Well, to help us better understand Biden's income driven
student loan repayment plan application. I want to bring
in will Seeley who founded a company to help student
borrowers will. Thank you. Thank you. All
right. So let's get started. Who should apply
for this plan? So anyone with a federal student
loan now, unfortunately, parents who have parent plus
loans are excluded. They do have other options under
income based repayment plans. But for this new exciting
safe program, anyone with a federal student loan,
which represents about 90% of all outstanding loans out there
. So chances are if you applied for a government
loan, you could qualify for this program, what
sort of documents do you need to prepare ahead of
time to complete the application? Yes. So I
think just proof of income and your last tax forms
will be helpful to verify your income given that it
is an income based payment plan and then just information
about your state of residence and other personal information will
help you successfully complete the application. And the government
is saying that you can complete the process in under
10 minutes. So while it does sound laborious,
it is something that can move quite quickly. Ok
. Speedy. Very good. I like that.
Anyone who doesn't apply that should save that 10 minutes
. So I think inevitably most borrowers who are worried
about struggling with their payments should definitely apply. It
will help them lower their payments substantially. A borrower
earning under$32,000 dollars will be eligible for a$0
payment and interest will not accrue over that time because
this program is letting people have the government subsidize that
interest, which is really awesome for borrowers and then
anyone who's earning, for example, over that will
see substantial reduction to their monthly payment by hundreds of
dollars. So that's great. Yeah, what should
borrowers know about this plan that we haven't covered yet
? So I think there's a lot of misinformation and
confusion about student loans because let's be honest, it
is so complicated. Most people have over a dozen
different types of loans. Some loans are from a
bank, some loans are from the government bank loans
are not eligible for this program inevitably don't be worried
though. This program is going to help a lot
of people. It's worth taking the time to actually
learn about it and enroll because people will save and
benefit from it. I know the student loan repayments
are set to come due in October interest does start
accruing in September. Correct. How should our viewers
prepare for that? Yes, this is a scary
milestone for millions of people. I think a lot
of people were counting on Biden canceling debt that didn't
go through the Supreme Court blocked it. That was
a rude awakening for a lot of folks counting on
that 10 or$20,000 inevitably. Now is the time
to be preparing though. Don't let this sneak up
on you. You do have a few weeks to
start setting aside budget planning around this and programs again
like this new safe plan can really help you get
on your foot to start paying towards your loan.
Even if it's not the full monthly payment, that
would be under the traditional standard plan that people would
automatically enroll in if they didn't take action on this
plan today. Yes, I think a lot of
people were discouraged. Obviously, borrowers when that 10
to$20,000 loan forgiveness plan didn't actually out obviously,
I due to court rulings the longevity of this new
plan, what should borrowers expect? Yes, I
think inevitably there are going to be a lot more
changes coming down the pipe. If you're interested in
this plan, it's important to enroll in what's called
the repay plan right now, which is automatically converting
into the safe plan. So even that just sounds
like wait, I'm getting confused already. If you
feel that way, that is understandable. But I
think as change unfold, it's possible that Biden will
get cancellation passed in the upcoming year. But it's
also possible that it will get sued again and end
up right back in the Supreme Court. So I
would say if you're a borrow today and you're having
a hard time figuring things out. Don't worry,
you're not alone. So we all 45 million student
loan borrowers and everyone who this industry impacts. But
I think the best thing you can do is just
start repaying so that you don't fall behind, make
the contribution save is a great way to do that
. This new plan and then hope for the best
that maybe debt does get canceled in the future.
You know, one thing that we cover all the
time down here on the floor of the stock exchange
. And I'm sure that our viewers here wherever they're
consuming financial news is interest rates are high, they're
extremely elevated right now. How does that impact student
borrower? What knowledge do they need to have when
it comes to interest rates? So thankfully, for
those who already have loans today, which is a
huge population of 43 million federal loan borrowers among the
46 total student loan borrowers out there, their interest
rates are predominantly set. And so the current raised
rates by the fed are not impacting those borrowers.
But if you're an incoming college student today raised rates
will impact your federal loans as you turn to borrow
to cover the cost of college. So just be
mindful that your cost will be higher if you're in
the 18 to 22 range or you're a graduate student
going back for higher education, it could be more
expensive for you due to those higher rates. Right
? All very good notes will see. We appreciate
your expertise. Thank you. Thank you.