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I'm still trying to wrap my head around the SECURE Act and it's effect on 529 plans. The $10k limit doesn't really make sense (since the average student debt out of college is around $40k), but it's effect on how to pay back a loan seems pretty significant.
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Dec 25, 2019 02:25
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| # ¿ May 15, 2024 12:30 |
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literally this big posted:I'm still trying to wrap my head around the SECURE Act and it's effect on 529 plans. The $10k limit doesn't really make sense (since the average student debt out of college is around $40k), but it's effect on how to pay back a loan seems pretty significant. No one really commented on this, but I'm still curious about some stuff. Is there any limit to the number of beneficiaries that can utilize the new $10k rule? If I theoretically had $1million+ in a 529, could I just keep changing beneficiaries and give everyone on Earth a free $10k towards their loans?
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Jan 18, 2020 07:36
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I unfortunately can't help you with your funding issue, but I would very much like to know how one goes about getting themselves into such a position and program.
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Jan 23, 2020 18:52
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SpitztheGreat posted:This would be nice because it would eliminate a monthly bill and it feels good to knock those down one at a time. Paying off the smallest loan first would give you a quick victory, and maybe even a bit of inspiration to tackle the rest of your debt (snowball method). But paying off 3->2->1->Car will objectively leave the most money in your pocket and allow you to pay off your debts the fastest possible (avalanche method). I understand psychological benefit of the snowball method but I would argue that the avalanche method can be equally beneficial. Not only do you get the benefit of objectively paying the least to resolve your debt (always a good thing), but you get your absolute worst debt out of the way first. Then things become easier and easier as your progress. Student loan #3 is not only your highest interest loan, but it's also your largest debt and it's an unsubsidized loan. Once you've paid off #3, all your other loans are small fries in comparison. It comes down to: Making lots of progress at first but making less progress over time (snowball) versus slogging through your worst loan first but making exponentially more progress as your proceed (avalanche). Which is best for you is for you to decide, but I would usually recommend going with the avalanche method. The only thing that might throw a wrench into things is that Biden keeps saying he'll cancel student loan debt so  https://www.investopedia.com/articles/personal-finance/080716/debt-avalanche-vs-debt-snowball-which-best-you.asp https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized
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Oct 8, 2020 18:31
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I made a video documenting my Student Loan Experience https://www.youtube.com/watch?v=wkDZwGbpfr8
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Jul 15, 2021 08:05
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Hello thread. I know most student loan payments are stating up soon, but mine don't appear to be starting up until December of 2024. It says right on my Nelnet account (and I just got a text) that my next payment won't be until mid-December 2024. Any idea why that's so long from now (not that I'm upset about it), and will interest still begin to accrue come October?
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Sep 5, 2023 03:17
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| # ¿ May 15, 2024 12:30 |
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Chevy Slyme posted:I'm seeing the same thing. Did you by chance graduate earlier this year? Nope, graduated almost 10 years ago. Although I read something on Reddit about one's pre-pause payment plan effecting when one's next payment is due post-pause, based on when you finally re-certify your income. So maybe I won't have to re-certify my income until December '24, and thus not owe anything until then?
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Sep 6, 2023 05:23
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