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  • Federal Student Loan Freeze

    Looks like Biden will extend the freeze on federal student loan payments on his first day in office.

    Biden to extend pause on federal student loan payments - CBS News

  • #2
    Will the time spent not paying be credited toward PSLF? I assume so as the other freezes have, but couldn't find any info on that.

    If so: exciting!

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    • #3
      Originally posted by pysibal View Post
      Will the time spent not paying be credited toward PSLF? I assume so as the other freezes have, but couldn't find any info on that.

      If so: exciting!
      It doesn't exist yet, so any one answering will be speculating. I'll speculate that this will be a continuation of the hold already in place - let's all rejoice in a political choice that both sides agree on

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      • #4
        I'll never complain about free money.

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        • #5
          So excited! I hope its for 6 more months, at least...

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          • #6
            Originally posted by drmka26 View Post
            So excited! I hope its for 6 more months, at least...
            For physicians, the cost will likely exceed the benefit in the long term. Think of it as twofer.
            Give you $1 now and you give them $2 each year after. Are we good?

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            • #7
              Originally posted by VentAlarm
              The whole thing is absurd. I got $0 in stimulus and will have $0 forgiven (either by waiving interest or forgiveness) because I’m an evil doctor 2.5y out from training that has been responsible. Take me 3 years ago and now the government would have given us 6+k in “stimulus”, several thousand in interest and potentially 10+k in forgiveness?

              It’s all comical how clearly absurd it is.
              Wealth and income redistribution. Nothing to do with loan balances. The transfers are made with the intent of "lowering the curve" for disparities. Just a lever to redistribute to make results as equal as possible. Virtually every policy is to eliminate "meritocracy" based upon some identity factor that "needs to be corrected".
              The above is an overstatement because some fundamental changes would be advantageous. Not intended as a political statement. Fundamental concept.

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              • #8
                Originally posted by East coast

                Yes, I really would love if moderators were more helpful specifically on the student loan board w keeping things on original topic/helpful new info/updates.

                (No clue how moderator additions work here but if someone reading this is looking for volunteers, I guess I should raise my hand)
                There. Stay on topic ppl.

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                • #9
                  Originally posted by jhwkr542 View Post
                  I'll never complain about free money.
                  There are many threads of situations that “free money” has terrible consequences.
                  You will complain about the consequences when they happen.

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                  • #10
                    Never have I regretted refinancing more than this last year.

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                    • #11
                      Now if they could do something about the private student loans, that would be great. For context, the federal loans weren't enough to cover my schooling so I had no choice.

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                      • #12
                        Yeehaw

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                        • #13
                          So what's an ideal plan here? Thank God I haven't refinanced my student loans yet! Just finished fellowship in July 2020 with $200k in federal student loan debt (and a $25k loan from my medical school which I already paid off). Next plan was to refinance and hit the federal loans whenever they had planned to restart accumulating interest, but now where to put that money? Perhaps consider a 'side-fund' and put it into a taxable account in short-term muni bonds? stocks? Already maxing out my 401k/HSA/Backdoor Roth. Even with high capital gains, probably not a bad idea to put that into a total stock market index until its time to start repaying? Crazy to me that my backdoor roth that I just started in November already accumulated 10%! Would love to get a return on what I would have put into my student loans while the gov't figures out what, if any, loans may be forgiven for us higher-earning folk

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                          • #14
                            Originally posted by Eyedoc87 View Post
                            So what's an ideal plan here? Thank God I haven't refinanced my student loans yet! Just finished fellowship in July 2020 with $200k in federal student loan debt (and a $25k loan from my medical school which I already paid off). Next plan was to refinance and hit the federal loans whenever they had planned to restart accumulating interest, but now where to put that money? Perhaps consider a 'side-fund' and put it into a taxable account in short-term muni bonds? stocks? Already maxing out my 401k/HSA/Backdoor Roth. Even with high capital gains, probably not a bad idea to put that into a total stock market index until its time to start repaying? Crazy to me that my backdoor roth that I just started in November already accumulated 10%! Would love to get a return on what I would have put into my student loans while the gov't figures out what, if any, loans may be forgiven for us higher-earning folk
                            I'm interested to hear people's thoughts as well. Loss of principal isn't very appealing, but I don't want to be left behind either.

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                            • #15
                              Originally posted by EHR Guy View Post
                              Now if they could do something about the private student loans, that would be great. For context, the federal loans weren't enough to cover my schooling so I had no choice.
                              Scholarships, an in-state school, work study, working over the summer, etc. Did you truly have no other choice?

                              Hopefully your academic major led to a remunerative career. Since it’s a quantitative field, you should be okay. At least it isn’t $250K+ in debt for a undergrad major in drama from USC and $30-50K in annual income.
                              Last edited by Hank; 01-22-2021, 08:44 AM.

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