Nationwide, many individuals are utilizing the SAVE plan to lower monthly payments on their student loans and in their minds putting themselves in a better position financially. The SAVE plan is income-driven and payments are altered by each unique person’s earnings. In a recent post from Yahoo Finance the impact of this program was challenged.
In this piece, finance guru Dave Ramsey is quoted saying ‘Remember, smaller payments mean smaller progress on your student loans. So, IDRs like this one only drag out your debt for longer.’ Making the only benefit of the plan lower payments now, and causing more financial stress in the future.
Peanut Butter presents a solution for employer’s to combat government programs like these through Student Loan Assistance. Specifically, Student Loan Resources provides the tools employees’ need to manage their student debt. With money saving tactics like refinancing, consolidating, financial wellness tools, special offers / discounts and more. Employers can be a bright spot for their teams, genuinely helping them save.
- References: https://finance.yahoo.com/news/dave-ramsey-why-save-student-164851746.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAM1FK6P9SmLiERkyZGwqTWmjiOaVnv-aNk1lQZbBtwnHzuWW6OT9N8jMuLNR_8QYcZaj6SHulz6Q5zWu_xAD7N-oEaPFTtfRGhxsaUMCF3LSk4uCkwBG4GKR1nDRJVuHGbjwYA6Xo3wvoR2JyyCBFYYOsPwGNP1grD7pzVnMYIRV (Yahoo Finance April2024)