I plan on having my loans forgiven, so I am staying on SAVE for now. But I'm worried because this administration is so unpredictable. My worry is that if I wait too long, they won't allow me to switch to the cheapest option and I will be screwed until next year. I'm also wondering if I should re-certify now with my lower income before I file my taxes. Are the extra months in forbearance worth the risk?
Borrowers waiting to be kicked off SAVE, are we being reckless?
byu/90s_kids_only inStudentLoans
Posted by 90s_kids_only
16 Comments
I have decided that I would rather take this time to pay down principle and get closer to being at 0 then wait for them to uncluster this situation
If you’re waiting for forgiveness under an idr plan it’s foolish to wait. This period doesn’t count for IDR forgiveness and there’s no buy back. If you e already hit the threshold for IDR forgiveness I still think you should switch
Im waiting for RAP to be officially released while making low payments. Im also using this time to build up my savings and pay down other debt. I will have the means to pay it later, so I will.
I don’t know tbh, I am unemployed until I can find something that will work with my schedule. Once I can find something that is stabile, I hope in some way, I can update stuff then, but until that I am just staying put.
I switch from SAVE to IBR a few days ago. I’d rather make payments that count toward forgiveness given that I have 13 to go to reach 300.
Im waiting bc the absolute shitshow that will ensue for them to migrate our accounts is going to be hilarious and Im an anarchist at heart. I also have been targeting higher interest loans first to snowball it, but honestly weigh the options and determine what’s best! I only have about 30k in loans so Im not switching , but I know the shift has helped some folks with larger amounts. There’s a few websites out there that make it easier to compare and contrast! Hope all the best with these crazy times ❤️
I’ve been waiting, hoping I might get automatically converted to IBR without having to use new tax info. I was automatically moved from REPAYE to SAVE without requesting it, after all.
If we get to April and no new announcements. I will apply for IBR or ICR before I file my new return.
I’m waiting because there is no planet where Republicans keep power. I dont want a blue sweep, but I’m pretty sure we get one.
I’m waiting and then doing a half time MBA to defer until this administration leaves office. I’ll pay my loans back, but not to these people. I am also leaving open the possibility of finishing up PSLF. I have 4.5 years left if I go back to an eligible employer and 12.5 years if I do IBR.
Probably but it’s been such a shit show I don’t trust anything at the moment.
I’m waiting for RAP because I can’t really afford the monthly payments right now. I have bigger fish to fry in the meantime and I’ll worry about my loans whenever the cluster of the DOE decides to figure 💩out.
Forbearance isn’t helping you get forgiveness. And buyback isn’t an option unless you are pursuing PSLF. If your 2024 AGI is lower than you 2025 AGI will be then it’s probably a good idea to switch to lock in a year of lower payments.
if you’re planning on forgiveness, SAVE forb doesn’t count and you can’t do buyback (assuming you’re not talking about PSLF), so you’re just losing time (unless you’re using the opportunity to pay off other high interest debt or save for a major necessary purchase).
the chances this admin or a court would give credit for save forb is essentially zero. maybe a future admin would “try to make it right” and give credit but I just don’t see the will from congress and as SAVE proved, executive action isn’t holding up as a method of student loan reform.
I do think when you’re officially kicked off, there will be a chance to switch to any plan that exists that you’re eligible for. Depending on your income and situation, RAP may be better for you, so waiting for it to exist may be reasonable. I’d use this time to determine which plan you want (and why). If you’re not paying, it’s a good opportunity to save for other financial priorities or an IDR tax bomb at the end.
If your income is increasing significantly, recertifying now is reasonable. You can mess with an IDR payment calculator estimator to see what your income change will do to your payment.
This risk is up to you, no one knows the outcome of save. That said, what we do know is interest is accruing, you likely will make more money as you get older, and do you really think the options they offer after save legislation is resolved will be “cheaper” options than they offer now? If goal is forgiveness and you can flip the bill now. Get off save and start making qualified payments toward forgiveness. If “cheaper” options arise, you can switch down the road.
Assume you have to pay the loan back in full. This is coming from someone who was on save, graduated 2014, loans paid in full as of last year
At this point I’m holding myself to the same standard as this government which means disorganized and reckless. Not leaving until I’m forced off. Why hold yourself to a standard that your own government won’t even hold itself to
I think most of y’all have lost the plot…
There is no “risk”. Not once has MOHELA reached out to me regarding my account and *needing* to switch.
Meaning, waiting until we receive formal instructions is not something that can be held against us or specifically used to inflict harm.