I'm going to talk about student loans and some loan-based and you probably know that the Biden administration opened up a new loan repayment plan. It is called the Safe Plan. It says this new repayment program opens today from more than 20 million student loan borrowers and these payments are based on their income and their family size. Okay.
The Biden administration announced that the savings on a valuable education program, that's the acronym. I don't know why they do that. They just want something to sound good. So it's really just called the Safe Plan.
It's a frequent bureaucrat. It's all good. They just want it to sound special. It just knows it's called the Safe Plan.
Okay. It's one of the many. That's just one of the four income-driven repayment plans. This is the newest one because the program will calculate the amount of money that your monthly payment like I said based on your income, your family size and hope that their hoping is that will help you quote save money on payments.
Now let's stop right there. The way we teach, I don't want you to save money on payments. Based on borrowers income and family size. The administration estimates that under this new safe program where the million-dollar borrowers, what's this?
We'll qualify for zero payments. Zero dollars of payments. It's an interim. It's what they're saying is, Americans, we feel your pain.
And they're going, we're going to try to fix it. We're going to pay anything back. And then they're going to go, well, based on this, someone will say about $1,000 a year, but it's all about making sure that the interest doesn't balloon. But this is another political tactic.
And if you go along with this, you're going to say, thank you Uncle Joe. You're never going to pay this off. Well, here's the thing. And I want to talk about this practically because what I don't know about this is the interest is not going to prove.
It doesn't matter what my payment is. At the end of this term, no interest will accrue and they'll forgive whatever's left. Well, here's the thing. No one is thinking about how long this is.
Even if you had, it starts at $19,000. If you have student loans as low as $19,000, you're still in for a bare minimum of 10 years. You have to pay a bare minimum of 10 years to get that proclaimed for freedom at the end. And then for every $1,000 above that, another year.
So for most people, they're going to be looking just in this is just averages. Most people are going to be around $3,000 to $3,000 years paying back. That's not worth it. Let me tell you guys, let me tell you guys what I was doing.
And a lot of hours were private loans. So we didn't have all these options. They were not talking about repayment. This was back during the great recession that we started paying our loans off.
The world was going crazy. Very similar to how it is right now. Now it's inflation back then. It was a housing market.
It has prices. All that crazy stuff. And let me tell you, my husband and I, there were different types of payment plans back then. And we talked a couple because it was like, okay, our students are so expensive.
We could not handle them. We could not pay them. We have the money. And I can tell you, even when you go on a payment plan and it lowers repayment for $500, $84.
You still feel the weight. You still know there's loaner there. They're sitting there. They're waiting for you.
I cannot physically imagine having that there for the next 25 years. You want to talk about cutting gears off your life. The stress, the amount of stress just knowing they were there. Now, here's what I do want to say because I'm about to flip the script on something else.
When it comes to these income driven repayment plans, the only time and I say only in big red bowl letters with lots of exclamation points. And so the only time I would ever consider a payment plan like this is with the intention of lowering my monthly payment temporarily can so that I can get as much money in my budget to throw it at the smallest debt in my debt snowball. Sure. You got it.
You got it. You got it. You got it. I wrote it down.
If you sign up for one of these income driven repayment plans, just simply kick the can down the road thinking you're going to get for Guinness after 25 years, y'all need to stop right now. You're just playing yourself. But if you really want to play it right, what you need to do is like, okay, my payment, I have actually a picture of one of standardized payments that we had. This was from, is this an caveat?
This is just one set of the minimums we can see there. The payment is somewhere around $500 and some odd dollars. And we were able to work with them to get the payment down to $257. And we did that for more money to go to our smallest debt on our debt snowball.
We did that temporarily. And then we came down to pay that debt. So there is some smart guidance around this. Ken, but what I really don't want people doing is saying, okay, I can pay $0.
I'll just ride that way forever. Terrible idea. Because here's the deal. You don't know what administration is coming in next and who's going to be in charge of this idea that someone from the government is eventually going to agree with this person.
Folks, I mean, you don't have control over that. I don't like that idea of holding it, holding it, holding it, these are the people who helped put you in this position. The government cannot put you first, guys. They never put you first.
They get the possible for them to put you first or too many of us. They're going to do what's best for whatever administration is at the time. Only you could put you first. You're going to watch it and you see about stopping the federal student.
That's a fact. So while all these people are supposedly being forgiven, they're still building them out to this new fresh crop of high school students that are about ready to go into the next year. And so you got to understand folks, this is a game that you haven't set the rules for. That's right.
You either play the game or get out of the game and we're here to help you get out of the game. And that's right. And we're doing that. We are doing a student loan.
This is awesome. Live stream. Guys, this is what we need to be telling you about. You and Dave Ramsey raise your age to grow a team of them.
That's right. It's free. It's free. It's absolutely free.
It's a great time for you to do. Tell me what you're talking about. We are going to tell you exactly what to do. Matter of fact, I was in a meeting yesterday with a big eagle himself.
Dave Ramsey. And he was like, I don't want to get a lot of time with any fluff. I want to get down to business. And he people want to know it.
And that's what we're going to do, we want to save your seat as a last year. We want to know that you're coming. So sign up. It's September 12th.
You can go to RamseySolutions.com slash student loans. And while you're there, there's also something that you can start doing today to start preparing for these payments. Because they're coming back. They're coming.
And listen, I want you folks to post this. You want to help others? You have a lot of power on social media. Post the link.
RandySolutions.com slash student loans. You'll bring up a really cool graphic. Make you look like you know what you're doing on social media. Tell people.
Yeah. Even if you don't have to do it, we'll know someone has to learn. Oh, it's going to be great. I love it.
This is what it's all about, guys. We want to bring that hope. It's not hopeless. Please, please believe me.
If I'm standing here with zero dollars of student loan debt, so can you. The time has passed anyway. Most people are able to do it. In 24, 36 months we see it every day.