There is a lot going on regarding the “forbearance” of millions of student loans that have been in a “zero-interest” freeze for quite some time. This was known as the “SAVE” program that helped many students freeze their loans with no interest accruing on their loans and with no payment. This is coming to an end. So, many student loans will now have to start a repayment program and at least pay a minimal amount each month. Of course, as usual there is a tremendous amount of political wrangling back and forth between the Dems and Republicans. And not to get political, but change is coming soon for millions!
So, let’s say that all of a sudden you need to start a substantial repayment of $300 to $500, and I guess possibly even could be higher. That could make a serious dent in your monthly budget and make your healthcare cost seem out of reach. Well, a little bit of good news may be on the way! Your healthcare cost as well as the “subsidies” you may be receiving are based on your annual income. Of course, you may not be aware of, your “actual income” is based upon your “household income” less any student loan payments you may need to make in the future. So, a $500 monthly pay back in student loans will generally reduce your overall income a whopping $6,000 for the year! That could help significantly and may impact just how your subsidies are calculated, thus reducing your overall premium cost. This is certainly no guarantee that “everyone” with a new student loan payback, will automatically get a reduced premium, but it is certainly worth knowing about, and definitely worth giving it the “old college try!”
These changes are always best to be made at Open Enrollment that should affect the upcoming 2026 plan year’s premium. However, if your student loan’s new payback is significant, and you need the relief in reduced premiums sooner than later, then do not hesitate to call Kevin, that’s me. The entire process may take 15-20 minutes but can result in potential immediate financial relief.
As your health agent, it’s my job to look out for your best interest, and you can count on me to help assist in any changes that could help out your financial situation.
Best regards,
Kevin F Gourgues
This is a new addition to the “What the Health?” newsletter that I will try to keep brief and to the point. Hopefully, this may help shed a little light on a somewhat complex health insurance world. You’ve got Q’s, I hope I have your answer! Always feel free to call Kevin most anytime. Text or call 985-778-0072