1 00:00:00,080 --> 00:00:02,840 Speaker 1: Welcome to How the Money. I'm Joel and I and Matt. 2 00:00:03,080 --> 00:00:06,680 Speaker 1: Today we're discussing student loans in one, more options for 3 00:00:06,720 --> 00:00:29,440 Speaker 1: discount medications, and Zillo surfing. Yeah, Joe, this is our 4 00:00:29,480 --> 00:00:32,160 Speaker 1: Friday Flight episode. We're gonna cover a lot of stories 5 00:00:32,280 --> 00:00:34,400 Speaker 1: this episode, and in particular, in the second half of 6 00:00:34,400 --> 00:00:37,199 Speaker 1: this episode, we're going to talk with the founder of 7 00:00:37,240 --> 00:00:40,560 Speaker 1: Student Loan Planner, Travis Hornsby. We're gonna talk about student 8 00:00:40,600 --> 00:00:43,320 Speaker 1: loans in the future of student loans, uh, in particular 9 00:00:43,400 --> 00:00:47,000 Speaker 1: coming January. Yeah, there's a lot of uncertainty when it 10 00:00:47,040 --> 00:00:50,040 Speaker 1: comes to the forbearance and lack of interest period that's 11 00:00:50,200 --> 00:00:53,800 Speaker 1: supposed to end um come January one, and also too 12 00:00:54,000 --> 00:00:57,120 Speaker 1: with new proposals for student loan forgiveness. When you see 13 00:00:57,120 --> 00:00:59,520 Speaker 1: those headlines like how should you react as someone who 14 00:00:59,560 --> 00:01:01,680 Speaker 1: that has student loans. We'll get into all that kind 15 00:01:01,680 --> 00:01:04,240 Speaker 1: of stuff with Travis um after the break, but before 16 00:01:04,240 --> 00:01:07,320 Speaker 1: we get to that, Matt, Thanksgiving obviously it was yesterday. 17 00:01:07,319 --> 00:01:10,040 Speaker 1: We're recording this actually a couple of days in advance. Um, 18 00:01:10,120 --> 00:01:11,840 Speaker 1: but yeah, just it's a great time to be I 19 00:01:11,880 --> 00:01:14,920 Speaker 1: think our turkey will be good. Yeah, I hope so. Um, 20 00:01:14,959 --> 00:01:17,880 Speaker 1: But yeah, I wanted to know what are you, um 21 00:01:17,920 --> 00:01:20,520 Speaker 1: particularly thankful for this time here anything? Well, this is 22 00:01:20,560 --> 00:01:23,039 Speaker 1: obviously the yeah time of Thanksgiving where we are just 23 00:01:23,120 --> 00:01:25,720 Speaker 1: reflecting back or starting that reflection process. I feel like 24 00:01:25,720 --> 00:01:27,280 Speaker 1: we always do that at the end of the year anyway. 25 00:01:27,319 --> 00:01:29,440 Speaker 1: But um man, I think you and I we want 26 00:01:29,480 --> 00:01:31,480 Speaker 1: to take a moment just to thank our listeners. You know, 27 00:01:31,520 --> 00:01:33,960 Speaker 1: I mean, this is not a show that could exist 28 00:01:34,040 --> 00:01:36,399 Speaker 1: without the support that we received from our listeners, the 29 00:01:36,440 --> 00:01:39,160 Speaker 1: engagement that happens in our Facebook group, all the different 30 00:01:39,160 --> 00:01:43,120 Speaker 1: ways that our listeners support the show. I am incredibly thankful. 31 00:01:43,200 --> 00:01:44,560 Speaker 1: Otherwise it would just be you and me and just 32 00:01:44,640 --> 00:01:47,480 Speaker 1: kind of hanging out like we used to, talking into 33 00:01:47,520 --> 00:01:49,080 Speaker 1: the void. Right, Well, that's what we did. That's how 34 00:01:49,120 --> 00:01:51,200 Speaker 1: the show started, right you know, it was you and I. 35 00:01:51,240 --> 00:01:52,720 Speaker 1: We would sit down, he needs I would hang out 36 00:01:52,800 --> 00:01:55,080 Speaker 1: or drinking a craft beer and talking about you know, 37 00:01:55,160 --> 00:01:58,560 Speaker 1: all the different things that make up personal finance. But 38 00:01:58,760 --> 00:02:01,520 Speaker 1: it's way more fun and were gratifying knowing that there 39 00:02:01,560 --> 00:02:04,000 Speaker 1: are folks who are out there and who listen to us, 40 00:02:04,200 --> 00:02:05,880 Speaker 1: and who are making some of these changes in their 41 00:02:05,920 --> 00:02:09,400 Speaker 1: own lives to better their their financial futures. Yeah, I agree, Man, 42 00:02:09,440 --> 00:02:11,560 Speaker 1: this show is nothing without the people that listen. So 43 00:02:11,600 --> 00:02:14,120 Speaker 1: thank you all for being a part of the how 44 00:02:14,120 --> 00:02:17,399 Speaker 1: to Money fam or how to Money peeps and uh 45 00:02:17,440 --> 00:02:20,480 Speaker 1: in twenty we really appreciate it. And I feel like 46 00:02:20,480 --> 00:02:22,920 Speaker 1: it's thrown just a ton of um, a ton of 47 00:02:22,960 --> 00:02:28,359 Speaker 1: obstacles at us financially speaking, life wise, right, health wise? UM. 48 00:02:28,400 --> 00:02:29,840 Speaker 1: And so yeah, I don't know one thing I'm really 49 00:02:29,919 --> 00:02:33,519 Speaker 1: particularly specifically thankful for this year too, is my health, health, 50 00:02:33,600 --> 00:02:36,600 Speaker 1: my my family. UM. That's just such an important thing 51 00:02:36,639 --> 00:02:38,960 Speaker 1: and I think this year we're treasuring it more than ever. 52 00:02:39,200 --> 00:02:41,079 Speaker 1: And depending on what you've gone through health wise, maybe 53 00:02:41,080 --> 00:02:44,240 Speaker 1: you have a greater appreciation for had had a greater 54 00:02:44,240 --> 00:02:47,000 Speaker 1: appreciation for your good health, you know, in advance of 55 00:02:47,600 --> 00:02:49,560 Speaker 1: But I think it's on a lot of our radars 56 00:02:49,600 --> 00:02:50,920 Speaker 1: a lot more of these days. So it's something to 57 00:02:51,000 --> 00:02:53,919 Speaker 1: specifically name and be truly thankful for. UM. But Matt, 58 00:02:53,960 --> 00:02:56,040 Speaker 1: let's get onto our Friday flight. Let's mention some of 59 00:02:56,040 --> 00:02:58,200 Speaker 1: the stories that we found interesting this week before we 60 00:02:58,240 --> 00:03:00,680 Speaker 1: get to talk with Travis about student loans. And one 61 00:03:00,680 --> 00:03:03,720 Speaker 1: of the most interesting things that happened last week is 62 00:03:03,760 --> 00:03:08,400 Speaker 1: that Amazon actually launched its own online pharmacy UM. That 63 00:03:08,480 --> 00:03:10,839 Speaker 1: made a lot of the national pharmacy chains a little 64 00:03:10,840 --> 00:03:13,919 Speaker 1: bit nervous. We saw some stock prices dropped because of it. 65 00:03:14,000 --> 00:03:15,760 Speaker 1: And basically what this means is that Prime members are 66 00:03:15,760 --> 00:03:19,560 Speaker 1: going to be able to receive prescription medication with free 67 00:03:19,560 --> 00:03:22,200 Speaker 1: to day shipping UM and it looks like actually for 68 00:03:22,320 --> 00:03:25,320 Speaker 1: certain generic drugs, the Amazon price is going to be 69 00:03:25,560 --> 00:03:29,120 Speaker 1: cheaper even for people that don't have insurance, and it 70 00:03:29,160 --> 00:03:32,280 Speaker 1: could be cheaper for people with insurance if you choose 71 00:03:32,280 --> 00:03:35,600 Speaker 1: to fill your prescription without going through your insurance. The 72 00:03:35,640 --> 00:03:38,040 Speaker 1: great thing about the way they're showing you the pricing 73 00:03:38,440 --> 00:03:40,040 Speaker 1: on their website, They're gonna show you if you do 74 00:03:40,080 --> 00:03:41,960 Speaker 1: have insurance, the price with and the price without, and 75 00:03:41,960 --> 00:03:45,120 Speaker 1: it might be cheaper to get your prescriptions filled without 76 00:03:45,120 --> 00:03:47,480 Speaker 1: going through your insurance. And it seems like Amazon is 77 00:03:47,560 --> 00:03:52,680 Speaker 1: incentivizing consumers, it's customers to avoid the bureaucracy of health insurance, 78 00:03:52,880 --> 00:03:55,360 Speaker 1: which is a really interesting move for them. Even more 79 00:03:55,400 --> 00:03:57,560 Speaker 1: interesting I think for us man so our family, like 80 00:03:57,560 --> 00:04:00,000 Speaker 1: we don't technically have health insurance, and so to see 81 00:04:00,120 --> 00:04:03,320 Speaker 1: an option out there too, you know, bypass insurance altogether 82 00:04:03,560 --> 00:04:05,800 Speaker 1: and still get some really great prices. Considering that we 83 00:04:05,800 --> 00:04:08,480 Speaker 1: are prime members. Man, that's really attractive to us. Good 84 00:04:08,480 --> 00:04:10,119 Speaker 1: our x We've talked about them before in the show, 85 00:04:10,160 --> 00:04:13,000 Speaker 1: but they are another awesome option though. Right. They've been 86 00:04:13,040 --> 00:04:15,400 Speaker 1: making it easier for folks to shop for prescription drugs 87 00:04:15,440 --> 00:04:18,680 Speaker 1: online in seconds and save big for for years now. 88 00:04:18,960 --> 00:04:21,920 Speaker 1: Good our x helps you to find the lowest price 89 00:04:22,040 --> 00:04:25,200 Speaker 1: on prescriptions that you get it at pharmacies near where 90 00:04:25,200 --> 00:04:27,960 Speaker 1: you live. And by the way, prices don't typically differ 91 00:04:28,040 --> 00:04:30,960 Speaker 1: by just pennies. You know, you could save seriously big 92 00:04:31,000 --> 00:04:34,240 Speaker 1: money by shopping around for your medications. Um. And and 93 00:04:34,279 --> 00:04:37,120 Speaker 1: since Amazon Pharmacy is brand new, it is definitely worth 94 00:04:37,200 --> 00:04:39,719 Speaker 1: checking prices there and on good our x. You can 95 00:04:39,800 --> 00:04:41,800 Speaker 1: kind of compare them both. Yeah, yeah, there's there's no 96 00:04:41,839 --> 00:04:44,880 Speaker 1: reason not to look to both sites and look to 97 00:04:45,320 --> 00:04:47,520 Speaker 1: multiple different places in order to try to score the 98 00:04:47,520 --> 00:04:50,279 Speaker 1: best price. Matt I checked on Amazon Pharmacy um to 99 00:04:50,320 --> 00:04:52,520 Speaker 1: look into the pricing of a medication that my wife 100 00:04:52,560 --> 00:04:55,719 Speaker 1: takes regularly, and it was twice the price on Amazon 101 00:04:55,760 --> 00:04:59,560 Speaker 1: Pharmacy than it was on good our X. Actually, so, um, 102 00:04:59,600 --> 00:05:01,960 Speaker 1: it doesn mean that all medications are going to follow 103 00:05:02,040 --> 00:05:04,320 Speaker 1: that same thing. I mean, prices will vary depending on 104 00:05:04,360 --> 00:05:07,040 Speaker 1: what medication it is that you take. But it's just 105 00:05:07,120 --> 00:05:09,680 Speaker 1: another place that you can go shop to see if 106 00:05:09,720 --> 00:05:11,680 Speaker 1: you can get a better price than what you're currently paying. 107 00:05:11,800 --> 00:05:14,240 Speaker 1: So basically shop them all. Why not? You know? Why not? Man, 108 00:05:14,320 --> 00:05:17,719 Speaker 1: Let's talk about the reliability of cars. Consumer Reports they 109 00:05:17,800 --> 00:05:21,120 Speaker 1: just released a new list of their most reliable car brands. 110 00:05:21,520 --> 00:05:25,760 Speaker 1: This list is always so helpful in steering us. Do 111 00:05:25,760 --> 00:05:29,360 Speaker 1: you like that towards the car brands pun, buddy, we'll 112 00:05:29,360 --> 00:05:32,400 Speaker 1: hold up best over time. Right. Consumer Reports and JD 113 00:05:32,480 --> 00:05:36,880 Speaker 1: Power they typically do the most extensive research on brand reliability, 114 00:05:36,920 --> 00:05:39,720 Speaker 1: so checking out those lists can be really helpful if 115 00:05:39,800 --> 00:05:42,480 Speaker 1: you're in the market for a new or a new 116 00:05:42,520 --> 00:05:45,480 Speaker 1: tou car or van, whatever it is that you're looking at, 117 00:05:45,680 --> 00:05:47,280 Speaker 1: and the brands you know the rise of the top 118 00:05:47,360 --> 00:05:49,560 Speaker 1: are ones that you might expect. There's no major shakeups 119 00:05:49,560 --> 00:05:54,480 Speaker 1: this year. Mazda ranks number one, followed by Toyota, Lexus, Buick, 120 00:05:54,720 --> 00:05:58,599 Speaker 1: and Honda. Um However, worth noting, man, there's a rough 121 00:05:58,640 --> 00:06:02,200 Speaker 1: showing for Tesla. They're actually the second worst this year. Yeah, 122 00:06:02,240 --> 00:06:04,479 Speaker 1: I thought that was an interesting I kind of wanted 123 00:06:04,520 --> 00:06:06,320 Speaker 1: to dig a little deeper and find out why Tesla 124 00:06:06,400 --> 00:06:10,000 Speaker 1: got such rotten ratings, and apparently there are some reliability 125 00:06:10,120 --> 00:06:13,640 Speaker 1: issues with the newest Tesla models in addition to problems 126 00:06:13,640 --> 00:06:16,560 Speaker 1: with other new electric cars on the market. Apparently, and 127 00:06:16,640 --> 00:06:19,240 Speaker 1: most of the documented problems don't send from the drive 128 00:06:19,279 --> 00:06:23,440 Speaker 1: system electrical failures as much as other new electronic equipment 129 00:06:23,480 --> 00:06:26,359 Speaker 1: that's putting these cars. I think infotainment systems, all the 130 00:06:26,440 --> 00:06:28,880 Speaker 1: cameras through those. Yeah, it's all that kind of stuff 131 00:06:28,920 --> 00:06:30,920 Speaker 1: that's prone to failure. The more gadgets we put in 132 00:06:30,960 --> 00:06:33,080 Speaker 1: our cars, the more expensive they get, and then the 133 00:06:33,120 --> 00:06:36,240 Speaker 1: momenty more problems exactly exactly, the more prone they are 134 00:06:36,279 --> 00:06:38,520 Speaker 1: to have issues. And so yeah, like those new electric 135 00:06:38,520 --> 00:06:40,640 Speaker 1: cars are awesome, but apparently you might be taking it 136 00:06:40,680 --> 00:06:43,039 Speaker 1: into the dealership to get some of those add ons 137 00:06:43,160 --> 00:06:45,800 Speaker 1: uh fixed or replaced in the first couple of years 138 00:06:45,839 --> 00:06:48,760 Speaker 1: of ownership. Yeah, and it's not that surprising, right, like 139 00:06:48,760 --> 00:06:51,279 Speaker 1: whether it's Tesla or these other e V makers, because 140 00:06:51,320 --> 00:06:53,640 Speaker 1: I mean this is relatively new technology. I mean we're 141 00:06:53,680 --> 00:06:56,480 Speaker 1: talking like Tesla hasn't even been making electric cars for 142 00:06:56,560 --> 00:06:59,280 Speaker 1: like over ten years versus the combustion engine, and you know, 143 00:06:59,360 --> 00:07:01,880 Speaker 1: like what under years of of car manufacturing when it 144 00:07:01,920 --> 00:07:03,960 Speaker 1: comes to some of these other companies and so well, 145 00:07:03,960 --> 00:07:06,480 Speaker 1: and needed on those gas powered cars. Typically, the things 146 00:07:06,520 --> 00:07:09,320 Speaker 1: that people have the most issues with are the added 147 00:07:09,360 --> 00:07:12,320 Speaker 1: on electric gadgets like in phontainer systems, your DVD whatever 148 00:07:12,320 --> 00:07:14,160 Speaker 1: it is, all that kind of stuff that goes in it. 149 00:07:14,160 --> 00:07:17,240 Speaker 1: It's it's those things that malfunction. It's not often the 150 00:07:17,360 --> 00:07:20,080 Speaker 1: engineer transmission that that's messing up on you. Yeah, I'm 151 00:07:20,080 --> 00:07:22,080 Speaker 1: glad we got to play defense a little bit for 152 00:07:22,160 --> 00:07:25,160 Speaker 1: your favorite type of vehicle, the electric vehicle, even though 153 00:07:25,160 --> 00:07:27,000 Speaker 1: you just you just sold your last week and I did, 154 00:07:27,000 --> 00:07:29,760 Speaker 1: But don't hate on the e V. There's still the future. Yeah, 155 00:07:29,760 --> 00:07:33,040 Speaker 1: we shall see me. Let's talk about Zillo surfing. We 156 00:07:33,120 --> 00:07:35,320 Speaker 1: definitely mentioned Zillo from time to time on the show. 157 00:07:35,760 --> 00:07:38,040 Speaker 1: They've got some great tools when it comes to managing 158 00:07:38,040 --> 00:07:40,720 Speaker 1: rental properties. Well, turns out that a lot of folks 159 00:07:40,720 --> 00:07:44,480 Speaker 1: are scrolling Zello as an escape, almost maybe as a 160 00:07:44,520 --> 00:07:48,480 Speaker 1: free therapy session to the year that has been according 161 00:07:48,520 --> 00:07:52,280 Speaker 1: to Zillo visitors, virtually touring homes for sale has climbed 162 00:07:52,360 --> 00:07:55,960 Speaker 1: more than fifty percent since March. Virtual tours have, of 163 00:07:56,000 --> 00:07:59,000 Speaker 1: course become a necessity, but others are doing it just 164 00:07:59,280 --> 00:08:01,760 Speaker 1: for for of fun of it. Just for sport, you know, 165 00:08:01,800 --> 00:08:03,680 Speaker 1: And why not, right, you know, why not virtually tour 166 00:08:03,760 --> 00:08:06,840 Speaker 1: space or maybe start dreaming of a neighborhood that you 167 00:08:06,840 --> 00:08:09,360 Speaker 1: you might live in once you graduate school, or maybe 168 00:08:09,360 --> 00:08:11,560 Speaker 1: you're thinking about buying a place with a bigger yard, 169 00:08:11,760 --> 00:08:14,160 Speaker 1: maybe rooting for some chickens in the garden. It's soulful 170 00:08:14,160 --> 00:08:16,560 Speaker 1: to see what's out there. Why not dream a little bit, right, Yeah, Yeah, 171 00:08:16,600 --> 00:08:19,400 Speaker 1: I mean I've definitely been guilty of zilo surfing before 172 00:08:19,520 --> 00:08:21,440 Speaker 1: and just kind of I like doing it with houses 173 00:08:21,480 --> 00:08:24,040 Speaker 1: over in Europe, out in the middle of Sweden. Yeah, 174 00:08:24,040 --> 00:08:26,480 Speaker 1: you like the cheap Nordic houses Instagram handle And it's 175 00:08:26,560 --> 00:08:29,080 Speaker 1: kind of have fun to imagine what your life could 176 00:08:29,120 --> 00:08:31,480 Speaker 1: look like if you were to uproot from where you 177 00:08:31,480 --> 00:08:33,839 Speaker 1: currently are. If you're in a tiny apartment right now, 178 00:08:33,880 --> 00:08:36,760 Speaker 1: and you're like, man, this sneaks living in a small 179 00:08:36,800 --> 00:08:39,120 Speaker 1: space during COVID. That's that's been a lot of impetus 180 00:08:39,120 --> 00:08:42,280 Speaker 1: for a lot of people imagining another life and thinking 181 00:08:42,320 --> 00:08:44,760 Speaker 1: about having a bigger space to live in. And and 182 00:08:44,800 --> 00:08:46,600 Speaker 1: sometimes I'll do it just to get a feel for 183 00:08:46,800 --> 00:08:49,679 Speaker 1: particular part of town I've heard about. But this could 184 00:08:49,679 --> 00:08:52,080 Speaker 1: be a problem, Matt, and it could border on unhealthy 185 00:08:52,160 --> 00:08:54,440 Speaker 1: for some people if you let it have an outsized 186 00:08:54,520 --> 00:08:57,920 Speaker 1: influence on how much you're thinking about spending for a house. 187 00:08:58,160 --> 00:09:01,560 Speaker 1: With many of us removed from regular rhythms of our lives, 188 00:09:01,559 --> 00:09:03,839 Speaker 1: we're not traveling like we're used to. Maybe we're even 189 00:09:03,880 --> 00:09:07,080 Speaker 1: spending less overall, there's a possibility of getting sucked into 190 00:09:07,200 --> 00:09:10,280 Speaker 1: a line of thinking where you can justify way over 191 00:09:10,320 --> 00:09:13,680 Speaker 1: spending on a house because you've eliminated spending in other 192 00:09:13,720 --> 00:09:16,880 Speaker 1: areas of your life. And so Zealosurfing can be fun, 193 00:09:16,920 --> 00:09:18,600 Speaker 1: it can be a nice little escape, but we should 194 00:09:18,600 --> 00:09:20,280 Speaker 1: also be cautious when we're doing it so that it 195 00:09:20,280 --> 00:09:22,400 Speaker 1: doesn't lead us to making, you know, a poor decision 196 00:09:22,440 --> 00:09:24,080 Speaker 1: in the future. Right yeah. And of course, it's not 197 00:09:24,160 --> 00:09:26,880 Speaker 1: like someone's gonna accidentally buy a house click to buy, 198 00:09:27,440 --> 00:09:29,400 Speaker 1: Yeah exactly. It's not like you're clicking around on Amazon 199 00:09:29,400 --> 00:09:31,560 Speaker 1: and you're gonna actually do that. But you know, the 200 00:09:31,600 --> 00:09:34,480 Speaker 1: pandemic has brought about changes in our behavior where I 201 00:09:34,480 --> 00:09:37,160 Speaker 1: think we're only just beginning to understand the magnitude of 202 00:09:37,240 --> 00:09:39,480 Speaker 1: right you know. A Couple that with the fact that 203 00:09:39,520 --> 00:09:42,320 Speaker 1: mortgage interest rates are crazy low right now, and you 204 00:09:42,400 --> 00:09:44,320 Speaker 1: might begin to feel the pressure to buy a home 205 00:09:44,400 --> 00:09:47,240 Speaker 1: that you're maybe just not quite ready for. I think, 206 00:09:47,320 --> 00:09:49,439 Speaker 1: you know, over a matter of months, it's not difficult 207 00:09:49,600 --> 00:09:53,679 Speaker 1: for our attitudes to gradually shift to change, and so 208 00:09:53,720 --> 00:09:56,480 Speaker 1: it's something certainly worth noting. We want to make sure 209 00:09:56,520 --> 00:09:58,680 Speaker 1: that the money decisions that you know, that we make 210 00:09:59,000 --> 00:10:01,439 Speaker 1: that the aligned with our values, you know, but especially 211 00:10:01,480 --> 00:10:04,360 Speaker 1: a move that is as large as the purchase of 212 00:10:04,360 --> 00:10:05,840 Speaker 1: a home. We want to make sure that we're doing 213 00:10:05,840 --> 00:10:08,000 Speaker 1: these things intentionally. I think even the news of all 214 00:10:08,000 --> 00:10:10,360 Speaker 1: the different vaccines coming on board here in the coming months, 215 00:10:10,760 --> 00:10:12,160 Speaker 1: it's a light at the end of the tunnel, and 216 00:10:12,200 --> 00:10:14,120 Speaker 1: I think it can help folks to maybe look beyond 217 00:10:14,160 --> 00:10:17,559 Speaker 1: their immediate circumstances where they're at home, virtual schooling and 218 00:10:17,600 --> 00:10:19,520 Speaker 1: they're like, Okay, we gotta get a bigger place because 219 00:10:19,559 --> 00:10:21,319 Speaker 1: this is not you know, we can't sustain this, that 220 00:10:21,400 --> 00:10:24,360 Speaker 1: sort of thinking, but to realize that, you know, things 221 00:10:24,360 --> 00:10:26,320 Speaker 1: aren't gonna be like this forever. And so we do 222 00:10:26,360 --> 00:10:28,439 Speaker 1: want to make sure that we're thinking about these decisions, 223 00:10:28,760 --> 00:10:31,800 Speaker 1: even behaviors like zelo surfing, that we're doing those that 224 00:10:31,840 --> 00:10:34,720 Speaker 1: we're keeping up pulse on those actions and those behaviors. Yeah, 225 00:10:34,720 --> 00:10:36,439 Speaker 1: I agree, it can be fun, but it can also 226 00:10:36,520 --> 00:10:39,680 Speaker 1: get out of control. Um And and you know, speaking 227 00:10:39,720 --> 00:10:41,959 Speaker 1: of things that get out of control, Matt, student loans 228 00:10:42,000 --> 00:10:43,880 Speaker 1: in our country and in the lives of many of 229 00:10:43,920 --> 00:10:46,160 Speaker 1: our listeners is out of control too. And there's a 230 00:10:46,200 --> 00:10:49,160 Speaker 1: lot of uncertainty when it comes to student loan payments 231 00:10:49,200 --> 00:10:51,760 Speaker 1: and what that's gonna look like. And so yeah, we're 232 00:10:51,760 --> 00:10:54,400 Speaker 1: gonna talk with Travis Hornsby, a Student Loan Planner in 233 00:10:54,440 --> 00:10:57,040 Speaker 1: just a second about the future of student loans and 234 00:10:57,080 --> 00:10:59,320 Speaker 1: what that's gonna look like in your life in one 235 00:10:59,400 --> 00:11:01,720 Speaker 1: and so we'll it to that right after this break. 236 00:11:10,480 --> 00:11:12,320 Speaker 1: Are we're back from the break, and now we're going 237 00:11:12,360 --> 00:11:14,880 Speaker 1: to chat for a bit with Travis Hornby. He's the 238 00:11:14,880 --> 00:11:17,719 Speaker 1: founder of Student Loan Planner, and that's a website that 239 00:11:17,760 --> 00:11:21,000 Speaker 1: helps people pay back their student loans faster. Travis and 240 00:11:21,080 --> 00:11:23,640 Speaker 1: his team have worked with thousands of borrowers to save 241 00:11:23,720 --> 00:11:26,800 Speaker 1: them hundreds of millions of dollars. So he's the perfect 242 00:11:26,840 --> 00:11:30,040 Speaker 1: person to help us answer some pressing questions about student 243 00:11:30,080 --> 00:11:32,520 Speaker 1: loans that are on everybody's mind right now. So Travis, 244 00:11:32,600 --> 00:11:34,280 Speaker 1: thanks so much for joining us on the show today. 245 00:11:34,679 --> 00:11:37,400 Speaker 1: I'm really glad to be here. Yeah, so Travis, folks 246 00:11:37,440 --> 00:11:40,600 Speaker 1: are are preparing for student loan forbearance to end. Uh. 247 00:11:40,640 --> 00:11:42,640 Speaker 1: You know, it's up in the air whether or not 248 00:11:42,720 --> 00:11:45,319 Speaker 1: something will be done to curb student loan payments for 249 00:11:45,400 --> 00:11:49,280 Speaker 1: any meaningful amount of time in or not. Um, what 250 00:11:49,480 --> 00:11:53,240 Speaker 1: should our listeners out there be doing now to prepare, 251 00:11:53,320 --> 00:11:57,520 Speaker 1: you know, for the likely reality of payments resuming in January. Yeah. 252 00:11:57,559 --> 00:11:59,480 Speaker 1: So the first thing I tell you is if they 253 00:11:59,559 --> 00:12:02,679 Speaker 1: do actually start back again, which I don't probably think 254 00:12:02,720 --> 00:12:05,600 Speaker 1: that they will, but if they did, then you're really 255 00:12:05,679 --> 00:12:08,240 Speaker 1: looking at making your first payment around end of January 256 00:12:08,280 --> 00:12:11,920 Speaker 1: early February. So you really do have like a while 257 00:12:12,080 --> 00:12:13,720 Speaker 1: until you have to make your first payment. So I 258 00:12:13,720 --> 00:12:17,400 Speaker 1: want to stress that, like even if the interest, yeah, 259 00:12:17,440 --> 00:12:19,720 Speaker 1: don't freak out now, right Like literally, you will have 260 00:12:19,760 --> 00:12:22,240 Speaker 1: already paid your credit card bills from Christmas before your 261 00:12:22,360 --> 00:12:25,720 Speaker 1: first student loan bills do. So that's that's good news, right, 262 00:12:25,760 --> 00:12:27,680 Speaker 1: I mean, if it is due, you have a little 263 00:12:27,679 --> 00:12:30,480 Speaker 1: bit of warning time. The other thing that I'd say is, 264 00:12:30,600 --> 00:12:32,200 Speaker 1: who knows what's going to happen things? You know, what, 265 00:12:32,240 --> 00:12:34,680 Speaker 1: we could this come out and they could all already 266 00:12:34,840 --> 00:12:37,199 Speaker 1: be you know, changing something, right, So I think the 267 00:12:37,280 --> 00:12:39,200 Speaker 1: key thing is just budget for the payment to start 268 00:12:39,280 --> 00:12:42,480 Speaker 1: up again, but realize that if it does start up again, 269 00:12:42,800 --> 00:12:45,080 Speaker 1: you can simply go on to student aid dot gov, 270 00:12:45,280 --> 00:12:48,120 Speaker 1: which is a federal website, and then just navigate to 271 00:12:48,200 --> 00:12:51,960 Speaker 1: the apply for Income driven Repayment Plan button, and then 272 00:12:52,000 --> 00:12:54,000 Speaker 1: you can recalculate your payment. So if you lost your 273 00:12:54,000 --> 00:12:56,160 Speaker 1: income because of COVID, or let's say you get paid 274 00:12:56,440 --> 00:12:59,480 Speaker 1: you know, less frequently because you're working fewer shifts, whatever 275 00:12:59,520 --> 00:13:01,600 Speaker 1: the reason is of why you're struggling and you can't 276 00:13:01,600 --> 00:13:03,800 Speaker 1: make payments, it's very easy to reclculate your payment and 277 00:13:03,800 --> 00:13:06,760 Speaker 1: get a lower payment even if those payments start up again. Okay, 278 00:13:06,840 --> 00:13:09,640 Speaker 1: when it when it comes to those income based repayment plans, 279 00:13:10,160 --> 00:13:12,520 Speaker 1: sometimes those can be confusing, right. There are a few 280 00:13:12,559 --> 00:13:15,800 Speaker 1: different options. M So how do people go about choosing 281 00:13:15,840 --> 00:13:19,160 Speaker 1: the right income based repayment plan for them? Yeah, I 282 00:13:19,160 --> 00:13:21,800 Speaker 1: think most people want to pay their loans off, and 283 00:13:21,840 --> 00:13:23,880 Speaker 1: so most people could just sign up for the revised 284 00:13:23,880 --> 00:13:26,440 Speaker 1: to pay as you are in program. Uh, And that's 285 00:13:26,760 --> 00:13:29,400 Speaker 1: pretty straightforward. You just pay ten percent of your income 286 00:13:29,400 --> 00:13:31,840 Speaker 1: if you're married to include your spouses income, and then 287 00:13:31,880 --> 00:13:34,239 Speaker 1: you'll pay that off over twenty years. If you're undergraduate 288 00:13:34,280 --> 00:13:36,880 Speaker 1: or twenty five years if you're you know, go graduate school, 289 00:13:36,880 --> 00:13:40,800 Speaker 1: grad and there's a lot more complicated, you know, options 290 00:13:40,800 --> 00:13:42,679 Speaker 1: out there. The one thing I'll tell people is, I 291 00:13:42,720 --> 00:13:45,040 Speaker 1: know it's kind of overwhelming, but those should be seen 292 00:13:45,080 --> 00:13:47,480 Speaker 1: as is good things, not bad things, because they give 293 00:13:47,520 --> 00:13:49,439 Speaker 1: you more options to get a lower payment and get 294 00:13:49,480 --> 00:13:52,720 Speaker 1: more forgiveness. So, you know, if you're dealing with some 295 00:13:52,800 --> 00:13:55,200 Speaker 1: weird situation like you're married to somebody that has no 296 00:13:55,280 --> 00:13:58,760 Speaker 1: student loans, if you have student loans over thirty dollars 297 00:13:58,840 --> 00:14:01,560 Speaker 1: or maybe way over thirty thousand dollars in those kind 298 00:14:01,559 --> 00:14:04,280 Speaker 1: of unique cases where you're not the average barber, then 299 00:14:04,400 --> 00:14:06,880 Speaker 1: having a lot of these different payment options actually helps you, 300 00:14:06,920 --> 00:14:09,319 Speaker 1: didn't hurt you, because you can do things with your 301 00:14:09,320 --> 00:14:12,040 Speaker 1: tax filing status, and you can, you know, do things 302 00:14:12,080 --> 00:14:15,000 Speaker 1: to exclude your spouse's income from your payment, and you 303 00:14:15,040 --> 00:14:17,320 Speaker 1: can do things like save for retirement all to get 304 00:14:17,320 --> 00:14:19,120 Speaker 1: a lower payment on your suit of loans, which you 305 00:14:19,120 --> 00:14:21,080 Speaker 1: can get you more forgiveness. So I know it's kind 306 00:14:21,080 --> 00:14:23,720 Speaker 1: of overwhelming, but you know, I think people that owe 307 00:14:23,800 --> 00:14:26,160 Speaker 1: more than what they earned every year and student loans, 308 00:14:26,200 --> 00:14:28,760 Speaker 1: so if your debt is larger than what you have 309 00:14:28,800 --> 00:14:31,000 Speaker 1: and in salary every year. That's when you want to 310 00:14:31,000 --> 00:14:33,960 Speaker 1: start thinking about using more complicated options. If you're not 311 00:14:34,040 --> 00:14:36,240 Speaker 1: in that category, I think you should just sign up 312 00:14:36,240 --> 00:14:38,760 Speaker 1: for the revised page you were in program. Yeah, these 313 00:14:38,760 --> 00:14:41,600 Speaker 1: are good options to have. I feel like sometimes there 314 00:14:41,640 --> 00:14:44,640 Speaker 1: can be an over abundance of options. It's like, you know, 315 00:14:44,920 --> 00:14:47,880 Speaker 1: the difference between going to a grocery store that's got 316 00:14:47,920 --> 00:14:50,360 Speaker 1: like twenty different mustards and then you go to AUDI 317 00:14:50,400 --> 00:14:55,280 Speaker 1: and they've got to sometimes decision fatigue. Yeah, sometimes it's 318 00:14:55,360 --> 00:14:57,840 Speaker 1: it's helpful to limit your decisions because it doesn't matter. 319 00:14:57,880 --> 00:15:00,720 Speaker 1: I just want regular mustard butts. Like you said, Travis, 320 00:15:00,720 --> 00:15:03,960 Speaker 1: when there are unique circumstances and when you're in a 321 00:15:04,000 --> 00:15:06,720 Speaker 1: position to to where it would really be helpful to 322 00:15:06,760 --> 00:15:08,680 Speaker 1: take advantage of some of these options. Yeah, that that 323 00:15:08,800 --> 00:15:11,800 Speaker 1: totally warrants the time, and folks should set that time 324 00:15:11,800 --> 00:15:14,960 Speaker 1: aside to get familiar with these different plans. Yeah. You know, 325 00:15:15,040 --> 00:15:17,240 Speaker 1: the analogy I like to make is to the tax code, Right, 326 00:15:17,520 --> 00:15:19,680 Speaker 1: So why is the tax code of gazillion pages? It's 327 00:15:19,680 --> 00:15:21,720 Speaker 1: because it's full of a bunch of loopholes and tricks 328 00:15:21,720 --> 00:15:24,680 Speaker 1: that you kind of almost need a degree in or professional, 329 00:15:25,080 --> 00:15:27,440 Speaker 1: you know, the helping you define them right? And is 330 00:15:27,480 --> 00:15:31,360 Speaker 1: it good that there are gigantic deductions for uh oil 331 00:15:31,440 --> 00:15:34,640 Speaker 1: rigs painted orange? Uh? You know probably probably probably not right, 332 00:15:34,720 --> 00:15:36,320 Speaker 1: but you know, for some reason that got into the 333 00:15:36,360 --> 00:15:38,120 Speaker 1: tax code. If you know about it, maybe you know 334 00:15:38,280 --> 00:15:40,160 Speaker 1: it can help you. Right. So it's that's the thing 335 00:15:40,200 --> 00:15:43,560 Speaker 1: with sud alone, you know, world is they keep claiming 336 00:15:43,600 --> 00:15:45,760 Speaker 1: they're going to simplify it, but every single time they've 337 00:15:45,760 --> 00:15:48,240 Speaker 1: tried to do that, they made it more complicated. So 338 00:15:48,640 --> 00:15:51,160 Speaker 1: who knows? Right? You know, the Affordable Care Act, for example, 339 00:15:51,240 --> 00:15:53,680 Speaker 1: right in healthcare supposed to be a lot simpler. It's 340 00:15:53,720 --> 00:15:55,640 Speaker 1: kind of confusing to sign up for the right healthcare 341 00:15:55,680 --> 00:15:58,080 Speaker 1: program now, I feel like, so, you know, hopefully it 342 00:15:58,080 --> 00:16:00,720 Speaker 1: will become easier, hopefully that they'll streamline things, but I 343 00:16:00,720 --> 00:16:04,200 Speaker 1: wouldn't necessarily count on it. Yeah, all right, let's throw 344 00:16:04,360 --> 00:16:06,680 Speaker 1: another wrench into this equation. While we're talking about the 345 00:16:06,720 --> 00:16:10,160 Speaker 1: complex world of student loans. Rates have obviously been dropping 346 00:16:10,320 --> 00:16:13,560 Speaker 1: two for mortgage refinancing, but but not many people know 347 00:16:13,800 --> 00:16:16,040 Speaker 1: that rates have gotten really low when it comes to 348 00:16:16,040 --> 00:16:18,360 Speaker 1: refinancing your student loans. Do you have any tips for 349 00:16:18,480 --> 00:16:21,320 Speaker 1: when people should consider refinancing into a private loan, and 350 00:16:21,320 --> 00:16:23,360 Speaker 1: then how to go about shopping for the best rate. 351 00:16:23,800 --> 00:16:26,200 Speaker 1: You know. So what's interesting with this pause and interest 352 00:16:26,240 --> 00:16:28,680 Speaker 1: on federal student loans is because it could actually cost 353 00:16:28,840 --> 00:16:31,560 Speaker 1: people a lot more money than they save potentially. And 354 00:16:31,600 --> 00:16:33,920 Speaker 1: the reason I mean that is because people are locking 355 00:16:34,000 --> 00:16:36,200 Speaker 1: in rates and their mortgages right now for thirty years 356 00:16:36,200 --> 00:16:38,080 Speaker 1: that people would never have dreamed of. You know, if 357 00:16:38,080 --> 00:16:40,800 Speaker 1: you're getting a sub three percent on your mortgage. If 358 00:16:40,800 --> 00:16:42,800 Speaker 1: you told my granddad, who had like a fifteen percent 359 00:16:42,800 --> 00:16:45,320 Speaker 1: mortgage one day you'd get a sub three he would 360 00:16:45,360 --> 00:16:47,360 Speaker 1: have just lost his mind. I would have been unthinkable. 361 00:16:47,680 --> 00:16:50,720 Speaker 1: And right now refinancing student loan interest rates are super low, 362 00:16:50,760 --> 00:16:53,160 Speaker 1: like you mentioned, but people are not doing it because 363 00:16:53,160 --> 00:16:55,280 Speaker 1: you have zero percent on your federal student loans. So 364 00:16:55,360 --> 00:16:57,360 Speaker 1: kind of my fears what's going to happen is that 365 00:16:57,440 --> 00:17:00,680 Speaker 1: you're gonna get everybody and their mother is going to 366 00:17:00,720 --> 00:17:03,120 Speaker 1: go book a cruise after this, right, once the vaccine, right, 367 00:17:03,120 --> 00:17:05,239 Speaker 1: everybody's gonna go to Disney World. All these things are 368 00:17:05,240 --> 00:17:07,800 Speaker 1: gonna happen at once. That could really cause some inflation. 369 00:17:08,119 --> 00:17:10,359 Speaker 1: And if that happened, the ability to lock in really 370 00:17:10,400 --> 00:17:12,880 Speaker 1: low rates for long term periods of time for repayment 371 00:17:12,920 --> 00:17:15,120 Speaker 1: on things like student loans that might not be there 372 00:17:15,160 --> 00:17:17,880 Speaker 1: as much. So one thing I'll say is for sure, 373 00:17:17,920 --> 00:17:20,560 Speaker 1: if you have private student loans, any kind of private 374 00:17:20,560 --> 00:17:22,520 Speaker 1: suit loans versus you know, be that be at once 375 00:17:22,560 --> 00:17:24,800 Speaker 1: that you took out initially that way, or you refinanced 376 00:17:24,840 --> 00:17:28,160 Speaker 1: already refinance them again, you'll almost surely find a better 377 00:17:28,160 --> 00:17:30,119 Speaker 1: interest rate than what you have. So you want to 378 00:17:30,119 --> 00:17:32,119 Speaker 1: compare at LEAs three different companies when you're doing that. 379 00:17:32,720 --> 00:17:35,600 Speaker 1: If you do, you'll most likely find a decent, really 380 00:17:35,800 --> 00:17:38,040 Speaker 1: good rate. And the one thing I'd say for people 381 00:17:38,040 --> 00:17:39,879 Speaker 1: that have federal student loans that are benefiting from the 382 00:17:39,880 --> 00:17:42,200 Speaker 1: interest freeze right now, if your plan is to pay 383 00:17:42,200 --> 00:17:45,200 Speaker 1: back your student loans like a you know, thirty or mortgage, 384 00:17:45,200 --> 00:17:46,760 Speaker 1: which I hope it's not. I hope you pay them 385 00:17:46,760 --> 00:17:48,760 Speaker 1: back a lot faster than that, but you're thinking about 386 00:17:48,800 --> 00:17:51,400 Speaker 1: doing a really long term repayment term that you might 387 00:17:51,440 --> 00:17:54,320 Speaker 1: actually even consider, you know, once you get some clarity 388 00:17:54,359 --> 00:17:57,560 Speaker 1: around the interest freeze, going away refinancing as quickly as 389 00:17:57,560 --> 00:18:00,760 Speaker 1: you can once you becomes clearly interest freeze is going 390 00:18:00,840 --> 00:18:02,720 Speaker 1: to end, just simply because of that risk that I 391 00:18:02,720 --> 00:18:05,320 Speaker 1: talked about about inflation, and that's one of the main 392 00:18:05,359 --> 00:18:09,199 Speaker 1: considerations right now. Right, people don't necessarily want to refinance 393 00:18:09,480 --> 00:18:11,520 Speaker 1: into a private student loan if they have a federal 394 00:18:11,560 --> 00:18:14,600 Speaker 1: loan if the interest rate remains at zero until you know, 395 00:18:14,760 --> 00:18:17,520 Speaker 1: like followed next year. Right. Yeah. So it's interesting with 396 00:18:17,560 --> 00:18:20,280 Speaker 1: the the executive order that happened with the Trump administration 397 00:18:20,280 --> 00:18:22,880 Speaker 1: pause the interest for another three months. Right. The only 398 00:18:22,920 --> 00:18:25,960 Speaker 1: reason why that stood was because it was widespread bipartisan 399 00:18:26,040 --> 00:18:28,760 Speaker 1: support to doing it. The the issue with that is 400 00:18:28,800 --> 00:18:32,440 Speaker 1: it probably wasn't legal, So you could get into situation where, 401 00:18:32,960 --> 00:18:35,760 Speaker 1: you know, President Biden does an executive order util September, 402 00:18:36,240 --> 00:18:38,240 Speaker 1: but who knows actually if that's actually legal. And the 403 00:18:38,280 --> 00:18:40,600 Speaker 1: reason is because it costs. It costs a ton of money. 404 00:18:41,000 --> 00:18:42,880 Speaker 1: And when you look at the part of the Higher 405 00:18:42,960 --> 00:18:45,400 Speaker 1: Education Act that grants the Secretary of Education the authority 406 00:18:45,440 --> 00:18:48,600 Speaker 1: to wave or modify the terms of student loans, you know, 407 00:18:48,640 --> 00:18:50,760 Speaker 1: I don't know, there's a big debate among higher education 408 00:18:50,800 --> 00:18:53,919 Speaker 1: experts as to what that actually means. Right, and so 409 00:18:54,000 --> 00:18:55,720 Speaker 1: did do that until September? I mean I don't know. 410 00:18:55,760 --> 00:18:57,240 Speaker 1: I mean I think that Biden will probably try to 411 00:18:57,280 --> 00:18:59,879 Speaker 1: do that, but who knows that actually holds up and 412 00:19:00,000 --> 00:19:02,119 Speaker 1: if if Republicans decided to challenge it, and if they 413 00:19:02,119 --> 00:19:04,840 Speaker 1: decided to appeal it, and and you know, and what happened. 414 00:19:04,840 --> 00:19:07,479 Speaker 1: So so it seems like at the very longest your 415 00:19:07,520 --> 00:19:09,920 Speaker 1: student loans will start up in September, so at least 416 00:19:09,920 --> 00:19:11,840 Speaker 1: we can kind of say that. And it seems like 417 00:19:11,880 --> 00:19:15,320 Speaker 1: the very fastest I'll restart obviously is January one. And 418 00:19:15,400 --> 00:19:17,439 Speaker 1: it seems like there could be a little bit of 419 00:19:17,480 --> 00:19:20,359 Speaker 1: a effective like having interest charged to you for like 420 00:19:20,440 --> 00:19:23,320 Speaker 1: twenty days from like January one to January twenty when 421 00:19:23,320 --> 00:19:25,199 Speaker 1: Biden gets sworn in, and then he might do an 422 00:19:25,240 --> 00:19:28,120 Speaker 1: executive order day one. It's just really kind of hard 423 00:19:28,160 --> 00:19:30,560 Speaker 1: to know. Yeah, well, on that note, what other proposals 424 00:19:30,600 --> 00:19:33,920 Speaker 1: has the Biden administration made that could affect people with 425 00:19:33,960 --> 00:19:36,480 Speaker 1: student loan debt? We're going to have a I guess 426 00:19:36,520 --> 00:19:39,760 Speaker 1: constitutional law like seminar and executive orders for the next 427 00:19:39,800 --> 00:19:41,919 Speaker 1: two years basically, right, because it seems like, you know, 428 00:19:42,000 --> 00:19:44,520 Speaker 1: it seems very likely that the Republicans will take one 429 00:19:44,520 --> 00:19:46,639 Speaker 1: of the two Georgia runoff seats or you're gonna have 430 00:19:46,720 --> 00:19:49,520 Speaker 1: Joe Mansion being the swing vote and he's you know, 431 00:19:49,640 --> 00:19:52,199 Speaker 1: from a state that seventeen percent of people went to college, 432 00:19:52,240 --> 00:19:54,920 Speaker 1: and so he has no interest in being really generous 433 00:19:54,960 --> 00:19:57,720 Speaker 1: to student loan borrowers, right being, you know, the senator 434 00:19:57,760 --> 00:19:59,800 Speaker 1: from West Virginia. So in other words, like they're not 435 00:20:00,080 --> 00:20:03,480 Speaker 1: to have a large sort of pathway to pass big things, 436 00:20:03,480 --> 00:20:07,639 Speaker 1: like the idea of doing anything legislatively on student loans 437 00:20:07,880 --> 00:20:10,080 Speaker 1: to me, to my mind, is pretty unlikely for the 438 00:20:10,080 --> 00:20:11,800 Speaker 1: next two years. So that means he's going to try 439 00:20:11,800 --> 00:20:14,200 Speaker 1: to do everything through executive order. Can you cancel ten 440 00:20:14,200 --> 00:20:16,600 Speaker 1: thousand dollars of student loan debt the executive order? The 441 00:20:16,640 --> 00:20:18,160 Speaker 1: problem is is that it would cost you about three 442 00:20:18,800 --> 00:20:22,240 Speaker 1: billion dollars, so to do that the executive order, that 443 00:20:22,640 --> 00:20:25,639 Speaker 1: pretty clearly seems like it's a power of appropriation with 444 00:20:25,720 --> 00:20:29,119 Speaker 1: rests with Congress. So what you're gonna see, I think is, 445 00:20:29,240 --> 00:20:31,600 Speaker 1: you know a lot of people support this idea that 446 00:20:31,640 --> 00:20:33,960 Speaker 1: the president can do this. So you know, when there's 447 00:20:33,960 --> 00:20:35,439 Speaker 1: a debate about what the president can do, a lot 448 00:20:35,480 --> 00:20:37,480 Speaker 1: of times the president does it and then it gets 449 00:20:37,520 --> 00:20:39,080 Speaker 1: sent to the courts and they figure out whether or 450 00:20:39,080 --> 00:20:41,639 Speaker 1: not it's legal. Right, So, so we're seeing all these 451 00:20:41,680 --> 00:20:46,280 Speaker 1: headlines about about student loan forgiveness and the Biden administration proposal. 452 00:20:46,359 --> 00:20:49,000 Speaker 1: And I'm sure you know a lot of our listeners. 453 00:20:49,040 --> 00:20:51,399 Speaker 1: I've seen it in our Facebook group. People are saying, 454 00:20:51,840 --> 00:20:54,119 Speaker 1: should I be paying back on my student loans? Should 455 00:20:54,119 --> 00:20:56,760 Speaker 1: I be trying to pay them down quickly right now? 456 00:20:56,920 --> 00:21:00,280 Speaker 1: While they're they're these proposals being floated that you know, 457 00:21:00,320 --> 00:21:03,159 Speaker 1: maybe my student loan debt goes away altogether thanks to 458 00:21:03,160 --> 00:21:05,640 Speaker 1: the federal government. What would you say to somebody who's 459 00:21:05,680 --> 00:21:07,200 Speaker 1: kind of in that in between phase they're not sure 460 00:21:07,200 --> 00:21:09,040 Speaker 1: whether they should be paying down their student loan debts 461 00:21:09,040 --> 00:21:11,600 Speaker 1: with vigor or not. I'll tell them a personal story. So, 462 00:21:11,720 --> 00:21:13,800 Speaker 1: my wife actually could have gotten the Public Service and 463 00:21:13,800 --> 00:21:16,520 Speaker 1: Forgiveness program, which is this great program where he worked 464 00:21:16,560 --> 00:21:18,520 Speaker 1: for ten years at enough for profit. All your loans 465 00:21:18,520 --> 00:21:20,919 Speaker 1: are wiped away tax free. And because of how she 466 00:21:21,000 --> 00:21:23,000 Speaker 1: managed her student loans, she made a bunch of mistakes 467 00:21:23,040 --> 00:21:25,760 Speaker 1: so that she really wasn't that eligible for that program. 468 00:21:25,840 --> 00:21:27,680 Speaker 1: And so because of that, that literally cost us like 469 00:21:27,680 --> 00:21:30,960 Speaker 1: a hundred thousand dollars, and that really that was terrible 470 00:21:31,040 --> 00:21:32,720 Speaker 1: to find that out, To find out that if she'd 471 00:21:32,720 --> 00:21:35,240 Speaker 1: only paid attention a little bit more, the exit counseling, 472 00:21:35,280 --> 00:21:37,040 Speaker 1: you know. I mean, but she shouldn't have had to 473 00:21:37,040 --> 00:21:40,160 Speaker 1: paid attention. She's a physician, she's not a financial analyst, right, 474 00:21:40,200 --> 00:21:42,040 Speaker 1: So it just shows you how ridiculous the programs are. 475 00:21:42,080 --> 00:21:43,639 Speaker 1: It's kind of why I started Student Loan Player in 476 00:21:43,640 --> 00:21:46,160 Speaker 1: the first place. I was gonna say, that's the beginning 477 00:21:46,200 --> 00:21:49,880 Speaker 1: of pleasure. It pissed me offward that that we had 478 00:21:49,920 --> 00:21:52,720 Speaker 1: that larger of loss just because of some stupid program 479 00:21:52,720 --> 00:21:55,600 Speaker 1: that wasn't explained well to us. So, you know, for 480 00:21:55,680 --> 00:21:58,320 Speaker 1: people out there wondering should I pay off my student loans, well, 481 00:21:58,359 --> 00:22:00,399 Speaker 1: the thing is is I would say that if you 482 00:22:00,400 --> 00:22:02,200 Speaker 1: want to pay it down to the last ten thousand, 483 00:22:02,800 --> 00:22:05,200 Speaker 1: because you think there's gonna be ten thousands of cancelation 484 00:22:05,400 --> 00:22:07,399 Speaker 1: and you want to keep your options open for that, 485 00:22:07,480 --> 00:22:10,320 Speaker 1: then then fine, do that. You're not going to have 486 00:22:10,920 --> 00:22:12,960 Speaker 1: your loans come in and wiped away. You're just not 487 00:22:13,040 --> 00:22:15,879 Speaker 1: going to Why is that the case? It's one of 488 00:22:15,880 --> 00:22:18,040 Speaker 1: the one of the reason that there's very little support 489 00:22:18,080 --> 00:22:22,120 Speaker 1: for widespread student debt cancelation outside of this narrow, tin 490 00:22:22,280 --> 00:22:24,080 Speaker 1: k kind of amount in the moderate wing of the 491 00:22:24,080 --> 00:22:26,600 Speaker 1: Democratic Party. You know, they're just there just isn't and 492 00:22:26,640 --> 00:22:29,120 Speaker 1: The reason is because it's extremely expensive. If you look 493 00:22:29,119 --> 00:22:31,760 Speaker 1: at the Heroes Act, this is an act that you know, 494 00:22:31,920 --> 00:22:34,560 Speaker 1: the Democratic House tried to pass for the stimulus for 495 00:22:34,560 --> 00:22:37,919 Speaker 1: the pandemic. They initially said we're going to cancel you know, 496 00:22:38,160 --> 00:22:40,760 Speaker 1: student debt for every American, and then they curtailed it 497 00:22:40,960 --> 00:22:42,880 Speaker 1: and said, well, actually, we're just going to cancel ten 498 00:22:42,960 --> 00:22:46,960 Speaker 1: K for all borrowers in default below certain income levels. 499 00:22:47,080 --> 00:22:49,080 Speaker 1: In other words, they made it way narrower. And the 500 00:22:49,080 --> 00:22:51,119 Speaker 1: reason they did it is because canceling tin K for 501 00:22:51,119 --> 00:22:54,280 Speaker 1: every American cost three billion dollars. That's like three years 502 00:22:54,359 --> 00:22:56,960 Speaker 1: worth of the Iraq War, you know, I mean, like 503 00:22:57,040 --> 00:22:59,800 Speaker 1: that's a lot of money. And to have that money 504 00:23:00,000 --> 00:23:01,960 Speaker 1: in on on that, I mean, it's an important thing. 505 00:23:02,000 --> 00:23:04,280 Speaker 1: Canceling student that's super important to be wonderful for so 506 00:23:04,320 --> 00:23:06,199 Speaker 1: many people. But the problem is that it would take 507 00:23:06,200 --> 00:23:09,119 Speaker 1: away from other things like health care, you know, helping 508 00:23:09,119 --> 00:23:11,840 Speaker 1: working families, paid parental leave, right, there's all these other 509 00:23:11,920 --> 00:23:14,520 Speaker 1: options other things that matter too. Just like in our 510 00:23:14,520 --> 00:23:16,919 Speaker 1: own personal financial lives, you can't do it all. You 511 00:23:16,960 --> 00:23:18,320 Speaker 1: can't do it. You can do anything, but you can't 512 00:23:18,320 --> 00:23:20,320 Speaker 1: do everything right. Right, So so I think the thing 513 00:23:20,400 --> 00:23:23,600 Speaker 1: people need to really think about is what can I 514 00:23:23,640 --> 00:23:26,400 Speaker 1: do because that's what I can control, and my savings 515 00:23:26,480 --> 00:23:28,840 Speaker 1: rate is going to determine my financial success in financial 516 00:23:28,800 --> 00:23:31,679 Speaker 1: independence date, not someone else's. So one thing I just 517 00:23:31,680 --> 00:23:34,800 Speaker 1: want to talk to to your listeners about. Remember that 518 00:23:34,840 --> 00:23:36,560 Speaker 1: you can pay your federal student loans in an income 519 00:23:36,640 --> 00:23:39,800 Speaker 1: driven plan and that's based off of your taxible income. 520 00:23:39,840 --> 00:23:42,840 Speaker 1: So if your taxable incomes below about your pay and zero. 521 00:23:43,240 --> 00:23:45,640 Speaker 1: If your taxable incomes like forty tho, you're paying maybe 522 00:23:45,640 --> 00:23:48,640 Speaker 1: a hundred a month. If you move abroad and earn 523 00:23:48,720 --> 00:23:51,640 Speaker 1: less than a hundred thousand dollars living in a foreign country, 524 00:23:51,960 --> 00:23:54,880 Speaker 1: your payment is also zero dollars a month because they 525 00:23:54,920 --> 00:23:57,160 Speaker 1: give you a hundred thousand earned abroad where you don't 526 00:23:57,160 --> 00:23:59,120 Speaker 1: have to report it in the US, and it's based 527 00:23:59,119 --> 00:24:01,480 Speaker 1: off US taxable income. So your student loan payment could 528 00:24:01,480 --> 00:24:04,560 Speaker 1: be zero. And remember that revised page or in program 529 00:24:04,560 --> 00:24:07,320 Speaker 1: I told everyone about earlier that actually gives you fifty 530 00:24:07,680 --> 00:24:10,560 Speaker 1: interest subsidies and all of your unpaid loans. So you 531 00:24:10,600 --> 00:24:14,679 Speaker 1: could be taking a backpacking trip in Southeast Asia for 532 00:24:14,760 --> 00:24:17,560 Speaker 1: a year, paying zero on your student loans and having 533 00:24:17,600 --> 00:24:20,439 Speaker 1: fifty of your interest covered. That's almost as good as 534 00:24:20,480 --> 00:24:23,160 Speaker 1: suspending payments and interest for a year, right, But people 535 00:24:23,200 --> 00:24:25,600 Speaker 1: could do that regardless of who's empowered in Washington. So 536 00:24:25,680 --> 00:24:27,720 Speaker 1: I just want people, I just want people to realize 537 00:24:27,760 --> 00:24:29,720 Speaker 1: that if if you want to do something like start 538 00:24:29,800 --> 00:24:33,480 Speaker 1: a business, or take a trip, or take a really 539 00:24:33,600 --> 00:24:36,119 Speaker 1: risky career move, your student loans should not be the 540 00:24:36,119 --> 00:24:38,119 Speaker 1: reason that that gets in the way. You know, I 541 00:24:38,440 --> 00:24:41,240 Speaker 1: heard somebody just the other day say I worked hundred 542 00:24:41,240 --> 00:24:43,240 Speaker 1: hour weeks just that I could pay off my student 543 00:24:43,320 --> 00:24:45,320 Speaker 1: loans for three years, and I had severe mental health 544 00:24:45,440 --> 00:24:48,960 Speaker 1: struggles through that process. That was the wrong decision. You know, 545 00:24:49,080 --> 00:24:51,960 Speaker 1: she killed herself over trying to I mean sorry, not literally, 546 00:24:52,080 --> 00:24:55,240 Speaker 1: you know, thank goodness, but you know, she really worked 547 00:24:55,240 --> 00:24:57,159 Speaker 1: her tail off to try to pay off her student loans, 548 00:24:57,600 --> 00:25:00,680 Speaker 1: and that wasn't a helpful thing. I mean, one more 549 00:25:00,800 --> 00:25:03,520 Speaker 1: severe case that I know of, just to put that 550 00:25:03,600 --> 00:25:07,520 Speaker 1: out there, someone actually did, unfortunately have severe mental health 551 00:25:07,520 --> 00:25:09,640 Speaker 1: issues and did take her own life. And I don't 552 00:25:09,640 --> 00:25:12,000 Speaker 1: think the student loans were the reason, but I think 553 00:25:12,000 --> 00:25:15,280 Speaker 1: that they were a main reason. So student dad is 554 00:25:15,320 --> 00:25:17,640 Speaker 1: this big thing that affects people's mental health, and I'm 555 00:25:17,640 --> 00:25:19,359 Speaker 1: here to tell people that it should never affect your 556 00:25:19,359 --> 00:25:21,840 Speaker 1: mental health because you have so many options, many of 557 00:25:21,840 --> 00:25:24,560 Speaker 1: which you've never considered before. Yeah, there's way more to 558 00:25:24,640 --> 00:25:28,040 Speaker 1: our lives and what we are worth as individuals than 559 00:25:28,080 --> 00:25:30,320 Speaker 1: just our net worth, than just the money that we 560 00:25:30,359 --> 00:25:34,199 Speaker 1: owe or the money that uh we own. Travis Man, 561 00:25:34,240 --> 00:25:36,320 Speaker 1: we really appreciate you joining us on the on the 562 00:25:36,320 --> 00:25:39,199 Speaker 1: episode today. We appreciate your expertise when it comes to 563 00:25:39,200 --> 00:25:41,720 Speaker 1: student loans. Where can folks learn more about you and 564 00:25:42,280 --> 00:25:44,800 Speaker 1: in your mission essentially for sure? So if you need 565 00:25:44,840 --> 00:25:46,359 Speaker 1: help on your student loans because you don't know what 566 00:25:46,400 --> 00:25:49,680 Speaker 1: to do, we have a consulting service, counseling service. You'll 567 00:25:49,680 --> 00:25:51,639 Speaker 1: find that at student on planter dot com. And the 568 00:25:51,680 --> 00:25:53,760 Speaker 1: other big thing that we do is find people better 569 00:25:53,800 --> 00:25:57,080 Speaker 1: refinancing deals and we take lower commissions than other platforms 570 00:25:57,119 --> 00:25:59,920 Speaker 1: due to give you a bigger cash bonus with along 571 00:26:00,000 --> 00:26:02,119 Speaker 1: with your better interest rate. So that's the other thing 572 00:26:02,119 --> 00:26:03,600 Speaker 1: that we do and that you'll find on Student loan 573 00:26:03,640 --> 00:26:06,520 Speaker 1: planner dot com. You can get you know, basically cash 574 00:26:06,560 --> 00:26:11,280 Speaker 1: bonuses for finding lower interest rates one or multiple times. Awesome, Well, Travis, 575 00:26:11,359 --> 00:26:14,680 Speaker 1: we really appreciate your your insight and your advice today. Um, 576 00:26:14,680 --> 00:26:16,640 Speaker 1: thanks so much for joining us on the show. Thanks 577 00:26:16,640 --> 00:26:18,680 Speaker 1: for having me on, guys, man, it is so good 578 00:26:18,680 --> 00:26:21,320 Speaker 1: to have somebody on who their specialty is. It's nothing 579 00:26:21,400 --> 00:26:24,200 Speaker 1: but student loans. Travis knows the ins and outs of 580 00:26:24,240 --> 00:26:26,280 Speaker 1: all these different plans, and yeah, I'm really glad that 581 00:26:26,280 --> 00:26:27,800 Speaker 1: we're able to talk with him. Will make sure to 582 00:26:27,880 --> 00:26:30,399 Speaker 1: include some of the links that he mentioned in our 583 00:26:30,440 --> 00:26:32,760 Speaker 1: little talk today in our show notes, and you can 584 00:26:32,760 --> 00:26:34,359 Speaker 1: find those notes up on our website at how to 585 00:26:34,440 --> 00:26:36,840 Speaker 1: money dot com. That's right, man, Hope all of you 586 00:26:36,920 --> 00:26:39,240 Speaker 1: have a great weekend. I hope to see back here 587 00:26:39,280 --> 00:26:42,120 Speaker 1: on Monday for a new Ask Count of Money episode. 588 00:26:42,200 --> 00:26:45,080 Speaker 1: So until next time, best friends Out, Best Friends Out.