I ran through my options if SAVE is nixed (and going by the new repayment plans from the recently passed bill) and it’s not looking good.
I may have to be on the standard 10-year repayment plan. The loan simulator says $600/mo (even though it’s showing a debt payoff for 8 years not 10 it may be incorrect).
That payment feels extremely scary, my chest has been tight for days from the heaviness of this reality, and it feels incredibly disappointing when I look back to the almost partial student loan cancellation and SAVE plan that we lost out on.
Things feel so hopeless. How do you cope?
Student loan payment is feeling scary…
byu/alienposingashuman inStudentLoans
Posted by alienposingashuman
8 Comments
Mine says $1100 a month IBR. That’s like an extra month of rent every month.
I understand. I can afford the payment I had on SAVE.. that’s what I can do. I cannot come close to affording what the other calculators say. It’s scary and at the same time .. it’s like. Well.. what can I do? I’m gonna hold on to dear life on the SAVE plan .. which I am happy with and can do… I’d be happy to stay on SAVE with no forgiveness ever. I did take the loans .. my intentions were to pay them back.. I happen to have a full care disabled child. I wish I didn’t. I wish he were healthy.. I wish we weren’t scared.. but someone has to be here for him. I could afford my SAVE plan payment… I’m not even asking for forgiveness .. but I absolutely cannot 💩 money …and if it comes down to paying a bill or keeping my kid alive .. I’m gonna choose the latter .. 10/10 times.
Mine is similar and my anxiety is high! Sorry I have no advice just know you arent alone! I dont know what I am going to do, my payment has never been as high as it is predicting so I am sitting on SAVE with crazy anxiety about when I have to be off it!
What is your AGI, family size, and loan balance?
If you’ve never consolidated, your standard plan is a 10 year term. That starts when your loans first entered repayment and the clock keeps going even if you have switched plans. Time in covid forbearance and SAVE forbearance did “pause” the clock so the math can get a little complicated, but it’s possible that if you go back on the standard plan your payments would be calculated to pay off your loans off in 8 years, not 10. It depends when you first entered repayment.
$600/month isn’t terrible depending on salary. Are you earning enough to justify your student loans?
if you switch to another plan, does your time reset (to get forgiveness)?
I did $1400/month in loan payments from 22-30 pretty much. It sucked. And it felt impossible. But I found a way. It’s going to be an adjustment and it’s going to be hard and it’s not fair and getting and education should not be this much of a weight for any of us, but I promise you will figure it out.
I apologize for what I am about to say in advance. I’ve been looking at federal student loans for years and I feel good that the IDRs — even prior to SAVE are extremely manageable. Ten or fifteen percent of your DISPOSABLE income doesn’t seem like a terrible rule. The only two exceptions I can think of are if you have been divorced and have sizable child support to pay every month (or something as unavoidably costly) or if you are a parent plus borrower. That’s 20 percent without pumping the poverty guideline up to 150%
The 5% SAVE calculation above 225% of poverty was undoubtedly a godsend to many, but honestly, I have to say you were given no favors— now that it’s gone. You have to refigure your budget (and you’ll find there’s plenty of room) and maybe downsize your lifestyle for a while. If you leased a car, you may have to suck it up until the lease ends, if you bought a house and payments stretch you beyond the recommended 31% of AGI, you may have to cut other places.
It’s all temporary. But I feel sure you can do it.