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Student Loan Makeover?

Faith & Finance (formerly MoneyWise)

Christian talk radio with Rob West

February 4, 2020

Are you struggling with student loans? Maybe you've found a great job after graduation but now are faced with decades of monthly payments on your road to financial freedom. Well, cheer up! There may be help coming your way to help repay those student loans. Our host, Kingdom Advisors President Rob West, offers that help for us today. Forty-five million Americans owe a combined $1.6 trillion in student loans. It's now the number two category of consumer debt right after mortgages. White House advisors would like to simplify the process of repaying this debt. The idea is to combine several different repayment plans into one, simpler process that would enable borrowers to repay their student loans faster. It would cap monthly student loan payments at 12.5% of discretionary income. One of the big problems with this type of debt is that unlike credit cards and mortgages, in most cases you can't get rid of student loans by declaring bankruptcy. Now some analysts are saying there might be enough bipartisan support in Congress to expand the list of qualifying financial hardships that would allow more borrowers to discharge student loans in bankruptcy. Right now, the Education Department charges just over 4.5%, plus a 1% origination fee for undergrad loans. Congress sets those rates each year, arbitrarily based on the 10-year Treasury Note. But one idea being floated around is for the interest rate be reduced, depending on an individual's creditscore. Some senators are even recommending to forgive the $1.6 trillion worth of federal debt private student loans. In today's show we also answer your questions: Can you help me with an investment strategy to roll over our investment into an IRA? We have $40,000 in savings and are considering investing for our son. What strategies are available? I have health insurance but my husband doesn't. If something happens to him, am I liable for his bills? We're newlyweds; I'm 22 and she's 19. I don't make a lot of money at the moment, but what's the best way to invest? Should retirement planning be first on our minds? I'm in my mid-60s, I owe a good amount on my mortgage, and was considering taking out some money from my 401(k) and Roth IRA to pay this off. What do you think? Ask your questions at (800) 525-7000 or email them at [email protected] Visit our website at moneywise.org where you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources. Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion! Remember that it's your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.

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