New Student Loan Plan Can Possibly Reduce Payments to ZERO!
If you owe over 12,000 in student loans, keep reading.
There is a New Student Loan Repayment Plan that can drastically reduce your FEDERAL Loan payments perhaps to ZERO!! That’s Right ZERO! I wanted to share this with you because it has just been announced and it can help save you thousands of dollars off your student debt and lower your monthly payment to perhaps zero!
THIS DOES NOT WORK FOR PRIVATE STUDENT LOANS- LOANS FROM A BANK!
Student Loan Repayment is the most complex, confusing part of college financial planning and new legislation just passed along with its 400 some odd pages accompanying, it's even more so.
This new repayment plan is called SAVE (Save on A Valuable Education) or as some call it the New REPAYE because it replaces the old REPAYE.
This is the most generous, aggressive plan to help students and grad students pay off or eliminate their FEDERAL Student Debt to date. As for the parents with Federal Plus Loans, as a standalone plan, it will NOT help. HOWEVER, there is a LOOPHOLE (absolutely 100% legal) that will allow people with a PLUS loan to gain access to this plan. You must ACT NOW as this Loophole will be closing.
Consider this situation. You are a VP at a company and earn $100,000 a year. Your spouse earns $250,000 as a corporate recruiter. Your combined income is $350,000. The VP has $100,000 in Undergrad debt. Assume they have 3 kids as well.
Under current repayment rules, there’s no way a borrower in this situation could receive forgiveness on her student loans.
But under the new rules, they could.
Your payment under the REPAYE falls from $2,477 a month to just $135 a month in the new SAVE plan. That’s a 94.5% decrease in payments. Not only that, the total amount that they would repay drops from $66,612 to $182,638. TRUE!! They pay back less than borrowed and the rest is forgiven under the new plan.
There are other strategies that could possibly cut the payment to ZERO!
I don’t know about you but I could, and I bet we all could use an additional $2,342 in my wallet each month!
So even if a couple earns into the mid-six figures it is possible to get a substantial reduction in payments and total amount repaid.
Here’s another regarding a couple that is considering retiring and has been paying off their son’s education with their PLUS loan. They each make about $75,000. They are in the standard repayment plan and currently pay $1200 a month. Using the loophole we mentioned before and with the new repayment plan that drops to $367 a month. Pretty dramatic!
Not only that, but because of the new SAVE rules, their interest rate drops from 6% to about 3.25%!
When you can put money in a money market fund and currently earn over 4%, there would be no rational reason to pay down this debt more quickly.
Under the New SAVE plan, couples earning into the mid-six figures could qualify for free college.
These new rules make it possible for a family that got professional help, or studied the 400 or so pages of the new legislation, could send all of their kids to just about any college for almost free!
You ask, “How is That Possible?”
• Borrow up to the maximum for Stafford loans in the child’s name.
• Then, put unlimited Parent PLUS loans for as many kids as you have in the name of one parent.
• Use the loophole I mentioned several times.
• And use another strategy we can discuss during our conference, so you can pay almost $0 monthly for 20 years, with no interest growth, while the full balance is forgiven.
BUT YOU HAVE TO DO THIS ASAP BEFORE THE LOOPHOLE ENDS
Many people I know and am sure you have heard also have used a mortgage to pay for college. The problem is that mortgages have to be repaid and your house is used as collateral!
Instead, they could have borrowed the amount under Parent PLUS and used this loophole to access New REPAYE and pay almost nothing.
I have helped hundreds perhaps thousands through this extremely complex process, I KNOW I CAN help you!
Send me an e-mail at MGaer@CollegeFinancing.com or simply click this link to schedule a meeting. Preferably Zoom but I do have some face-to-face available during daytime hours.
The meeting is free. You will need to send me some info before the meeting. This is not a maybe, if I do not have the info a few days prior I cannot have the meeting.
Also, I am sure you know others who either have federal student loans or are sending or about to send their kids, grandkids etc.. to college. This is so important. PLEASE SHARE THIS WITH THEM OR ANYONE ELSE WHO MAY BENEFIT!
Most Importantly, do yourself a favor and get in touch with me. If you or your kids have any Federal Loan Debt, Stafford, Direct Subsidized or Unsubsidized, PLUS loans or if you someone, anyone that does this will change your life or their lives. If you are unsure if your debt will qualify, send me an e-mail to find out.
