inf0@galvisandcompany.com212.996.5061
Galvis & Company
  • Welcome
  • About Us
  • Practice Areas
  • Insights
  • Contact Us
  • Make a Payment
  • Menu Menu
info@galvisandcompany.com (212) 996-5061
Student Loans

The SAVE Plan Doesn’t Go Far Enough

After a couple weeks of extensive online research, going through my student loan account with a fine-tooth comb, and spending about 45 minutes on the phone with a representative from  my new student loan servicer, Nelnet, I took the leap and applied to switch my income-based repayment plan from PAYE (“Pay As You Earn”) to the SAVE Plan. My goal: to keep my interest from growing and capitalizing on my loans. 

Before the COVID repayment pause, I owed close to $228,000 in student loans as a result of attending law school in New York City. By the time the payment pause ended in September of 2023, I managed to pay down approximately $37,000, but sadly, only about $10,000 of this amount went toward my principal. Today, I still owe Uncle Sam about $29,000 in accumulated, capitalized interest, down from ~$52,000. 

Although the SAVE Plan, if my application is approved, may lower my monthly payments and keep the interest that has already capitalized on my student loans from increasing, I do not believe the SAVE Plan goes far enough to provide debt relief to borrowers. Under any plan, I still have to pay the interest BEFORE I can make payments toward my principal. We need legislation that goes further and tackles the real issues concerning student loan debt:

  • Our government is profiting on student loans at the expense of borrowers;
  • Schools are not taking any accountability for the massive amounts of student loans disbursed with minimal due diligence;
  • Mounting interest will keep borrowers paying forever; and
  • If borrowers can’t make progress paying down their student loans, they simply won’t pay them.

The Student Loan Interest Elimination Act is a much more efficient debt relief plan for student loan borrowers because it deals directly with the high-impact problem areas of how student loans currently work. Here’s how:

  • It will allow current borrowers to refinance the interest on their student loans down to 0%; 
  • It will cap interest rates for future borrowers at 4%; and 
  • It will create a Trust Fund to replace interest payments and cover administrative costs associated with student loans, which are currently paid by the borrower. 

Please share this article and video and use the following hashtag to help spread the word about about this important piece of proposed legislation: 

#PassTheStudentLoanInterestEliminationAct 

For more information on this critical issue, please visit the following links: https://courtney.house.gov/sites/evo-… 

https://www.welch.senate.gov/press-re…

#studentloans #studentloandebt #studentloanforgiveness #studentloanplanner #debt #financialfreedom

September 19, 2023
Share this entry
  • Share on Facebook
  • Share on Twitter
  • Share on LinkedIn
  • Share by Mail
https://galvisandcompany.com/wp-content/uploads/2024/11/galvis-and-co-registration-log-2.png 0 0 Nick Tekavic https://galvisandcompany.com/wp-content/uploads/2024/11/galvis-and-co-registration-log-2.png Nick Tekavic2023-09-19 13:19:312023-09-19 13:19:33The SAVE Plan Doesn’t Go Far Enough
0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Galvis & Company

Lorraine Galvis is an experienced business and entertainment attorney based in New York City, representing entrepreneurs and small- to medium-sized businesses.

Schedule Consult

Read

  • Business
  • Cannabis
  • Contracts
  • Copyright
  • COVID-19
  • Entertainment
  • Events
  • IP
  • Legal Community
  • Legal Services
  • Music
  • News
  • Newsletter
  • NFT
  • Professional Development
  • Sale
  • Sports
  • Student Loans
  • Trademarks
  • Uncategorized

SMS (212) 996-5061
Message us on WhatsApp
info@galvisandcompany.com
212.996.5061

WeWork Dumbo Heights, 77 Sands Street, Suite 6028, Brooklyn, NY 11201

® Galvis & Company- All Rights Reserved. | This website is a form of Attorney Advertising. | The contents of this site do not constitute legal advice and should not be relied upon in making any legal decisions. | website by Command Legal.

Scroll to top