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Finances

Good? Student Loan Update

A few weeks ago, I wrote about our student loan repayment plan. The latest dilemma was that we were waiting for our application for the SAVE (Save for a Valuable Education) plan to be processed. In the meantime, our payment was to be almost $2K a month, which is nearly 4 times higher than our payment will be if we are approved for SAVE.

 

A simple call to Aidvantage “corrected” this. I told the customer service rep that we were waiting for our SAVE application to be processed and that our current payment amount was incorrect. She said she was glad we called since our 2K payment would have been due soon and if we hadn’t paid it, we’d be in default. Correcting the issue after the payment was due would be difficult for us and for Aidvantage.

 

The customer service rep put us on a forbearance which postpones our payments until May. Since we won’t have to pay for the next 3 months while the application is being processed, we are saving about $6K.

 

This seems like good news, and it is the outcome I wanted.

 

I’m feeling a little uneasy, though, partially because there are so many unknowns. Will our SAVE application be approved? Will the one-time adjustment, which will bring our payments from 18 years to 7, happen? With our current forbearance, are we getting credit for these 3 months (in an administrative forbearance, the payments are considered paid even if we pay $0) or will this postpone the payments for 3 months so that it takes us longer to complete our payments?

Then, I started wondering about broader issues. Will someone other than Biden be elected president and if so, will all the student loan plans change? If a republican wins and plans change, they will likely not be favorable to us. In short, I was getting way ahead of myself.

I think it’d be a good idea to take the forbearance as a positive and let go of thinking about it for now.

As for the $6 . . . we’ll likely put it aside for retirement. Though it could fund a relaxing vacation!

Peace Out (and In),

Julie

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8 COMMENTS

  • Joan

    Yeah!

  • Margo

    Yay! That sounds like a positive development!

  • Jeanette

    I like that you’re letting it go for now. It’s in someone else’s hands for now.

  • JMFL

    Thanks for the update. You do a lot of hard work with this.

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