Capstone Wealth Partners

If you’ve been coasting on federal student loan forbearance, you’re in for a rude awakening.

The SAVE Plan is officially DEAD. Following a federal court ruling, SAVE has been completely terminated, and a brand new system called the Repayment Assistance Plan (RAP) is taking over.

Here is what you need to know fast:

⏱️ 90-Day Clock: If you were on SAVE, you only have 90 days to manually choose a new plan before you're forced into a standard, higher-payment schedule.

💰 The Calculation Shift: RAP doesn't look at your discretionary income; it looks at your total AGI on a 1% to 10% sliding scale. This means some families could see their monthly bills jump from $36/month to over $440/month.

📅 30-Year Sentence: Forgiveness timelines are jumping up to 30 years under RAP.

🛠️ The Only Good News: Your balance won't grow from unpaid interest if you make your payments, and the government will throw an extra $50/month at your principal balance if you pay on time.

Legacy options like IBR are still around for old loans, but the clock is ticking. Hit the link in our comments to read our full guide on how to survive the new student loan rules before July 1st! 📲

Is your leftover College 529 money trapped after you graduate from college? 😰

Nope! Actually, leftover money in your 529 plan is a GREAT "problem" to have!

If your student has graduated and you still have a 529 balance, here are 5 ways to use it:

1️⃣ Roth IRA Rollover: Kickstart your student's retirement (up to a $35k lifetime limit).

2️⃣ Pay Student Loans: Use up to $10k to wipe out debt for the beneficiary or their siblings.

3️⃣ Change the Beneficiary: Pass the funds to a sibling or save them for future grandkids.

4️⃣ Keep Learning: Use it for grad school or professional certifications later in life.

5️⃣ The Scholarship Loophole: Withdraw penalty-free up to the amount of any scholarships earned.

Click our link in the comments to read our latest blog about how to use your leftover 529 funds after college.

I had the honor of being featured in a MarketWatch article on the importance of finding a balance between saving for college and living a fruitful life with your family, full of memorable experiences and joy.

In today’s world, when you have a newborn, the “college clock” starts ticking immediately, and for many families, the reality is that competing financial demands — like retirement, emergency funds, and high-interest debt — often take precedence.

A balanced perspective is key, so before funnelling significant monthly contributions into a 529 plan, experts suggest you focus on:

🛟 An Emergency Fund: Aiming for a “mini-fund” of $2,000 first, eventually scaling to 3–12 months of living expenses.
💸 High-Interest Debt: Paying down credit cards or high-interest loans that can derail long-term stability.
🏝️ Retirement Contributions: Prioritizing your future self, particularly reaching at least your employer’s match.
🏡 Cost of Living Stability: Ensuring your major fixed costs (housing, transport, food) are manageable enough to allow for “fun money” and future investments.

Tomorrow’s not promised. We have to enjoy today. By securing your financial foundation first, you ensure that when you do start saving for your child’s education, you aren’t doing it at the expense of your own future.

Thank you to Venessa Wong for this feature! (Link to the article in the comments.)