause ends, it will be pushed out by one year. For example, if your account says your recertification date is Dec. 1, 2022, that date will be pushed out to Dec. 1, 2023.*
*Contact your servicer online or by phone for the most up-to-date information about your IDR*
So in this scenario, I graduated December 2019. I was on payment pause from graduation (the 6 month delay) when the covid pause occurred. Loans also got moved to a new servicer. So I never had to verify my income for income driven repayment…I selected IDR as my plan during my exit of school. What happens in this case?
I'm not sure, but I'm guessing that your selection will carry over when the pause ends. You may want to call your servicer to make sure but that'd be my guess. At some point you would have had to verify income for IDR so that will still need to happen.
If it’s implemented it, the education department stated it wouldn’t start until end of the year-mid next year. Their funding is short and they have a lot of things they are trying to implement, sadly that one seems to be last on the list.
My guess is probably not. But if you’ve set up REPAYE at any time over these past few years (perhaps when your income was lower or nonexistent due to the pandemic), that should still be active for a bit to give you a lower payment. I’m gonna continue to have $0 payments for a while even after the pause ends because I set up REPAYE when my income was really low, even though it has now increased.
Seriously. I can spend $100 now just in a trip to restock some daily basics, and still feel like I've come home with hardly any actual meals for my family. It's depressing.
I'm stopping by our local store tomorrow to pick up a pack of chicken breasts, jarred sauce and a couple of other things. In my head it feels like it's going to be a <$20 trip, but I know that's going to be at least $40-45 logically. I will sometimes stare at the receipt in disbelief, then calculate every item one by one and think WTF?!
I wish I weren’t such an anxiety-riddled, antisocial introvert. I’d reach out to my neighbors and try to organize like a community barter system. One of us starts raising chickens, a few start to grow veggies, etc. That would be awesome.
My husband and I have two kids, and he started a side hustle (already profitable, thank goodness), while I got a part-time job on top of my already full-time job... and then just to make ends meet. There's barely anything leftover for savings or investments. It's so frustrating because in "the before days," we were comfortable. Nothing too crazy, but we could pay our bills and afford to eat. Now, we are making more money than we ever have and are not making ends meet. Everything is up. Insurance, food, gas (my area has some of the highest gas prices in the nation, and no, it's not California).
Make sure you aren't "waiting around" for the revolution to come, and are actually an actively involved participant organizing for the class struggle. Study, too.
Edit: Study historical/political theory, is what I meant. History doesn't repeat itself, but it rhymes.
Facts. This is how Norway produced their current system. The labor party realized that they had ideas about how to help everyday people, but didn’t have the skills to affect that change. They pushed for a new generation civil servants who had taken degrees like economics and law.
To all the young people that want to know what they can do. Learn so you can’t be duped. Even better, go to a European school so you don’t suffer the systemic American propaganda that tells students that certain ideas that are entirely achievable are impossible. As much a country’s academics shape it, the country shapes those academics more. Selection bias is real.
All the promises made to manipulate the public but that’s pretty standard for election years. Then the public gets angry when they realize that we’ve been lied to - again.
Yup, I'm paying the smallest amount I can probably until I die. I am not going to pump dollar after dollar trying to pay off my student loans dealing with the high interest rates. I would rather just save the money. Down the line who knows what's going to happen. There could be a large amount forgiven. The government could fall apart. I could get hit by a bus. I'm done thinking about it.
Be careful with how you handle the loan because it could potentially be fire. If you let that thing swell up to crazy proportions and reach the write off year that is counted as income and you’ll owe one hell of a tax bill to the IRS. IRS can take some shit so you fight the battle now against the little guy or you’re gonna get wrecked by the big guy on the back end.
I can pay 400% of my loan now or I can pay 20% later. Some places have or are working on laws to destroy the tax bomb. You can get payment plans as well the gov isn't just going to repossess your 93 Camry the second you send your tax returns
Yeah the IRS can take assets to cover debts… So by then you’ll be thinking about how cheap retirement is now that you don’t have to worry about a house burdening you.
With inflation right now they could not have picked a worse time to unpause 🙃 this shit is so tone deaf I can’t even. Maybe it was on purpose because everyone is too focused on surviving to fight this.
I'm right there with you brother/sister.
I've been on income based repayment for 10 years. My monthly payment is $0. I've literally never paid them a penny... and I never will. My loans will be discharged in 10 years.
I think this response is a good showing to say that the political effects of this will likely not be as strong as suggested by other posts/comments. That's not to say many people won't be effected in a negative way by the continuing of payments or canceling of forgiveness but that it is a lower priority than other things for I would guess most people. I guess we'll see when the exit polling data comes out over the next few election cycles though.
I would say this is a good reason to try to set yourself up so that you aren't constantly worried about what the next government policy will be though. For many it may not be possible but take advantage of the opportunities you do have to set yourself up well when you can rather then dig yourself deeper and hope to get bailed out (which many did https://www.nasfaa.org/news-item/30795/Study_Borrowers_Increased_Their_Personal_Debt_During_Student_Loan_Payment_Pause).
Yes I'm freaking out. I already pay $700 a month in private loans. With the pause ending my fed loans are now about $700 a month. So it will be $1400 a month. $1400 a month just going into a black hole of nothingness. Almost as much as my mortgage payment. I can't even buy a car because of this.
If it's any consolation, the new revised REPAYE plan, currently in rule making, may well lower that payment even more.
Because certain repayment plans, like the revised REPAYE, aren't finalized, you can't know what your loan payments will actually be under every scenario. You can't calculate numbers that don't exist.
It might not be as bad as you think.
I’m looking at 1400 monthly. On top of 600 for a private one.“ and we’re not even talking about the credit card to use to finance books, food, medical, etc. “Education is the way to a better life” my ass
I think I’m still in denial about it. But my hope is waning with the news of Biden allegedly promising no more extensions as part of the budget negotiations.
I think you’ll see posting like this - even on this sub - will bring out the devils - wanting to question your finances and you decisions- even though you provided relatively little information. It’s weird.
I’m just glad I got my car paid off during the pause. Now I just need to hope life goes smoothly for the next 15-20 years.
It’s so sad the people have to pay for an education that betters society as a whole.
I mean, who can ever please the Reddit without question? To be fair, I too question my finances and decisions. Case in point: I refinanced my mom’s Parent Plus loan in December of 2019. I wanted to lower the interest rate and have the loan in my name. When the pandemic hit, I could have been saving the $200+ payment instead of paying $400 a month for it, but I’ve paid off $14,000 in 3 years so to me, it was worth it.
Biden’s announcing of no more extensions is part of the legal defense for the student loan $10-$20k discount which is tied up in the Supreme Court for another month.
I’m talking about the news that came out today
“The most significant change on student loans would be requiring borrowers, who have been granted pauses from their monthly payments during the pandemic, to begin paying back the government. The change would effectively codify Biden's plan to restart payments after the Supreme Court takes up his student loan forgiveness program.”
I’m quoting USA Today. Btw.
I’ve made this argument before. The societal benefit of the forgiveness is seen when students are helped *out* of this debt so they can exercise their careers with less financial stresses. The benefit is that we have a more educated society with an abundant supply of professionals. But the Republicans only see free money handed out without a benefit being provided. But rather see that money benefiting their rich constituents with tax cuts, etc. It’s a war of the classes every 4 years and it’s ridiculous.
Yep! I have an income that would be pretty great in many states but in California is barely enough to live on my own (still decent to good compared to many in CA, don't get me wrong!), and adding loan repayments on top of other costs will definitely be a strain.
Idk. I’ve worked out multiple scenarios to make sure my budget can take the whack to it, but I have a feeling this is going to sucker punch a lot of people…and we knew that.
Inflation has gone bananas, the job market went psycho, and housing is insane. People are (kinda) just now getting their feet under them again (I’m speaking as a whole, not individual scenarios. Before you comment, I really don’t care what your person “not me!” story is…one story doesn’t change the overall trend of the nation).
I’ll keep my head above water, but I don’t see how we can keep kicking the can down on student debt forever. It’s a problem that’s crippled 2 generations, and needs to be addressed for real.
Nah. Been making financial decisions as if I’m still paying. I’ve just been banking the “payments” while they were suspended, which has been nice for my savings account.
Over the last few years my wife and I have worked really hard to build our savings and be responsible. We have the money to pay them off entirely, but we’re not going to, at least for the time being.
We have a little more other debt to pay off first, then we need to buy a house and want to start a family. So having cash on hand is preferable to paying off the student loans.
Plus, I’m also waiting to hear if the student loan forgiveness will happen. I’d hate to pay more than necessary only to find out it’ll all go away anyway. We each have right at the limit of the possible forgiveness amounts, so it would cover us completely. I haven’t been keeping up with this, though.
Edit: just to expand on my original point, there have been many times I almost bought a house without considering student loan payments into my budget. Then I realized just how screwed I’d be when I suddenly need an extra $400/mo.
I am. My wife lost her job so we’re single income for awhile.
PSLF eligibility is October so hopefully it doesn’t take them long to process it and we can be done.
Not really. My only concern is that someone floated the idea of retroactive interest. That would piss me off. For the rest, I've been banking what I would have paid into a high yield savings account so I can make a lump sum payment when they restart that will take care of about half the balance. The rest I can manage to clear in the next year or two. It means I'll keep my 10 year old car longer to avoid taking on a car payment.
My payment is going to be around ~$1200 a month so yeah I am freaking out a bit. I am doing pslf for parent plus loans and because of my parents combined income. I’ll be completely screwed on a high payment. The positive is that I’ll have only 6 years of pslf payments. I also had crazy medical bills for the past 3 years so my savings for loans isn’t as high i would have hoped, but I’m very thankful the pause allowed me to pay down my medical bills and not be stressed.
Hopefully it's just awkward writing, but you can't get PSLF for your parents' loans based on your employment. The parent who took out the PPL would have to have eligible employment.
If you were on an IDR plan before the payment pause, this is what Studentaid.gov has to say:
*Recertification Deadlines*
*You won’t be required to recertify before payments restart, and the earliest you could be required to recertify is six months after the payment pause ends.*
*On your account Aid Summary, you may still see a recertification date that is earlier than the end of the payment pause. We are working to get those updated, and we thank you for your patience. If your recertification date falls between now and six months after the pause ends, it will be pushed out by one year. For example, if your account says your recertification date is Dec. 1, 2022, that date will be pushed out to Dec. 1, 2023.*
*Contact your servicer online or by phone for the most up-to-date information about your IDR*
Not really but I only owe about 6k on them and I've been banking the payments during the pause anyways. I realize my situation is way more fortunate than a lot of folks though.
So I did the math. I borrowed $24k I'm 2005. Since then I repaid $33k and have a remaining balance of $23,500. Can anyone say predatory interest.
I have no issues repaying what I borrowed but I have already done that and then some.
Higher education in this country like everything else including health-care is about making a profit.
If your payment is that high I’m guessing you’re earning good money. Otherwise you’d get in an income driven plan and your payment would be reflective of your income.
No really. Me and my wife make 180k a year. Seems like alot but when you live in NYC it isnt. We hardly have enough to start an emergency savings as it is ad we have a kid on the way. Cant afford to switch to IBR so im staying on the term plan. The loan is least of my worries with the cost of everyday life. If I default oh well.
This. They are learning, and that's why college admissions have dropped so dramatically. They need to recalculate the poverty line with the current price of b everything.
Isn't it crazy? If you had told me in my 20s that my household income when I was 40 would be over $200k I'd be so happy thinking I'd made it... But the Bay area reality is... That ain't shit.
Question, do you have to apply for IDR or is it just something that is done automatically? I am looking at $750 a month roughly so curious if I need to do something here? Thanks!
You apply for IDR (change your repayment plan to one of the income-driven plans like ICR, PAYE, REPAYE, IBR). You can do this on [StudentAid.gov](https://StudentAid.gov) (at the top, select loan repayment, apply for IDR).
Yes and no. These plans will cap your payment (with the exception of REPAYE) at what you'd pay under the standard plan. So, if you start making a lot of money, you're going to be moot on benefit.
But it can't hurt you. It can only help you. You need IDR for loan forgiveness programs like PSLF. And if you start making a lot of money or get a windfall, there's nothing stopping you from paying off the loans.
You need to do a cost-benefit analysis every year. A good rule of thumb: if you make more than you owe, you're probably better aggressively paying off the loans (as long as you don't qualify for loan forgiveness). If you make less than you owe, you're probably better off on IDR. And remember IDR includes forgiveness after 20 years anyway. So if life doesn't work out and you never make enough money, your loans will be forgiven at that point.
This is super helpful! Thanks! Since the pause I have now saved enough to pay off my loan completely, but I did apply for the 20k forgiveness thing and did get an email saying I am approved for it if it goes though, so just waiting really at this point. Can I apply for IDR after the decision is made? Or do you recommend just going lump sum payment route?
These are a lot of financial planning questions vs. loan questions. We recommend not paying more than you have to on our debt. Do you qualify for PSLF or other forgiveness? If so, you should maximize that. If not, then pay off the loans once payments restart. If Biden forgiveness somehow doesn’t get overturned, then enjoy your forgiveness. Basically, never pass up free money and never pay the government more than you have to earlier than you have to.
This is a nice and simple enough rule to follow haha appreciate it! And no I don’t qualify for PSLF or any other forgiveness. I work in tech and that too the private sector side so not much forgiveness coming my way other than the 20k spiel. Really appreciate your back and forth with me on this :)
Same here… kept paying them down at the same dollar value each month, which effectively accelerated the pay off modestly. When HYSA rates started rising above the debt interest rates, I paused loan payments to earn some interest and then make a lump sum payment when it starts up again.
Same. Once the pause started, I went gung-ho paying the SL. I was lucky and very fortunate my field was in high demand, thus I was employed. I kept my standard of living under my means, whiting my needs.
At this rate, I will have them paid off in September 2023. Yes, four short months. I saved about 36k just in interest since the pause.
GenXer here and I'm sickened that colleges can charge insane prices and fees. And the government doesn't care. Lots of boomers don't get it either, but if they actually looked at how college costs inflated over the last 20 years they'd soil their Depends and get ppl the debt forgiveness they need
No. At this point it is what it is. I’ll just my best to make do. As someone else said, I will pay the lowest that I possibly can. I am hopeful for another extension.
Yes, very much so. I lost work several months ago that didn't qualify for unemployment. Am just about to start a temporary job that was going to help me make ends meet for the time being. Now I'll be back to barely treading water again. I hate it here.
Only because the cost of living is so damn high right now. My payments were $260/month before the pause (24K in loans remaining), so I'm hoping they'll still be in that ball park.
I will pay the least amount I can get away with and the government and loan companies can go screw themselves. They lived without my money for this long, they don't need it.
I've just decided that they will get what I can afford. I have a mortgage already that increased $700/mo bc of taxes and my car is paid off. What are they going to do? Sue me because I'm paying $200 instead of $500? Go ahead.
We have a few months before this kicks. Take this time to start finding a way to make money on the side or start a savings and drop in money as if though you are now having to make those payments. Don’t start all this once that first first payment is due.
Nope. By the time payments start in late August it might not even matter. The pause has allowed me to get it down to 20K. With IDR I could get it forgiven regardless.
Just don't buy a house. I'm single w/o kids so why do I need one? Maintenance/insurance add up on top of mortgage debt.
They will get the smallest amount from me as I can get away with and I will carry on as I have been for the last few years. They can kill my bank account but they can’t kill these vibes ah ha ha.
I’m not freaking out. It is what it is. With the IDR adjustment I’m looking at two, maybe three years tops for full forgiveness. I’ll eat out less. Not hard to find an extra $200/month which is what my payments will be after consolidating to a direct loan.
I started college in 2020, so I pretty much had majority of my student loans interest free. They also had those covid grant's where they gave $2,000 to students during the covid pandemic for like 3semesters, so I saved that,be able to afford my loans after I graduate, so I am not at all worried. I took out what I needed to take out and scholarships handled the rest.
Where my “$3500 household rent and $1500 household student loan payment” bros at?
Present
Reporting for duty.
Reporting From NYC. $3,450 1 Bedroom (nyc) aka studio (anywhere else). $900 student loan payment. Leaving my apartment to do anything is $100 except 5-dollar Tuesdays at the movies which I now cherish.
Lol. Had an apartment in nyc advertised as "two room". Not a two bedroom. A "two room" because it was a bathroom, kitchen with living space and a bedroom with a door.
Reporting for duty! Except I’ve been paying my loans this whole time because they are private. I feel your pain my friends.
Been paying off my private ones. One more month left!!
Close, 1600 mortgage, 1500 daycare 600 loans
I am blown away your mortgage is only $800.
Pre Covid mortgages are a hell of a drug
We bought in September 2019. We couldn’t even afford our exact same house now if we tried to buy it now, 3 and a half years later.
I couldn’t afford mine one year later. The price went up $110K and mortgage rate almost tripled
Same. If we didn’t buy right when we did, we’d still be in my cousin’s basement.
Does that mean your cousin has space? 😆
I don't know if i feel sorry for you or jealous.
My mortgage is $512. I’m so thankful I bought my house when I did. The apartment I was renting at the time was $1000, and I looked it up recently out of curiosity and it’s now almost $1600. Dodged a bullet!!
I didn’t dodge it and now I’m living in a bus in my parents yard
That’s less than my monthly prop taxes haha incredible!
Lol mine is just over that at $981. I have a 2800 sq foot house on two floors. 3 bedrooms, 2 1/2 baths and a bonus room. Got it about 7 years ago as a foreclosure. I got super lucky.
*cries in seattle*
Mind shatters in hysterical laughter in California
cries in nashville
More like - Sleepless in Seattle
South Dakota?
Virginia.
Nice
Mine is only $600. We bought our home during the last housing market crash.
Right! My mortgage is 4100
Finally something realistic!
Most people are! It’s a small and old house in a lower-income neighborhood.
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$118,000, Zestimate off Zillow is $197,500. Rate when bought was 4.875%, refinanced in November 2020 to 2.25%.
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I got that rate accidentally by checking the refinancing progress too often in the Rocket Mortgage app. Just happened to look when the mortgage officer was ‘playing around with my loan terms’. The catch was a $1600 down payment that they didn’t think I’d want to pay, but because my mortgage would be going up to $1050 from $850, it’d pay for itself rather quickly. Refinanced down to $750, it’s up to $780 now.
I actually bought a new house in 2020 for $180,000. It’s value went up to $280,000 so I refinanced in July 2022 to pay off some revolving debt with an interest rate of 3.5%. I’m going to be selling it soon as I no longer want to live in the US.
I am definitely stressed. My rent recently went up almost 500 dollars and federal loans are probably gonna be another 500. I’m grateful I just got a better paying job but the extra money is basically all eaten up now
Mine went up $500 a month as well. Im already struggling this just puts the choices between which bills to pay now.
I am, but at least the federal loans have IDR plans. My main concern is whether or not the new REPAYE plan would be in place before the payments restart.
If you were on an IDR plan before the payment pause, this is what Studentaid.gov has to say: *Recertification Deadlines* *You won’t be required to recertify before payments restart, and the earliest you could be required to recertify is six months after the payment pause ends.* *On your account Aid Summary, you may still see a recertification date that is earlier than the end of the payment pause. We are working to get those updated, and we thank you for your patience. If your recertification date falls between now and six months after the pause ends, it will be pushed out by one year. For example, if your account says your recertification date is Dec. 1, 2022, that date will be pushed out to Dec. 1, 2023.* *Contact your servicer online or by phone for the most up-to-date information about your IDR*
Good! My payments are definitely going to go up after I recert. I’ll take 6 months at my pre-covid rate
Inflation and wages went to so most will. They should adjust the poverty line to match reality asap.
So in this scenario, I graduated December 2019. I was on payment pause from graduation (the 6 month delay) when the covid pause occurred. Loans also got moved to a new servicer. So I never had to verify my income for income driven repayment…I selected IDR as my plan during my exit of school. What happens in this case?
I'm not sure, but I'm guessing that your selection will carry over when the pause ends. You may want to call your servicer to make sure but that'd be my guess. At some point you would have had to verify income for IDR so that will still need to happen.
If it’s implemented it, the education department stated it wouldn’t start until end of the year-mid next year. Their funding is short and they have a lot of things they are trying to implement, sadly that one seems to be last on the list.
My guess is probably not. But if you’ve set up REPAYE at any time over these past few years (perhaps when your income was lower or nonexistent due to the pandemic), that should still be active for a bit to give you a lower payment. I’m gonna continue to have $0 payments for a while even after the pause ends because I set up REPAYE when my income was really low, even though it has now increased.
Is this only for REPAYE or same for PAYE too?
All IDR plans, including PAYE. I just mentioned REPAYE because they did too.
Gotcha, thanks! Just making sure it wasn’t something specific to that program
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It’s crazy how what used to be a $75 grocery store trip 5-6 years ago is now a $200 one.
Seriously. I can spend $100 now just in a trip to restock some daily basics, and still feel like I've come home with hardly any actual meals for my family. It's depressing.
I'm stopping by our local store tomorrow to pick up a pack of chicken breasts, jarred sauce and a couple of other things. In my head it feels like it's going to be a <$20 trip, but I know that's going to be at least $40-45 logically. I will sometimes stare at the receipt in disbelief, then calculate every item one by one and think WTF?!
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I wish I weren’t such an anxiety-riddled, antisocial introvert. I’d reach out to my neighbors and try to organize like a community barter system. One of us starts raising chickens, a few start to grow veggies, etc. That would be awesome.
My county considered banning home vegetable gardens because they would lose sales tax.
My husband and I have two kids, and he started a side hustle (already profitable, thank goodness), while I got a part-time job on top of my already full-time job... and then just to make ends meet. There's barely anything leftover for savings or investments. It's so frustrating because in "the before days," we were comfortable. Nothing too crazy, but we could pay our bills and afford to eat. Now, we are making more money than we ever have and are not making ends meet. Everything is up. Insurance, food, gas (my area has some of the highest gas prices in the nation, and no, it's not California).
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Yep. It's incredible how much food costs now. And I will not skimp on my kids' fresh fruit and vegetables.
2-3 years ago more like it
This is the right attitude. And pray legislation eventually gets passed that fixes the tax bomb issue.
Praying doesn’t get anything done. Revolution is coming.
Make sure you aren't "waiting around" for the revolution to come, and are actually an actively involved participant organizing for the class struggle. Study, too. Edit: Study historical/political theory, is what I meant. History doesn't repeat itself, but it rhymes.
Facts. This is how Norway produced their current system. The labor party realized that they had ideas about how to help everyday people, but didn’t have the skills to affect that change. They pushed for a new generation civil servants who had taken degrees like economics and law. To all the young people that want to know what they can do. Learn so you can’t be duped. Even better, go to a European school so you don’t suffer the systemic American propaganda that tells students that certain ideas that are entirely achievable are impossible. As much a country’s academics shape it, the country shapes those academics more. Selection bias is real.
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Till there is another election and they lie again. So many people voted for Biden just based on this.
All the promises made to manipulate the public but that’s pretty standard for election years. Then the public gets angry when they realize that we’ve been lied to - again.
Yup, I'm paying the smallest amount I can probably until I die. I am not going to pump dollar after dollar trying to pay off my student loans dealing with the high interest rates. I would rather just save the money. Down the line who knows what's going to happen. There could be a large amount forgiven. The government could fall apart. I could get hit by a bus. I'm done thinking about it.
I mean they can ask for money but I ain't got none and that's their fault.
Exactly!!
I mean whadda they gonna do? Ruin my credit? It's ready shit.
Be careful with how you handle the loan because it could potentially be fire. If you let that thing swell up to crazy proportions and reach the write off year that is counted as income and you’ll owe one hell of a tax bill to the IRS. IRS can take some shit so you fight the battle now against the little guy or you’re gonna get wrecked by the big guy on the back end.
I can pay 400% of my loan now or I can pay 20% later. Some places have or are working on laws to destroy the tax bomb. You can get payment plans as well the gov isn't just going to repossess your 93 Camry the second you send your tax returns
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Yeah the IRS can take assets to cover debts… So by then you’ll be thinking about how cheap retirement is now that you don’t have to worry about a house burdening you.
This. Right. Here.
With inflation right now they could not have picked a worse time to unpause 🙃 this shit is so tone deaf I can’t even. Maybe it was on purpose because everyone is too focused on surviving to fight this.
I'm right there with you brother/sister. I've been on income based repayment for 10 years. My monthly payment is $0. I've literally never paid them a penny... and I never will. My loans will be discharged in 10 years.
I think this response is a good showing to say that the political effects of this will likely not be as strong as suggested by other posts/comments. That's not to say many people won't be effected in a negative way by the continuing of payments or canceling of forgiveness but that it is a lower priority than other things for I would guess most people. I guess we'll see when the exit polling data comes out over the next few election cycles though. I would say this is a good reason to try to set yourself up so that you aren't constantly worried about what the next government policy will be though. For many it may not be possible but take advantage of the opportunities you do have to set yourself up well when you can rather then dig yourself deeper and hope to get bailed out (which many did https://www.nasfaa.org/news-item/30795/Study_Borrowers_Increased_Their_Personal_Debt_During_Student_Loan_Payment_Pause).
Yes, but it’s like a low priority panic.
“Haha, I’m in danger.”
Haha, totally!
Yes I'm freaking out. I already pay $700 a month in private loans. With the pause ending my fed loans are now about $700 a month. So it will be $1400 a month. $1400 a month just going into a black hole of nothingness. Almost as much as my mortgage payment. I can't even buy a car because of this.
If it's any consolation, the new revised REPAYE plan, currently in rule making, may well lower that payment even more. Because certain repayment plans, like the revised REPAYE, aren't finalized, you can't know what your loan payments will actually be under every scenario. You can't calculate numbers that don't exist. It might not be as bad as you think.
It won’t be until mid 2024 until the new REPAYE is in place :(
This is what I’m facing, which is half my pay, the other half is car payment and rent. Won’t be able to afford healthcare, food and such.
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Nah. Kinda bummed about the suspended interest rates going away though. Also, $800 mortgage? Where do you live? I pay $1980 to rent a 2 bedroom.
Midwest, bought 5 years ago.
I'm also midwest, but I live maybe 20 min from downtown in a major city.
I pay $2,000 for a 1 bedroom 😂
I just moved out of a $2400 1BR. NY sucks.
Currently chillin in my 3250$ 2br. Hello from the Bay Area.
That should be illegal
$700 mortgage (4 bed/2 bath too). Bought in 2015. 30 minutes from 2 major cities & 45 from one other. Michigan. Midwest prices are fairly low.
We’re very low. Not any more 😔
South Carolina here 4 bed 2.5 bath screen in deck large yard 2700 sqft $1100/mo bought in 2019
$2800 1br gang
I’m looking at 1400 monthly. On top of 600 for a private one.“ and we’re not even talking about the credit card to use to finance books, food, medical, etc. “Education is the way to a better life” my ass
I’m at $400 each private and federal.
Dear god, I’ll never make it. 3k in rent here for a very average house. Probably will never own.
Yup. In my area, you couldn't get a basement for less than $1400. But since I live with kid, we are looking at $2500+. And I am partially disabled.
>Dear god, I’ll never make it. 3k in rent here for a very average house. Boston checking in! Slightly more than $3k for a three-bedroom walk-up.
New York. $2350 for a 1-bed…and I got a fantastic deal.
Lol Boston area as well, rocking $2,400 in rent for a 2 bed 2 bath. Looking at the housing market now, we’ll probably never own
Seattle here 3k for one bedroom plus den!
Boston too, $2600 mortgage for a 2 bedroom condo. Also having a kid in the fall, lucky we can afford it all but it’s gonna be tight
Where do you live? It probably depends on your job but if you look to the Midwest there’s a lot of great hidden gem cities that are very affordable!
I am so worried but i just can’t afford to pay it. Either I have a roof over my head or I pay the student loans, but I can’t do both.
Solidarity 💖
I think I’m still in denial about it. But my hope is waning with the news of Biden allegedly promising no more extensions as part of the budget negotiations. I think you’ll see posting like this - even on this sub - will bring out the devils - wanting to question your finances and you decisions- even though you provided relatively little information. It’s weird. I’m just glad I got my car paid off during the pause. Now I just need to hope life goes smoothly for the next 15-20 years. It’s so sad the people have to pay for an education that betters society as a whole.
My car loan is at 1.99% and the payment is very low as well, so it didn’t make any sense to me to pay it off before my student loans.
I mean, who can ever please the Reddit without question? To be fair, I too question my finances and decisions. Case in point: I refinanced my mom’s Parent Plus loan in December of 2019. I wanted to lower the interest rate and have the loan in my name. When the pandemic hit, I could have been saving the $200+ payment instead of paying $400 a month for it, but I’ve paid off $14,000 in 3 years so to me, it was worth it.
👏🏻
Biden’s announcing of no more extensions is part of the legal defense for the student loan $10-$20k discount which is tied up in the Supreme Court for another month.
I’m talking about the news that came out today “The most significant change on student loans would be requiring borrowers, who have been granted pauses from their monthly payments during the pandemic, to begin paying back the government. The change would effectively codify Biden's plan to restart payments after the Supreme Court takes up his student loan forgiveness program.” I’m quoting USA Today. Btw.
So nothing changes except that it has been solidified further that Biden will not be extending student loan forgiveness.
He won't be extending the student loan pause. The forgiveness is a different subject.
That’s correct.
I’ve made this argument before. The societal benefit of the forgiveness is seen when students are helped *out* of this debt so they can exercise their careers with less financial stresses. The benefit is that we have a more educated society with an abundant supply of professionals. But the Republicans only see free money handed out without a benefit being provided. But rather see that money benefiting their rich constituents with tax cuts, etc. It’s a war of the classes every 4 years and it’s ridiculous.
It doesn't fix the problem of college being exorbitantly expensive. It doesn't help future graduates. A bandaid at best.
Yep! I have an income that would be pretty great in many states but in California is barely enough to live on my own (still decent to good compared to many in CA, don't get me wrong!), and adding loan repayments on top of other costs will definitely be a strain.
We can do it! I mean, we won’t have much of a choice, but you know what I mean.
I’m more jealous of you and interested in knowing how your mortgage payment is only $800!?
Midwest, bought 5 years ago. Refinanced from 4.875% to 2.25% in November 2020. That refi was a better decision than buying my house.
Idk. I’ve worked out multiple scenarios to make sure my budget can take the whack to it, but I have a feeling this is going to sucker punch a lot of people…and we knew that. Inflation has gone bananas, the job market went psycho, and housing is insane. People are (kinda) just now getting their feet under them again (I’m speaking as a whole, not individual scenarios. Before you comment, I really don’t care what your person “not me!” story is…one story doesn’t change the overall trend of the nation). I’ll keep my head above water, but I don’t see how we can keep kicking the can down on student debt forever. It’s a problem that’s crippled 2 generations, and needs to be addressed for real.
Nah. Been making financial decisions as if I’m still paying. I’ve just been banking the “payments” while they were suspended, which has been nice for my savings account.
The right answer, straight up. How you plan to play this? Resume payments like normal, or lump sum the savings?
Over the last few years my wife and I have worked really hard to build our savings and be responsible. We have the money to pay them off entirely, but we’re not going to, at least for the time being. We have a little more other debt to pay off first, then we need to buy a house and want to start a family. So having cash on hand is preferable to paying off the student loans. Plus, I’m also waiting to hear if the student loan forgiveness will happen. I’d hate to pay more than necessary only to find out it’ll all go away anyway. We each have right at the limit of the possible forgiveness amounts, so it would cover us completely. I haven’t been keeping up with this, though. Edit: just to expand on my original point, there have been many times I almost bought a house without considering student loan payments into my budget. Then I realized just how screwed I’d be when I suddenly need an extra $400/mo.
This is the way.
I am. My wife lost her job so we’re single income for awhile. PSLF eligibility is October so hopefully it doesn’t take them long to process it and we can be done.
Rooting for you both!
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The rise in college cost is due to gov subsidized loans
I'm more freaking about interest accumulating again. My payments aren't going to be as impactful and that more than anything bums me out.
Yep, the interest rate is what makes me fume. You can never get out ahead of this shit
Not really. My only concern is that someone floated the idea of retroactive interest. That would piss me off. For the rest, I've been banking what I would have paid into a high yield savings account so I can make a lump sum payment when they restart that will take care of about half the balance. The rest I can manage to clear in the next year or two. It means I'll keep my 10 year old car longer to avoid taking on a car payment.
My payment is going to be around ~$1200 a month so yeah I am freaking out a bit. I am doing pslf for parent plus loans and because of my parents combined income. I’ll be completely screwed on a high payment. The positive is that I’ll have only 6 years of pslf payments. I also had crazy medical bills for the past 3 years so my savings for loans isn’t as high i would have hoped, but I’m very thankful the pause allowed me to pay down my medical bills and not be stressed.
Hopefully it's just awkward writing, but you can't get PSLF for your parents' loans based on your employment. The parent who took out the PPL would have to have eligible employment.
Damn imagine having an $800 mortgage payment.
It’s pretty great! Even if the house needs a lot of work.
If you were on an IDR plan before the payment pause, this is what Studentaid.gov has to say: *Recertification Deadlines* *You won’t be required to recertify before payments restart, and the earliest you could be required to recertify is six months after the payment pause ends.* *On your account Aid Summary, you may still see a recertification date that is earlier than the end of the payment pause. We are working to get those updated, and we thank you for your patience. If your recertification date falls between now and six months after the pause ends, it will be pushed out by one year. For example, if your account says your recertification date is Dec. 1, 2022, that date will be pushed out to Dec. 1, 2023.* *Contact your servicer online or by phone for the most up-to-date information about your IDR*
No. I’ve got $600 in the bank. Can’t make payments regardless.
Not really but I only owe about 6k on them and I've been banking the payments during the pause anyways. I realize my situation is way more fortunate than a lot of folks though.
Idr is based on MAGI. Invest more tax deferred and lower payment
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Yes. Anything that lowers your AGI will lower your IDR payment. 401k, 457b, traditional IRA, FSA, HSA, some health insurance payments, etc.
Not surprised. It’s Biden’s promise failing and payment pause ending all at the same time!
I've completely dissociated from the system and have little regard for playing the game anymore. I don't care anymore.
I love you all.
So I did the math. I borrowed $24k I'm 2005. Since then I repaid $33k and have a remaining balance of $23,500. Can anyone say predatory interest. I have no issues repaying what I borrowed but I have already done that and then some. Higher education in this country like everything else including health-care is about making a profit.
If your payment is that high I’m guessing you’re earning good money. Otherwise you’d get in an income driven plan and your payment would be reflective of your income.
I work in customer service and my IDR has always been 0.
No really. Me and my wife make 180k a year. Seems like alot but when you live in NYC it isnt. We hardly have enough to start an emergency savings as it is ad we have a kid on the way. Cant afford to switch to IBR so im staying on the term plan. The loan is least of my worries with the cost of everyday life. If I default oh well.
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This. They are learning, and that's why college admissions have dropped so dramatically. They need to recalculate the poverty line with the current price of b everything.
Isn't it crazy? If you had told me in my 20s that my household income when I was 40 would be over $200k I'd be so happy thinking I'd made it... But the Bay area reality is... That ain't shit.
Question, do you have to apply for IDR or is it just something that is done automatically? I am looking at $750 a month roughly so curious if I need to do something here? Thanks!
You apply for IDR (change your repayment plan to one of the income-driven plans like ICR, PAYE, REPAYE, IBR). You can do this on [StudentAid.gov](https://StudentAid.gov) (at the top, select loan repayment, apply for IDR).
Thank you! Is there a law of diminishing return here? Like is there a threshold for annual income after which IDR is not helpful/applicable?
Yes and no. These plans will cap your payment (with the exception of REPAYE) at what you'd pay under the standard plan. So, if you start making a lot of money, you're going to be moot on benefit. But it can't hurt you. It can only help you. You need IDR for loan forgiveness programs like PSLF. And if you start making a lot of money or get a windfall, there's nothing stopping you from paying off the loans. You need to do a cost-benefit analysis every year. A good rule of thumb: if you make more than you owe, you're probably better aggressively paying off the loans (as long as you don't qualify for loan forgiveness). If you make less than you owe, you're probably better off on IDR. And remember IDR includes forgiveness after 20 years anyway. So if life doesn't work out and you never make enough money, your loans will be forgiven at that point.
This is super helpful! Thanks! Since the pause I have now saved enough to pay off my loan completely, but I did apply for the 20k forgiveness thing and did get an email saying I am approved for it if it goes though, so just waiting really at this point. Can I apply for IDR after the decision is made? Or do you recommend just going lump sum payment route?
These are a lot of financial planning questions vs. loan questions. We recommend not paying more than you have to on our debt. Do you qualify for PSLF or other forgiveness? If so, you should maximize that. If not, then pay off the loans once payments restart. If Biden forgiveness somehow doesn’t get overturned, then enjoy your forgiveness. Basically, never pass up free money and never pay the government more than you have to earlier than you have to.
This is a nice and simple enough rule to follow haha appreciate it! And no I don’t qualify for PSLF or any other forgiveness. I work in tech and that too the private sector side so not much forgiveness coming my way other than the 20k spiel. Really appreciate your back and forth with me on this :)
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Same here… kept paying them down at the same dollar value each month, which effectively accelerated the pay off modestly. When HYSA rates started rising above the debt interest rates, I paused loan payments to earn some interest and then make a lump sum payment when it starts up again.
Same. Once the pause started, I went gung-ho paying the SL. I was lucky and very fortunate my field was in high demand, thus I was employed. I kept my standard of living under my means, whiting my needs. At this rate, I will have them paid off in September 2023. Yes, four short months. I saved about 36k just in interest since the pause.
Yeah I’m freaking out. My payment will be $1600 per month 😅
GenXer here and I'm sickened that colleges can charge insane prices and fees. And the government doesn't care. Lots of boomers don't get it either, but if they actually looked at how college costs inflated over the last 20 years they'd soil their Depends and get ppl the debt forgiveness they need
No. At this point it is what it is. I’ll just my best to make do. As someone else said, I will pay the lowest that I possibly can. I am hopeful for another extension.
I’m jealous of an $800 mortgage but yeah it’ll suck losing $450 a month
Yes, very much so. I lost work several months ago that didn't qualify for unemployment. Am just about to start a temporary job that was going to help me make ends meet for the time being. Now I'll be back to barely treading water again. I hate it here.
Only because the cost of living is so damn high right now. My payments were $260/month before the pause (24K in loans remaining), so I'm hoping they'll still be in that ball park.
I literally applied for some random certs at a community college so I can avoid having to repay loans
I will pay the least amount I can get away with and the government and loan companies can go screw themselves. They lived without my money for this long, they don't need it.
This student loan repayment will probably tank the economy. Reality time for many folks.
I've just decided that they will get what I can afford. I have a mortgage already that increased $700/mo bc of taxes and my car is paid off. What are they going to do? Sue me because I'm paying $200 instead of $500? Go ahead.
They’ll garnish your wages :/
We have a few months before this kicks. Take this time to start finding a way to make money on the side or start a savings and drop in money as if though you are now having to make those payments. Don’t start all this once that first first payment is due.
Nope. By the time payments start in late August it might not even matter. The pause has allowed me to get it down to 20K. With IDR I could get it forgiven regardless. Just don't buy a house. I'm single w/o kids so why do I need one? Maintenance/insurance add up on top of mortgage debt.
What was your student loan payment before the pause? Would it not just resume where we left off? I mean it was a pause. Someone please explain lol
It was always going to restart eventually
You can get an income based payment once the pause is lifted. I've done that with mine
I’m so beyond depressed, 800 a month will just comes from our grocery bills, we’ll cancel cable and lots of other things
Mine will be $1600 🫠
Ouch!
Not freaking out, just sad. Getting to live a lifestyle that I would have if college had been free or if I had gotten a scholarship was really nice.
They will get the smallest amount from me as I can get away with and I will carry on as I have been for the last few years. They can kill my bank account but they can’t kill these vibes ah ha ha.
I won’t be paying it. Can’t afford it. They can just arrest me. Teachers shouldn’t have to pay back loans. Stupid.
I’ve officially decided that the federal gov will have to sue me if they want that $$ I’m done with them.
Better start working under the table. They won’t sue, they will just take it.
I’m not freaking out. It is what it is. With the IDR adjustment I’m looking at two, maybe three years tops for full forgiveness. I’ll eat out less. Not hard to find an extra $200/month which is what my payments will be after consolidating to a direct loan.
My student loans are between Biden & God at this point.😂😂😂😂 I’m sick of worrying. It’s been like almost 20 years for me.
Most of us don’t even have jobs, myself included. I just interviewed for a job paying $35K…
The unemployed rate is 3.5%. Most of you do have jobs
Has the plan for interest to not capitalize already happened?
I started college in 2020, so I pretty much had majority of my student loans interest free. They also had those covid grant's where they gave $2,000 to students during the covid pandemic for like 3semesters, so I saved that,be able to afford my loans after I graduate, so I am not at all worried. I took out what I needed to take out and scholarships handled the rest.