Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I'm preparing to give a public seminar on managing federal student loan payments. Usually when I give these seminars, it's to students getting ready to graduate (and most have not given a single thought to their payments yet) or recent graduates in specialized fields that have questions related to their career plans (e.g., medical residents, legal aid). Because I do those seminars so often, I know what to expect in the way of questions.
By offering the seminar to the broad public, this may be a whole new ballgame. I anticipate the audience will be people who graduated 1 - 5 (or more) years ago. I'm not concerned about being able to answer their questions, I've been doing this for a lot of years. But I'm wondering what their primary questions will be so that I can have plenty of information, examples, resources on hand to illustrate my points.
So..... those of you out there with federal student loans who have started to make payments, especially if you're struggling with student loan payments ... what would you want to know?
I'm preparing to give a public seminar on managing federal student loan payments. Usually when I give these seminars, it's to students getting ready to graduate (and most have not given a single thought to their payments yet) or recent graduates in specialized fields that have questions related to their career plans (e.g., medical residents, legal aid). Because I do those seminars so often, I know what to expect in the way of questions.
By offering the seminar to the broad public, this may be a whole new ballgame. I anticipate the audience will be people who graduated 1 - 5 (or more) years ago. I'm not concerned about being able to answer their questions, I've been doing this for a lot of years. But I'm wondering what their primary questions will be so that I can have plenty of information, examples, resources on hand to illustrate my points.
So..... those of you out there with federal student loans who have started to make payments, especially if you're struggling with student loan payments ... what would you want to know?
I think many people will have quetions about the new Obama student loan program that starts forgiving all student loans after payment of 10 years in public service fields and 20 years for all other fields.
Be prepared to answer what's considered 10% of "disposable/discretionary" income in the Obama student loan program that takes effect in 2014.
Other than that, most students are interested in loan consolidation, deferments, and forbearance.
Consider a short segment about student loan interest deductions, how they are capped at such a low amount ($2500), how you have to file jointly (if married) in order to claim it, how that $2500 is for both spouses and how if you and your spouse make "too much money" you can't deduct any of it, even when your student loan payments are roughly equivalent to a mortgage on a decent home.
Provide information on the IBR plan. It seems a relatively good plan for the value so to speak - no career choice restrictions. Fairly simple bar of entry to overcome. And now that they're considering spousal loans in their calculations - should make things much better. No, it won't erase loans for Dr's/Lawyers, but your public seminar may draw from a very wide pool and many of them (as the poster above stated) may be concerned about repayment, especially if the current state of the economy has impacted their family.
Me - I would be a boring seminar participant. I attended the mandatory video taped "counseling" when I first accepted them, attended the mandatory "exit counseling" (another video tape) and always knew they were a LOAN that I needed to include in my budget.
But if my income dropped - yeah, I'd be applying for IBR in a heartbeat.
Good luck with the talk - and thanks for providing such a service. Federal Student Loans are a GREAT thing, but too many people seem to misunderstand them and what they are designed for - which is why I think there is a lot hositility and bitterness about them.
Consider a short segment about student loan interest deductions, how they are capped at such a low amount ($2500), how you have to file jointly (if married) in order to claim it, how that $2500 is for both spouses and how if you and your spouse make "too much money" you can't deduct any of it, even when your student loan payments are roughly equivalent to a mortgage on a decent home.
What? Me venting? Nah :P
I had gotten so caught up in the relatively new options that some folks wouldn't have heard in exit counseling several years ago (e.g., income-based repayment and public service loan forgiveness) that I hadn't thought about putting in my tips regarding the student loan interest deduction. Doh! Excellent suggestion, thanks!
[And I can appreciate your "non-venting". Those income limitations are ridiculously low!]
Me - I would be a boring seminar participant. I attended the mandatory video taped "counseling" when I first accepted them, attended the mandatory "exit counseling" (another video tape) and always knew they were a LOAN that I needed to include in my budget.
Sadly, you are in the minority. Even when I talk with students getting ready to graduate who have just recently been through exit counseling ... the best I can hope for it a recognition that they have loans. Most of the other information hasn't really stuck with them, and very few have any idea of what their monthly loan payments will be. There are exceptions, of course, but they are few and far between.
Income-based repayment is definitely on my list. Since it's a relatively new program, anyone who graduated more than 2 years ago (even the attentive ones during exit counseling) likely won't understand the bizarre complexities of the plan.
Awesome! I see a lot of items on here (City-Data) about people who have very limited incomes, but - for whatever reasons - fairly high student loan debt loads. People always advise them to cut out all the luxuries (i.e. no cell phone, no cable, move in with your parents, get rid of the car, etc.) but rarely do very many people suggest IBR (I usually do). If I weren't such a political junkie, I probably wouldn't know anything about it myself, but I am - and I do. What's so great is that if your income is low enough, your required payment is 0, but that time still counts towards the 25 year cap on loan repayment. Seriously. AWESOME!
Me, I'll (knock on wood) pay back every dime plus the accum interest, because my husband and I have relatively decent incomes, and - as I said - I budgeted for this. But for people who are having a tough time with employment, or whatever - IBR seems like a godsend.
Again - great that your doing this. I think a lot of people are very confused about Student Loans and any information is good information!
I'd go over the basics again as well. Students learn about loan repayment around the time they are getting ready to graduate, so they are probably thinking more about their next steps in life than they are about repaying their loans.
Also, I graduated school before exits interviews were mandatory, and I remember having no concept at all about student loan capitalization (until my monthly payments increased after receiving forbearances!).
Remind your attendees to read those papers they sign, preferably before they sign. Answer the phone, too, as to not become that lady in Ohio that racked up $500k in loans and fees because she tried to click her heels and wish her loans away!
I don't know what else to offer. My vehicle is paid off, don't have some stupid $300/month I-whatever phone dragging me down, no new house--decently cheap rent...definitely don't want to take the whole 20 years paying off my consolidated loan.
On that note, reading my papers I got for that consolidation yesterday, my ~$20k in loans will cost me another $16k in interest IF I took the whole 240 months to repay that. Uh, no thanks. I will be doubling or tripling on those as soon as income allows.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
