Student loan repayment is set to resume starting October 1 — and with it may come the stress that so often goes hand-in-hand with working a new line item into your budget. As of March 2023, Americans owe an estimated 1.78 trillion in student loan debt, and the majority of borrowers (about 54%) say they’ve experienced mental health challenges due to the amount they owe. Thankfully, we don’t have to stress — Tara Siegel Bernard joined the HerMoney Podcast to answer all your student loan FAQ as we navigate these new waters together.
Yes, the Supreme Court recently struck down President Biden’s proposal to cancel up to $20,000 in student loan debt per borrower, but there are alternatives. (For example, The Biden administration recently launched a beta application for its new income-driven repayment plan called the Saving on a Valuable Education Plan — or SAVE plan.) What does all this mean for you? Tara Siegel Bernard walks us through student loan forgiveness, repayment plans, using the money in your 529s, and so much more. In her work for The New York Times, Bernard has taken a deep dive into all things student loans and what they mean for your wallet.
In this episode, we hear from one listener who is wondering if there’s still a smaller pool of people who qualify for forgiveness — and who they are. We also go into how the SAVE program is different from REPAYE, and if it makes sense to pay only the minimum if you qualify for the SAVE program.
If you have your own personal finance questions (big or small), you can always write to us at email@example.com to be featured in an upcoming episode! Plus — FinanceFixx has another session in the works! If you’re ready to take a closer look at your finances before student loan repayments resume, join us and we’ll walk you through how you can build a better plan for your future!
MORE ON HERMONEY:
- 5 Strategies to Start Repaying Your Student Loans And Become Debt-Free
- How Parents And Grandparents Can Use 529 Plans to Save for Education
- Student Loan Forgiveness Blocked: What Borrowers Should Do
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