free advice from…
Last week, the Supreme Court struck down the Biden administration’s student loan debt-relief plan, denying 40 million eligible borrowers cancellation of up to $20,000 of federal student loans. So if SCOTUS’s decision has you looking at your balance and asking ‘what’s next?,’ you’re not alone. For tips on tackling student loan debt in the wake of the ruling, we tapped Brenton Harrison, a certified financial planner and the host of the podcast “New Money New Problems.”
Now that the Biden admin’s plan has been struck down, what are some other debt-relief options available to federal student loan borrowers?
The most widely available form of forgiveness for student loans is offered by income-driven repayment (IDR) plans, which can wipe away student loans after 20 or 25 years of repayment. There’s also Public Service Loan Forgiveness (PSLF), a program that forgives student loans for workers in public service after 10 years of payments.
Refinancing is another option that can help bring payments down. What are some of the pros and cons of refinancing federal student loans?
The biggest pro of refinancing is paying down your student loans at a potentially lower interest rate, which can save you hundreds — if not thousands — of dollars. However, you lose several protections when you refinance. Federal loan payments, specifically IDR plans, have more options for borrowers seeking to adjust their payments to fit their budget. They offer longer periods of deferment and forbearance than what’s available in the private marketplace. And, most importantly, there are multiple ways to have federal student loan balances forgiven through programs like PSLF, while private student loans must be repaid in full.
Top three tips for paying down student loan debt more quickly?
1. Verify that your loans are federal Direct Loans. The Department of Education is offering one-time adjustments that will bring eligible borrowers closer to student loan forgiveness. To take advantage, confirm that your loans are Direct Loans, and consolidate any other loan types using a Direct Consolidation Loan.
2. Pay attention to the details. Not doing so can cost you. For those seeking a lower payment, understanding the available repayment programs can help you find the most cost-effective option. For those planning to repay their loans in full, finding your loan’s interest rate can help determine if refinancing would be beneficial.
3. Consider whether paying them down quickly is the right thing to do. When forgiveness is the goal, you want to have them forgiven after paying the least amount of money towards them as possible.
Answers have been edited and condensed for clarity. Read an extended version of the interview here.
money win
“Last summer, I was offered a promotion and a $4,000 raise. I made a case to the company's president that the labor I was taking on was worth more, and I ended up with a $10,000 raise instead. My work exceeded expectations, and I was awarded a $10,000 bonus and another $2,000 raise at Christmas.”
— Amanda Z (MD). Santa came early this year. Reminder: Negotiate your salary and it’ll always be Christmas in July.
Scored a raise, saved up for a big purchase, or reached another money goal? Tell us about it here. Quotes are edited and condensed for clarity.
a skimm'r story
Anyone with a group chat knows that sometimes the best advice comes from your community. So we’re asking Skimm’rs to share their advice and success stories on certain topics. First up: Credit card debt.
What's one thing you'd like to go back in time and tell yourself when it comes to debt?
PS: Whether you’ve figured out how to get out of debt or you’re still making moves, we’d love to hear from you.
for the group chat
Move over, quiet quitting…
The “lazy girl job” is the new anti-work trend taking over TikTok.
And the trend may get even hotter…
Because the job market is cooling and fewer people are quitting their jobs.
What’s costing some Gen Zers and millennials friendships?
Money, according to a recent Credit Karma survey.
Want to live it up on a European summer vacay on a budget?
These tips will help you skip the hostels without spending $$$.
PSA: Three Skimm’rs have the chance to win a $100 Amazon gift card…
Just in time for Prime Day. Enter our sweepstakes now.
investment piece
Sometimes you just want to enjoy one glass of wine without wasting a whole bottle by uncorking it. Below, Michelle Chen, an attorney and sommelier, shares a pricey kitchen gadget that she swears by for savoring a few sips while saving the rest for later.
What’s a recent investment purchase that you made?
A Coravin Timeless Six+ Wine System, which allows you to pour a single glass from a bottle of wine without opening it.
How much did you spend on it?
Its retail price is $329.
Why do you consider it a good investment?
As someone who lives alone, I can never open a bottle of wine without letting half of it go to waste. I don't like to drink more than one or two glasses when I'm enjoying a meal, so having an accessory that allows me to pour a glass of wine without opening the whole bottle is a worthy investment to me.
Answers are edited and condensed for clarity.
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