1 00:00:00,040 --> 00:00:02,639 Speaker 1: Welcome to How the Money. I'm Joel and I'm Matt 2 00:00:02,759 --> 00:00:05,520 Speaker 1: and today we're talking everything you need to know about 3 00:00:05,519 --> 00:00:28,600 Speaker 1: student loans right now with Megan McGuire. That's right. Megan 4 00:00:28,680 --> 00:00:31,960 Speaker 1: McGuire is a student loan expert and she's joining us 5 00:00:31,960 --> 00:00:34,520 Speaker 1: on the podcast today. UM. I don't think there's anyone 6 00:00:34,520 --> 00:00:37,839 Speaker 1: else we know who understands the ends and outs of 7 00:00:37,920 --> 00:00:40,840 Speaker 1: student loans more than Megan does. She has not only 8 00:00:40,880 --> 00:00:43,479 Speaker 1: been in the finance industry for more than thirteen years now, 9 00:00:43,760 --> 00:00:46,240 Speaker 1: but she's got the bragging rights of being the first 10 00:00:46,320 --> 00:00:49,840 Speaker 1: certified Student Loan Professional, the first CSLP in the state 11 00:00:49,880 --> 00:00:52,240 Speaker 1: of Georgia. Back when we met her several years ago. 12 00:00:52,600 --> 00:00:55,440 Speaker 1: She does a lot of work with student loan planner actually, 13 00:00:55,640 --> 00:00:57,920 Speaker 1: and I think we originally met at a brewery. We 14 00:00:58,080 --> 00:00:59,680 Speaker 1: we had a listener hang and she showed up and 15 00:01:00,040 --> 00:01:03,160 Speaker 1: introduce yourself. But the timing could not be any better 16 00:01:03,280 --> 00:01:05,520 Speaker 1: as there have been so many changes and things happening 17 00:01:05,600 --> 00:01:09,320 Speaker 1: the student loan space. Where are things with student loan forgiveness? 18 00:01:09,720 --> 00:01:12,760 Speaker 1: Where are things with the payment pause? We are excited 19 00:01:12,840 --> 00:01:15,160 Speaker 1: to talk about all of that and more today, Megan, 20 00:01:15,200 --> 00:01:17,560 Speaker 1: Thank you for joining us. Oh my goodness, thank you 21 00:01:17,600 --> 00:01:20,160 Speaker 1: guys for having me, and I feel like, of course, 22 00:01:20,200 --> 00:01:22,240 Speaker 1: as soon as I'm about to be introd, I have 23 00:01:22,400 --> 00:01:26,400 Speaker 1: my long guy out there with the blower outside. Leaf 24 00:01:26,400 --> 00:01:29,800 Speaker 1: flowers are a constant battle when it comes to a podcash. Gosh, 25 00:01:29,840 --> 00:01:33,080 Speaker 1: that's true, Megan. The first question we ask anybody who 26 00:01:33,120 --> 00:01:35,600 Speaker 1: comes on on the show any guessed, We want to 27 00:01:35,600 --> 00:01:38,080 Speaker 1: know what their craft beer equivalent is because Matt and 28 00:01:38,120 --> 00:01:40,920 Speaker 1: I we liked spending way too much money sometimes on 29 00:01:41,319 --> 00:01:43,920 Speaker 1: good beer, but we don't do it at the expense 30 00:01:44,240 --> 00:01:47,240 Speaker 1: of our savings and investments. So what's your splurted what's 31 00:01:47,240 --> 00:01:50,400 Speaker 1: your craft beer equivalent? I love I love this question, 32 00:01:50,560 --> 00:01:53,400 Speaker 1: and I love hearing everybody's answers too, So I would 33 00:01:53,400 --> 00:01:57,200 Speaker 1: say mine, mine truly is having dinner with my husband, 34 00:01:57,560 --> 00:01:59,680 Speaker 1: and it feels it feels so weird saying husband too, 35 00:01:59,680 --> 00:02:06,400 Speaker 1: because just recently A McGuire so congratulates lands, thank you. 36 00:02:06,840 --> 00:02:08,840 Speaker 1: But yeah, so we've that's always been something that me 37 00:02:08,880 --> 00:02:11,480 Speaker 1: and him have enjoyed doing together, like going and trying 38 00:02:11,480 --> 00:02:15,640 Speaker 1: new restaurants. We like a nice cocktail or two, pairing 39 00:02:15,760 --> 00:02:18,080 Speaker 1: wine with different foods. So that's that's one thing that 40 00:02:18,120 --> 00:02:20,040 Speaker 1: we we do. We do not do that every night, 41 00:02:20,040 --> 00:02:22,799 Speaker 1: because I do enjoy cooking, but a couple of times 42 00:02:22,840 --> 00:02:26,480 Speaker 1: a week, that's that's where some of our discretionarybody is 43 00:02:26,520 --> 00:02:29,760 Speaker 1: going towards. I love that. Something else I love actually 44 00:02:29,800 --> 00:02:32,640 Speaker 1: on your website, I saw that the in the Facts 45 00:02:32,639 --> 00:02:37,079 Speaker 1: about Megan, section number one mentions your entrepreneurial spirit that 46 00:02:37,160 --> 00:02:39,760 Speaker 1: you had from a very young age. Can you can 47 00:02:39,800 --> 00:02:42,600 Speaker 1: you talk through some of the different ventures that you 48 00:02:42,639 --> 00:02:45,280 Speaker 1: had as a as a young kid? Oh my gosh, yeah, 49 00:02:45,480 --> 00:02:48,440 Speaker 1: I'm thinking back on it, Like I really was like 50 00:02:48,480 --> 00:02:51,239 Speaker 1: a little entrepreneur, like really young. And I think it 51 00:02:51,360 --> 00:02:54,480 Speaker 1: started so my dad was in sales. He did electrical 52 00:02:54,560 --> 00:02:58,520 Speaker 1: sales for big companies, um, and it may have come 53 00:02:58,560 --> 00:03:00,720 Speaker 1: from him maybe coaching me a little bit as I 54 00:03:00,760 --> 00:03:02,920 Speaker 1: grew up. But I was also in Girl Scouts, so 55 00:03:02,960 --> 00:03:05,640 Speaker 1: I learned how to sell Girl Scout cookies and have 56 00:03:05,800 --> 00:03:08,120 Speaker 1: like a little cheer dance in front of Kroger to 57 00:03:08,240 --> 00:03:11,800 Speaker 1: like get people's attention. But I used to make like 58 00:03:11,880 --> 00:03:15,680 Speaker 1: little jewelry. I used to make little dolls. I would 59 00:03:15,760 --> 00:03:18,760 Speaker 1: I would sell them at all of our family gatherings. 60 00:03:18,800 --> 00:03:20,840 Speaker 1: I would have like a basket that I'd put my 61 00:03:20,960 --> 00:03:24,079 Speaker 1: products in that I've made and I'd go around all 62 00:03:24,120 --> 00:03:26,600 Speaker 1: my family members and I'd price it out for like 63 00:03:26,760 --> 00:03:28,960 Speaker 1: you know, a quarter a dollar or something, and I 64 00:03:29,000 --> 00:03:31,399 Speaker 1: was really proud of it, like going around and I'd 65 00:03:31,440 --> 00:03:33,800 Speaker 1: have like some spending money for the dollar store at 66 00:03:33,800 --> 00:03:36,240 Speaker 1: the end of the day. Is this a family reading 67 00:03:36,400 --> 00:03:40,680 Speaker 1: or is this Megan's Market? Right? Right? Yeah? It was 68 00:03:41,000 --> 00:03:44,480 Speaker 1: every every little like family gathering. It was like I 69 00:03:44,480 --> 00:03:49,720 Speaker 1: remember Easter for one one time, specifically, I was selling dolls, uh, 70 00:03:49,880 --> 00:03:52,280 Speaker 1: for the July I was selling these like red, white 71 00:03:52,280 --> 00:03:55,280 Speaker 1: and blue bracelets that I had made. Um. But I 72 00:03:55,360 --> 00:03:58,560 Speaker 1: really enjoyed it. Wasn't that I liked crafting necessarily, like 73 00:03:58,600 --> 00:04:00,880 Speaker 1: I think I was good at because my mom liked 74 00:04:00,960 --> 00:04:04,240 Speaker 1: to craft with us. But I really enjoyed the sale, 75 00:04:04,400 --> 00:04:08,080 Speaker 1: Like I liked making money and like having that to 76 00:04:08,200 --> 00:04:14,840 Speaker 1: go to. So but that was that was my entrepreneurial 77 00:04:14,840 --> 00:04:17,240 Speaker 1: spirit growing up. Well. One of the things I think 78 00:04:17,240 --> 00:04:19,520 Speaker 1: fact number seven on that list is one of my 79 00:04:19,520 --> 00:04:22,200 Speaker 1: favorites because you say that you're so passionate about about 80 00:04:22,200 --> 00:04:24,440 Speaker 1: what you do now that even if you won the lottery, 81 00:04:24,480 --> 00:04:26,360 Speaker 1: you'd still be doing it. And I think that is 82 00:04:27,040 --> 00:04:29,480 Speaker 1: the sign that you have found like the perfect job 83 00:04:29,560 --> 00:04:31,680 Speaker 1: for you and Matt and I feel the same way. 84 00:04:32,400 --> 00:04:35,039 Speaker 1: I think even if even if we won some sort 85 00:04:35,080 --> 00:04:36,800 Speaker 1: of gigantic some of money, we just like what we 86 00:04:36,880 --> 00:04:40,080 Speaker 1: do and and that's you know, not every day doesn't 87 00:04:40,080 --> 00:04:42,160 Speaker 1: mean every day is easy, but it's nice to have 88 00:04:42,200 --> 00:04:44,279 Speaker 1: a job that you're that passionate about. And student loans 89 00:04:44,320 --> 00:04:46,279 Speaker 1: are kind of that for you. And you are an 90 00:04:46,320 --> 00:04:50,160 Speaker 1: expert for sure on this front. And there's so much happening. 91 00:04:50,160 --> 00:04:51,839 Speaker 1: I feel like there's so much to talk about in 92 00:04:51,880 --> 00:04:54,760 Speaker 1: today's episode. I guess let's start maybe with kind of 93 00:04:54,760 --> 00:04:57,000 Speaker 1: the recent news that happened to the end of last week. 94 00:04:57,240 --> 00:05:00,080 Speaker 1: You know, what's the latest with student loan forgiveness. It 95 00:05:00,080 --> 00:05:01,960 Speaker 1: it looks like now it's going to be decided by 96 00:05:01,960 --> 00:05:04,200 Speaker 1: the highest court in Land, by the Supreme Court. But 97 00:05:04,240 --> 00:05:05,800 Speaker 1: can you kind of fill us in on where things 98 00:05:05,839 --> 00:05:08,040 Speaker 1: stand right now. It's been in limbo back and forth, 99 00:05:08,080 --> 00:05:11,360 Speaker 1: and now it's like still kind of in limbo. But 100 00:05:11,560 --> 00:05:14,560 Speaker 1: you know what's the latest? Yeah, yeah, my goodness. I 101 00:05:14,600 --> 00:05:16,839 Speaker 1: feel like if anyone who has student loans has probably 102 00:05:16,839 --> 00:05:18,760 Speaker 1: felt like they've been on a roller coaster over the 103 00:05:18,760 --> 00:05:27,640 Speaker 1: past couple couple of years. Now um on the brak 104 00:05:27,839 --> 00:05:33,800 Speaker 1: shut down. Yeah, so most recently, UM, we we originally 105 00:05:33,839 --> 00:05:37,000 Speaker 1: were getting excited about this one time cancelation that seemed 106 00:05:37,040 --> 00:05:39,960 Speaker 1: like it was coming through. They had announced that they 107 00:05:39,960 --> 00:05:42,960 Speaker 1: were going to forgive ten or twenty thousand of student 108 00:05:43,040 --> 00:05:46,960 Speaker 1: loans for federal borrowers. Ten if you didn't have PELL grants, 109 00:05:47,480 --> 00:05:49,360 Speaker 1: twenty if you did have PELL grants, and you had 110 00:05:49,360 --> 00:05:52,760 Speaker 1: to be under a income threshold. And they went as 111 00:05:52,760 --> 00:05:55,440 Speaker 1: far as putting the application up on student aid dot 112 00:05:55,440 --> 00:06:00,280 Speaker 1: gov and allowing people to submit applications, and it got 113 00:06:00,360 --> 00:06:03,760 Speaker 1: challenged lots of lawsuits. Um. Some they were able to 114 00:06:04,160 --> 00:06:07,200 Speaker 1: clear up, like allowing people to opt out of the 115 00:06:07,279 --> 00:06:11,159 Speaker 1: cancelation because maybe it created a tax liability and their state. 116 00:06:11,920 --> 00:06:14,640 Speaker 1: Others they you know. Uh So I think where we're 117 00:06:14,640 --> 00:06:17,520 Speaker 1: at right now is that it has been stopped or 118 00:06:17,560 --> 00:06:20,520 Speaker 1: shut down where they've totally taken the application off of 119 00:06:20,520 --> 00:06:23,599 Speaker 1: the website. It says something to the effect of, you know, 120 00:06:23,640 --> 00:06:26,239 Speaker 1: we're on on hold right now, tied up in court, 121 00:06:27,000 --> 00:06:29,880 Speaker 1: and it is it's going to the Supreme Court. So 122 00:06:29,880 --> 00:06:33,240 Speaker 1: the announcement that was made most recently was UM that 123 00:06:33,360 --> 00:06:36,560 Speaker 1: the Supreme Court is their planned to look at this 124 00:06:36,640 --> 00:06:42,039 Speaker 1: in the spring of and in response to the Texas 125 00:06:42,160 --> 00:06:45,960 Speaker 1: judge shutting down cancelation originally and it having to move 126 00:06:46,040 --> 00:06:49,440 Speaker 1: to Supreme Court. They had extended the Department of Education 127 00:06:49,520 --> 00:06:52,640 Speaker 1: had extended payments again as well, and it was kind 128 00:06:52,680 --> 00:06:54,880 Speaker 1: of like a I kind of think it's funny because 129 00:06:54,880 --> 00:06:57,800 Speaker 1: it's it's almost like they're challenging each other. But the 130 00:06:57,839 --> 00:07:00,640 Speaker 1: way in the past, we've had extensions that have said, 131 00:07:01,080 --> 00:07:03,800 Speaker 1: you know, payments are going to be extended until this date, 132 00:07:04,320 --> 00:07:06,720 Speaker 1: but this time they came back and said, okay, well, 133 00:07:06,760 --> 00:07:10,240 Speaker 1: payments are going to be extended sixty days after this 134 00:07:10,280 --> 00:07:14,480 Speaker 1: one time cancelation is approved or relief is awarded. So 135 00:07:14,520 --> 00:07:17,440 Speaker 1: it's almost like it's contingent on the court system allowing 136 00:07:17,520 --> 00:07:20,360 Speaker 1: for this one time cancelation for when payments are going 137 00:07:20,440 --> 00:07:22,560 Speaker 1: to kick back in. So that means there's no like 138 00:07:23,080 --> 00:07:26,520 Speaker 1: start date exactly. It will be sixty days after approval. 139 00:07:27,240 --> 00:07:31,480 Speaker 1: But Supreme Court has also stated or or what's what's 140 00:07:31,560 --> 00:07:36,080 Speaker 1: known right now is that cancelation cannot happen until the 141 00:07:36,120 --> 00:07:39,000 Speaker 1: Supreme Court makes a ruling. But I'll pause because I 142 00:07:39,040 --> 00:07:40,960 Speaker 1: knew I kind of brain dumped a lot of things 143 00:07:40,960 --> 00:07:43,720 Speaker 1: on you right there. I'd like a piece that apart 144 00:07:44,520 --> 00:07:46,560 Speaker 1: there definitely seems like there is a process, and I 145 00:07:46,560 --> 00:07:48,720 Speaker 1: mean it seems like is it next summer? I mean, 146 00:07:48,760 --> 00:07:51,880 Speaker 1: so when a decision is made, I guess like it 147 00:07:51,920 --> 00:07:55,520 Speaker 1: would be good to know how long student loan borrowers, 148 00:07:55,640 --> 00:07:57,800 Speaker 1: how long they might actually be in limbo before they 149 00:07:57,880 --> 00:07:59,800 Speaker 1: know something, because I think for a lot of folks 150 00:08:00,080 --> 00:08:03,480 Speaker 1: they're probably saying it's fine if payments resume. I just 151 00:08:03,520 --> 00:08:05,080 Speaker 1: want to know what the heck to do, and so 152 00:08:05,320 --> 00:08:08,800 Speaker 1: being in limbo, I think it's the most difficult spot. Um, 153 00:08:08,960 --> 00:08:11,320 Speaker 1: So what's the Yeah, what's the timeline? What's the time 154 00:08:11,360 --> 00:08:14,280 Speaker 1: frame that you think folks can expect. So let's say 155 00:08:14,680 --> 00:08:17,920 Speaker 1: they make Supreme Court makes decisions on this um, and 156 00:08:18,000 --> 00:08:21,040 Speaker 1: let's say they approve the one time cancelation in April. 157 00:08:21,680 --> 00:08:25,720 Speaker 1: Then by how they've extended payments again, it'll be sixty 158 00:08:25,800 --> 00:08:30,000 Speaker 1: days after April when payments resume. So April made June, 159 00:08:30,000 --> 00:08:33,719 Speaker 1: payments would kick in June. Um the longest they could 160 00:08:33,760 --> 00:08:39,160 Speaker 1: be extended for is so it says June, which sixty 161 00:08:39,200 --> 00:08:42,200 Speaker 1: days after June would put us at August thirty. So 162 00:08:42,320 --> 00:08:45,840 Speaker 1: payments could be kicking in in September. That's the longest 163 00:08:46,240 --> 00:08:48,480 Speaker 1: I think we could be in this payment freeze again, 164 00:08:49,600 --> 00:08:52,400 Speaker 1: but it could be maybe as early as May or June, 165 00:08:52,480 --> 00:08:56,120 Speaker 1: depending on how fast decisions are made once once they 166 00:08:56,120 --> 00:08:59,040 Speaker 1: start deciding in the Supreme Court. Basically, because of that, 167 00:08:59,080 --> 00:09:01,400 Speaker 1: borrows borrowers need to be prepared, like they don't. We 168 00:09:01,400 --> 00:09:03,439 Speaker 1: don't know when the Supreme Court ruling is going to 169 00:09:03,720 --> 00:09:07,280 Speaker 1: come out. It looks like probably late spring, early summer 170 00:09:07,320 --> 00:09:09,880 Speaker 1: sort of thing. And and we won't have payments resumed 171 00:09:09,880 --> 00:09:12,360 Speaker 1: for a couple of months after that even Still, but 172 00:09:12,440 --> 00:09:15,880 Speaker 1: you need to be prepared because we're not sure of 173 00:09:15,920 --> 00:09:19,720 Speaker 1: the exact timeline, right, and so we're the limbo continues. 174 00:09:19,760 --> 00:09:21,240 Speaker 1: I guess I have a question for you to the 175 00:09:21,240 --> 00:09:25,200 Speaker 1: Department of Education. They sound pretty confident in the messaging 176 00:09:25,200 --> 00:09:28,319 Speaker 1: that they're sending student long Barrows via email, that they're 177 00:09:28,400 --> 00:09:31,800 Speaker 1: using terminology like and I believe this is a direct 178 00:09:31,840 --> 00:09:35,880 Speaker 1: quote when we prevail in their communication. Yeah, I don't. 179 00:09:36,000 --> 00:09:38,040 Speaker 1: Is there confidence unfounded? I don't know. It feels like 180 00:09:38,080 --> 00:09:40,320 Speaker 1: maybe they might be doing a disservice to borrowers with 181 00:09:40,360 --> 00:09:44,240 Speaker 1: this wildly optimistic tone. M Yeah, I know. And I 182 00:09:45,360 --> 00:09:47,360 Speaker 1: was talking to one of my colleagues about this recently, 183 00:09:47,440 --> 00:09:50,720 Speaker 1: thinking like, yeah, they do sound optimistic, maybe they know 184 00:09:50,840 --> 00:09:54,400 Speaker 1: something that we don't know. And her response was, well, 185 00:09:54,679 --> 00:09:57,960 Speaker 1: the way I see it is they're making it sound 186 00:09:58,000 --> 00:10:00,760 Speaker 1: like they're going to do everything they and to allow 187 00:10:00,840 --> 00:10:04,280 Speaker 1: this to happen, and if it doesn't happen, it's not 188 00:10:04,400 --> 00:10:07,520 Speaker 1: on them. So they're in a way. I think the 189 00:10:07,559 --> 00:10:10,000 Speaker 1: other side of this is maybe they are really confident, 190 00:10:10,200 --> 00:10:12,160 Speaker 1: maybe they do think that this can get pushed through. 191 00:10:12,559 --> 00:10:15,160 Speaker 1: But maybe an alternative way to think about this, or 192 00:10:15,200 --> 00:10:17,640 Speaker 1: on the flip side, would be maybe they're not sure. 193 00:10:17,920 --> 00:10:20,720 Speaker 1: Of course they're not sure, No one's sure, um, but 194 00:10:21,480 --> 00:10:24,079 Speaker 1: maybe they're trying to cast some blame if it doesn't 195 00:10:24,080 --> 00:10:27,000 Speaker 1: work because they wanted it to happen. They did everything 196 00:10:27,000 --> 00:10:29,560 Speaker 1: they could, and if it doesn't, it's not their fault, 197 00:10:29,679 --> 00:10:33,080 Speaker 1: if that makes sense. Yeah. Political positioning. There's a lot 198 00:10:33,080 --> 00:10:35,360 Speaker 1: of that happening from all sides right now, a lot 199 00:10:35,360 --> 00:10:37,880 Speaker 1: of posturing. Okay, So Megan, so you've got a lot 200 00:10:37,920 --> 00:10:41,120 Speaker 1: of folks who work with you, you know, folks who 201 00:10:41,120 --> 00:10:43,840 Speaker 1: have hired you to put together a plan for them. 202 00:10:43,880 --> 00:10:47,040 Speaker 1: Like what are you telling those folks specifically what to 203 00:10:47,080 --> 00:10:48,480 Speaker 1: do with their money? Right? Like? Like where do you 204 00:10:48,520 --> 00:10:52,120 Speaker 1: suggest they those folks stick dollars that otherwise would have 205 00:10:52,160 --> 00:10:55,520 Speaker 1: gone to start paying their loans in January instead, What 206 00:10:55,559 --> 00:10:57,520 Speaker 1: are you telling them to do with that money? Yeah, 207 00:10:57,559 --> 00:11:00,400 Speaker 1: so it does depend on what your ultimate path is 208 00:11:00,440 --> 00:11:02,520 Speaker 1: going to be when it comes to your student loans. 209 00:11:02,760 --> 00:11:06,400 Speaker 1: If you're someone who's going towards forgiveness, either with public 210 00:11:06,440 --> 00:11:10,400 Speaker 1: service loan forgiveness or the income driven forgiveness path, this 211 00:11:10,480 --> 00:11:13,520 Speaker 1: payment extension is just more good news for you because 212 00:11:13,600 --> 00:11:16,679 Speaker 1: all of these months that we're in this forbearance environment 213 00:11:16,840 --> 00:11:20,880 Speaker 1: will count towards forgiveness for free. So there's no reason 214 00:11:20,920 --> 00:11:23,480 Speaker 1: to be making payments when we are we're already getting credit. 215 00:11:24,280 --> 00:11:27,560 Speaker 1: So for those folks who don't need to be making payments, 216 00:11:27,880 --> 00:11:30,440 Speaker 1: I'm telling folks, hey, you know, there's other things you 217 00:11:30,480 --> 00:11:34,360 Speaker 1: could be prioritizing, like paying down higher interest debt, making 218 00:11:34,400 --> 00:11:38,320 Speaker 1: sure emergency savings is topped off, um, maybe increasing how 219 00:11:38,400 --> 00:11:40,960 Speaker 1: much you're saving for you know, for one of your 220 00:11:41,000 --> 00:11:43,800 Speaker 1: goals coming up. Those are some of the more responsible 221 00:11:44,440 --> 00:11:50,000 Speaker 1: things that you could be doing. You could also, right, So, 222 00:11:50,040 --> 00:11:52,120 Speaker 1: I mean, you know, if those other things are are 223 00:11:52,240 --> 00:11:55,160 Speaker 1: in a good in good shape, then of course, you know, 224 00:11:55,200 --> 00:11:57,840 Speaker 1: treat yourself a little bit, maybe spend a little bit 225 00:11:57,880 --> 00:12:00,520 Speaker 1: more on on gifts this season or whatever is going 226 00:12:00,559 --> 00:12:03,400 Speaker 1: to make you happy, self care, personal care. You have 227 00:12:03,400 --> 00:12:05,440 Speaker 1: a little more time before payments kick in, but I 228 00:12:05,520 --> 00:12:10,200 Speaker 1: do highly, highly recommend making sure that you're preparing for 229 00:12:10,240 --> 00:12:13,600 Speaker 1: that payment to resume, because it has been so long 230 00:12:13,760 --> 00:12:17,600 Speaker 1: since payments have been around where people have gotten used 231 00:12:17,640 --> 00:12:19,960 Speaker 1: to not having that payment in the mix. And we've 232 00:12:19,960 --> 00:12:23,199 Speaker 1: had inflation, as y'all know, that has made cost of 233 00:12:23,280 --> 00:12:26,199 Speaker 1: living very, very different than maybe what it was three 234 00:12:26,280 --> 00:12:28,520 Speaker 1: years ago when you had the student loan payment. So 235 00:12:29,000 --> 00:12:32,480 Speaker 1: I am suggesting folks practice that payment by just you know, 236 00:12:32,520 --> 00:12:34,960 Speaker 1: taking that money that we know the payment will be, 237 00:12:35,040 --> 00:12:38,240 Speaker 1: either setting it aside towards one of those responsible financial 238 00:12:38,240 --> 00:12:42,000 Speaker 1: goals we talked about, or um, you know, putting it 239 00:12:42,040 --> 00:12:44,559 Speaker 1: towards something else, but just accounting for it so you're prepared. 240 00:12:45,160 --> 00:12:47,280 Speaker 1: I like you said, practice the payment. I think that 241 00:12:47,440 --> 00:12:50,280 Speaker 1: is like a perfect phrase, because that's what we've been 242 00:12:50,280 --> 00:12:52,520 Speaker 1: saying is like out of sight, out of mind means 243 00:12:52,559 --> 00:12:54,719 Speaker 1: you're going to be in for a shock of financial surprise. 244 00:12:54,800 --> 00:12:56,439 Speaker 1: You yeah, yeah, And like you said, Megan, let me 245 00:12:56,520 --> 00:12:58,960 Speaker 1: with inflation being higher, I think it's so easy for 246 00:12:59,000 --> 00:13:01,800 Speaker 1: folks to see those additional dollars that they would have 247 00:13:01,840 --> 00:13:04,280 Speaker 1: otherwise been able, like you said, maybe to do something 248 00:13:04,320 --> 00:13:08,079 Speaker 1: responsible with just get absorbed into their day to day spending, 249 00:13:08,160 --> 00:13:11,680 Speaker 1: in their month to month spending. It's not that there's 250 00:13:11,679 --> 00:13:14,240 Speaker 1: sitting on this giant pile of cash. They're just frittering 251 00:13:14,400 --> 00:13:17,000 Speaker 1: those dollars away. It's it's it's money that you know 252 00:13:17,120 --> 00:13:20,839 Speaker 1: isn't going to anything truly impactful for sure. I want 253 00:13:20,880 --> 00:13:23,000 Speaker 1: to know from a tax standpoint, how do these moves 254 00:13:23,000 --> 00:13:25,959 Speaker 1: affect tax planning for individuals, for couples with student loans. 255 00:13:26,400 --> 00:13:30,319 Speaker 1: Does the moratorium, the payment pause the potential for forgiveness, 256 00:13:30,320 --> 00:13:33,839 Speaker 1: but the lack thereof right now? How does that? Next month? 257 00:13:33,880 --> 00:13:37,200 Speaker 1: People are going to start getting tax documents in the 258 00:13:37,280 --> 00:13:41,200 Speaker 1: mail in their email, So how does this impact anybody's 259 00:13:41,360 --> 00:13:44,320 Speaker 1: tax status or tax like you know, what they owe 260 00:13:44,320 --> 00:13:47,880 Speaker 1: in taxes? H. Yeah, that's that's a great question. I 261 00:13:47,880 --> 00:13:52,000 Speaker 1: think one big way that taxes and and tax status 262 00:13:52,000 --> 00:13:55,520 Speaker 1: will impact people in this payment extension could potentially impact 263 00:13:55,600 --> 00:13:58,360 Speaker 1: people is along the same lines as what I was 264 00:13:58,400 --> 00:14:01,120 Speaker 1: mentioning before. If you're someone who's going going towards forgiveness, 265 00:14:01,720 --> 00:14:05,200 Speaker 1: you may be looking at filing taxes separately. From your spouse, 266 00:14:05,400 --> 00:14:08,559 Speaker 1: if your spouse doesn't have student loans, and or you're 267 00:14:08,600 --> 00:14:11,160 Speaker 1: trying to keep your payment off of just your own income. 268 00:14:11,800 --> 00:14:15,240 Speaker 1: Because income driven plans, they're dictated on income, and if 269 00:14:15,240 --> 00:14:18,160 Speaker 1: you're filing jointly, it's based off of the joint income. 270 00:14:18,480 --> 00:14:22,160 Speaker 1: If you're filing taxes married separately, depending on the plan, 271 00:14:22,480 --> 00:14:24,880 Speaker 1: you can keep that payment off of just your own income, 272 00:14:25,120 --> 00:14:28,080 Speaker 1: which is advantageous for people who are going towards forgiveness 273 00:14:28,120 --> 00:14:32,360 Speaker 1: because that can keep the payment lower. So how this 274 00:14:32,560 --> 00:14:38,240 Speaker 1: extension might complicate things but maybe create some opportunity is, um, 275 00:14:38,400 --> 00:14:41,560 Speaker 1: no one has been required to update income in a 276 00:14:41,680 --> 00:14:47,040 Speaker 1: very long time, and they won't before definitely before July one, 277 00:14:47,080 --> 00:14:50,200 Speaker 1: so no one's going to have to update their payments 278 00:14:50,320 --> 00:14:54,040 Speaker 1: change payments before then. Um, that could also be extended 279 00:14:54,120 --> 00:14:57,920 Speaker 1: because of this recent payment extension. So what that means 280 00:14:58,000 --> 00:15:01,160 Speaker 1: is next time people have to update income when when 281 00:15:01,200 --> 00:15:02,920 Speaker 1: they do that, it's going to link back to the 282 00:15:02,920 --> 00:15:06,520 Speaker 1: most recently filed tax return on file. So it's probably 283 00:15:06,560 --> 00:15:12,000 Speaker 1: gonna unless someone's extending taxes for some reason. So that 284 00:15:12,000 --> 00:15:15,280 Speaker 1: that makes you need to think about your tax situation. 285 00:15:15,320 --> 00:15:18,520 Speaker 1: For two, like, would it makes sense for you to 286 00:15:18,560 --> 00:15:21,840 Speaker 1: be filing separately to keep the payment off of your 287 00:15:21,840 --> 00:15:27,680 Speaker 1: own income or not where one those tax returns didn't 288 00:15:27,720 --> 00:15:29,840 Speaker 1: really come into play, so you may have been able 289 00:15:29,920 --> 00:15:33,080 Speaker 1: to file jointly and it not affect your your payment, 290 00:15:33,240 --> 00:15:36,360 Speaker 1: if that makes sense. Sure, Yeah, if if you do that, 291 00:15:36,880 --> 00:15:39,960 Speaker 1: you're you're lucky because you're able to take advantage of 292 00:15:39,960 --> 00:15:43,120 Speaker 1: those you're taking those benefits that were offered by filing jointly. 293 00:15:43,760 --> 00:15:46,520 Speaker 1: But now, like you said, hopefully, I mean looking forward, 294 00:15:46,840 --> 00:15:48,400 Speaker 1: I mean that is something that folks are gonna need 295 00:15:48,400 --> 00:15:50,800 Speaker 1: to take into accounts. How it is that you file 296 00:15:50,880 --> 00:15:52,960 Speaker 1: is going to have a massive impact on some of 297 00:15:52,960 --> 00:15:56,200 Speaker 1: those income based repayment plans. And speaking of those those 298 00:15:56,240 --> 00:15:59,400 Speaker 1: different forgiveness programs that are available for for folks out there, 299 00:15:59,400 --> 00:16:06,200 Speaker 1: we're gonna die more into that right after the break. 300 00:16:11,720 --> 00:16:13,400 Speaker 1: All right, we are back from the break, still talking 301 00:16:13,440 --> 00:16:16,320 Speaker 1: with Megan McGuire about everything you need to know about 302 00:16:16,320 --> 00:16:19,280 Speaker 1: student loans right now, because a lot of moving parts, 303 00:16:19,320 --> 00:16:22,080 Speaker 1: a lot going on, a lot of confusion for borrowers 304 00:16:22,160 --> 00:16:24,240 Speaker 1: right now, and maybe we want to talk about PSLF, 305 00:16:24,240 --> 00:16:26,280 Speaker 1: We want to talk about the new income based Repayment 306 00:16:26,280 --> 00:16:28,000 Speaker 1: Plan as well in a second, but I want to 307 00:16:28,040 --> 00:16:31,120 Speaker 1: ask you too. There's there's some folks who paid off 308 00:16:31,160 --> 00:16:34,240 Speaker 1: their student loans during the pandemic. They took the interest 309 00:16:34,760 --> 00:16:37,560 Speaker 1: freeze as a chance to say that I can make 310 00:16:37,600 --> 00:16:41,760 Speaker 1: more progress, and so some of them feel, I don't know, 311 00:16:41,960 --> 00:16:44,680 Speaker 1: maybe like that was the wrong move to do because 312 00:16:44,760 --> 00:16:46,480 Speaker 1: they might have lost out on forgiveness. But if you 313 00:16:46,520 --> 00:16:50,040 Speaker 1: did that during the pandemic, the rules stated the rules 314 00:16:50,040 --> 00:16:52,160 Speaker 1: that are now in limbo, that you would still be 315 00:16:52,240 --> 00:16:54,200 Speaker 1: able to get a refund on the amount you paid 316 00:16:54,240 --> 00:16:56,600 Speaker 1: off during that payment pause. But where do things stand 317 00:16:56,640 --> 00:16:59,000 Speaker 1: for people who are saying this is debt that I 318 00:16:59,040 --> 00:17:01,800 Speaker 1: want to be out of my life? Uh? Should they 319 00:17:01,800 --> 00:17:04,480 Speaker 1: be accelerating payments? Should be they be trying to pay 320 00:17:04,480 --> 00:17:08,040 Speaker 1: off their student loans altogether? Or don't? It feels like 321 00:17:08,040 --> 00:17:10,480 Speaker 1: it's hard to navigate, especially for how the money listeners 322 00:17:10,520 --> 00:17:12,280 Speaker 1: who are like I don't really like debt. I kind 323 00:17:12,280 --> 00:17:14,000 Speaker 1: of want to be done with my student loan debt 324 00:17:14,560 --> 00:17:17,320 Speaker 1: wise or not to pay it off? Yeah, so I 325 00:17:17,760 --> 00:17:20,080 Speaker 1: think it can be wise. If you're in that boat 326 00:17:20,119 --> 00:17:23,119 Speaker 1: where forgiveness is either just not attractive to you or 327 00:17:23,400 --> 00:17:27,199 Speaker 1: mathematically isn't going to make sense, then now is a 328 00:17:27,240 --> 00:17:30,600 Speaker 1: great time to be putting extra payments or just paying 329 00:17:30,720 --> 00:17:32,800 Speaker 1: towards the loans. I know you don't have to right now, 330 00:17:32,800 --> 00:17:36,000 Speaker 1: but if you are making payments, your dollars are going 331 00:17:36,040 --> 00:17:38,960 Speaker 1: further because you're not going up against interest as well, 332 00:17:39,840 --> 00:17:41,520 Speaker 1: it gives you a little bit of a bigger shovel 333 00:17:41,680 --> 00:17:45,080 Speaker 1: to start, you know, winding that down. So that's that's 334 00:17:45,119 --> 00:17:47,200 Speaker 1: definitely something you can do. The only thing I would 335 00:17:47,320 --> 00:17:50,520 Speaker 1: mention is just make sure that there's other h make 336 00:17:50,560 --> 00:17:53,919 Speaker 1: sure that other bigger priorities are taking care of first, 337 00:17:54,080 --> 00:17:57,000 Speaker 1: Like make sure you're paying down other higher interest debt first, 338 00:17:57,000 --> 00:17:59,919 Speaker 1: like credit cards, Like you shouldn't be accelerating your student 339 00:18:00,000 --> 00:18:04,199 Speaker 1: own payments right now. If you have interest rates on 340 00:18:04,359 --> 00:18:08,000 Speaker 1: some credit card debt, prioritize that first. Make sure maybe 341 00:18:08,000 --> 00:18:10,959 Speaker 1: you have some money in emergency savings because that's the 342 00:18:11,000 --> 00:18:14,240 Speaker 1: first line of defense against credit card debt. And then 343 00:18:14,280 --> 00:18:16,720 Speaker 1: if those two things are checked off, there's no other 344 00:18:16,800 --> 00:18:19,760 Speaker 1: financial priorities that that you need to be taking a 345 00:18:19,760 --> 00:18:22,840 Speaker 1: look at. Then definitely start to work down the balance 346 00:18:22,880 --> 00:18:26,040 Speaker 1: now if the one time cancelation does come through, because 347 00:18:26,040 --> 00:18:28,080 Speaker 1: that might be a question that people have as well. 348 00:18:28,480 --> 00:18:31,480 Speaker 1: You know, I don't want to pay it off um, 349 00:18:31,560 --> 00:18:35,160 Speaker 1: So what's good is if you do pay off enough 350 00:18:35,240 --> 00:18:39,040 Speaker 1: to where a portion of that would have been canceled 351 00:18:39,119 --> 00:18:42,720 Speaker 1: or forgiven, if this one time cancelation comes through, you 352 00:18:42,760 --> 00:18:45,240 Speaker 1: will get that back in a refund. So there's no 353 00:18:45,400 --> 00:18:48,960 Speaker 1: downside to be paying right now because if the one 354 00:18:48,960 --> 00:18:51,720 Speaker 1: time cancelation comes through, you'll you'll get that money back. 355 00:18:51,840 --> 00:18:55,800 Speaker 1: But maybe one other more crafty suggestion. High yield savings 356 00:18:55,840 --> 00:18:58,639 Speaker 1: accounts are looking really good right now. We're at like 357 00:18:58,760 --> 00:19:03,359 Speaker 1: three percent interest. So what I might suggest is maybe 358 00:19:03,440 --> 00:19:06,119 Speaker 1: put that money aside into a high old savings account 359 00:19:06,200 --> 00:19:08,600 Speaker 1: like what you would be dumping onto the student loans, 360 00:19:08,640 --> 00:19:12,160 Speaker 1: because you'll earn three percent until interest kicks back in 361 00:19:12,760 --> 00:19:16,080 Speaker 1: and before payments and interest are resuming, we'll know we'll 362 00:19:16,080 --> 00:19:18,920 Speaker 1: have a sixty day heads up. Take that money from 363 00:19:18,920 --> 00:19:21,840 Speaker 1: the high old savings plus the three percent that you earned, 364 00:19:22,119 --> 00:19:24,720 Speaker 1: dump it onto the loans at that time, and may 365 00:19:24,720 --> 00:19:28,119 Speaker 1: not be a ton of interest growth, but it'll be 366 00:19:28,119 --> 00:19:30,840 Speaker 1: better than zero percent. So those are some things better 367 00:19:30,880 --> 00:19:32,960 Speaker 1: than nothing. Like you said, it makes all the sense 368 00:19:33,200 --> 00:19:35,920 Speaker 1: in the world to practice those payments, and whether or 369 00:19:35,960 --> 00:19:38,600 Speaker 1: maybe you've already got a high high old savings account, 370 00:19:38,600 --> 00:19:41,320 Speaker 1: and even just creating a separate bucket or like a 371 00:19:41,320 --> 00:19:44,560 Speaker 1: separate sort of sinking fund where you are funneling those 372 00:19:44,560 --> 00:19:47,399 Speaker 1: payments into that just to kind of your market um 373 00:19:47,520 --> 00:19:49,080 Speaker 1: for the student loan payments as well. I think that 374 00:19:49,080 --> 00:19:51,200 Speaker 1: could be smart. But um, Megan, like, what's the latest 375 00:19:51,200 --> 00:19:55,920 Speaker 1: for folks who are in line to receive PSLF. Uh 376 00:19:56,160 --> 00:19:59,320 Speaker 1: it seems like those folks have made out like bandits. Honestly, 377 00:19:59,440 --> 00:20:03,200 Speaker 1: like all of those uh pause months being applied to 378 00:20:03,800 --> 00:20:06,720 Speaker 1: their their timeline, it seems like many folks are likely 379 00:20:06,760 --> 00:20:10,320 Speaker 1: to have a massive chunk of forbearance time count towards forgiveness. 380 00:20:10,359 --> 00:20:13,560 Speaker 1: So yeah, like what what what words of wisdom do 381 00:20:13,560 --> 00:20:16,920 Speaker 1: you have for those folks? Yeah? So PSLF is a 382 00:20:17,040 --> 00:20:20,080 Speaker 1: refreshes for those who are working in government or a 383 00:20:20,119 --> 00:20:24,159 Speaker 1: nonprofit setting. Uh so public service work, you're employed in 384 00:20:24,160 --> 00:20:27,760 Speaker 1: public service full time. There was a lot of news 385 00:20:27,880 --> 00:20:32,240 Speaker 1: about the PSLF waiver that expired October thirty one. It 386 00:20:32,320 --> 00:20:34,600 Speaker 1: was allowing people to go back and get a second 387 00:20:34,680 --> 00:20:37,679 Speaker 1: chance at getting payments to count that previously wouldn't have 388 00:20:37,720 --> 00:20:40,520 Speaker 1: counted because you had the wrong loans or weren't on 389 00:20:40,560 --> 00:20:44,120 Speaker 1: the right repayment plan. That has ended. There are certain 390 00:20:44,160 --> 00:20:47,720 Speaker 1: things that are actually being extended from that though through 391 00:20:47,880 --> 00:20:51,240 Speaker 1: the I d R waiver, and the I DR waiver 392 00:20:51,400 --> 00:20:55,680 Speaker 1: is actually how forbearances were being allowed to get counted 393 00:20:55,760 --> 00:20:59,159 Speaker 1: if they were over certain periods over twelve months of 394 00:20:59,200 --> 00:21:02,679 Speaker 1: consecutive for bearance or more or thirty six months or 395 00:21:02,760 --> 00:21:07,199 Speaker 1: more forbearance um on your account. Ever, so the I 396 00:21:07,320 --> 00:21:10,679 Speaker 1: d R waiver in the PSLF waiver together, that's how 397 00:21:11,280 --> 00:21:14,640 Speaker 1: people were getting a lot of credit for previously ineligible 398 00:21:14,720 --> 00:21:18,560 Speaker 1: payment periods. The I d R waivers still exists, so 399 00:21:18,640 --> 00:21:22,720 Speaker 1: people can still get credit for those forbearances if they 400 00:21:22,760 --> 00:21:26,280 Speaker 1: haven't submitted an employment certification form, so it's not too 401 00:21:26,359 --> 00:21:28,919 Speaker 1: late for people to go back and get prior credit 402 00:21:28,960 --> 00:21:32,600 Speaker 1: for PSLF. If maybe you missed out, you just have 403 00:21:32,720 --> 00:21:35,800 Speaker 1: to still be employed at an eligible employer. Now that's 404 00:21:36,000 --> 00:21:39,640 Speaker 1: one of the bigger differences, but PSLF I think there 405 00:21:39,680 --> 00:21:42,680 Speaker 1: are some positive changes to come as well. Um So 406 00:21:42,720 --> 00:21:47,800 Speaker 1: starting mid July one UH, they're going to start allowing 407 00:21:47,960 --> 00:21:53,240 Speaker 1: contractors in states like California and Texas to qualify for 408 00:21:53,320 --> 00:21:57,680 Speaker 1: PSLF if by state law they're not eligible for PSLF 409 00:21:57,840 --> 00:22:00,560 Speaker 1: because they're they have to be contracted through like a 410 00:22:00,600 --> 00:22:04,240 Speaker 1: partners group for example, like Kaiser Permanente is a great 411 00:22:04,280 --> 00:22:08,119 Speaker 1: example of this for physicians in Texas and California, where 412 00:22:09,080 --> 00:22:12,959 Speaker 1: state law says that they cannot be an employee of 413 00:22:13,000 --> 00:22:15,320 Speaker 1: the nonprofit hospital. They have to be hired through a 414 00:22:15,359 --> 00:22:19,120 Speaker 1: partners group which is not nonprofit. So those folks, even 415 00:22:19,160 --> 00:22:22,639 Speaker 1: though they're doing the same exact job as those you know, 416 00:22:22,800 --> 00:22:26,199 Speaker 1: doctors in a nonprofit hospital setting, they weren't able to 417 00:22:26,240 --> 00:22:29,560 Speaker 1: get PS LEFT because their employer, like who was on 418 00:22:29,600 --> 00:22:33,000 Speaker 1: their W two, wasn't the nonprofit. So those folks will 419 00:22:33,040 --> 00:22:37,639 Speaker 1: now start to be able to qualify starting July. And 420 00:22:37,640 --> 00:22:40,320 Speaker 1: then there's another, you know, a couple other like nuances 421 00:22:40,400 --> 00:22:42,399 Speaker 1: for things that's that they're going to be changing with 422 00:22:42,480 --> 00:22:46,359 Speaker 1: PS left. But that's probably one of the bigger ones, okay. 423 00:22:46,400 --> 00:22:48,439 Speaker 1: And one of the other things I'm kind of confused 424 00:22:48,440 --> 00:22:51,040 Speaker 1: about right now is the new income base plan that 425 00:22:51,080 --> 00:22:55,359 Speaker 1: was announced with the what the ten the track for 426 00:22:55,400 --> 00:22:58,959 Speaker 1: a tenure forgiveness eligibility for that previously was just folks 427 00:22:58,960 --> 00:23:02,359 Speaker 1: in public service who would be eligible for a tenure 428 00:23:02,400 --> 00:23:05,760 Speaker 1: forgiveness timeline, and it also reduced the amount that people 429 00:23:06,200 --> 00:23:08,199 Speaker 1: needed to pay on a monthly basis. I feel like 430 00:23:08,240 --> 00:23:11,159 Speaker 1: that hasn't received nearly as much attention as kind of 431 00:23:11,160 --> 00:23:14,280 Speaker 1: the ten K and forgiveness, But it's huge, right and 432 00:23:14,400 --> 00:23:16,879 Speaker 1: it seems like it could lower the payments substantially for 433 00:23:16,960 --> 00:23:20,240 Speaker 1: millions of folks moving forward, allowing them to achieve full 434 00:23:20,280 --> 00:23:22,720 Speaker 1: forgiveness a whole lot faster. So can you tell us 435 00:23:22,800 --> 00:23:24,960 Speaker 1: more about that and what the status of that new 436 00:23:25,000 --> 00:23:28,720 Speaker 1: IBr plane is right now? Yes, I'm really excited about 437 00:23:28,720 --> 00:23:31,840 Speaker 1: this as well. I agree with you. I think they're well. 438 00:23:32,119 --> 00:23:33,960 Speaker 1: I think there's not as much of attention on it 439 00:23:34,080 --> 00:23:37,119 Speaker 1: right now because is it it's a proposed plan at 440 00:23:37,160 --> 00:23:39,720 Speaker 1: this point that has to go through legislation, so it 441 00:23:40,200 --> 00:23:44,520 Speaker 1: can change. The proposed details though are exciting, Like if 442 00:23:44,560 --> 00:23:47,120 Speaker 1: they go through as is, there's a lot of opportunity 443 00:23:47,160 --> 00:23:51,200 Speaker 1: there and it may have people lean more towards forgiveness 444 00:23:51,280 --> 00:23:55,639 Speaker 1: that maybe otherwise wouldn't have. Maybe you were someone who 445 00:23:55,840 --> 00:23:58,600 Speaker 1: right now, with their current rules, make makes more sense 446 00:23:58,640 --> 00:24:00,840 Speaker 1: to pay the loans off, but with this new plan 447 00:24:01,440 --> 00:24:05,439 Speaker 1: it might lean us more towards considering forgiveness instead. So 448 00:24:05,560 --> 00:24:08,480 Speaker 1: that's that's really interesting. But in a nutshell, I think 449 00:24:08,600 --> 00:24:13,159 Speaker 1: you hit on some good points for undergraduate borrowers. Forgiveness 450 00:24:13,200 --> 00:24:16,080 Speaker 1: could be achieved and as short as ten years without 451 00:24:16,160 --> 00:24:21,600 Speaker 1: public service work, and the payments for undergraduate loans would 452 00:24:21,640 --> 00:24:24,920 Speaker 1: be could be as low as five percent of discretionary income. 453 00:24:25,960 --> 00:24:29,280 Speaker 1: If you're someone who has both undergraduate and graduate loans, 454 00:24:29,840 --> 00:24:32,199 Speaker 1: the graduate loans would still be it could be as 455 00:24:32,280 --> 00:24:34,560 Speaker 1: low as ten percent like the plans we have now, 456 00:24:35,160 --> 00:24:37,760 Speaker 1: but the poverty line deduction that goes into how they 457 00:24:37,800 --> 00:24:41,320 Speaker 1: calculate the income driven payment would be higher, which makes 458 00:24:41,320 --> 00:24:43,679 Speaker 1: the payment a little bit lower just across the board 459 00:24:43,720 --> 00:24:47,199 Speaker 1: for anybody who has federal student loans. And then the 460 00:24:47,240 --> 00:24:50,800 Speaker 1: other piece that's really exciting is there would be an 461 00:24:50,800 --> 00:24:54,760 Speaker 1: interest subsidy, a better interest subsidy. So, thinking about income 462 00:24:54,840 --> 00:24:58,240 Speaker 1: driven plans, if your balance is a lot more than 463 00:24:58,280 --> 00:25:01,680 Speaker 1: what your income is, your income driven payment of course 464 00:25:01,800 --> 00:25:04,560 Speaker 1: is meant to make the payment affordable, but it's probably 465 00:25:04,600 --> 00:25:07,560 Speaker 1: not touching principle and it may not even be covering 466 00:25:07,560 --> 00:25:10,000 Speaker 1: the interest cost per month. So that would mean that 467 00:25:10,040 --> 00:25:13,879 Speaker 1: your balance is growing over time, which would be a 468 00:25:14,000 --> 00:25:17,200 Speaker 1: terrifying thing if there wasn't forgiveness. But there is forgiveness 469 00:25:17,280 --> 00:25:20,119 Speaker 1: with any of these income driven plans after either twenty 470 00:25:20,240 --> 00:25:23,280 Speaker 1: or twenty five years. But one thing to know is 471 00:25:23,359 --> 00:25:27,840 Speaker 1: after forgiveness, whatever balance is forgiven, it can be taxable 472 00:25:27,840 --> 00:25:30,560 Speaker 1: to you in the future as income. So if your 473 00:25:30,560 --> 00:25:33,919 Speaker 1: balance is growing and growing and growing over time, it 474 00:25:34,000 --> 00:25:36,800 Speaker 1: does get forgiven. But if you have to pay taxes 475 00:25:36,800 --> 00:25:39,760 Speaker 1: on that big balance, you know that tax here, that 476 00:25:39,800 --> 00:25:41,879 Speaker 1: could be a hefty tax bill. So one of the 477 00:25:42,160 --> 00:25:45,280 Speaker 1: positive changes that might come with this new income driven 478 00:25:45,280 --> 00:25:47,960 Speaker 1: plan too is that it would not allow the balance 479 00:25:48,000 --> 00:25:51,040 Speaker 1: to grow, so it would stay at what the current 480 00:25:51,080 --> 00:25:53,720 Speaker 1: balance is, even if your payment wasn't enough to cover 481 00:25:53,800 --> 00:25:57,040 Speaker 1: the interest costs per month. So that means in the future, 482 00:25:57,119 --> 00:26:00,119 Speaker 1: if we do have to pay taxes unforgiven debt, it 483 00:26:00,560 --> 00:26:03,000 Speaker 1: would be a lower balance than what it maybe otherwise 484 00:26:03,000 --> 00:26:05,679 Speaker 1: would be. So that's one other big update. I mean, 485 00:26:05,720 --> 00:26:07,800 Speaker 1: that feels like it could be a game changer for 486 00:26:07,840 --> 00:26:10,400 Speaker 1: a ton of folks. So even if this, like the forgiveness, 487 00:26:10,440 --> 00:26:13,600 Speaker 1: gets the headlines, but if this new repayment plan actually 488 00:26:13,640 --> 00:26:18,280 Speaker 1: gets through, that could just completely revolutionize the people how 489 00:26:18,320 --> 00:26:21,360 Speaker 1: they feel and their financial responsibility towards those student loans. 490 00:26:21,400 --> 00:26:23,360 Speaker 1: But I guess you know what, what does that look 491 00:26:23,400 --> 00:26:27,720 Speaker 1: like moving forward? It's a proposal. How does that come 492 00:26:27,760 --> 00:26:31,080 Speaker 1: to fruition? And when will we know more, it does 493 00:26:31,119 --> 00:26:33,800 Speaker 1: have to work its way through legislation, which always takes 494 00:26:33,800 --> 00:26:36,600 Speaker 1: some time, but they I think we're going to see 495 00:26:36,800 --> 00:26:40,520 Speaker 1: some formal decisions on it by summer of three, so 496 00:26:40,560 --> 00:26:42,159 Speaker 1: as as you all can kind of tell, there's a 497 00:26:42,240 --> 00:26:44,160 Speaker 1: lot of things that we're going to have more information 498 00:26:44,200 --> 00:26:47,800 Speaker 1: about by summer of a lot that is up in 499 00:26:47,800 --> 00:26:51,679 Speaker 1: the air. Yeah, and hopefully we will have many updates 500 00:26:51,840 --> 00:26:54,840 Speaker 1: between now and then as more information comes to light. 501 00:26:55,160 --> 00:26:57,560 Speaker 1: But um, okay, Megan, so so talk to us about 502 00:26:57,600 --> 00:27:00,520 Speaker 1: refinancing student loans as well, because I feel, I guess 503 00:27:00,640 --> 00:27:02,560 Speaker 1: it seems like it's been kind of mostly a stupid 504 00:27:02,560 --> 00:27:05,199 Speaker 1: move for folks with federal student leans, at least over 505 00:27:05,240 --> 00:27:07,120 Speaker 1: the past few years. It's not something that you hear 506 00:27:07,400 --> 00:27:09,439 Speaker 1: a lot of folks talking about because why would you 507 00:27:09,520 --> 00:27:11,720 Speaker 1: want to refinance? Don't give up the bird in the 508 00:27:11,720 --> 00:27:17,040 Speaker 1: hands exactly. Uh So, Yeah, with the potential for forgiveness 509 00:27:17,040 --> 00:27:19,560 Speaker 1: still possible, is it still something that that most folks 510 00:27:19,640 --> 00:27:23,480 Speaker 1: should honestly does not even consider at this point right now? 511 00:27:23,680 --> 00:27:26,440 Speaker 1: It's it's tricky, yeah, because we we do have zero 512 00:27:26,480 --> 00:27:30,119 Speaker 1: percent interest for longer. Interest rates are also not great 513 00:27:30,359 --> 00:27:34,240 Speaker 1: right now because of inflation, so there's probably not. There's 514 00:27:34,240 --> 00:27:37,119 Speaker 1: not really any incentive for people to to be refinancing. 515 00:27:37,760 --> 00:27:39,639 Speaker 1: But I think the closer we get to when we 516 00:27:39,680 --> 00:27:42,400 Speaker 1: know payments are turning back on, and once people have 517 00:27:42,480 --> 00:27:45,520 Speaker 1: more clarity on what relief they have access to and 518 00:27:45,560 --> 00:27:49,080 Speaker 1: what they don't, next year will probably be a bigger 519 00:27:49,600 --> 00:27:52,679 Speaker 1: season for looking at refinancing. And this would only be 520 00:27:52,760 --> 00:27:55,800 Speaker 1: applicable for those that are committed to paying their loans 521 00:27:55,880 --> 00:28:00,640 Speaker 1: off because refinancing would privatize the loans, and the benefit 522 00:28:00,680 --> 00:28:02,919 Speaker 1: to doing that is it helps us reduce the interest 523 00:28:03,040 --> 00:28:05,199 Speaker 1: rate compared to what you have in the federal system. 524 00:28:05,240 --> 00:28:07,880 Speaker 1: It's really the only way you can reduce your interest rate. 525 00:28:08,320 --> 00:28:10,239 Speaker 1: But if you do that, you lose out on a 526 00:28:10,240 --> 00:28:13,360 Speaker 1: lot of the benefits federal and you can never get 527 00:28:13,359 --> 00:28:15,480 Speaker 1: back into federal loans. So it's kind of one of 528 00:28:15,480 --> 00:28:17,439 Speaker 1: those big decisions that you want to make sure you 529 00:28:17,440 --> 00:28:21,560 Speaker 1: have all the facts on hand before you pull the trigger. Exactly. 530 00:28:21,560 --> 00:28:24,280 Speaker 1: It's a permanent decision, so it's not a bad decision 531 00:28:24,400 --> 00:28:26,680 Speaker 1: for everybody. If I was talking to a room of 532 00:28:26,680 --> 00:28:28,880 Speaker 1: a hundred people, it's not probably not a bad decision 533 00:28:28,920 --> 00:28:31,399 Speaker 1: for everyone in the room. You just you have to 534 00:28:31,480 --> 00:28:34,399 Speaker 1: make sure it is the right plan for you, and 535 00:28:34,480 --> 00:28:37,359 Speaker 1: so that a way to maybe think about that is 536 00:28:37,400 --> 00:28:41,080 Speaker 1: when that time comes, if you are not eligible for PSLF, 537 00:28:41,640 --> 00:28:46,240 Speaker 1: if your balance is lower than maybe your income, if 538 00:28:46,560 --> 00:28:50,240 Speaker 1: the new income driven plan doesn't seem to be mathematically 539 00:28:50,280 --> 00:28:53,400 Speaker 1: beneficial to you too, where you get loans forgiven, and 540 00:28:53,440 --> 00:28:55,719 Speaker 1: if they don't come out with the one time cancelation, 541 00:28:55,800 --> 00:28:58,920 Speaker 1: or they do and it's already been applied. That those 542 00:28:59,040 --> 00:29:02,160 Speaker 1: kind of things, you'd want check those boxes off before 543 00:29:02,200 --> 00:29:04,320 Speaker 1: you go and look at refinancing. But I think if 544 00:29:04,400 --> 00:29:07,520 Speaker 1: if you're good on those topics and those you've done 545 00:29:07,560 --> 00:29:11,160 Speaker 1: the research on those things, then then maybe refinancing could 546 00:29:11,200 --> 00:29:14,560 Speaker 1: make sense when that time comes. Okay, are one other 547 00:29:14,600 --> 00:29:17,320 Speaker 1: interesting rule change that might help at least some folks 548 00:29:17,440 --> 00:29:20,800 Speaker 1: become more able to discharge their loans to not forgiveness, 549 00:29:20,800 --> 00:29:25,080 Speaker 1: but to discharge them altogether, is via new bankruptcy rules 550 00:29:25,120 --> 00:29:27,400 Speaker 1: that the Biden administration has implemented. So can you give 551 00:29:27,480 --> 00:29:29,920 Speaker 1: us more info on that. It looks like those just 552 00:29:30,000 --> 00:29:31,840 Speaker 1: went into effect, what a week, week and a half 553 00:29:31,840 --> 00:29:36,280 Speaker 1: ago something like that, So we haven't seen widespread discharging 554 00:29:36,440 --> 00:29:38,960 Speaker 1: of student loans via bankruptcy, but it seems like maybe 555 00:29:39,000 --> 00:29:42,600 Speaker 1: we might see that become more common in the future. Yeah. 556 00:29:42,640 --> 00:29:46,160 Speaker 1: So historically, to be able to discharge loans and bankruptcy court, 557 00:29:46,440 --> 00:29:48,280 Speaker 1: you had to prove that you would not be able 558 00:29:48,320 --> 00:29:51,200 Speaker 1: to provide for your family and carry a student loan payment, 559 00:29:51,600 --> 00:29:53,640 Speaker 1: and that was very difficult to do if you had 560 00:29:53,680 --> 00:29:56,480 Speaker 1: federal loans because your income driven payment could be as 561 00:29:56,520 --> 00:29:59,680 Speaker 1: low as zero depending on income. You had to prove 562 00:29:59,800 --> 00:30:03,400 Speaker 1: un do hardship, that's the term. So that has been relaxed. 563 00:30:03,640 --> 00:30:05,480 Speaker 1: There have been a couple of court cases over the 564 00:30:05,520 --> 00:30:07,880 Speaker 1: past couple of years that have really kind of cracked 565 00:30:07,960 --> 00:30:10,920 Speaker 1: this open where you know, student loans are also not 566 00:30:11,360 --> 00:30:16,800 Speaker 1: only lent lent for tuition. You can borrow cost of attendance. 567 00:30:17,440 --> 00:30:22,000 Speaker 1: Uh that that includes living, it can include transportation, food, 568 00:30:22,520 --> 00:30:26,080 Speaker 1: so it's not just tuition. And the reason why student 569 00:30:26,120 --> 00:30:28,560 Speaker 1: loans weren't really dischargeable in the past was because there 570 00:30:28,600 --> 00:30:33,080 Speaker 1: was such an iron clad rule that education, uh you know, 571 00:30:33,120 --> 00:30:36,400 Speaker 1: money for education or loans for education. We're we're just 572 00:30:36,680 --> 00:30:40,720 Speaker 1: it was not not an option to be discharged through 573 00:30:40,800 --> 00:30:44,240 Speaker 1: bankruptcy without that undue hardship, which was again really hard 574 00:30:44,280 --> 00:30:47,800 Speaker 1: to prove. But now that we know and it has 575 00:30:47,840 --> 00:30:49,960 Speaker 1: always been the case, that a lot of the loans 576 00:30:50,000 --> 00:30:52,640 Speaker 1: that you can borrow, the whole balance is not just 577 00:30:52,760 --> 00:30:57,280 Speaker 1: for tuition, could be for other things. That that's one 578 00:30:57,320 --> 00:30:59,280 Speaker 1: piece that's kind of cracked the door open. But I 579 00:30:59,280 --> 00:31:02,400 Speaker 1: think just laxing the rules with the Biden administration is 580 00:31:02,400 --> 00:31:06,800 Speaker 1: going to make bankruptcy an option for student loan debt 581 00:31:06,840 --> 00:31:09,520 Speaker 1: where otherwise it has not been. So it is an option, 582 00:31:09,600 --> 00:31:12,000 Speaker 1: it just might be a really difficult one when it 583 00:31:12,040 --> 00:31:15,440 Speaker 1: comes to your credit. So bankruptcy with student loans, that's 584 00:31:15,440 --> 00:31:19,120 Speaker 1: something you carefully want to consider with an attorney. You 585 00:31:19,120 --> 00:31:21,560 Speaker 1: want to make sure you have all the facts and 586 00:31:21,720 --> 00:31:24,400 Speaker 1: know how that would affect your situation and your finances 587 00:31:24,480 --> 00:31:28,320 Speaker 1: going forward. So you'd want to communicate that or chat 588 00:31:28,360 --> 00:31:31,680 Speaker 1: with an attorney about that before you make that decision. Okay, 589 00:31:32,000 --> 00:31:33,960 Speaker 1: all right, Yeah, that's good, good to know. But we've 590 00:31:34,000 --> 00:31:35,320 Speaker 1: got a few more questions we want to get to 591 00:31:35,400 --> 00:31:38,160 Speaker 1: about student loans, including maybe, just like some of the 592 00:31:38,200 --> 00:31:40,960 Speaker 1: other besides these big things we've tackled already, some of 593 00:31:40,960 --> 00:31:44,000 Speaker 1: the biggest concerns that student loan borrowers face. Will get 594 00:31:44,040 --> 00:31:55,360 Speaker 1: to that and more right after this. All right, we 595 00:31:55,360 --> 00:31:58,120 Speaker 1: are still here talking about student loans. Everything that you 596 00:31:58,120 --> 00:32:02,200 Speaker 1: wanted to know about student loans with Megan McGuire and Megan, 597 00:32:02,240 --> 00:32:05,680 Speaker 1: you know, like besides just the ambiguity of forgiveness and 598 00:32:05,680 --> 00:32:08,480 Speaker 1: payment pauses, I mean we've talked through just how we're 599 00:32:08,480 --> 00:32:10,240 Speaker 1: not going to know a lot of this information until 600 00:32:10,240 --> 00:32:12,880 Speaker 1: it's decided in the course or unless it goes through legislation, 601 00:32:13,200 --> 00:32:15,040 Speaker 1: but right now, like, what are the biggest student loan 602 00:32:15,120 --> 00:32:18,680 Speaker 1: concerns facing folks who you speak with right Like, so 603 00:32:18,720 --> 00:32:21,360 Speaker 1: the folks who who are hire you for your services, 604 00:32:21,640 --> 00:32:23,720 Speaker 1: what are some of the like maybe some of the 605 00:32:23,760 --> 00:32:27,360 Speaker 1: more practical issues that you are seeing them deal with 606 00:32:27,480 --> 00:32:31,400 Speaker 1: right now. Well, I think first and foremost is definitely 607 00:32:31,480 --> 00:32:34,800 Speaker 1: just kind of the decision fatigue or like knowing what's 608 00:32:34,800 --> 00:32:38,520 Speaker 1: applicable to them and what's not, because there's so much 609 00:32:38,560 --> 00:32:42,520 Speaker 1: out there right now about student loan forgiveness and new 610 00:32:42,680 --> 00:32:46,400 Speaker 1: repayment options and um, there's just a lot of info 611 00:32:46,560 --> 00:32:48,960 Speaker 1: to where it's hard to kind of filter yourself into 612 00:32:49,240 --> 00:32:52,800 Speaker 1: knowing what you should be paying attention to. So that's 613 00:32:52,880 --> 00:32:56,040 Speaker 1: that's been one. And then I think in inflation is 614 00:32:56,080 --> 00:33:00,320 Speaker 1: another piece of the puzzle, because I think that's something 615 00:33:00,320 --> 00:33:03,160 Speaker 1: that's going to affect people's finances in general, but with 616 00:33:03,200 --> 00:33:08,920 Speaker 1: student loans, inflation has impacted how much the cost of 617 00:33:08,920 --> 00:33:11,719 Speaker 1: attendance is going to be for people going to school. 618 00:33:11,920 --> 00:33:15,360 Speaker 1: Right now, dollars may not go as far as they 619 00:33:15,480 --> 00:33:19,760 Speaker 1: used to, and so the school itself, their cost of attendance, 620 00:33:19,800 --> 00:33:23,200 Speaker 1: how much they allow people to borrow, may not be 621 00:33:23,280 --> 00:33:26,720 Speaker 1: keeping up with inflation when it comes to um the 622 00:33:26,760 --> 00:33:30,880 Speaker 1: ability to borrow for for housing, for transportation, for eating, 623 00:33:31,160 --> 00:33:34,240 Speaker 1: you know, just the basic necessities to provide for yourself 624 00:33:34,320 --> 00:33:37,120 Speaker 1: while you're in school. But it's also affected interest rates, 625 00:33:37,320 --> 00:33:41,200 Speaker 1: which makes paying back student loans more expensive. So federal 626 00:33:41,320 --> 00:33:45,160 Speaker 1: rates right now are are much higher than where they were. Um, 627 00:33:46,080 --> 00:33:48,440 Speaker 1: they really took a nose dive. Interest rates for student 628 00:33:48,480 --> 00:33:53,560 Speaker 1: loans really went down federally and for for private refinancing. 629 00:33:53,600 --> 00:33:56,520 Speaker 1: But now we're back at like six seven per cent, 630 00:33:57,360 --> 00:34:00,640 Speaker 1: which that does make paying student loans back are expensive 631 00:34:00,680 --> 00:34:05,240 Speaker 1: for for folks. UM. So that's another maybe general reality. 632 00:34:05,800 --> 00:34:08,080 Speaker 1: I think PSLF was a huge topic for a while 633 00:34:08,160 --> 00:34:11,120 Speaker 1: with the waiver, but now that's really died down. So 634 00:34:11,160 --> 00:34:12,959 Speaker 1: it's just, you know, I think people are just trying 635 00:34:12,960 --> 00:34:15,920 Speaker 1: to figure out, Okay, what are my next steps and 636 00:34:17,239 --> 00:34:19,200 Speaker 1: the way I tell people to think about how they 637 00:34:19,200 --> 00:34:22,879 Speaker 1: should start putting together their plan is if if you're 638 00:34:22,960 --> 00:34:26,080 Speaker 1: someone whose balance is lower than your income, then you're 639 00:34:26,160 --> 00:34:28,560 Speaker 1: probably someone who needs to be paying the loans off 640 00:34:28,840 --> 00:34:31,920 Speaker 1: here coming up, and maybe you do that now. Maybe 641 00:34:32,160 --> 00:34:34,640 Speaker 1: you pay extra towards the loans now because we're at 642 00:34:34,719 --> 00:34:37,200 Speaker 1: zero percent, or maybe you use the high old savings 643 00:34:37,239 --> 00:34:41,040 Speaker 1: strategy we talked about. If you're someone who's balance is 644 00:34:41,160 --> 00:34:43,839 Speaker 1: much greater than your income than a lot of these 645 00:34:43,880 --> 00:34:48,040 Speaker 1: forgiveness opportunities with income driven repayment, they're going to be 646 00:34:48,080 --> 00:34:51,560 Speaker 1: really applicable to you. So we we know that income 647 00:34:51,640 --> 00:34:55,280 Speaker 1: driven plans provide forgiveness now after twenty or twenty five years, 648 00:34:55,280 --> 00:34:57,759 Speaker 1: So you'd want to figure out which plan that's available 649 00:34:57,760 --> 00:35:00,640 Speaker 1: today makes sense for you if you should be filing 650 00:35:00,640 --> 00:35:04,719 Speaker 1: taxes married or separate, and then if this new plan 651 00:35:04,800 --> 00:35:08,200 Speaker 1: comes about, might be better to jump to at that time. 652 00:35:08,280 --> 00:35:10,960 Speaker 1: But if you're going that forgiveness route, you'd want to 653 00:35:11,000 --> 00:35:14,080 Speaker 1: be paying as little as possible to maximize how much 654 00:35:14,120 --> 00:35:16,239 Speaker 1: you you can get forgiven. So those are ways that 655 00:35:16,280 --> 00:35:18,040 Speaker 1: you could kind of put yourself in a bucket for 656 00:35:18,080 --> 00:35:21,040 Speaker 1: what's coming up. Yeah, I like that rule of thumb 657 00:35:21,320 --> 00:35:23,200 Speaker 1: kind of that balanced to income. I think it's going 658 00:35:23,280 --> 00:35:26,040 Speaker 1: to help a lot of people make a more informed 659 00:35:26,080 --> 00:35:28,359 Speaker 1: decision when it comes to how they proceed with their 660 00:35:28,360 --> 00:35:30,959 Speaker 1: student loans, especially in this limbo time. I think it'll 661 00:35:30,960 --> 00:35:33,920 Speaker 1: just give a lot of folks, uh some context to 662 00:35:33,960 --> 00:35:36,080 Speaker 1: know where it is that they stand. You've got all 663 00:35:36,160 --> 00:35:38,200 Speaker 1: these rules changing, but at the end of the day, 664 00:35:38,360 --> 00:35:40,320 Speaker 1: if you know that cool, this is generally what I 665 00:35:40,360 --> 00:35:42,120 Speaker 1: should be doing, then I think that gives a lot 666 00:35:42,160 --> 00:35:46,120 Speaker 1: of folks what feels like maybe some solid ground. Still 667 00:35:46,360 --> 00:35:48,600 Speaker 1: it's felt it felt like they've just been walking trying 668 00:35:48,600 --> 00:35:51,320 Speaker 1: to navigate through quicksand shifting sand for sure. Yeah, and 669 00:35:51,880 --> 00:35:54,120 Speaker 1: I saw I saw some stats recently, and I'm sure 670 00:35:54,120 --> 00:35:56,280 Speaker 1: these are very familiar to you, but folks with student 671 00:35:56,320 --> 00:35:59,200 Speaker 1: loans are less likely to start a small business, They're 672 00:35:59,239 --> 00:36:02,320 Speaker 1: more likely to delay buying a home and having kids, 673 00:36:02,680 --> 00:36:05,439 Speaker 1: they have less money safe retirement in those early years. 674 00:36:05,800 --> 00:36:08,200 Speaker 1: So do you see that trend amongst the folks you're 675 00:36:08,239 --> 00:36:11,440 Speaker 1: consulting with as well? Like it seems like student loans 676 00:36:11,440 --> 00:36:14,759 Speaker 1: are holding people back from the normal milestones they would 677 00:36:14,760 --> 00:36:17,320 Speaker 1: be would have been achieving were they not to have those. 678 00:36:17,719 --> 00:36:20,279 Speaker 1: So I don't know, I'm just yeah, curious to hear 679 00:36:20,840 --> 00:36:23,759 Speaker 1: the people you talk with, how are they impacting those 680 00:36:23,760 --> 00:36:27,360 Speaker 1: student loans and the reality of having potentially tens or 681 00:36:27,400 --> 00:36:28,920 Speaker 1: of thousands of dollars in dead or more, How are 682 00:36:28,960 --> 00:36:33,319 Speaker 1: they impacting their life decisions? Absolutely, this is literally why 683 00:36:33,480 --> 00:36:37,280 Speaker 1: I wanted to to specialize in student loan planning because 684 00:36:38,080 --> 00:36:41,840 Speaker 1: when I was working with my financial coaching practice, I 685 00:36:42,280 --> 00:36:45,839 Speaker 1: kept seeing this where people were not saving for retirement, 686 00:36:45,920 --> 00:36:48,440 Speaker 1: they weren't starting the business that they wanted to do 687 00:36:48,800 --> 00:36:50,959 Speaker 1: when you know, when they were in college they thought 688 00:36:50,960 --> 00:36:54,280 Speaker 1: they were going to do. People living at home for longer, 689 00:36:54,400 --> 00:36:57,480 Speaker 1: or delaying marriage. I've literally seen that where people have 690 00:36:57,560 --> 00:37:01,520 Speaker 1: delayed getting married because of student loans. So that really 691 00:37:02,239 --> 00:37:04,480 Speaker 1: tugged on my heart strings because I felt like this 692 00:37:04,560 --> 00:37:07,920 Speaker 1: was just one big elephant in the room that people 693 00:37:07,960 --> 00:37:11,439 Speaker 1: had to deal with and it wasn't very clear or 694 00:37:11,440 --> 00:37:14,759 Speaker 1: it was just complicated, Like student loans are complicated, They're 695 00:37:14,760 --> 00:37:18,440 Speaker 1: the most complicated debt out there. And so what I 696 00:37:18,520 --> 00:37:22,440 Speaker 1: realized really quickly though, with with learning more about student 697 00:37:22,520 --> 00:37:25,160 Speaker 1: loan planning is that if you have the right plan 698 00:37:25,239 --> 00:37:29,680 Speaker 1: in place, then that gives you so much more. Not permission, 699 00:37:29,719 --> 00:37:33,120 Speaker 1: that's not the right word. But more clarity on what 700 00:37:33,200 --> 00:37:35,319 Speaker 1: that path is going to look like for you, which 701 00:37:35,480 --> 00:37:38,960 Speaker 1: frees up your mind to be thinking about other things. 702 00:37:39,320 --> 00:37:42,280 Speaker 1: And if we have the right plan in place too, 703 00:37:42,800 --> 00:37:45,520 Speaker 1: then that means we we know what the payments are 704 00:37:45,520 --> 00:37:47,359 Speaker 1: going to be. We know if we need to save 705 00:37:47,400 --> 00:37:52,520 Speaker 1: for a potential tax implication for loan forgiveness, other money 706 00:37:52,600 --> 00:37:55,759 Speaker 1: could be dedicated towards other things. And so what I 707 00:37:55,760 --> 00:37:58,479 Speaker 1: see a lot of times is before people have a plan, 708 00:37:58,920 --> 00:38:02,839 Speaker 1: that's absolutely true, people are delaying other financial decisions and 709 00:38:02,840 --> 00:38:07,760 Speaker 1: that's negatively hurting them in one way or another financially, mentally, 710 00:38:08,560 --> 00:38:11,839 Speaker 1: time wise, whatever the case. But after they have a plan, 711 00:38:12,600 --> 00:38:16,359 Speaker 1: a plan that really fits their specific circumstances, and they 712 00:38:16,360 --> 00:38:20,080 Speaker 1: feel comfortable with it, they understand how that works, that 713 00:38:20,160 --> 00:38:23,359 Speaker 1: really opens the floodgates to being able to move on 714 00:38:23,520 --> 00:38:26,640 Speaker 1: to make other financial decisions like being able to save 715 00:38:26,680 --> 00:38:29,440 Speaker 1: for that house purchase or being able to start that 716 00:38:29,520 --> 00:38:32,359 Speaker 1: business because they know how this will play out. So 717 00:38:32,719 --> 00:38:35,719 Speaker 1: that is the favorite part of my job, is like 718 00:38:36,000 --> 00:38:39,359 Speaker 1: cracking open that door that has been locked for so 719 00:38:39,400 --> 00:38:42,080 Speaker 1: long for people that that maybe didn't have a plan 720 00:38:42,200 --> 00:38:45,920 Speaker 1: for their loans and and being able to to watch 721 00:38:46,000 --> 00:38:49,960 Speaker 1: them like see that, you know, see see what's next. 722 00:38:50,160 --> 00:38:52,480 Speaker 1: That's exactly the ability for them to light up and 723 00:38:52,480 --> 00:38:54,440 Speaker 1: to realize that there is some hope, that there's some 724 00:38:54,760 --> 00:38:55,960 Speaker 1: light at the end of the tunnel. And just to 725 00:38:56,040 --> 00:38:58,400 Speaker 1: use like a biblical reference, it feels like that student 726 00:38:58,400 --> 00:38:59,840 Speaker 1: loans can be like a plank in your eye and 727 00:38:59,840 --> 00:39:01,759 Speaker 1: you can't see pass them to anything else that you 728 00:39:01,760 --> 00:39:03,960 Speaker 1: want to achieve, And it seems like, yeah, the right 729 00:39:04,000 --> 00:39:05,919 Speaker 1: plan can help you kind of take that plank out 730 00:39:05,960 --> 00:39:08,040 Speaker 1: so that people can see a little more clearly that 731 00:39:08,040 --> 00:39:11,560 Speaker 1: there are other options available, and so they PAIRDIGM introduce Megan, 732 00:39:11,600 --> 00:39:14,719 Speaker 1: like you're talking about, you know, life before you had 733 00:39:14,760 --> 00:39:16,760 Speaker 1: a plan to pay after student loans, in life after 734 00:39:16,800 --> 00:39:19,160 Speaker 1: you have a plan. Yes, well, I mean there's also 735 00:39:19,239 --> 00:39:21,239 Speaker 1: just the whole if you take if you zoom out 736 00:39:21,239 --> 00:39:24,800 Speaker 1: one more one more click, one more step, even before 737 00:39:24,960 --> 00:39:26,759 Speaker 1: you take on student loans. I think, I mean that 738 00:39:26,800 --> 00:39:30,040 Speaker 1: could that could also be just another way to approach 739 00:39:30,160 --> 00:39:32,640 Speaker 1: this entire problem. You know, this is another way of 740 00:39:32,680 --> 00:39:34,800 Speaker 1: cracking this nut, is not having to deal with a 741 00:39:34,880 --> 00:39:37,440 Speaker 1: nut in the first place. So I mean, like you're 742 00:39:37,440 --> 00:39:39,480 Speaker 1: obviously agreeing when it when it comes to helping folks 743 00:39:39,520 --> 00:39:43,279 Speaker 1: navigate this complicated system of student loans and helping them 744 00:39:43,280 --> 00:39:45,960 Speaker 1: to pay it off. But what tips do you have 745 00:39:46,160 --> 00:39:48,719 Speaker 1: for for high school students or maybe for parents of 746 00:39:48,760 --> 00:39:51,880 Speaker 1: high school of high schoolers when it comes to taking 747 00:39:51,880 --> 00:39:54,000 Speaker 1: out student loans in the first place, to to keep 748 00:39:54,040 --> 00:39:57,920 Speaker 1: those to a minimum. Yeah, yeah, so I think, Um, 749 00:39:57,960 --> 00:39:59,560 Speaker 1: there's a couple of tips and tricks. And I don't 750 00:39:59,560 --> 00:40:02,560 Speaker 1: know you've talked about some of these things too, But um, 751 00:40:02,600 --> 00:40:06,480 Speaker 1: saving early and often for for education for your kids, 752 00:40:06,680 --> 00:40:10,279 Speaker 1: I think that's that's helpful if if you're able to 753 00:40:10,840 --> 00:40:13,600 Speaker 1: that's that's the other piece of it is financial planning wise, 754 00:40:13,640 --> 00:40:16,719 Speaker 1: like you want to prioritize yourself and your own financial 755 00:40:16,760 --> 00:40:20,720 Speaker 1: well being before you start contributing to your kids. Um, 756 00:40:20,800 --> 00:40:24,120 Speaker 1: because you can take out loans for school, as we know, 757 00:40:24,600 --> 00:40:27,840 Speaker 1: but you know your scholarships. Yeah, and you could get scholarships, 758 00:40:27,880 --> 00:40:31,160 Speaker 1: but your financial well being, you being financially independent in 759 00:40:31,160 --> 00:40:34,919 Speaker 1: the future, it takes priority. But um, if you're able 760 00:40:34,920 --> 00:40:38,160 Speaker 1: to contribute early and often, do it. You know, open 761 00:40:38,200 --> 00:40:41,360 Speaker 1: an account nine or a U T M A or 762 00:40:41,960 --> 00:40:46,200 Speaker 1: a non retirement brokerage account. Start saving early because you 763 00:40:46,239 --> 00:40:48,319 Speaker 1: have time on your side when your kids are young 764 00:40:48,600 --> 00:40:51,799 Speaker 1: and maybe that's something you request from family. Like I've 765 00:40:51,800 --> 00:40:54,960 Speaker 1: seen this a lot lately, is where instead of toys 766 00:40:55,480 --> 00:40:58,920 Speaker 1: or gifts at Christmas, you ask for donations to to 767 00:40:59,000 --> 00:41:01,600 Speaker 1: the college, say beings account. That's one way from a 768 00:41:01,640 --> 00:41:06,560 Speaker 1: lump of coal and a contribution. Yeah, so that's that's 769 00:41:06,600 --> 00:41:09,080 Speaker 1: one way. But if you're at the point where we're 770 00:41:09,080 --> 00:41:11,120 Speaker 1: getting close to when we we need to be going 771 00:41:11,160 --> 00:41:12,920 Speaker 1: to school, and we're really just looking at trying to 772 00:41:12,960 --> 00:41:15,279 Speaker 1: reduce the costs as much as possible, we don't have 773 00:41:15,320 --> 00:41:18,520 Speaker 1: a lot saved, or maybe it's not enough going local. 774 00:41:18,880 --> 00:41:23,600 Speaker 1: Is out of school tuition is insane compared to in 775 00:41:23,719 --> 00:41:26,879 Speaker 1: state tuition rates, Like you could look at the statistics 776 00:41:26,920 --> 00:41:29,439 Speaker 1: on it, you can look at the math on it. 777 00:41:29,440 --> 00:41:32,799 Speaker 1: It's disturbing how much more expensive it is for an 778 00:41:32,800 --> 00:41:35,840 Speaker 1: out of school, out of state school for for a student. 779 00:41:36,440 --> 00:41:38,759 Speaker 1: So that's something to keep in mind when you're looking 780 00:41:38,800 --> 00:41:42,520 Speaker 1: at school choices. Scholarships are not something to sleep on. 781 00:41:42,800 --> 00:41:46,400 Speaker 1: Grant opportunities are not something to sleep on. Make that 782 00:41:46,520 --> 00:41:49,080 Speaker 1: your kid. The high school kids like part time job 783 00:41:49,239 --> 00:41:52,600 Speaker 1: over the summer, like applying literally, like do the math 784 00:41:52,680 --> 00:41:56,919 Speaker 1: if you get uh two thousand dollar scholarship for five 785 00:41:56,960 --> 00:41:59,799 Speaker 1: hours of work. That's a pretty good hourly pay rate, 786 00:42:00,400 --> 00:42:02,200 Speaker 1: you know, way better than you're going to give it 787 00:42:02,200 --> 00:42:05,120 Speaker 1: a fast food restaurant or the grocery store. Yeah, probably 788 00:42:05,120 --> 00:42:06,920 Speaker 1: a little bit more than you're gonna make selling bracelets 789 00:42:06,960 --> 00:42:09,799 Speaker 1: at the fourth Red of Life as well. So you know, 790 00:42:09,880 --> 00:42:13,000 Speaker 1: maybe you should have been applying to Grant Megan when 791 00:42:14,680 --> 00:42:17,879 Speaker 1: off the college. Yeah. Maybe, what other thought? I think 792 00:42:17,960 --> 00:42:21,040 Speaker 1: sometimes people don't think they could have a job while 793 00:42:21,080 --> 00:42:23,360 Speaker 1: in undergrad I know, graduate school it's a lot more 794 00:42:23,400 --> 00:42:26,480 Speaker 1: difficult for people to to work full time because that 795 00:42:26,680 --> 00:42:30,560 Speaker 1: is their job. But undergrad that's a great opportunity for 796 00:42:31,040 --> 00:42:34,520 Speaker 1: your kid or you to be getting into the workforce, 797 00:42:34,600 --> 00:42:38,120 Speaker 1: to be maybe even getting into an industry that you 798 00:42:38,160 --> 00:42:40,840 Speaker 1: think you want to go into, like working as a 799 00:42:40,880 --> 00:42:43,160 Speaker 1: receptionist at a dental office if you want to be 800 00:42:43,200 --> 00:42:47,240 Speaker 1: a dentist, or working in a sales and marketing office. 801 00:42:47,360 --> 00:42:51,799 Speaker 1: Like there are internships, there's lower in you know, entry 802 00:42:51,880 --> 00:42:54,640 Speaker 1: level jobs that you could be doing while you're in college. 803 00:42:55,320 --> 00:42:57,600 Speaker 1: They both give you clarity on what you want to 804 00:42:57,600 --> 00:43:01,520 Speaker 1: do for work post graduation and also give you some money. 805 00:43:01,920 --> 00:43:04,719 Speaker 1: Maybe there's also incentives that they have as part of 806 00:43:04,719 --> 00:43:07,919 Speaker 1: their employer benefits to keep you in school to get 807 00:43:08,200 --> 00:43:11,440 Speaker 1: your c p A. Or to get a degree specifically 808 00:43:11,480 --> 00:43:14,480 Speaker 1: for their you know, for that industry. So that's something 809 00:43:14,520 --> 00:43:17,200 Speaker 1: that I highly recommend. That's what I did when I went. 810 00:43:17,239 --> 00:43:21,280 Speaker 1: I went to Kennesaw State here in Georgia. I worked. Yeah, 811 00:43:22,040 --> 00:43:23,759 Speaker 1: it was a small school when I went. We didn't 812 00:43:23,760 --> 00:43:27,040 Speaker 1: have football yet, but they're they're on the up and up. 813 00:43:27,520 --> 00:43:29,879 Speaker 1: But I worked full time the four years I went 814 00:43:29,920 --> 00:43:33,400 Speaker 1: to undergrad. I did the books for a gym facility 815 00:43:33,600 --> 00:43:36,400 Speaker 1: in in the area, and that's where I learned that 816 00:43:36,440 --> 00:43:40,560 Speaker 1: I really liked numbers and doing you know, planning. And 817 00:43:40,600 --> 00:43:43,399 Speaker 1: it wasn't personal financial planning at the time, but that 818 00:43:43,520 --> 00:43:46,399 Speaker 1: job made me realize I didn't want to go into 819 00:43:46,400 --> 00:43:49,640 Speaker 1: corporate finance, that I wanted to do personal finance. So 820 00:43:49,680 --> 00:43:52,160 Speaker 1: that I think helped me pay for school, pay for 821 00:43:52,200 --> 00:43:55,680 Speaker 1: my living instead of having to borrow for living, and 822 00:43:55,840 --> 00:43:58,080 Speaker 1: um helped point me in the direction to my career. 823 00:43:58,840 --> 00:44:02,000 Speaker 1: I think that's rate advice. I think it's great, like 824 00:44:02,040 --> 00:44:04,520 Speaker 1: you said, from an income perspective, but also a lot 825 00:44:04,560 --> 00:44:06,520 Speaker 1: of people graduating, they're like, what do I do now? 826 00:44:06,960 --> 00:44:09,360 Speaker 1: Where do I go work now? And there's this crisis 827 00:44:09,520 --> 00:44:12,439 Speaker 1: of I don't know what career path I want to take, 828 00:44:12,719 --> 00:44:15,640 Speaker 1: but you know, having that job at least for a 829 00:44:15,640 --> 00:44:18,960 Speaker 1: couple of years while you're getting your degree can help 830 00:44:19,000 --> 00:44:21,480 Speaker 1: you make those connections and help you kind of figure 831 00:44:21,520 --> 00:44:23,400 Speaker 1: out what it is that you want to do moving forward. 832 00:44:23,520 --> 00:44:26,600 Speaker 1: You're not solely just like, Okay, now that I've got 833 00:44:26,600 --> 00:44:28,440 Speaker 1: my degree in hand, what do I do? You're figuring 834 00:44:28,480 --> 00:44:30,759 Speaker 1: that out along the way, And I think that's just 835 00:44:30,920 --> 00:44:34,719 Speaker 1: so helpful for young adults to go in that direction. Yeah, 836 00:44:34,960 --> 00:44:37,120 Speaker 1: that's a great point because I think we we did. 837 00:44:37,200 --> 00:44:39,920 Speaker 1: There was a period of time where the answer for 838 00:44:40,239 --> 00:44:43,000 Speaker 1: young adults was just go to school, get a degree, 839 00:44:43,280 --> 00:44:46,399 Speaker 1: you'll get a good job. Now that's changed a little bit. 840 00:44:46,640 --> 00:44:48,880 Speaker 1: You need to be a little more proactive about what 841 00:44:48,920 --> 00:44:51,600 Speaker 1: you're going to school for, what the game plan is 842 00:44:51,640 --> 00:44:55,719 Speaker 1: after graduation, and I think you know, part time employment, 843 00:44:55,760 --> 00:44:58,920 Speaker 1: even full time employment during school or internships over the 844 00:44:58,920 --> 00:45:01,880 Speaker 1: summer like that really help you get an idea for 845 00:45:02,320 --> 00:45:05,200 Speaker 1: what you actually want to do with your career. That's right. Yeah, 846 00:45:05,200 --> 00:45:08,200 Speaker 1: it's just about thinking ahead a little bit, having am 847 00:45:08,200 --> 00:45:12,080 Speaker 1: having a game plan? Yes, well, Megan, oftentimes when we 848 00:45:12,120 --> 00:45:14,160 Speaker 1: talk about financial planners, we kind of knock them a 849 00:45:14,160 --> 00:45:17,320 Speaker 1: little bit, because, to be honest, when it comes to investing, 850 00:45:17,320 --> 00:45:19,720 Speaker 1: it's not all that difficult for the most part, especially 851 00:45:19,760 --> 00:45:22,759 Speaker 1: early on in your your career. But you provide really 852 00:45:22,760 --> 00:45:25,240 Speaker 1: helpful guidance and what it is that you do, especially 853 00:45:25,280 --> 00:45:28,719 Speaker 1: for those who've that that that might have more complicated 854 00:45:28,760 --> 00:45:31,680 Speaker 1: student and situations. And so we want to give folks 855 00:45:31,960 --> 00:45:33,759 Speaker 1: a chance here to to learn more about you, Like 856 00:45:33,760 --> 00:45:35,839 Speaker 1: where can folks learn about the services that you are 857 00:45:35,840 --> 00:45:40,560 Speaker 1: offering individuals. Yeah, so I run my own practice, financial 858 00:45:40,600 --> 00:45:43,320 Speaker 1: Coach Megan, so you could go to my website financial 859 00:45:43,320 --> 00:45:47,000 Speaker 1: coach Megan dot com. I started in the financial planning industry, 860 00:45:47,040 --> 00:45:52,480 Speaker 1: like the traditional investment planning like comprehensive retirement planning world, 861 00:45:53,239 --> 00:45:57,360 Speaker 1: and I quickly realized that there was a section of 862 00:45:57,400 --> 00:46:00,400 Speaker 1: people that was not really being catered to, and that 863 00:46:00,520 --> 00:46:04,279 Speaker 1: was those that were, you know, post graduation, had a 864 00:46:04,320 --> 00:46:07,400 Speaker 1: lot of student loan debt, had pretty good income, but 865 00:46:07,640 --> 00:46:10,880 Speaker 1: really didn't have any or didn't know where to start 866 00:46:10,920 --> 00:46:14,319 Speaker 1: when it came to putting together a financial plan. And so, 867 00:46:14,680 --> 00:46:16,960 Speaker 1: you know, I wanted to help folks figure out how 868 00:46:16,960 --> 00:46:20,439 Speaker 1: to put together a budget, how to pay down student loans, 869 00:46:20,520 --> 00:46:22,760 Speaker 1: or how to pay down other debt, how to start 870 00:46:22,760 --> 00:46:25,960 Speaker 1: saving for retirement. Um So I don't focus on investment 871 00:46:25,960 --> 00:46:29,120 Speaker 1: management at all. I'm focusing on helping people build those 872 00:46:29,160 --> 00:46:33,080 Speaker 1: foundational pieces to their plan. And I really enjoy this space. 873 00:46:33,120 --> 00:46:36,279 Speaker 1: I think this helps people who you know, weren't really 874 00:46:36,320 --> 00:46:40,360 Speaker 1: taught this while growing up, or you know, don't really 875 00:46:41,000 --> 00:46:43,360 Speaker 1: I know that's probably not gonna be anybody on this podcast, 876 00:46:43,400 --> 00:46:46,520 Speaker 1: because people listening to this are definitely folks that seek 877 00:46:46,560 --> 00:46:49,520 Speaker 1: out information and learn how to do their own planning. 878 00:46:49,560 --> 00:46:52,960 Speaker 1: But yeah, I think I cater to people that really 879 00:46:53,000 --> 00:46:56,240 Speaker 1: just need that additional guidance to pull all those pieces together. 880 00:46:56,760 --> 00:46:59,080 Speaker 1: Um So that's the coaching space. So that's what I 881 00:46:59,080 --> 00:47:02,680 Speaker 1: would call it, finding actual coaching. And I think that's different, Like, 882 00:47:02,800 --> 00:47:04,880 Speaker 1: that's so much different, Matt, and I've said that many times. 883 00:47:04,920 --> 00:47:07,560 Speaker 1: Financial coaches are different than financial planners, and they're more 884 00:47:07,640 --> 00:47:11,480 Speaker 1: valuable for a huge section of our audience than financial 885 00:47:11,520 --> 00:47:14,200 Speaker 1: planners are. And we are glad you're out there. Thank 886 00:47:14,239 --> 00:47:17,640 Speaker 1: you so much for the advice that you bring, oftentimes 887 00:47:17,640 --> 00:47:19,319 Speaker 1: for free, and then people can also pay for it 888 00:47:19,320 --> 00:47:21,719 Speaker 1: too if they need more in depth and more personal guidance. 889 00:47:22,000 --> 00:47:23,800 Speaker 1: But we yeah, we love that you're out there helping 890 00:47:23,800 --> 00:47:27,280 Speaker 1: folks with the student loaning conundrum that continues to exist, 891 00:47:27,719 --> 00:47:30,600 Speaker 1: and uh, this summer, hopefully we'll have more information and 892 00:47:30,719 --> 00:47:33,320 Speaker 1: as as things move along, more information to provide people 893 00:47:33,560 --> 00:47:35,239 Speaker 1: to help them make a wise choice when it comes 894 00:47:35,280 --> 00:47:39,640 Speaker 1: to their student loans, because they're obviously, uh, massively impactful 895 00:47:39,680 --> 00:47:42,600 Speaker 1: to ever to a lot of people's personal finances. But Megan, 896 00:47:42,640 --> 00:47:44,319 Speaker 1: we hope you have a great holiday. Thanks so much 897 00:47:44,360 --> 00:47:46,680 Speaker 1: for joining us on the podcast today. Thank you. I'm 898 00:47:46,719 --> 00:47:49,279 Speaker 1: so honored. It was such a fun time. Alright, man, 899 00:47:49,360 --> 00:47:52,319 Speaker 1: what an awesome conversation here with Megan, an old friend 900 00:47:52,320 --> 00:47:55,759 Speaker 1: of ours who we've known since I think is when 901 00:47:55,800 --> 00:47:59,240 Speaker 1: we originally met her back in the day, but hopefully 902 00:47:59,360 --> 00:48:01,920 Speaker 1: right after she became a CSLP, and now she's like 903 00:48:02,640 --> 00:48:05,720 Speaker 1: all over the place. Just she's like the the lead Georgia. 904 00:48:06,000 --> 00:48:09,680 Speaker 1: I don't put so much in anything, and she does. 905 00:48:10,000 --> 00:48:11,799 Speaker 1: And amazing at how far she's come in the space. 906 00:48:11,880 --> 00:48:13,880 Speaker 1: And I'm very glad that we were able to speak 907 00:48:13,920 --> 00:48:15,919 Speaker 1: with her, because again, there there are so many moving 908 00:48:15,960 --> 00:48:19,400 Speaker 1: parts right now within the student loaned space, um, and 909 00:48:19,440 --> 00:48:20,759 Speaker 1: I think that's one of the things we learned is 910 00:48:20,800 --> 00:48:22,880 Speaker 1: that there is a whole lot that is up in 911 00:48:22,920 --> 00:48:25,640 Speaker 1: the air. But hopefully this conversation was able to provide 912 00:48:25,680 --> 00:48:28,239 Speaker 1: some relief to folks when it comes to knowing what 913 00:48:28,280 --> 00:48:30,319 Speaker 1: they should expect when it comes to student leans here 914 00:48:30,320 --> 00:48:32,520 Speaker 1: in the future. And actually, that'll be my big takeaway 915 00:48:32,960 --> 00:48:35,200 Speaker 1: is she actually gave a nice rule of thumb when 916 00:48:35,200 --> 00:48:37,719 Speaker 1: it came to whether or not you should be considering 917 00:48:37,760 --> 00:48:40,080 Speaker 1: paying off your student loans. So that would be the 918 00:48:40,120 --> 00:48:42,640 Speaker 1: case if you had a student loan balance that was 919 00:48:42,760 --> 00:48:45,319 Speaker 1: less than your annual income. But if you have a 920 00:48:45,320 --> 00:48:48,239 Speaker 1: balance that is higher than your annual income, that is 921 00:48:48,280 --> 00:48:50,240 Speaker 1: when you want to look at some of those income 922 00:48:50,280 --> 00:48:53,640 Speaker 1: based repayment or forgiveness plans. That's when you're gonna want 923 00:48:53,680 --> 00:48:56,240 Speaker 1: to count on these different programs in order to provide 924 00:48:56,239 --> 00:48:58,239 Speaker 1: you with some relief. And so hopefully that's just a 925 00:48:58,280 --> 00:49:00,720 Speaker 1: way that folks can do a little it away finding 926 00:49:00,960 --> 00:49:02,680 Speaker 1: right like, because right now it's like you're in the 927 00:49:02,719 --> 00:49:05,040 Speaker 1: sea and you just have no direction of where to 928 00:49:05,040 --> 00:49:07,360 Speaker 1: go and you need to compass or the stars or 929 00:49:07,400 --> 00:49:10,200 Speaker 1: something something to help you to figure out which which 930 00:49:10,239 --> 00:49:12,279 Speaker 1: direction to go. And that role thought might might not 931 00:49:12,320 --> 00:49:15,640 Speaker 1: fit out everybody's specific situation, but it at least gives 932 00:49:15,680 --> 00:49:18,440 Speaker 1: a lot of people a general map for like what 933 00:49:18,760 --> 00:49:21,680 Speaker 1: the next steps they needed to absolutely And so yeah, 934 00:49:21,719 --> 00:49:23,960 Speaker 1: I think that's I think it's great. You had a 935 00:49:23,960 --> 00:49:26,120 Speaker 1: big take away joll. Yeah. I think mine was when 936 00:49:26,200 --> 00:49:29,960 Speaker 1: when Megan talked about decision fatigue, and there's just with 937 00:49:30,160 --> 00:49:33,200 Speaker 1: all it feels like there's a change. There's a new 938 00:49:33,200 --> 00:49:35,759 Speaker 1: headline about student loans exhausting every day every week. It 939 00:49:35,800 --> 00:49:38,160 Speaker 1: is exhausting. It's overwhelming, and if you have student loans, 940 00:49:38,160 --> 00:49:41,800 Speaker 1: you're probably like, it feels like you're a pinball and 941 00:49:42,239 --> 00:49:44,760 Speaker 1: you don't know what to do because you're getting constantly 942 00:49:44,800 --> 00:49:47,080 Speaker 1: smacked around. You're not sure kind of what to think. 943 00:49:47,120 --> 00:49:48,520 Speaker 1: And that rule of thumb you gave is helpful. But 944 00:49:48,520 --> 00:49:50,880 Speaker 1: I also wanted to say that people need to be 945 00:49:50,880 --> 00:49:52,800 Speaker 1: patient because we're not going to know for a while, 946 00:49:53,239 --> 00:49:56,719 Speaker 1: and so there's no point in constantly hitting refresh on 947 00:49:56,800 --> 00:49:58,759 Speaker 1: Google News in order to see if there's been a 948 00:49:58,840 --> 00:50:02,480 Speaker 1: change made. You'll hear any changes or any massive upheavals, 949 00:50:02,600 --> 00:50:05,279 Speaker 1: or any student loan forgiveness news. You'll certainly hear it 950 00:50:05,320 --> 00:50:07,120 Speaker 1: here on How the Money. I'm sure you'll see it 951 00:50:07,160 --> 00:50:09,520 Speaker 1: elsewhere around the web as well. But to a certain extent, 952 00:50:09,560 --> 00:50:11,319 Speaker 1: there aren't massive moves for a lot of people to make. 953 00:50:11,320 --> 00:50:14,360 Speaker 1: There's planning you can do in advance, there's preparation that 954 00:50:14,440 --> 00:50:18,840 Speaker 1: you can start doing because student loan payments will eventually resume. 955 00:50:19,200 --> 00:50:21,560 Speaker 1: But I just want to say, patients, take a chill, bill, relax. 956 00:50:21,800 --> 00:50:23,400 Speaker 1: That's gonna help a lot of people in this scenario 957 00:50:23,520 --> 00:50:25,480 Speaker 1: because I know there's a lot of angst. There's a 958 00:50:25,520 --> 00:50:29,520 Speaker 1: lot of consternation around student loans, but that's not helping anybody. 959 00:50:29,800 --> 00:50:31,800 Speaker 1: So if you can kind of like take a breather, 960 00:50:32,000 --> 00:50:34,399 Speaker 1: stop checking out the headlines, and know that we will 961 00:50:34,440 --> 00:50:36,480 Speaker 1: know more at some point, but we're just not going 962 00:50:36,520 --> 00:50:39,279 Speaker 1: to know more next week exactly. Yeah, that I think 963 00:50:39,280 --> 00:50:42,040 Speaker 1: that will help some folks. Just take that anxiety, Uh, 964 00:50:42,160 --> 00:50:44,160 Speaker 1: take that anxiety down a peg or two totally. Yeah. 965 00:50:44,200 --> 00:50:46,439 Speaker 1: You need you need to be like the gnomes on 966 00:50:46,480 --> 00:50:48,759 Speaker 1: this bottle of beer that you're not enjoyed. There's so 967 00:50:48,840 --> 00:50:52,439 Speaker 1: this is a nice shoof, this is a Belgian dark 968 00:50:52,760 --> 00:50:54,600 Speaker 1: but on the label it's got these two gnomes. They 969 00:50:54,680 --> 00:50:57,160 Speaker 1: both got Santa hats on Christmas and they're just hanging 970 00:50:57,200 --> 00:50:59,759 Speaker 1: out around the fire. And so that's what we want 971 00:50:59,800 --> 00:51:02,400 Speaker 1: you to do. During especially during this this holiday season. 972 00:51:02,440 --> 00:51:04,359 Speaker 1: If you've got student lines, don't worry about it. It's 973 00:51:04,400 --> 00:51:06,680 Speaker 1: gonna take a while before we know what's next. But 974 00:51:06,760 --> 00:51:10,280 Speaker 1: we do want you to practice your standard responsible personal 975 00:51:10,360 --> 00:51:13,120 Speaker 1: finance habits, of course. But yeah, let's talk about this 976 00:51:13,160 --> 00:51:15,319 Speaker 1: beer jewel. Like I said, this is a Belgian dark 977 00:51:15,440 --> 00:51:18,080 Speaker 1: brewed with spices. It's got orange peel and time in it. 978 00:51:18,080 --> 00:51:20,120 Speaker 1: And I feel like I could totally pick up on 979 00:51:20,160 --> 00:51:24,440 Speaker 1: some of those like minerally earthy notes, like in particular 980 00:51:24,480 --> 00:51:25,799 Speaker 1: from the time. It kind of gave it like this 981 00:51:26,200 --> 00:51:29,719 Speaker 1: savory nous that I was able to enjoy, maybe more 982 00:51:29,719 --> 00:51:32,040 Speaker 1: so than I guess a lot of Belgians like that 983 00:51:32,160 --> 00:51:34,800 Speaker 1: is one of the aspects of those types of beers 984 00:51:34,880 --> 00:51:37,480 Speaker 1: is that their savory. It's almost like you're sitting down 985 00:51:37,560 --> 00:51:40,759 Speaker 1: to like a a stew or something, not like not 986 00:51:40,800 --> 00:51:43,040 Speaker 1: in viscosity or thickness, but just in the type of 987 00:51:43,040 --> 00:51:46,520 Speaker 1: flavor profile that that they're able to bring. Yeah, and 988 00:51:46,560 --> 00:51:48,759 Speaker 1: this one, in particular, it does have more of those 989 00:51:48,760 --> 00:51:51,440 Speaker 1: time notes. It makes it almost it kind of takes 990 00:51:51,440 --> 00:51:53,719 Speaker 1: me back to Thanksgiving a little bit, where you're got 991 00:51:53,760 --> 00:51:55,360 Speaker 1: this I don't know, it's it's like you're you're drinking 992 00:51:55,400 --> 00:51:58,399 Speaker 1: something that was brewed in a garden or something. Well, 993 00:51:58,480 --> 00:52:00,800 Speaker 1: there's nobody in the States or no brewing the States 994 00:52:00,840 --> 00:52:03,880 Speaker 1: that makes any beer that I've tasted that feels like 995 00:52:03,920 --> 00:52:05,480 Speaker 1: it's on the level of some of these Belgian beers. 996 00:52:05,520 --> 00:52:07,640 Speaker 1: And I'm not saying that there aren't beers that are 997 00:52:07,640 --> 00:52:09,759 Speaker 1: brewed by brewers here in the State. I think we 998 00:52:09,840 --> 00:52:12,200 Speaker 1: have we make the best craft beers in America, but 999 00:52:12,360 --> 00:52:15,240 Speaker 1: in the world, in the world. But there's something about 1000 00:52:15,280 --> 00:52:17,760 Speaker 1: the way they make these beers, a style, the approach, 1001 00:52:17,800 --> 00:52:19,960 Speaker 1: the craft. Yeah, and and even some of like the 1002 00:52:20,080 --> 00:52:23,360 Speaker 1: Terawa that like can't be replicated, and so these a 1003 00:52:23,440 --> 00:52:26,600 Speaker 1: beer like this that you can't find one. They're incredibly 1004 00:52:26,680 --> 00:52:28,719 Speaker 1: unique in a Yeah, so you have to get the 1005 00:52:28,719 --> 00:52:31,040 Speaker 1: Belgian briety if you want to try these flavors. And 1006 00:52:31,080 --> 00:52:33,200 Speaker 1: so I love the uniqueness of this beer. It's got 1007 00:52:33,200 --> 00:52:36,360 Speaker 1: like caramel e dark vibes. It's got some of those 1008 00:52:36,400 --> 00:52:40,399 Speaker 1: like dark stone fruit vibes going on as well, And so, yeah, 1009 00:52:40,480 --> 00:52:41,960 Speaker 1: I really like this beer. It's one of the first 1010 00:52:42,000 --> 00:52:43,960 Speaker 1: Belgian beers I've ever had, but I haven't had it 1011 00:52:44,000 --> 00:52:46,200 Speaker 1: in years. So it's kind of fun to to have 1012 00:52:46,239 --> 00:52:48,440 Speaker 1: this one again. It's one of those o g original 1013 00:52:48,480 --> 00:52:50,719 Speaker 1: Belgians that you have when you first get into craft beer, 1014 00:52:50,880 --> 00:52:53,200 Speaker 1: at least in our case when we were visiting the 1015 00:52:53,239 --> 00:52:57,240 Speaker 1: Brick Store, which is a Belgian beer bar here in Atlanta, 1016 00:52:57,320 --> 00:53:00,880 Speaker 1: which is like renowned across the country. That's one of 1017 00:53:00,880 --> 00:53:02,840 Speaker 1: the best beer body. If you're ever in Atlanta, you 1018 00:53:02,840 --> 00:53:05,000 Speaker 1: definitely need to go by there and this place out 1019 00:53:05,040 --> 00:53:06,880 Speaker 1: and and I will say, the picture and then the 1020 00:53:06,960 --> 00:53:10,120 Speaker 1: flavor both make you feel like there's where I started 1021 00:53:10,120 --> 00:53:12,120 Speaker 1: with the label because it was so colorful, but at 1022 00:53:12,120 --> 00:53:16,080 Speaker 1: the same time so like warming. And what's the Danish 1023 00:53:16,160 --> 00:53:20,000 Speaker 1: or the Norwegian hu huga whatever it is. Yeah, it's 1024 00:53:20,080 --> 00:53:21,600 Speaker 1: that's got it's it's got to give you a dose 1025 00:53:21,640 --> 00:53:23,839 Speaker 1: of that all the way. Yeah, but yeah, we'll make 1026 00:53:23,840 --> 00:53:26,600 Speaker 1: sure to link to Megan's website in our show notes. 1027 00:53:26,640 --> 00:53:30,359 Speaker 1: That way, if you are looking for more individualized custom 1028 00:53:30,400 --> 00:53:33,279 Speaker 1: advice when it comes to your student loans, you know 1029 00:53:33,320 --> 00:53:35,040 Speaker 1: how to reach her. But you can find that in 1030 00:53:35,080 --> 00:53:36,759 Speaker 1: our show notes up on the website at how to 1031 00:53:36,840 --> 00:53:39,319 Speaker 1: money dot com. And of course, anytime there is new 1032 00:53:39,360 --> 00:53:42,120 Speaker 1: info about student loans, we will be sure to talk 1033 00:53:42,160 --> 00:53:44,680 Speaker 1: about it on Friday flights or in our newsletters, which 1034 00:53:44,680 --> 00:53:46,520 Speaker 1: you can sign up for at how to money dot 1035 00:53:46,560 --> 00:53:49,360 Speaker 1: com slash newsletter. That's right, man, that's gonna do it 1036 00:53:49,360 --> 00:53:51,960 Speaker 1: for this episode, Matt. Until next time, best Friends Out 1037 00:53:51,960 --> 00:54:04,359 Speaker 1: and Best Friends Out bo