1 00:00:00,080 --> 00:00:03,000 Speaker 1: Welcome to How to Money. I'm Joel and I'm Matt, 2 00:00:03,080 --> 00:00:06,040 Speaker 1: and today we're discussing paying off your student loans with 3 00:00:06,080 --> 00:00:28,120 Speaker 1: money pro Megan Landrus Joel, So, I hate to start 4 00:00:28,120 --> 00:00:30,320 Speaker 1: this off on a sour note. Man, If it's a 5 00:00:30,360 --> 00:00:32,159 Speaker 1: sour note, the only sour note I want to hear 6 00:00:32,200 --> 00:00:34,440 Speaker 1: is a sour beer note. Okay, I love sour beers, 7 00:00:34,440 --> 00:00:37,280 Speaker 1: but I don't want sour news. Yeah, I pas today, no, 8 00:00:37,280 --> 00:00:39,959 Speaker 1: no sour beers. But dude, unfortunately, I just found out 9 00:00:40,000 --> 00:00:41,560 Speaker 1: that we are going to be going to the beach 10 00:00:41,640 --> 00:00:43,960 Speaker 1: with some family on the same week that we normally 11 00:00:43,960 --> 00:00:45,960 Speaker 1: go to the beach with you guys. Way to break 12 00:00:46,000 --> 00:00:48,320 Speaker 1: my heart. Yeah, huge bumber right, we are families, have 13 00:00:48,360 --> 00:00:50,879 Speaker 1: gone on vacation together. We've split the vacation rental the 14 00:00:50,880 --> 00:00:53,720 Speaker 1: beach house, and that's where last year we recorded with 15 00:00:53,760 --> 00:00:55,800 Speaker 1: our wives was at the beach, which is a ton 16 00:00:55,800 --> 00:00:58,560 Speaker 1: of fun. And this year we're gonna have to intentionally 17 00:00:58,640 --> 00:01:01,960 Speaker 1: schedule sometime where we can get them back on and record. 18 00:01:02,320 --> 00:01:04,120 Speaker 1: I guess so all right, well, I guess I'm gonna 19 00:01:04,120 --> 00:01:05,880 Speaker 1: have to uh cry some tears into this beer that 20 00:01:05,920 --> 00:01:08,399 Speaker 1: we're drinking at night. Man, that's a bummer. But that's okay, 21 00:01:08,440 --> 00:01:10,400 Speaker 1: you know what, have fun at the beach with your family. 22 00:01:11,319 --> 00:01:13,800 Speaker 1: I will just be back here podcasting alone or something 23 00:01:13,800 --> 00:01:15,039 Speaker 1: like that. I don't well, we should do though this 24 00:01:15,080 --> 00:01:18,040 Speaker 1: summer is take some day trips up to some state parks, 25 00:01:17,760 --> 00:01:19,480 Speaker 1: get up in the forest, and do some hiking with 26 00:01:19,520 --> 00:01:21,720 Speaker 1: the kiddos. Totally down with that. Yeah, I'd be I'd 27 00:01:21,720 --> 00:01:24,040 Speaker 1: be all about that. Okay, speaking of kiddos, Matt, we 28 00:01:24,160 --> 00:01:26,560 Speaker 1: just got an email today, both you and I. Oh, 29 00:01:26,640 --> 00:01:28,759 Speaker 1: some good news, right, some good news, some good news 30 00:01:28,760 --> 00:01:32,200 Speaker 1: that our our girls are four year olds were accepted 31 00:01:32,240 --> 00:01:35,600 Speaker 1: into pre K and so fortunately our state has, uh 32 00:01:35,720 --> 00:01:38,160 Speaker 1: we have a state funded pre K and that just 33 00:01:38,240 --> 00:01:40,880 Speaker 1: massively cuts down on the cost of of our girls 34 00:01:41,200 --> 00:01:43,840 Speaker 1: having a little time at school during the week right now. 35 00:01:43,880 --> 00:01:45,480 Speaker 1: You know, we pay for pay for them to go 36 00:01:45,520 --> 00:01:47,240 Speaker 1: to kind of a mother's day out sort of thing 37 00:01:47,560 --> 00:01:50,160 Speaker 1: a few days a week. And so I'm so excited 38 00:01:50,160 --> 00:01:51,960 Speaker 1: they're gonna be going to pre K together. Yeah. Man, 39 00:01:51,960 --> 00:01:54,240 Speaker 1: that's that's gonna be huge stavings for us. And it's 40 00:01:54,280 --> 00:01:57,080 Speaker 1: on the way to where our older daughters go to school. 41 00:01:57,080 --> 00:01:58,960 Speaker 1: So I don't know how we're gonna rock that carpool. 42 00:01:59,120 --> 00:02:00,680 Speaker 1: I think you can fit all four on your bike 43 00:02:00,680 --> 00:02:04,600 Speaker 1: in the morning, that's gonna be tough. We'll see even 44 00:02:04,640 --> 00:02:06,320 Speaker 1: with three right now, Like I try to get three 45 00:02:06,360 --> 00:02:08,120 Speaker 1: on there, and man, that bike gets so top heavy. 46 00:02:08,160 --> 00:02:11,280 Speaker 1: I might have to like fabricate a an extended cargo bike, 47 00:02:11,400 --> 00:02:13,880 Speaker 1: like learn how to weld just to create this sixtended 48 00:02:13,880 --> 00:02:15,200 Speaker 1: cargo bike that I can put all the kids on 49 00:02:15,240 --> 00:02:16,480 Speaker 1: the backup. What do you think? Or we can make 50 00:02:16,480 --> 00:02:18,440 Speaker 1: our kids start riding their own bikes. We talked recently 51 00:02:18,480 --> 00:02:19,960 Speaker 1: about getting the kids on their own bikes, and they're 52 00:02:20,000 --> 00:02:22,280 Speaker 1: starting to ride now and good points not that far away, 53 00:02:22,360 --> 00:02:24,880 Speaker 1: so who knows that's true? Yep, all right, Matt. Today 54 00:02:24,880 --> 00:02:27,720 Speaker 1: on the show, we're having Money Pro Megan Landrossan, and 55 00:02:27,760 --> 00:02:30,280 Speaker 1: I'm really excited about this because she's right here with us. 56 00:02:30,639 --> 00:02:34,080 Speaker 1: Hey Megan, Hey, alright, So I'm really excited to have 57 00:02:34,120 --> 00:02:37,120 Speaker 1: you on today because student loans are a huge problem 58 00:02:37,320 --> 00:02:39,359 Speaker 1: in our country. And by the way, let me set 59 00:02:39,360 --> 00:02:41,840 Speaker 1: this up for listeners were interviewing Megan. She's actually live 60 00:02:41,840 --> 00:02:44,560 Speaker 1: in person with us for this recording. Normally with the 61 00:02:44,600 --> 00:02:47,000 Speaker 1: money Pro segment we do something a little different. We 62 00:02:47,080 --> 00:02:50,720 Speaker 1: have our friends record five minutes of wisdom and then 63 00:02:51,000 --> 00:02:53,440 Speaker 1: we kind of break it down. But Matt, we thought 64 00:02:53,480 --> 00:02:56,280 Speaker 1: that for today's episode with Megan, that we should have 65 00:02:56,320 --> 00:02:59,000 Speaker 1: her because one, she's local here in Atlanta with us, 66 00:02:59,360 --> 00:03:02,839 Speaker 1: and too, she's like the smartest person on student loans 67 00:03:02,880 --> 00:03:05,359 Speaker 1: probably this side of the Mississippi, and so we're like, 68 00:03:05,440 --> 00:03:07,240 Speaker 1: let's have her in person because there there's so many 69 00:03:07,320 --> 00:03:09,280 Speaker 1: nitty gritty things on student loans. We just want to 70 00:03:09,320 --> 00:03:12,200 Speaker 1: make sure people get their questions answered properly. Yeah, well, 71 00:03:12,240 --> 00:03:13,880 Speaker 1: that's right. We met Megan too at our one of 72 00:03:13,880 --> 00:03:16,320 Speaker 1: our first listener meetups at a brewery, so it's it's 73 00:03:16,320 --> 00:03:18,720 Speaker 1: awesome that she's here sharing a beer with us. And 74 00:03:18,760 --> 00:03:20,359 Speaker 1: one of the cool things about Megan is that she's 75 00:03:20,440 --> 00:03:23,480 Speaker 1: the first c s LP in the state of Georgia, 76 00:03:23,480 --> 00:03:25,520 Speaker 1: and there's honestly not that many across the entire country, 77 00:03:25,680 --> 00:03:28,400 Speaker 1: right right, So tell us what c s LP stands for. 78 00:03:28,840 --> 00:03:32,560 Speaker 1: It's Certified Student Loan Professional. Basically that means I have 79 00:03:32,639 --> 00:03:36,120 Speaker 1: the education around the federal loan system and private student 80 00:03:36,160 --> 00:03:40,280 Speaker 1: loans to be able to recommend a proper repayment strategy 81 00:03:40,440 --> 00:03:43,360 Speaker 1: for any borrower. Yeah, so that's super cool. And I 82 00:03:43,360 --> 00:03:46,120 Speaker 1: remember when we met Megan. We're having beers and just 83 00:03:46,400 --> 00:03:49,880 Speaker 1: your passion, Megan for helping people in student loan debt 84 00:03:50,040 --> 00:03:53,840 Speaker 1: was contagious. It was awesome because it is obviously a 85 00:03:53,840 --> 00:03:57,480 Speaker 1: problem that is massive in our country right now. We're 86 00:03:57,480 --> 00:03:59,920 Speaker 1: going to answer a lot of listener questions in this episode. 87 00:04:00,000 --> 00:04:01,920 Speaker 1: In the next week's episode, We're gonna do two episodes 88 00:04:01,920 --> 00:04:04,400 Speaker 1: with Megan, because that's how big of a problem student 89 00:04:04,440 --> 00:04:07,080 Speaker 1: loans are in this country. Um, and so, yeah, do 90 00:04:07,080 --> 00:04:09,040 Speaker 1: you want to give us some quick stats on just 91 00:04:09,200 --> 00:04:12,320 Speaker 1: how bad student loans are and kind of what it's 92 00:04:12,360 --> 00:04:15,520 Speaker 1: doing to the average American? Yeah, I mean, as of 93 00:04:15,600 --> 00:04:19,240 Speaker 1: right now, there's about forty five million Americans who have 94 00:04:19,360 --> 00:04:21,680 Speaker 1: about one point five I think it was one point 95 00:04:21,680 --> 00:04:24,760 Speaker 1: five two last time I checked, trillion dollars of outstanding 96 00:04:24,760 --> 00:04:28,040 Speaker 1: student loan debt. That's a huge number. That's almost as 97 00:04:28,040 --> 00:04:34,239 Speaker 1: big as Matt savings account. Almost almost. But that equates 98 00:04:34,240 --> 00:04:36,560 Speaker 1: to the average payment for someone to be around three 99 00:04:37,000 --> 00:04:39,960 Speaker 1: and nine dollars a month going towards student loan debt. 100 00:04:40,640 --> 00:04:43,200 Speaker 1: So with that said, I think where I'm so crazy 101 00:04:43,240 --> 00:04:45,240 Speaker 1: about it right now, or why I'm so obsessed with 102 00:04:45,279 --> 00:04:49,080 Speaker 1: student loan repayment planning is because I started my career 103 00:04:49,160 --> 00:04:52,400 Speaker 1: at a private personal financial planning firm, and one of 104 00:04:52,440 --> 00:04:55,680 Speaker 1: the biggest factors I found with the young individuals we 105 00:04:55,680 --> 00:04:59,160 Speaker 1: were working with, or just adults in general with student 106 00:04:59,200 --> 00:05:02,000 Speaker 1: loan debt, was that that was a huge concern for 107 00:05:02,040 --> 00:05:04,160 Speaker 1: them and it was pushing back a lot of their 108 00:05:04,160 --> 00:05:06,880 Speaker 1: other financial goals because they had, like I said, the 109 00:05:06,880 --> 00:05:09,680 Speaker 1: average payment people have right now is about almost four 110 00:05:10,040 --> 00:05:13,000 Speaker 1: dollars a month. It set them backwards to where they 111 00:05:13,000 --> 00:05:15,119 Speaker 1: weren't able to save as much as they wanted to 112 00:05:15,120 --> 00:05:18,039 Speaker 1: towards the down payment on a home, or they pushed 113 00:05:18,080 --> 00:05:21,080 Speaker 1: back marriage because they knew it would maybe start considering 114 00:05:21,160 --> 00:05:24,440 Speaker 1: joint income from their student loan band. So it affects 115 00:05:24,480 --> 00:05:27,480 Speaker 1: a lot of things that maybe people don't who don't 116 00:05:27,520 --> 00:05:30,599 Speaker 1: have student loans don't understand. And so I found that 117 00:05:30,800 --> 00:05:34,640 Speaker 1: just bringing clarity to people's debt situation in a way 118 00:05:34,640 --> 00:05:37,560 Speaker 1: that maybe they haven't had clarity before, gave them a 119 00:05:37,560 --> 00:05:39,640 Speaker 1: lot of peace of mind and confidence to move forward 120 00:05:39,680 --> 00:05:42,599 Speaker 1: with their their personal and financial planning. Yeah, I saw 121 00:05:42,680 --> 00:05:44,560 Speaker 1: an article in the Wall Street Journal, I don't know, 122 00:05:44,560 --> 00:05:47,440 Speaker 1: maybe a couple of months ago, essentially saying that probably 123 00:05:47,440 --> 00:05:51,000 Speaker 1: half a million Millennials have delayed buying a home, have 124 00:05:51,080 --> 00:05:54,800 Speaker 1: delayed starting a family because mainly due to to student 125 00:05:54,800 --> 00:05:57,080 Speaker 1: loan debt and being overburdened. And it's just it's this 126 00:05:57,200 --> 00:06:00,960 Speaker 1: generation's curse and that a pretty this generation just didn't 127 00:06:00,960 --> 00:06:02,880 Speaker 1: have to deal with in nearly the same way. And 128 00:06:02,880 --> 00:06:06,000 Speaker 1: the crazy thing is it's now impacting you know, adults too, 129 00:06:06,279 --> 00:06:08,920 Speaker 1: as college age kids are captain how much they can borrow, 130 00:06:08,960 --> 00:06:10,920 Speaker 1: their parents are not taking out student loans, and so 131 00:06:11,040 --> 00:06:14,200 Speaker 1: people going into retirement are saddled with massive amounts of 132 00:06:14,200 --> 00:06:16,120 Speaker 1: student loans that they took out to help their kids 133 00:06:16,120 --> 00:06:18,279 Speaker 1: get through college. And so it's it's it's really and 134 00:06:18,320 --> 00:06:22,480 Speaker 1: truly something that affects such a huge swath of our 135 00:06:22,520 --> 00:06:25,440 Speaker 1: country that I mean, I'm super concerned about it. And 136 00:06:25,880 --> 00:06:28,640 Speaker 1: also why I'm so glad you're here is because the 137 00:06:28,720 --> 00:06:31,880 Speaker 1: nitty gritty details when it comes to what federal repayment 138 00:06:31,920 --> 00:06:34,640 Speaker 1: plan you choose to go under, it's so difficult to 139 00:06:34,680 --> 00:06:37,360 Speaker 1: decipher which one you should be in. And so I'm 140 00:06:37,360 --> 00:06:38,680 Speaker 1: really glad that we're gonna be able to kind of 141 00:06:38,680 --> 00:06:40,280 Speaker 1: go through that step by step and help people kind 142 00:06:40,279 --> 00:06:42,520 Speaker 1: of make a better decision about how to tackle their 143 00:06:42,520 --> 00:06:45,040 Speaker 1: student loans, and we're also very thankful that you showed 144 00:06:45,120 --> 00:06:48,800 Speaker 1: up with some beer. You know, we're fans of that. 145 00:06:48,960 --> 00:06:51,279 Speaker 1: And so, yeah, you showed up with some slow, poor 146 00:06:51,400 --> 00:06:54,760 Speaker 1: brewing company nostalgia. I p a that we're gonna be 147 00:06:54,880 --> 00:06:57,680 Speaker 1: uh sharing tonights. Yeah, this is a beer that is 148 00:06:57,720 --> 00:07:01,000 Speaker 1: from Lawrenceville, Georgia. Why did you pick this up? Lawrence 149 00:07:01,000 --> 00:07:02,960 Speaker 1: Fille is the town that my whole family is from, 150 00:07:03,040 --> 00:07:05,520 Speaker 1: So I thought i'd bring you something from home. Okay, 151 00:07:05,640 --> 00:07:08,120 Speaker 1: some hometown beers and good stuff. We're excited to have 152 00:07:08,200 --> 00:07:09,640 Speaker 1: this on the show today, all right, So you're gonna 153 00:07:09,640 --> 00:07:11,119 Speaker 1: get three beer reviews at the end of the show 154 00:07:11,240 --> 00:07:13,680 Speaker 1: rather than to stay tuned for that. All right, So 155 00:07:13,800 --> 00:07:16,040 Speaker 1: just a second, we're gonna get into the forgiveness plans 156 00:07:16,320 --> 00:07:18,240 Speaker 1: and how you should choose the best route for you 157 00:07:18,360 --> 00:07:20,320 Speaker 1: when it comes to paying our student loans. But before 158 00:07:20,320 --> 00:07:22,320 Speaker 1: we get there, Megan, real quick, let's tackle just a 159 00:07:22,360 --> 00:07:25,560 Speaker 1: couple of broad things on student loans. The first question 160 00:07:25,600 --> 00:07:28,239 Speaker 1: that was asked in our Facebook group was should people 161 00:07:28,240 --> 00:07:30,800 Speaker 1: even take out student loans? And it was kind of 162 00:07:30,840 --> 00:07:33,520 Speaker 1: met with a little bit of I feel like hooting 163 00:07:33,560 --> 00:07:35,840 Speaker 1: and hollering about how that was kind of a silly 164 00:07:35,920 --> 00:07:38,400 Speaker 1: question because it feels like it's a necessary evil. What 165 00:07:38,400 --> 00:07:40,080 Speaker 1: what do you think though, just as to that question, 166 00:07:40,280 --> 00:07:42,440 Speaker 1: should people be taking out student loans at all? I 167 00:07:42,520 --> 00:07:45,560 Speaker 1: definitely think student loans are a necessary evil in the 168 00:07:45,640 --> 00:07:48,240 Speaker 1: sense that a lot of positions do require a degree, 169 00:07:48,520 --> 00:07:51,920 Speaker 1: especially in the medical field. With that said, though, you 170 00:07:52,000 --> 00:07:55,840 Speaker 1: don't have to take out loans to finance your lifestyle 171 00:07:55,880 --> 00:07:58,760 Speaker 1: in college. I think that's a big misstep that some 172 00:07:58,920 --> 00:08:01,720 Speaker 1: students may have that they feel that they have to 173 00:08:01,760 --> 00:08:04,240 Speaker 1: take out as much as they're approved for, and so 174 00:08:04,280 --> 00:08:06,600 Speaker 1: they do and they live off of some of that money. 175 00:08:06,720 --> 00:08:09,240 Speaker 1: And on the flip side, maybe reverse our thinking here, 176 00:08:09,600 --> 00:08:11,480 Speaker 1: you could have a part time job or you know, 177 00:08:11,520 --> 00:08:13,840 Speaker 1: even a full time job in college to support your 178 00:08:14,800 --> 00:08:19,040 Speaker 1: room and board or your housing to help supplement your tuition. Um, 179 00:08:19,200 --> 00:08:21,600 Speaker 1: So there are ways to reduce the cost of going 180 00:08:21,600 --> 00:08:24,440 Speaker 1: to college. But I do think it is a necessary evil, 181 00:08:24,480 --> 00:08:27,280 Speaker 1: and in some sense so Megan. On that note, I've 182 00:08:27,280 --> 00:08:30,360 Speaker 1: heard as a tip that oftentimes students they shouldn't take 183 00:08:30,400 --> 00:08:33,640 Speaker 1: out more student loans than what they're projected annual salary 184 00:08:33,640 --> 00:08:35,719 Speaker 1: would be once they graduate. Do you feel like that 185 00:08:35,720 --> 00:08:37,959 Speaker 1: that's applicable or yeah, what are your thoughts on that. 186 00:08:38,240 --> 00:08:40,480 Speaker 1: That's a that's a good rule of thumb. I would 187 00:08:40,480 --> 00:08:43,640 Speaker 1: suggest that's not applicable to folks in the medical field though, 188 00:08:43,800 --> 00:08:47,120 Speaker 1: because you know they have residency, they graduate making a 189 00:08:47,240 --> 00:08:50,760 Speaker 1: very low salary compared to what their income potential is 190 00:08:50,920 --> 00:08:55,000 Speaker 1: after you know, they graduate from residency. So not necessarily 191 00:08:55,720 --> 00:08:58,840 Speaker 1: completely accurate, but maybe a good rule of them if 192 00:08:58,880 --> 00:09:02,680 Speaker 1: you're going into just the corporate world or another profession 193 00:09:02,720 --> 00:09:05,440 Speaker 1: other than medical, Yeah, I guess your trajectory of like 194 00:09:05,600 --> 00:09:08,040 Speaker 1: what your income might be certainly would have an effect 195 00:09:08,040 --> 00:09:11,480 Speaker 1: on that. Yes, your income trajectory is definitely a consideration 196 00:09:11,520 --> 00:09:13,640 Speaker 1: you should take into their Alright, So we're gonna get 197 00:09:13,679 --> 00:09:17,199 Speaker 1: more into income trajectories and how your current student loan 198 00:09:17,240 --> 00:09:19,880 Speaker 1: debt level affects the choices you make when it comes 199 00:09:19,920 --> 00:09:23,520 Speaker 1: to student loan payment plans, and we're gonna get into 200 00:09:23,640 --> 00:09:34,920 Speaker 1: those specifics right after the break. Now it's a great 201 00:09:34,920 --> 00:09:37,600 Speaker 1: time to specifically talk about what we're going to talk 202 00:09:37,640 --> 00:09:40,040 Speaker 1: about this week. Joel mentioned how we're going to talk 203 00:09:40,080 --> 00:09:43,840 Speaker 1: some more next week about private loan refinancing, and so 204 00:09:43,880 --> 00:09:47,640 Speaker 1: this week we're gonna focus on is loan forgiveness plans, 205 00:09:48,000 --> 00:09:50,840 Speaker 1: And before we even launch into the different loan forgiveness programs. 206 00:09:50,840 --> 00:09:53,440 Speaker 1: Can you outline, Megan, like, the difference between federal loans 207 00:09:53,480 --> 00:09:56,960 Speaker 1: and private loans. Yeah, So, federal loans are through the 208 00:09:57,040 --> 00:10:01,800 Speaker 1: federal government. They are generally flexible, suspect that they are 209 00:10:01,840 --> 00:10:04,440 Speaker 1: generally more flexible than what you can find on the 210 00:10:04,480 --> 00:10:08,120 Speaker 1: private side, and they have a lot of differences for example, 211 00:10:08,240 --> 00:10:12,720 Speaker 1: how they charge interest, how interest accumulates. The different types 212 00:10:12,760 --> 00:10:15,360 Speaker 1: of repayment plans that you have available to you through 213 00:10:15,520 --> 00:10:17,960 Speaker 1: through the federal system or are very different than what 214 00:10:18,000 --> 00:10:21,200 Speaker 1: you find on the private side. Private debt could be 215 00:10:21,240 --> 00:10:24,160 Speaker 1: equated to a credit card, it could be equated to 216 00:10:24,440 --> 00:10:28,200 Speaker 1: an auto loan. A private student loan does not have 217 00:10:28,240 --> 00:10:30,400 Speaker 1: a lot of the perks and benefits that a federal 218 00:10:30,480 --> 00:10:33,400 Speaker 1: loan would on the repayment side of things. Got it. So, 219 00:10:33,440 --> 00:10:35,440 Speaker 1: I mean, in general, it sounds like federal loans are 220 00:10:35,480 --> 00:10:38,320 Speaker 1: kind of like the way to go better. Yes, definitely better. 221 00:10:38,679 --> 00:10:41,600 Speaker 1: And there are some situations, however, where private student loans 222 00:10:41,720 --> 00:10:43,720 Speaker 1: might be a better matro folks, And we'll kind of 223 00:10:43,720 --> 00:10:46,320 Speaker 1: get into that more next week. So, making most of 224 00:10:46,360 --> 00:10:48,400 Speaker 1: our listeners, most people out there are going to have 225 00:10:48,600 --> 00:10:51,360 Speaker 1: federal student loans as opposed to private student loans, and 226 00:10:51,600 --> 00:10:54,440 Speaker 1: what are the first things they should be thinking about 227 00:10:54,720 --> 00:10:57,160 Speaker 1: as they're considering their future with these loans and how 228 00:10:57,200 --> 00:11:00,439 Speaker 1: they should be attacking them. First and foremost, you really 229 00:11:00,520 --> 00:11:03,640 Speaker 1: do need to identify your goals with your debt reduction 230 00:11:03,679 --> 00:11:06,440 Speaker 1: plan on your student loans. Are you really wanting to 231 00:11:06,600 --> 00:11:08,560 Speaker 1: these to be paid and out of the mix as 232 00:11:08,559 --> 00:11:11,040 Speaker 1: soon as possible, or are you looking for just a 233 00:11:11,120 --> 00:11:14,120 Speaker 1: cost effective strategy that's going to allow you to save 234 00:11:14,240 --> 00:11:17,000 Speaker 1: and do other things with your cash flow. So that's 235 00:11:17,000 --> 00:11:19,280 Speaker 1: the first question you need to ask yourself. Second question 236 00:11:19,280 --> 00:11:21,960 Speaker 1: you need to ask yourself is what your income trajectory 237 00:11:22,040 --> 00:11:24,840 Speaker 1: looks like. That makes a big deal when we're talking 238 00:11:24,880 --> 00:11:27,760 Speaker 1: about your long term repayment strategy because a lot of 239 00:11:27,800 --> 00:11:31,000 Speaker 1: the federal repayment programs are income based. So if we 240 00:11:31,040 --> 00:11:33,600 Speaker 1: know you're going to have huge jumps in your your 241 00:11:33,640 --> 00:11:36,280 Speaker 1: income in the future, we need to be considering that. 242 00:11:36,600 --> 00:11:38,640 Speaker 1: If it's going to be slow and steady, that's something 243 00:11:38,679 --> 00:11:40,160 Speaker 1: we want to take a look at as well. So 244 00:11:40,200 --> 00:11:42,360 Speaker 1: I would say those are the first two questions you 245 00:11:42,440 --> 00:11:46,120 Speaker 1: really need to think about and start considering before you 246 00:11:46,200 --> 00:11:49,400 Speaker 1: get started with your overall repayment strategy. Why is your 247 00:11:49,400 --> 00:11:51,520 Speaker 1: annual salary the dividing line, Like, why is that the 248 00:11:51,559 --> 00:11:54,640 Speaker 1: threshold of if you have a student loan balance that 249 00:11:54,880 --> 00:11:57,480 Speaker 1: is higher than what you make annually, why do you 250 00:11:57,480 --> 00:11:59,720 Speaker 1: want to consider forgiveness at that point instead of just 251 00:11:59,760 --> 00:12:03,400 Speaker 1: paying down your student loan balance. So, when your balance 252 00:12:03,480 --> 00:12:07,440 Speaker 1: is higher than your annual income, nominally speaking, if we're 253 00:12:07,480 --> 00:12:10,600 Speaker 1: going to be taking into consideration your annual income to 254 00:12:10,679 --> 00:12:14,720 Speaker 1: calculate your monthly payment, it makes sense to take advantage 255 00:12:14,720 --> 00:12:17,480 Speaker 1: of the forgiveness programs even if you're in private sector, 256 00:12:17,840 --> 00:12:21,680 Speaker 1: because that nominal cost over time would be less than 257 00:12:21,720 --> 00:12:25,280 Speaker 1: how much you would you would essentially spend to accelerate 258 00:12:25,320 --> 00:12:28,560 Speaker 1: those payments to pay off the balance, all right, Megan, 259 00:12:28,600 --> 00:12:31,800 Speaker 1: So yeah, if you're a public sector employee, the public 260 00:12:31,800 --> 00:12:34,640 Speaker 1: student loan forgiveness is just is obviously the best plan 261 00:12:34,679 --> 00:12:37,000 Speaker 1: for you. Right. It's ten years of on time payments. Right. 262 00:12:37,000 --> 00:12:38,280 Speaker 1: You have to jump through all the hoops. You have 263 00:12:38,320 --> 00:12:40,839 Speaker 1: to make sure that the employer that you work for qualifies, 264 00:12:41,080 --> 00:12:42,640 Speaker 1: and so you're gonna want to make sure you do 265 00:12:42,720 --> 00:12:44,720 Speaker 1: that so that you definitely qualify. Because there have been 266 00:12:44,760 --> 00:12:47,240 Speaker 1: a few people, as we've seen in the news that 267 00:12:47,800 --> 00:12:50,280 Speaker 1: they thought they were making on time payments, but it 268 00:12:50,280 --> 00:12:52,280 Speaker 1: turns out they didn't jump through the right hoops up front, 269 00:12:52,360 --> 00:12:55,760 Speaker 1: or the employer that they worked for wasn't qualified and 270 00:12:55,960 --> 00:12:57,959 Speaker 1: they were upset at the end of ten years of 271 00:12:58,000 --> 00:13:00,480 Speaker 1: payments and and their student loans aren't forgive in. But 272 00:13:00,559 --> 00:13:03,480 Speaker 1: if you do qualify, that's by far the best thing 273 00:13:03,520 --> 00:13:06,080 Speaker 1: if you work in the public space. But I feel 274 00:13:06,080 --> 00:13:07,559 Speaker 1: like there's a lot of ambiguity, and there are a 275 00:13:07,600 --> 00:13:09,880 Speaker 1: lot of people that are just completely confused by the 276 00:13:09,880 --> 00:13:12,439 Speaker 1: way public student loan forgiveness work. So can you kind 277 00:13:12,440 --> 00:13:14,600 Speaker 1: of demystify it for us and like maybe give us 278 00:13:14,600 --> 00:13:16,760 Speaker 1: a few tactile things to hold onto for how to 279 00:13:16,800 --> 00:13:20,240 Speaker 1: approach it if if someone does work in the public sector. Yes, definitely, 280 00:13:20,559 --> 00:13:22,640 Speaker 1: I agree. It does need to be on the front 281 00:13:22,760 --> 00:13:25,400 Speaker 1: end that you're verifying all of these things and making 282 00:13:25,400 --> 00:13:29,640 Speaker 1: sure you fully understand your loan situation, not after the fact, 283 00:13:29,720 --> 00:13:32,360 Speaker 1: not after ten years of payments, because that's too late, 284 00:13:33,080 --> 00:13:36,040 Speaker 1: it's not retroactive. The main things you need to be 285 00:13:36,040 --> 00:13:38,480 Speaker 1: looking at to make sure you qualify for public service 286 00:13:38,520 --> 00:13:41,000 Speaker 1: loan forgiveness is one you have to work for the 287 00:13:41,080 --> 00:13:43,200 Speaker 1: right type of employer. It needs to be a five 288 00:13:43,200 --> 00:13:47,600 Speaker 1: O one C three. Generally, any government agency or entity qualifies, 289 00:13:47,800 --> 00:13:49,959 Speaker 1: but there is a form for this that you can 290 00:13:50,000 --> 00:13:53,800 Speaker 1: submit to absolutely make sure that your employer qualifies. You 291 00:13:53,840 --> 00:13:56,480 Speaker 1: just fill it out, send it in, and they let 292 00:13:56,520 --> 00:13:59,440 Speaker 1: you know your name. So, if your employer does qualify, 293 00:13:59,760 --> 00:14:02,240 Speaker 1: you need to be working for this employer full time. 294 00:14:02,640 --> 00:14:06,200 Speaker 1: By definition, full time is thirty hours a week, or 295 00:14:06,240 --> 00:14:08,760 Speaker 1: if your employer has a different definition for full time, 296 00:14:08,840 --> 00:14:11,280 Speaker 1: like if it's thirty five or forty, it has to 297 00:14:11,320 --> 00:14:14,240 Speaker 1: apply to your employer's definition of full time. So when 298 00:14:14,280 --> 00:14:17,200 Speaker 1: it comes to payments, on time payments are obviously really important. 299 00:14:17,280 --> 00:14:19,360 Speaker 1: What happens to someone if they do fall behind or 300 00:14:19,400 --> 00:14:21,400 Speaker 1: if they miss a payment? How does that work in 301 00:14:21,400 --> 00:14:25,000 Speaker 1: regards to in regards to this loan forgiveness, Yes, on 302 00:14:25,040 --> 00:14:28,680 Speaker 1: time payments on your qualifying loans is extremely important. If 303 00:14:28,680 --> 00:14:30,960 Speaker 1: you miss a payment, for example, or if you're late, 304 00:14:31,040 --> 00:14:34,240 Speaker 1: all that means is that payment just doesn't count towards 305 00:14:34,280 --> 00:14:38,000 Speaker 1: that a hundred and twenty payment requirement. So if you 306 00:14:38,040 --> 00:14:40,760 Speaker 1: miss last month, that's one month that you missed and 307 00:14:40,800 --> 00:14:43,440 Speaker 1: it's not going to qualify. It doesn't completely derail things 308 00:14:43,480 --> 00:14:45,920 Speaker 1: and take you off the track and you can never 309 00:14:46,040 --> 00:14:48,680 Speaker 1: ever have your student loans for given, nothing like that, right, No, 310 00:14:49,080 --> 00:14:52,160 Speaker 1: but you do have an annual requirement to verify your 311 00:14:52,200 --> 00:14:55,760 Speaker 1: income so each and every year since to be on PSLF, 312 00:14:55,760 --> 00:14:58,400 Speaker 1: you do have to be on an income based repayment plan, 313 00:14:58,880 --> 00:15:01,000 Speaker 1: which means you have to very fire your income each 314 00:15:01,040 --> 00:15:03,280 Speaker 1: and every year. So it's one form they let you 315 00:15:03,280 --> 00:15:04,880 Speaker 1: know when you need to fill it out and submit it, 316 00:15:04,920 --> 00:15:07,720 Speaker 1: but it verifies your income to then update your payment 317 00:15:07,760 --> 00:15:10,560 Speaker 1: if needed. That has to be done on an annual basis. 318 00:15:10,840 --> 00:15:14,480 Speaker 1: So for Public Service Loan Forgiveness, you absolutely have to 319 00:15:14,520 --> 00:15:17,280 Speaker 1: make sure your loans qualify for this program as well. 320 00:15:17,680 --> 00:15:22,080 Speaker 1: Direct loans only qualify for Public Service Loan forgiveness. If 321 00:15:22,080 --> 00:15:25,840 Speaker 1: you have Stafford loans or Ffel loans or anything that 322 00:15:25,880 --> 00:15:29,040 Speaker 1: doesn't have direct in front of it, those are not qualifying. 323 00:15:29,120 --> 00:15:32,160 Speaker 1: So you could be paying on your loans over the 324 00:15:32,160 --> 00:15:34,720 Speaker 1: course of that ten year period and any loan that 325 00:15:34,840 --> 00:15:38,080 Speaker 1: did not that was not a direct loan, those balances 326 00:15:38,080 --> 00:15:40,520 Speaker 1: would not be forgiven, so you'd still be responsible for 327 00:15:40,560 --> 00:15:42,880 Speaker 1: those payments after that period, So that's another thing you 328 00:15:42,920 --> 00:15:45,040 Speaker 1: need to consider. So, Megan, I'm not sure if you 329 00:15:45,080 --> 00:15:47,520 Speaker 1: saw some of the questions that we had posted in 330 00:15:47,560 --> 00:15:52,160 Speaker 1: our Facebook group, but specific to PSLF, which honestly sounds 331 00:15:52,160 --> 00:15:54,600 Speaker 1: more like a personality type. It's got the four letters 332 00:15:54,640 --> 00:15:58,080 Speaker 1: altogether makes me think that a sensory introvert or something 333 00:15:58,080 --> 00:16:00,360 Speaker 1: like that. I don't know, but they in the group 334 00:16:00,440 --> 00:16:03,040 Speaker 1: Dina asked. She said, I have made ten years of 335 00:16:03,040 --> 00:16:07,000 Speaker 1: payments towards public service forgiveness only to find out that 336 00:16:07,120 --> 00:16:10,680 Speaker 1: only certain types of loan structures qualify. After all, but 337 00:16:10,760 --> 00:16:13,480 Speaker 1: I heard it said that over ninety of applications for 338 00:16:13,480 --> 00:16:16,560 Speaker 1: forgiveness are rejected. I'd be curious to get the real 339 00:16:16,600 --> 00:16:18,840 Speaker 1: scoop on this. I only owe a couple of grand however, 340 00:16:18,960 --> 00:16:21,240 Speaker 1: and I figured the remainder would be paid off. So 341 00:16:21,280 --> 00:16:23,000 Speaker 1: in her case, it doesn't sound like she's that upset, 342 00:16:23,120 --> 00:16:24,880 Speaker 1: but she's just trying to figure out, like what's the 343 00:16:24,880 --> 00:16:28,720 Speaker 1: real deal, you know, Like are that many applications for PSLF? 344 00:16:28,800 --> 00:16:31,440 Speaker 1: Are they really getting rejected at that rate? There are 345 00:16:31,520 --> 00:16:35,640 Speaker 1: a lot of applications getting rejected for a portion of 346 00:16:35,840 --> 00:16:38,440 Speaker 1: the balance. For example, in her case, she had some 347 00:16:38,520 --> 00:16:41,280 Speaker 1: of her loans forgiven and some not because she had 348 00:16:41,320 --> 00:16:44,360 Speaker 1: loans that didn't qualify. So it goes back to all 349 00:16:44,360 --> 00:16:46,760 Speaker 1: of the different things you need to consider when you're 350 00:16:46,800 --> 00:16:51,160 Speaker 1: making sure you qualify for PSLF. Due diligence is key here. 351 00:16:51,440 --> 00:16:55,560 Speaker 1: This is where details matter and the technicalities matter. So again, 352 00:16:55,720 --> 00:16:57,600 Speaker 1: you know the five things you need to make sure 353 00:16:58,120 --> 00:17:01,360 Speaker 1: you have assess and you know about your situation and 354 00:17:01,400 --> 00:17:04,480 Speaker 1: your loans. One, only direct loans qualify. If you don't 355 00:17:04,520 --> 00:17:07,520 Speaker 1: have direct loans, you are able to consolidate into a 356 00:17:07,600 --> 00:17:11,320 Speaker 1: direct consolidation loan that is an option. Second, make sure 357 00:17:11,359 --> 00:17:14,879 Speaker 1: your employer qualifies. Third, make sure you're working full time 358 00:17:14,880 --> 00:17:18,080 Speaker 1: for this employer. Fourth, make sure you're on an income 359 00:17:18,119 --> 00:17:21,639 Speaker 1: based repayment plan. And then five you just have to 360 00:17:21,680 --> 00:17:25,560 Speaker 1: make those on time twenty payments for that tenure program. 361 00:17:25,640 --> 00:17:28,840 Speaker 1: So lots of qualifying to do there, but it's definitely 362 00:17:28,880 --> 00:17:31,280 Speaker 1: worth the time to make sure that you check all 363 00:17:31,280 --> 00:17:33,879 Speaker 1: those boxes. All right, Let's get to a question from 364 00:17:33,920 --> 00:17:36,000 Speaker 1: Tim from our Facebook group as well before we get 365 00:17:36,040 --> 00:17:38,280 Speaker 1: to kind of how it works for people in the 366 00:17:38,280 --> 00:17:40,640 Speaker 1: private sector. So Tim said, is it wise to pay 367 00:17:40,680 --> 00:17:42,640 Speaker 1: more than the minimum towards your student loan if you're 368 00:17:42,680 --> 00:17:45,760 Speaker 1: enrolled in the Public Service Loan Forgiveness Program? I say no, 369 00:17:45,960 --> 00:17:48,000 Speaker 1: And I think I responded to this right before I 370 00:17:48,000 --> 00:17:52,000 Speaker 1: got here only if if you are projected to have 371 00:17:52,080 --> 00:17:54,919 Speaker 1: a forgiven balance at the end of that tenure period. No, 372 00:17:55,280 --> 00:17:58,160 Speaker 1: do not accelerate. That's money you can prioritize in other 373 00:17:58,200 --> 00:18:00,480 Speaker 1: areas of your financial picture. Because it's going to be 374 00:18:00,480 --> 00:18:03,520 Speaker 1: forgiven and you're not taxed on that, there's no need 375 00:18:03,560 --> 00:18:05,600 Speaker 1: to pay more than you have to exactly. Essentially, you 376 00:18:05,640 --> 00:18:09,520 Speaker 1: want to maximize that forgiveness. Right. Maybe he was wanting 377 00:18:09,520 --> 00:18:11,840 Speaker 1: to pay extra because maybe he knew deep down that 378 00:18:11,880 --> 00:18:15,200 Speaker 1: he wasn't going to get forgiven. He's just like, yeah, 379 00:18:15,760 --> 00:18:17,960 Speaker 1: to make sure you go back and make sure everything 380 00:18:17,960 --> 00:18:21,639 Speaker 1: else qualifies there. Cool? Alright, So Megan, what steps does 381 00:18:21,640 --> 00:18:24,399 Speaker 1: someone actually take, Like if they know that it sounds like, 382 00:18:24,440 --> 00:18:26,760 Speaker 1: hey man, I think I really could qualify for this 383 00:18:26,800 --> 00:18:30,800 Speaker 1: forgiveness program. Like where do they go to actually apply? Yep, 384 00:18:30,960 --> 00:18:33,600 Speaker 1: So you would go to student aid dot e d 385 00:18:33,760 --> 00:18:36,640 Speaker 1: U dot gov. There are forms you can download from 386 00:18:36,680 --> 00:18:39,600 Speaker 1: there to verify your employer and then make sure that 387 00:18:39,720 --> 00:18:41,920 Speaker 1: there is another form for applying for the I d 388 00:18:42,160 --> 00:18:45,080 Speaker 1: R or the income based plan. So you'd have to 389 00:18:45,119 --> 00:18:48,600 Speaker 1: go to that website download those forms. Sentiment, your servicer 390 00:18:48,640 --> 00:18:51,000 Speaker 1: is probably already asking for them. Anyways, Sweet, I feel 391 00:18:51,000 --> 00:18:52,919 Speaker 1: like there was a lot of good information for people 392 00:18:53,000 --> 00:18:56,240 Speaker 1: working in the public sector, but many of you, we realize, 393 00:18:56,240 --> 00:18:58,720 Speaker 1: are working in the private sector and the rules are 394 00:18:58,840 --> 00:19:01,639 Speaker 1: vastly different for you, and so we will get to 395 00:19:01,720 --> 00:19:13,080 Speaker 1: all the specifics on that right after this break. Okay, 396 00:19:13,080 --> 00:19:16,280 Speaker 1: Now let's go ahead and talk about private sector repayment plans. 397 00:19:16,480 --> 00:19:18,359 Speaker 1: And before we even get to some of the fancier ones, 398 00:19:18,440 --> 00:19:21,439 Speaker 1: like the different acronyms. There is the standard plan, and 399 00:19:21,440 --> 00:19:23,280 Speaker 1: that's the default plan that most students are going to 400 00:19:23,280 --> 00:19:26,720 Speaker 1: be paying on. Is that right? So Standard was the 401 00:19:26,760 --> 00:19:32,160 Speaker 1: automatic repayment plan. Chosen repay is now generally the automatic 402 00:19:32,200 --> 00:19:34,200 Speaker 1: plan people are put on because most of the time 403 00:19:34,240 --> 00:19:37,880 Speaker 1: generates the lowest monthly payment. Standard is what you would 404 00:19:37,920 --> 00:19:40,560 Speaker 1: be thrown on if you forgot to verify your income, 405 00:19:40,640 --> 00:19:43,520 Speaker 1: for example, or you went into default and now you're 406 00:19:43,560 --> 00:19:48,080 Speaker 1: back into repayment mode. So Standard is a ten year program. 407 00:19:48,119 --> 00:19:52,359 Speaker 1: It's not based on income. It's basically your debt amateurized 408 00:19:52,400 --> 00:19:55,520 Speaker 1: over that ten year period. So, Megan, what kind of 409 00:19:55,520 --> 00:19:58,639 Speaker 1: person should choose a standard repayment plan if they're a 410 00:19:58,680 --> 00:20:01,080 Speaker 1: private sector worker at opposed to one of the payment 411 00:20:01,119 --> 00:20:04,479 Speaker 1: plans that's income based, That can result in forgiveness at 412 00:20:04,480 --> 00:20:07,800 Speaker 1: the end. Yeah, someone who should consider the Standard Repayment 413 00:20:07,840 --> 00:20:11,440 Speaker 1: Plan would be someone who definitely has a balance that's 414 00:20:11,560 --> 00:20:15,199 Speaker 1: that's manageable, that is maybe around their annual income or 415 00:20:15,240 --> 00:20:18,720 Speaker 1: below their annual income. And you can crunch the numbers 416 00:20:18,720 --> 00:20:21,320 Speaker 1: if you go to student aid dot edu, dot gov, 417 00:20:21,480 --> 00:20:23,600 Speaker 1: they can crunch the numbers to show you how much 418 00:20:23,840 --> 00:20:27,640 Speaker 1: your Standard Repayment Plan payment would be. And if you're 419 00:20:27,680 --> 00:20:30,200 Speaker 1: able to stomach that payment for the next ten years, 420 00:20:30,240 --> 00:20:32,800 Speaker 1: because it's not going to change on you once it's set. It, 421 00:20:33,160 --> 00:20:35,600 Speaker 1: like I said, it amateurizes your whole balance, so you 422 00:20:35,680 --> 00:20:38,160 Speaker 1: pay the principle and interest over that ten year period. 423 00:20:38,560 --> 00:20:40,840 Speaker 1: If you're able to stomach and commit to that payment 424 00:20:40,880 --> 00:20:43,720 Speaker 1: over ten over that ten year timeframe, hop on it. 425 00:20:43,920 --> 00:20:47,679 Speaker 1: Do it. If you're not, and your income stability or 426 00:20:47,720 --> 00:20:50,879 Speaker 1: your job stability is that question, or you just feel 427 00:20:50,880 --> 00:20:53,040 Speaker 1: like that's a really big payment you're not sure you 428 00:20:53,040 --> 00:20:55,680 Speaker 1: want to commit to for the long haul, income based 429 00:20:55,760 --> 00:20:58,359 Speaker 1: maybe the better option for you. What about someone who 430 00:20:58,400 --> 00:21:01,280 Speaker 1: commits to paying on the standard plan but then realizes 431 00:21:01,400 --> 00:21:04,200 Speaker 1: a year or two in that actually, wow, it's tougher. 432 00:21:04,359 --> 00:21:05,919 Speaker 1: It just doesn't quite fit into my budget like I 433 00:21:05,920 --> 00:21:07,600 Speaker 1: thought it was going through over the long haul. What 434 00:21:07,680 --> 00:21:10,000 Speaker 1: happens if you're a little ways into that standard plan 435 00:21:10,040 --> 00:21:13,240 Speaker 1: and you feel like it's just backbreaking. Yeah, so you 436 00:21:13,280 --> 00:21:16,800 Speaker 1: definitely have options. You are able to switch repayment plans. 437 00:21:16,800 --> 00:21:19,280 Speaker 1: You could switch back to an income based plan to 438 00:21:19,359 --> 00:21:21,639 Speaker 1: make the payment more manageable. Just know that that's going 439 00:21:21,640 --> 00:21:23,320 Speaker 1: to affect your timeline. It's not going to be on 440 00:21:23,320 --> 00:21:26,760 Speaker 1: that tenure time frame anymore. So listener Samantha, She asked 441 00:21:26,760 --> 00:21:28,560 Speaker 1: in the Facebook group, is it better to do a 442 00:21:28,640 --> 00:21:31,679 Speaker 1: graduated repayment plan or just do the flat payment the 443 00:21:31,880 --> 00:21:34,960 Speaker 1: entire time? I currently do a graduated plan for my 444 00:21:34,960 --> 00:21:37,119 Speaker 1: federal student loan, but I have the option to do 445 00:21:37,200 --> 00:21:40,320 Speaker 1: a flat payment to So this really comes down to 446 00:21:40,400 --> 00:21:42,119 Speaker 1: what you think you're going to be able to manage 447 00:21:42,119 --> 00:21:45,440 Speaker 1: in the future. If you are doing the graduated plan, 448 00:21:46,040 --> 00:21:49,719 Speaker 1: it's essentially like the standard plan, meaning they amateurize your 449 00:21:49,760 --> 00:21:52,679 Speaker 1: balance over that ten year time frame, unless your balance 450 00:21:52,760 --> 00:21:55,440 Speaker 1: is is larger than it could spread out to fifteen 451 00:21:55,520 --> 00:21:58,040 Speaker 1: or twenty years for that. But keep in mind the 452 00:21:58,080 --> 00:22:01,880 Speaker 1: graduated repayment plan that's going to increase on you every 453 00:22:01,960 --> 00:22:05,760 Speaker 1: two years, so your payment's going to start out very low. 454 00:22:06,200 --> 00:22:08,159 Speaker 1: You just have to keep in mind that those jumps 455 00:22:08,160 --> 00:22:10,400 Speaker 1: are going to happen over the course of your repayment 456 00:22:10,400 --> 00:22:12,520 Speaker 1: plan and you need to be prepared for that. So 457 00:22:12,560 --> 00:22:15,840 Speaker 1: that's the standard plan for private sector workers, and that 458 00:22:15,880 --> 00:22:17,680 Speaker 1: means that you're going to be paying off your student 459 00:22:17,680 --> 00:22:20,760 Speaker 1: loan over ten years. That usually, like Megan said, works 460 00:22:20,800 --> 00:22:23,680 Speaker 1: best for people who feel like they can comfortably afford 461 00:22:24,040 --> 00:22:26,080 Speaker 1: to pay that balance off right after they see that 462 00:22:26,080 --> 00:22:28,879 Speaker 1: projected amount that they're gonna pay every month. And at 463 00:22:28,880 --> 00:22:31,119 Speaker 1: the same time, you can actually pay more towards that 464 00:22:31,160 --> 00:22:33,080 Speaker 1: balance if you want, so you can pay off in 465 00:22:33,200 --> 00:22:35,600 Speaker 1: less than ten years. Such a good benefit of that. 466 00:22:35,920 --> 00:22:38,560 Speaker 1: But Megan, let's talk about people are kind of enamored 467 00:22:38,560 --> 00:22:41,960 Speaker 1: I think too with the idea of forgiveness of student loans, 468 00:22:42,000 --> 00:22:45,040 Speaker 1: and private sector employees also have the ability to sign 469 00:22:45,119 --> 00:22:46,960 Speaker 1: up for an income based repayment plan, and there are 470 00:22:46,960 --> 00:22:50,959 Speaker 1: a few different offerings that offer forgiveness at the end 471 00:22:51,000 --> 00:22:53,480 Speaker 1: of a twenty or twenty five year cycle. But yeah, quickly, 472 00:22:53,520 --> 00:22:55,880 Speaker 1: can you tell us just a little bit about the 473 00:22:55,960 --> 00:22:59,919 Speaker 1: different income based repayment plans for private sector employees that 474 00:23:00,400 --> 00:23:03,800 Speaker 1: end in forgiveness. Yeah, so there are four income based 475 00:23:03,800 --> 00:23:06,840 Speaker 1: repayment plans that you have to choose from from, generally 476 00:23:07,280 --> 00:23:10,960 Speaker 1: first being i c R or Income Contingent Repayment Plan. 477 00:23:11,080 --> 00:23:13,159 Speaker 1: That's one of the oldest ones on the block. So 478 00:23:13,240 --> 00:23:17,840 Speaker 1: that's like the original original, the o G. Yeah, so 479 00:23:17,880 --> 00:23:21,760 Speaker 1: that's based off of your income. That's usually not the 480 00:23:21,800 --> 00:23:24,440 Speaker 1: best solution because it's the highest percentage of income your 481 00:23:24,600 --> 00:23:27,600 Speaker 1: your payments based off of. But the three primary ones 482 00:23:27,680 --> 00:23:30,080 Speaker 1: that you guys are probably already know about or you're 483 00:23:30,119 --> 00:23:34,399 Speaker 1: already on. First, uh, the old IBr or income based 484 00:23:34,440 --> 00:23:37,639 Speaker 1: repayment plan, that is based off of fifteen percent of 485 00:23:37,680 --> 00:23:42,720 Speaker 1: your income. For Old IBr, the maximum repayment period for 486 00:23:42,720 --> 00:23:46,760 Speaker 1: forgiveness in the private sector is twenty years. IBr is 487 00:23:46,880 --> 00:23:50,320 Speaker 1: income based repayment that is based off of fift of 488 00:23:50,359 --> 00:23:53,720 Speaker 1: your income or your adjusted gross income. And this is 489 00:23:53,720 --> 00:23:56,800 Speaker 1: a twenty five year maximum repayment period. So if you're 490 00:23:56,800 --> 00:23:59,120 Speaker 1: in private sector going for forgiveness, you have to make 491 00:23:59,119 --> 00:24:01,960 Speaker 1: payments for twenty five years, and then whatever is left 492 00:24:02,000 --> 00:24:05,920 Speaker 1: after that point is forgiven pay or p a y E. 493 00:24:06,240 --> 00:24:10,159 Speaker 1: This is a repayment program that's maximum repayment term is 494 00:24:10,200 --> 00:24:13,120 Speaker 1: twenty years, and your payment is based off of ten 495 00:24:13,760 --> 00:24:16,760 Speaker 1: of your adjusted gross income. You do have to have 496 00:24:16,800 --> 00:24:19,919 Speaker 1: a partial financial hardship for this. That just means that 497 00:24:20,040 --> 00:24:23,000 Speaker 1: your calculated payment for pay needs to be lower than 498 00:24:23,000 --> 00:24:25,080 Speaker 1: what it would be if it was calculated under the 499 00:24:25,160 --> 00:24:28,480 Speaker 1: standard ten year program we talked about earlier. Your balance 500 00:24:28,560 --> 00:24:31,600 Speaker 1: is very large, that's easily attainable. And then the last 501 00:24:31,600 --> 00:24:34,600 Speaker 1: one is repay r E p A y E. This 502 00:24:34,880 --> 00:24:39,199 Speaker 1: is a twenty year program for undergraduate loans or twenty 503 00:24:39,280 --> 00:24:42,600 Speaker 1: five if you have grad loans for maximum forgiveness. This 504 00:24:42,760 --> 00:24:45,200 Speaker 1: is based off of again ten percent of your adjusted 505 00:24:45,200 --> 00:24:48,600 Speaker 1: gross income. Yeah, Matt, this reminds me actually of our 506 00:24:48,640 --> 00:24:51,639 Speaker 1: tax episode and we talked about maximizing those above the 507 00:24:51,680 --> 00:24:54,320 Speaker 1: line deductions. And any time you can do that, any 508 00:24:54,320 --> 00:24:56,159 Speaker 1: time you can contribute more to your four one K. 509 00:24:56,320 --> 00:24:58,240 Speaker 1: Not only are you saving more for your future, you're 510 00:24:58,320 --> 00:25:01,359 Speaker 1: lowering your tax bill income, but you're also kind of 511 00:25:01,359 --> 00:25:04,240 Speaker 1: helping out that potential student loan forgiveness you will receive 512 00:25:04,320 --> 00:25:06,840 Speaker 1: at the end of the all those on time payments. Right, Yeah, 513 00:25:06,920 --> 00:25:08,960 Speaker 1: what an awesome way to qualify for some of these 514 00:25:08,960 --> 00:25:12,439 Speaker 1: forgiveness or repayment programs. Right, You lower your gross income 515 00:25:12,480 --> 00:25:15,040 Speaker 1: like what you are actually paying taxes on and you 516 00:25:15,040 --> 00:25:17,639 Speaker 1: get to qualify for something. Sweet, Megan, I've got a 517 00:25:17,720 --> 00:25:19,720 Speaker 1: question for you, though, when it comes to the forgiveness 518 00:25:19,760 --> 00:25:21,040 Speaker 1: at the end of this right, that's a long period 519 00:25:21,040 --> 00:25:23,600 Speaker 1: of time for people to be paying their loans regularly 520 00:25:23,920 --> 00:25:27,159 Speaker 1: and on time, and and obviously it's just a bumber 521 00:25:27,280 --> 00:25:28,680 Speaker 1: right to have student loans that you have to pay 522 00:25:28,720 --> 00:25:31,199 Speaker 1: for that long thinking. You know, I graduated from college 523 00:25:31,240 --> 00:25:34,239 Speaker 1: and now I am in my mid forties, and I 524 00:25:34,280 --> 00:25:37,000 Speaker 1: have multiple kids in a house and blah blah blah, 525 00:25:37,040 --> 00:25:39,080 Speaker 1: and my student loans are still with me. Like, I 526 00:25:39,119 --> 00:25:41,280 Speaker 1: hate that that's the case for most people when it 527 00:25:41,280 --> 00:25:44,040 Speaker 1: comes to forgiveness. Do people bank on forgiveness too much? 528 00:25:44,280 --> 00:25:47,920 Speaker 1: Did they think too highly of it? And ultimately, in reality, 529 00:25:48,280 --> 00:25:50,480 Speaker 1: should people be banking on the fact that they're going 530 00:25:50,560 --> 00:25:53,040 Speaker 1: to have under one of these income based plans? Are 531 00:25:53,119 --> 00:25:55,000 Speaker 1: they banking on the fact that they're going to be 532 00:25:55,040 --> 00:25:57,800 Speaker 1: forgiven a huge amount when in actuality that's probably not 533 00:25:57,840 --> 00:26:00,880 Speaker 1: the case. Again, this this comes back to the balance 534 00:26:01,000 --> 00:26:04,120 Speaker 1: rule of thumb question, if your balance is a lot 535 00:26:04,200 --> 00:26:07,240 Speaker 1: higher than your annual income um. I see folks with 536 00:26:07,359 --> 00:26:10,600 Speaker 1: six figures of student loan debt um sometimes in the 537 00:26:10,680 --> 00:26:14,720 Speaker 1: three four hundred thousand range. These folks, they're safe haven 538 00:26:14,800 --> 00:26:17,120 Speaker 1: is going to be these forgiveness programs. It's gonna be 539 00:26:17,280 --> 00:26:20,560 Speaker 1: like a mortgage for you. If you're going to amateurize 540 00:26:20,760 --> 00:26:24,399 Speaker 1: that four hundred thousand dollar balance into a payment, it's 541 00:26:24,440 --> 00:26:26,600 Speaker 1: gonna be a mortgage payment for you. Essentially, if you 542 00:26:26,600 --> 00:26:28,800 Speaker 1: did it that way, if you're banking on the income 543 00:26:29,000 --> 00:26:32,480 Speaker 1: based plans, you're able to keep your loans current, stay 544 00:26:32,520 --> 00:26:34,680 Speaker 1: on the on the on the right track by making 545 00:26:34,720 --> 00:26:39,280 Speaker 1: those qualifying payments. The nominal cost over that time frame. Yes, 546 00:26:39,359 --> 00:26:42,159 Speaker 1: twenty or twenty five years is a long time, but 547 00:26:42,240 --> 00:26:46,040 Speaker 1: it's nominally going to cost a lot less because that 548 00:26:46,160 --> 00:26:48,600 Speaker 1: forgiven debt balance. At the end of that term, you're 549 00:26:48,600 --> 00:26:52,480 Speaker 1: only paying a fraction of the actual amount that's outstanding 550 00:26:52,520 --> 00:26:54,800 Speaker 1: because it's based off of income at that point. So 551 00:26:54,880 --> 00:26:58,240 Speaker 1: your overall balance is going to be the biggest factor 552 00:26:58,280 --> 00:27:00,040 Speaker 1: on if you're gonna come out ahead and if you 553 00:27:00,040 --> 00:27:03,320 Speaker 1: should seriously consider these forgiveness programs for the twenty or 554 00:27:03,359 --> 00:27:07,160 Speaker 1: twenty five year period. Nice. So, in regards to the forgiveness, 555 00:27:07,440 --> 00:27:09,960 Speaker 1: Nick on our Facebook group asked, can you talk about 556 00:27:10,000 --> 00:27:13,400 Speaker 1: the tax conundrum that may come when loans are forgiven? 557 00:27:13,720 --> 00:27:15,560 Speaker 1: So That's something that a lot of folks aren't aware 558 00:27:15,560 --> 00:27:18,080 Speaker 1: of the fact that the amount that you're forgiven you've 559 00:27:18,080 --> 00:27:20,119 Speaker 1: got to pay taxes on that is that right? Yeah, 560 00:27:20,160 --> 00:27:22,720 Speaker 1: So when you work in the private sector, that forgiven 561 00:27:22,760 --> 00:27:24,760 Speaker 1: balance at the end of that term, it is a 562 00:27:24,800 --> 00:27:27,320 Speaker 1: taxable event to you as of the current tax code. 563 00:27:27,680 --> 00:27:30,280 Speaker 1: So you do need to be making your regular income 564 00:27:30,320 --> 00:27:33,240 Speaker 1: based payments over that time frame as well as saving 565 00:27:33,280 --> 00:27:36,560 Speaker 1: for that tax liability down the road, But don't forge 566 00:27:36,600 --> 00:27:40,080 Speaker 1: out yet. Overall, if you're taking advantage of the forgiveness 567 00:27:40,080 --> 00:27:43,639 Speaker 1: program with a very large balance, it does make sense, 568 00:27:43,760 --> 00:27:46,480 Speaker 1: and the math works out to where you're paying less 569 00:27:46,520 --> 00:27:48,680 Speaker 1: over that time frame than you would if you were 570 00:27:48,680 --> 00:27:51,080 Speaker 1: to accelerate that debt and pay it off as if 571 00:27:51,080 --> 00:27:53,720 Speaker 1: it was a regular private debt. And then, Megan, you 572 00:27:53,760 --> 00:27:56,480 Speaker 1: mentioned grad loans second ago when you're talking about the 573 00:27:56,480 --> 00:28:00,240 Speaker 1: repay program. Jordan's and Lucas both had a similar in 574 00:28:00,240 --> 00:28:02,480 Speaker 1: the Facebook group. He said, I am thinking about paying 575 00:28:02,520 --> 00:28:05,520 Speaker 1: for graduate school tuition through loans. Is there a different 576 00:28:05,520 --> 00:28:07,879 Speaker 1: process or how does that work? There's not a different 577 00:28:08,040 --> 00:28:11,439 Speaker 1: process per se, but there are different considerations. So when 578 00:28:11,440 --> 00:28:14,639 Speaker 1: you're taking out loans for graduate school, it does extend 579 00:28:14,720 --> 00:28:18,399 Speaker 1: your time frame depending on your income based program. So 580 00:28:18,560 --> 00:28:21,960 Speaker 1: I keep saying this twenty or twenty five year timeframe. Uh, 581 00:28:22,000 --> 00:28:25,000 Speaker 1: that twenty five year timeframe comes into play when you 582 00:28:25,080 --> 00:28:28,840 Speaker 1: have graduate loans. Unfortunately, all right, Magan, So, actually the 583 00:28:28,880 --> 00:28:31,520 Speaker 1: hottest question in our in our Facebook group about student 584 00:28:31,520 --> 00:28:34,040 Speaker 1: loans this week was from de Drain and she said, 585 00:28:34,280 --> 00:28:36,280 Speaker 1: should I be paying off student loans or buying a 586 00:28:36,320 --> 00:28:40,040 Speaker 1: house first? And I feel like the answers were across 587 00:28:40,080 --> 00:28:43,080 Speaker 1: the board, and everyone feels so differently about that, mostly 588 00:28:43,120 --> 00:28:46,160 Speaker 1: because houses can be such an emotional purchase. So do 589 00:28:46,160 --> 00:28:48,160 Speaker 1: you have any kind of thoughts on that, any wisdom 590 00:28:48,200 --> 00:28:50,240 Speaker 1: to share for folks as they're kind of thinking through 591 00:28:50,560 --> 00:28:53,680 Speaker 1: life decisions, big life decisions, while they're at the same 592 00:28:53,720 --> 00:28:56,480 Speaker 1: time paying down their student loans. So this question really 593 00:28:56,520 --> 00:29:00,240 Speaker 1: comes down to your overall financial plan for yourself. What 594 00:29:00,320 --> 00:29:02,680 Speaker 1: are the priorities in the mix? Here? One thing to 595 00:29:02,760 --> 00:29:05,040 Speaker 1: consider when you have student loan debt in the mix. 596 00:29:05,520 --> 00:29:07,880 Speaker 1: If it's a large balance, it's probably going to be 597 00:29:07,920 --> 00:29:10,200 Speaker 1: around for a while, let's be honest. And if you're 598 00:29:10,200 --> 00:29:12,480 Speaker 1: on an income based plan, you have a lot of 599 00:29:12,480 --> 00:29:15,960 Speaker 1: flexibility there. So let's say buying a home or purchasing 600 00:29:15,960 --> 00:29:18,360 Speaker 1: a home in the future is a huge goal of yours. 601 00:29:18,840 --> 00:29:21,120 Speaker 1: I'm not going to say that it's a bad idea 602 00:29:21,320 --> 00:29:25,200 Speaker 1: to go ahead and bite the bullet there and jump 603 00:29:25,240 --> 00:29:27,480 Speaker 1: in on a on a home you love. If you 604 00:29:27,520 --> 00:29:30,360 Speaker 1: still have student loan debt in the mix, I think 605 00:29:30,400 --> 00:29:33,000 Speaker 1: that's fine as long as you have a plan for both. 606 00:29:33,080 --> 00:29:35,760 Speaker 1: If you know that you have your your student loans 607 00:29:35,800 --> 00:29:38,840 Speaker 1: taken care of on a repayment plan that makes sense 608 00:29:38,880 --> 00:29:41,120 Speaker 1: for you, that fits within your cash flow, and it's 609 00:29:41,160 --> 00:29:44,600 Speaker 1: achieving what your goals are. It is really all about 610 00:29:44,600 --> 00:29:47,280 Speaker 1: balance though. One thing to consider though with your student 611 00:29:47,320 --> 00:29:50,240 Speaker 1: loans if they're federal. Federal student loans have a lot 612 00:29:50,280 --> 00:29:53,320 Speaker 1: of protections around them as well. So let's say you 613 00:29:53,400 --> 00:29:55,560 Speaker 1: do have a mortgage down the line, you have a 614 00:29:55,560 --> 00:29:59,400 Speaker 1: lot of financial obligations, you lose your job, Your federal 615 00:29:59,440 --> 00:30:02,040 Speaker 1: student loan are going to be a lot more lenient 616 00:30:02,160 --> 00:30:04,959 Speaker 1: on you. You have the option to go into forbearance, 617 00:30:05,080 --> 00:30:07,479 Speaker 1: you can defer your payment. You have a lot of 618 00:30:07,480 --> 00:30:10,120 Speaker 1: options there that you don't have on the private side. 619 00:30:10,160 --> 00:30:12,720 Speaker 1: For example, you can't put off all of your life 620 00:30:12,720 --> 00:30:15,000 Speaker 1: decisions because of the student loan debt you have in 621 00:30:15,000 --> 00:30:18,200 Speaker 1: the mix. I would suggest putting together a plan that 622 00:30:18,360 --> 00:30:21,080 Speaker 1: makes sense for you and that you feel comfortable with. 623 00:30:21,440 --> 00:30:23,640 Speaker 1: You have a plan that works for you, and you're 624 00:30:23,680 --> 00:30:26,040 Speaker 1: able to sleep well at night with that awesome And 625 00:30:26,040 --> 00:30:28,280 Speaker 1: that kind of leads to another question here from Ashley, 626 00:30:28,440 --> 00:30:31,880 Speaker 1: and she gave an example specific to tax refund season. 627 00:30:32,160 --> 00:30:34,800 Speaker 1: She mentioned should a family put that maybe towards their 628 00:30:34,840 --> 00:30:37,160 Speaker 1: nest egg or I would say invest it, you know, 629 00:30:37,200 --> 00:30:39,760 Speaker 1: something along those lines, or should we put it down 630 00:30:39,760 --> 00:30:42,600 Speaker 1: on student loan? I mean essentially her question is like, 631 00:30:42,640 --> 00:30:45,240 Speaker 1: we've got debt or we can take this money and 632 00:30:45,280 --> 00:30:47,600 Speaker 1: we can invest it. Yeah, So you know, is there 633 00:30:47,640 --> 00:30:49,840 Speaker 1: a certain percentage? Is there an interest rate that you're 634 00:30:49,840 --> 00:30:52,560 Speaker 1: looking at where if there is above a certain number 635 00:30:52,560 --> 00:30:54,240 Speaker 1: that you would recommend for folks to pay it down 636 00:30:54,360 --> 00:30:57,600 Speaker 1: maybe faster, or if it's below a certain number that 637 00:30:57,600 --> 00:30:59,400 Speaker 1: that they should, you know, maybe consider some of the 638 00:30:59,480 --> 00:31:02,320 Speaker 1: other goals that they have first and foremost. Again, if 639 00:31:02,360 --> 00:31:05,479 Speaker 1: you're going towards forgiveness, don't accelerate your payments, there's no 640 00:31:05,560 --> 00:31:08,920 Speaker 1: need to. But if you are working on paying down 641 00:31:08,960 --> 00:31:13,040 Speaker 1: your debt balance in the most efficient and fastest way possible, 642 00:31:13,480 --> 00:31:15,960 Speaker 1: an interest rate to look at if you have loans 643 00:31:16,200 --> 00:31:19,240 Speaker 1: at Let's say that the gray area I think is 644 00:31:19,600 --> 00:31:24,080 Speaker 1: six percent to maybe eight percent. If you have a 645 00:31:23,600 --> 00:31:27,320 Speaker 1: percentage in that range, if what's keeping you at up 646 00:31:27,320 --> 00:31:30,400 Speaker 1: at night is the debt, tackle the debt, or take 647 00:31:30,440 --> 00:31:33,200 Speaker 1: a hybrid approach, put half of that tax refund towards 648 00:31:33,240 --> 00:31:35,320 Speaker 1: the student loan debt or the debt in the mix 649 00:31:35,720 --> 00:31:38,240 Speaker 1: and take half and invest it or throw it into savings. 650 00:31:38,560 --> 00:31:41,200 Speaker 1: I think if the interest rate is five to six 651 00:31:41,240 --> 00:31:44,320 Speaker 1: percent or below, there are some other goals that you 652 00:31:44,320 --> 00:31:48,280 Speaker 1: can probably prioritize over that lower interest charging debt. If 653 00:31:48,280 --> 00:31:51,400 Speaker 1: it's above especially above ten percent. If if you've got 654 00:31:51,480 --> 00:31:54,200 Speaker 1: credit card debt in the mix, show stopper, take care 655 00:31:54,200 --> 00:31:57,320 Speaker 1: of that. That's that's probably a very high interest debt 656 00:31:57,320 --> 00:31:58,640 Speaker 1: that you need to get out of the mix as 657 00:31:58,680 --> 00:32:00,960 Speaker 1: soon as possible because it's going to be very expensive 658 00:32:01,000 --> 00:32:02,920 Speaker 1: for you in the long run. Yeah, it's interesting that 659 00:32:02,920 --> 00:32:05,760 Speaker 1: you mentioned six day percent, right, because what does that reflect. 660 00:32:05,760 --> 00:32:07,840 Speaker 1: That reflects the average returns that you can get in 661 00:32:07,880 --> 00:32:10,720 Speaker 1: the stock market. That's what makes it so difficult and 662 00:32:10,760 --> 00:32:13,640 Speaker 1: why instead you have to fall back onto what you said, 663 00:32:13,680 --> 00:32:16,880 Speaker 1: like emotionally, what is having the most impact on you personally? 664 00:32:17,320 --> 00:32:19,040 Speaker 1: Because in that case, like that's going to be the 665 00:32:19,080 --> 00:32:22,440 Speaker 1: most effective thing to pay down. Yes, yes, So my 666 00:32:22,480 --> 00:32:24,400 Speaker 1: wife and I we went to school at a time 667 00:32:24,400 --> 00:32:27,880 Speaker 1: when student loan rates were pretty low, and so we're 668 00:32:27,920 --> 00:32:31,040 Speaker 1: paying my wife student loans off as slowly as possible 669 00:32:31,080 --> 00:32:34,080 Speaker 1: because the interest rate is actually below two percent, and 670 00:32:34,120 --> 00:32:36,640 Speaker 1: I know that's not standard now, right, so most people 671 00:32:36,680 --> 00:32:38,640 Speaker 1: taking out student loans are going to be in the 672 00:32:38,720 --> 00:32:42,320 Speaker 1: upper six percent range. And so if you are close 673 00:32:42,360 --> 00:32:44,320 Speaker 1: to that seven percent mark, I think when it comes 674 00:32:44,320 --> 00:32:46,640 Speaker 1: to your interest rate, it's a really tough decision. I 675 00:32:46,640 --> 00:32:49,760 Speaker 1: think at that point it depends probably on the payoff 676 00:32:49,760 --> 00:32:52,200 Speaker 1: plan that you're on, right and and how far along 677 00:32:52,440 --> 00:32:54,800 Speaker 1: in that repayment plan that you are, and at the 678 00:32:54,840 --> 00:32:58,320 Speaker 1: same time your personal money priorities. But if you are 679 00:32:58,360 --> 00:33:01,280 Speaker 1: incredibly dead diverse, then and yeah, I think a tax 680 00:33:01,320 --> 00:33:04,040 Speaker 1: refund is a great time to just drop a lump 681 00:33:04,040 --> 00:33:06,880 Speaker 1: sum on your debt payment and and just see that 682 00:33:06,920 --> 00:33:09,800 Speaker 1: balance you dropped dramatically in one fell swoop. I think 683 00:33:09,800 --> 00:33:11,800 Speaker 1: that's a great, great way to go. One caveat though 684 00:33:11,840 --> 00:33:13,840 Speaker 1: you mentioned four oh one k. If you have an 685 00:33:13,840 --> 00:33:16,160 Speaker 1: employer that offers a match with your four o one K, 686 00:33:16,440 --> 00:33:19,600 Speaker 1: make sure that you are doing that up until the match. Absolutely, 687 00:33:19,680 --> 00:33:22,560 Speaker 1: that's free money there, exactly exactly. So we've talked about 688 00:33:22,560 --> 00:33:24,000 Speaker 1: that before, but just wanted to throw that in there. 689 00:33:24,080 --> 00:33:26,000 Speaker 1: All right, Matt, let's get back to the beer. Megan 690 00:33:26,080 --> 00:33:28,600 Speaker 1: was kind enough to bring Slow Poor Brewing Company nostalgia 691 00:33:28,640 --> 00:33:30,160 Speaker 1: I PA for us to drink on the show today. 692 00:33:30,200 --> 00:33:32,160 Speaker 1: What was your take on this beer? Man? Well, if 693 00:33:32,200 --> 00:33:34,200 Speaker 1: if it's a nostalgic beer, it takes me back to 694 00:33:34,280 --> 00:33:35,960 Speaker 1: when I didn't like I P S. How about that? 695 00:33:37,400 --> 00:33:39,560 Speaker 1: Those were dark times? I know, because if I had 696 00:33:39,600 --> 00:33:41,400 Speaker 1: to say ten years ago, did I like I p 697 00:33:41,520 --> 00:33:43,640 Speaker 1: A S? Like, not really, because there weren't that many 698 00:33:43,680 --> 00:33:45,560 Speaker 1: that we're out there, and the ones that were were 699 00:33:45,640 --> 00:33:47,920 Speaker 1: fairly bitter. So you know, I really enjoyed this one. 700 00:33:48,280 --> 00:33:50,680 Speaker 1: Had that nice golden amber kind of color to it. 701 00:33:50,680 --> 00:33:53,520 Speaker 1: It's pretty classic, but drink really well. I remember the 702 00:33:53,560 --> 00:33:55,400 Speaker 1: times too when I didn't like I PAS. It was 703 00:33:55,400 --> 00:33:57,520 Speaker 1: actually my wife they got me started into digging I 704 00:33:57,600 --> 00:33:59,160 Speaker 1: p a S. And so, you know what, I'm just 705 00:33:59,160 --> 00:34:01,800 Speaker 1: gonna give her a shout out. Thanks Sam for help 706 00:34:01,840 --> 00:34:03,800 Speaker 1: me get into I p a S. And Megan, let's 707 00:34:03,800 --> 00:34:05,240 Speaker 1: get your thoughts on this beer. What do you think 708 00:34:05,440 --> 00:34:07,120 Speaker 1: does it hold up to the memories you have of it? 709 00:34:07,280 --> 00:34:09,399 Speaker 1: I think so. I mean, Lawrence Fall is a very 710 00:34:09,440 --> 00:34:11,520 Speaker 1: historic town, so I feel like this is a very 711 00:34:11,600 --> 00:34:13,920 Speaker 1: classic I p A. If I P S can be classic, 712 00:34:14,000 --> 00:34:15,839 Speaker 1: I don't know if that's a thing. They certainly can, 713 00:34:16,239 --> 00:34:18,000 Speaker 1: and I think that's one fits that bill. So yeah, 714 00:34:18,000 --> 00:34:20,440 Speaker 1: thanks for bringing it. Thank you. Yeah, we really appreciate it. 715 00:34:20,600 --> 00:34:22,080 Speaker 1: All right, guys, let's go ahead now and do our 716 00:34:22,120 --> 00:34:24,320 Speaker 1: final thoughts. If you're listening to this, you're probably wondering 717 00:34:24,400 --> 00:34:26,640 Speaker 1: what plan should I take when it comes to repaying 718 00:34:26,640 --> 00:34:29,240 Speaker 1: my student loans. The first option, say you're a public 719 00:34:29,280 --> 00:34:32,360 Speaker 1: school teacher, or you're working for a government agency, or 720 00:34:32,400 --> 00:34:34,440 Speaker 1: you're in a five oh one C three a nonprofit, 721 00:34:34,600 --> 00:34:37,439 Speaker 1: you want to consider the PSLF. This gets you loan 722 00:34:37,480 --> 00:34:40,440 Speaker 1: forgiveness after ten years and is definitely going to be 723 00:34:40,480 --> 00:34:42,160 Speaker 1: your best bet, even though you've got to jump through 724 00:34:42,200 --> 00:34:44,440 Speaker 1: a lot of hoops. Yeah. Another rule of thumb to 725 00:34:44,520 --> 00:34:48,120 Speaker 1: consider is that if your monthly payment just feels overwhelming, 726 00:34:48,160 --> 00:34:50,760 Speaker 1: if you don't feel like you can handle your regular 727 00:34:50,760 --> 00:34:54,120 Speaker 1: expenses along with a massive student loan bill, you're gonna 728 00:34:54,160 --> 00:34:57,320 Speaker 1: want to consider one of those income based repayment plans 729 00:34:57,320 --> 00:34:59,400 Speaker 1: that we talked about. That is going to have two effects. 730 00:34:59,440 --> 00:35:01,880 Speaker 1: It's going to, in all likelihood, based on your income, 731 00:35:02,040 --> 00:35:04,600 Speaker 1: lower the amount of your student loan payment every month, 732 00:35:04,719 --> 00:35:07,839 Speaker 1: and at the same time, you qualify for forgiveness after 733 00:35:07,960 --> 00:35:10,520 Speaker 1: between twenty and twenty five years, depending on the type 734 00:35:10,520 --> 00:35:13,719 Speaker 1: of loans you have and the repayment plan that you choose. Yeah, 735 00:35:13,760 --> 00:35:16,480 Speaker 1: and talking about forgiveness, the last thing you should consider 736 00:35:16,560 --> 00:35:19,319 Speaker 1: is if your balance is overwhelming in a sense it's 737 00:35:19,360 --> 00:35:22,200 Speaker 1: greater than your income or much much greater than your income, 738 00:35:22,480 --> 00:35:25,040 Speaker 1: going for those forgiveness programs are going to be your 739 00:35:25,040 --> 00:35:27,280 Speaker 1: safe haven. It is going to be the most efficient 740 00:35:27,320 --> 00:35:29,799 Speaker 1: way to tackle your student loan debt. All right, that's 741 00:35:29,800 --> 00:35:32,319 Speaker 1: gonna be it for today's show. Megan, thank you for 742 00:35:32,400 --> 00:35:34,920 Speaker 1: coming on and kind of demystifying student loans for everyone. 743 00:35:35,040 --> 00:35:37,000 Speaker 1: Thank you for having me. Yeah, and we will talk 744 00:35:37,000 --> 00:35:39,360 Speaker 1: to you next week when we talk about private student 745 00:35:39,360 --> 00:35:41,680 Speaker 1: loans and kind of who those makes sense for looking 746 00:35:41,680 --> 00:35:43,839 Speaker 1: forward to it should be good. I can't imagine having 747 00:35:43,880 --> 00:35:45,799 Speaker 1: done this without her here, Like some of this is 748 00:35:45,840 --> 00:35:48,040 Speaker 1: just so dense. It's going to be incredibly helpful for 749 00:35:48,120 --> 00:35:50,400 Speaker 1: us to Yeah, spend another episode talking about it, but 750 00:35:50,480 --> 00:35:52,640 Speaker 1: also having some more info up on our website. Yeah, 751 00:35:52,640 --> 00:35:55,040 Speaker 1: speaking of DNS, it might be easier for you to 752 00:35:55,120 --> 00:35:56,919 Speaker 1: see some of this stuff now that we've talked about 753 00:35:56,960 --> 00:35:59,919 Speaker 1: it laid out visually, and so we will have help 754 00:36:00,120 --> 00:36:02,359 Speaker 1: chart for you on our website, how some money dot 755 00:36:02,400 --> 00:36:04,920 Speaker 1: com so you can kind of see the different repayment 756 00:36:04,920 --> 00:36:07,719 Speaker 1: options and hopefully that visual in those terms and definitions 757 00:36:07,719 --> 00:36:10,719 Speaker 1: can kind of help you make a wise decision so 758 00:36:10,760 --> 00:36:13,760 Speaker 1: that you have the most efficient student loan repayment option 759 00:36:13,880 --> 00:36:16,840 Speaker 1: for your situation. And if you found this podcast interesting 760 00:36:16,880 --> 00:36:18,960 Speaker 1: and helpful, we would love to hear from you. Hit 761 00:36:19,040 --> 00:36:21,600 Speaker 1: us up on Apple Podcasts or wherever it is that 762 00:36:21,640 --> 00:36:23,920 Speaker 1: you listen to your podcast. Please leave a review and 763 00:36:23,920 --> 00:36:26,680 Speaker 1: don't forget to subscribe. Why you're there, all right, buddy? 764 00:36:26,719 --> 00:36:29,279 Speaker 1: Until next week. Best Friends Outs Friends Out