Episode•June 15, 2023•21 min

Stress-Free Student Loans: Everything You Need to Know to Manage Your Debt | Ep. 238

Are you struggling with managing student loan debt? Don't worry, you are not alone! Dorethia Kelly is here to help. In this episode, she shares her valuable insights on how to stay informed and prepared for when your student loan payment pause ends. From consolidating loans to staying up to date on current loan forgiveness programs, Dorethia provides the knowledge and tips needed to get ahead of your student debt. Get ready to take control of your student loan journey and start planning a brighter future today! About Our Guest Dorethia R. Kelly, MBA, is a nationally-recognized and award-winning financial expert and coach, specializing in helping ordinary people conquer their worst fears on the way to becoming debt free and financially independent. She is a personal finance and business coach, author, and CEO of #MoneyChat®. She is also the Founder and CEO of Work • Space • Spark, a career growth subscription box. Known for her charismatic, no-nonsense personality, Dorethia empowers people to reach their financial, entrepreneurial, and career goals with her coaching, keynotes, and online courses. A vibrant personality who takes the shame out of money convos, Dorethia explains financial terminology and complex financial concepts in easy-to-understand language—directing you each step of the way as you build a workable financial plan that guides you through every stage of life. Dorethia’s financial advice has been featured on Black Enterprise, CNBC, U.S. News, USA Today, Experian, and more. Connect with Dorethia Website: www.moneychatbook.com Twitter: @DorethiaKelly Instagram: @dorethiakelly Facebook: Dorethia Kelly Speaks Other Resources and Links Buy the book on Amazon Visit our website, www.moneytalkwitht.com, for more information and resources about student loans. This podcast uses the following third-party services for analysis: Podcorn - https://podcorn.com/privacy OP3 - https://op3.dev/privacy

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Key Takeaways

1
Stay proactive and informed about student loan status
Monitor studentaid.gov regularly as policies change frequently
Contact your loan servicer to understand your specific situation and available options
Don't assume you won't have to pay back loans once the pause ends
2
Review and adjust payment plans before payments resume
Check your previous payment agreement as it will likely reinstate
Consider income-driven repayment, deferment, or forbearance options
Ask about interest rate adjustments if your credit score has improved
3
Consider consolidation strategically
Federal loans may qualify for forgiveness programs - avoid consolidating into private loans
Private loan holders should ask about opportunities to consolidate into federal loans
Consolidation may help lower payments and interest rates
4
Don't ignore student loans - stay aware of forgiveness opportunities
Many borrowers have already received forgiveness through programs like PSLF
Missing deadlines could mean losing out on forgiveness opportunities
Even if not paying now, staying informed helps reduce future balances
5
Have a clear plan when taking on student debt for education
Weigh the income potential of additional degrees against loan costs
Only borrow what you need while in school
Create a repayment strategy before taking on new loans

Intro

With student loan payments potentially resuming soon, this episode provides practical guidance on managing student debt and taking advantage of forgiveness opportunities.
Dorethia R. Kelly, MBA, is a nationally-recognized financial expert, coach, and author specializing in helping people become debt-free and financially independent. She is the CEO of #MoneyChat® and author of the Money Chat book.

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– Current State of Student Loans

Dorethia emphasizes the importance of following studentaid.gov as policies change frequently. She stresses that borrowers should prepare to resume payments when the pause ends, as forgiveness isn't guaranteed.

Until your loans are forgiven, you have to pay those back for real.
– Dorethia Kelly

– Step 1: Review Your Payment History

Check what your payment agreement was before the pause. Contact your lender to discuss new arrangements based on your current financial situation. Options include income-driven repayment, deferment, or forbearance.

Whatever your payment agreement was with your lender before all the pausing... that's going to reinstate probably exactly how it was.
– Dorethia Kelly

– Contact Your Lender and Ask the Right Questions

When calling your servicer, ask about forgiveness opportunities and other benefits. Tiffany shares her experience where calling revealed her deadline was extended due to her income-based plan.

Are there any other opportunities for me to have my loan forgiven? Or are there any other benefits that I could take advantage of?
– Dorethia Kelly

– Consolidation Considerations

Explore whether consolidating multiple loans could benefit you. Federal loan holders should generally avoid consolidating into private loans due to pending forgiveness programs. Private loan holders should ask about opportunities to move to federal loans.

Loan forgiveness is around federally funded student loans, not private.
– Dorethia Kelly

– Mindset and Staying Informed

Even if not planning to pay immediately, staying informed about forgiveness opportunities is crucial. Many borrowers have already had loans forgiven through programs like PSLF. Ignoring loans can impact future financial goals.

Some people have already gotten their student loans forgiven. If you are not paying any attention, you may be missing out on an opportunity.
– Dorethia Kelly

– Education Investment Mindset

When considering additional degrees, weigh the income potential against loan costs. Have a clear repayment plan before borrowing. Tiffany's mom successfully had decades-old loans forgiven through PSLF after staying informed.

– Money Chat Book Overview

Dorethia's book covers getting out of debt, managing money successfully, investing basics, and protecting wealth. It includes money mantras and action steps. Buyers get bonus downloads at moneychatbook.com.

Books Mentioned

Money Chat by Dorethia R. Kelly

Resources

Topics

student loansdebt managementloan forgivenessfinancial planningconsolidationPSLFpersonal financemoney mindseteducation financing