Only 69% of student loan borrowers have resumed making payments on their student loans, according to a new College Investor survey. This is slightly higher than the first announcement by the Department of Education highlighting 60% of borrowers have resumed making payments.

The student loan payment pause for Covid-19 officially ended on August 31, 2023. Interest resumed on September first, and for most borrowers, their first student loan payment would have be due in October 2023. However, the timeline for student loan repayment restart was skewed for some borrowers as student loan servicers struggled to keep up with the workload - repayment restarts, loan forgiveness changes, and more.

Specifically, student loan servicer errors kept millions of borrowers deferred until payments could be fixed and repayment plan changes processed. This included enrolling borrowers in the new SAVE student loan repayment plan.

Only Two-Thirds Of Borrowers Have Resumed Payments

According to the survey results, 69% of borrowers have resumed their student loan payments. In December 2023, the Department of Education announced that 60% of borrowers have resumed their payments according to their data.

It appears that more borrowers have started making payments on their student loans.

There are several reasons borrowers state they haven't made student loan payments yet. While some are choosing to not make payments intentionally and are leveraging the 12-Month On-Ramp period, most are in administrative forbearance due to loan servicing issues, or didn't know they needed to already. 

Slight Majority Can Feel They Afford Their Student Loan Payment

When it comes to affording their student loan payment, just 53% of borrowers felt they could afford their monthly payment. In our survey before payments resumed, just 45% of borrowers felt financially ready to afford their student loan payment.

The most common reason borrowers say they can't afford their student loan payment is because they are unemployed or underemployed. 

Inflation making other areas of their budget more expensive was also a common concern.

Most Borrowers Are On Their Original Repayment Plan

Given the concerns about affording their student loan payment, we asked if borrowers were changing their repayment plan to the new SAVE plan touted by the Biden Administration. This would help improve the affordability of their loan payments - making some payments legally $0 per month for low income individuals and families.

In January 2024, the Department of Education announced that 6.9 million borrowers were enrolled in the SAVE plan. That's roughly 16% of federal student loan borrowers.

Our survey found that just 12% of borrowers had switched to the SAVE plan, while 60% were in their same repayment plan from before the pandemic. The remaining amount didn't know exactly what payment plan they were repaying their loans under.

How To Get On Track With Student Loan Payments

The 12-month on-ramp period for student loan borrowers to resume payments ends in September 2024. Borrowers who still have no started making student loan payments need to take some time to find the best repayment plan for their loans.

Borrowers can see the options by using the Loan Simulator at StudentAid.gov. For borrowers who don't know where their loans are located, they can sign-up for StudentAid.gov, or check their credit report.

Here's a guide to tracking down your student loans.

Methodology

The College Investor commissioned Pollfish to conduct the survey. All figures, unless otherwise stated, are from Pollfish. Total sample size was 600 adults (18 or older), among whom all currently have student loan debt they are responsible for. Fieldwork was undertaken on February 9, 2024. The survey was carried out online and meets rigorous quality standards. 

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Over the last few years, I've really given a lot of thought on how to be rich and grow wealth.

I've spoken with countless millionaires and I've responded to over 20,000 reader comments on this site. In each instance, there are common themes that are either helping the person grow wealth, or preventing the person from getting rich.

Being rich doesn't always mean having money, but 90% of the time it does. However, there are habits, behaviors, and "rules" essentially, that will allow you to get rich and grow wealth. It's not an overnight process. There aren't any get rich quick schemes here.

What you're going to read below are my ten rules for how to get rich and grow wealth - over time.

Rule #1 - You Have To Earn It (Your Money, Your Wealth)

If you want to get rich and grow wealth, you have to earn it. There's no way you're going to get to what you want and where you want to be if you're not trying to get there.

With money, this is pretty darn straightforward. You want money? Get out there and start making it. Get a job. Get a second job. Get a third job. Start side hustling and doing side projects to make more money. Are you in college? Get a side hustle in college to pay for school.

The bottom line is, if you want to grow wealth, you have to earn income. There are potentially thousands of ways to earn income, and you need to find the most that you can do and get to work. There is nobody stopping you. There's nothing in your life preventing you. The only roadblock to you earning more is yourself.

So, stop with the excuses and focus on rule #1 to get started - you have to earn your wealth.

Rule #2 - You Need To Save Until It Hurts

The second rule to getting rich is saving. It's not enough to just earn money - you have to save it as well. Otherwise you'll just end up like any number of famous celebrities who've gone bankrupt. Income alone just doesn't cut it. You have to save.

But the real "rule" to get rich here is saving until it hurts. How much is that? Well, if you're not hurting yet, it's not enough.

For example, last year, I saved roughly 40% of my after-tax income. Sounds like a lot, doesn't it? But there are plenty of people out there that are saving more - many over 50% of their income if not more.

The truth is, following Rule #1 makes this rule easier. The more income you have, the easier it is to save more. But even on lower incomes, you can still save. Here are 15 ways to save an additional $500 per month. Boom! 

Rule #3 - You Need To Optimize Your Spending

The third rule to grow wealth is to optimize your spending. I'm not one to judge your spending - spend more or spend less. My personal belief is you should buy whatever you want - just earn more money so you can afford it.

But no matter what, truly wealthy people optimize their spending. This means they find good deals - even if they are going to buy a Ferrari, you can bet they searched around for a deal or negotiated the price.

The trick here is to simply spend wisely - especially on your biggest expenses. For most people, this could be cars, insurance, healthcare, and more. Too many people here just opt for "whatever" or don't think about what the choices really are. Wealthy people stop, think, and elect a choice that maximizes their benefits while minimizing their expenses.

So, if you're ready to grow wealth, start identifying and optimizing your spending.

Rule #4 - You Must Put Your Money To Work For You

The fourth rule is that you have to put your money to work for you. Earning it is your part of the heavy lifting. You need your money and the power of compound interest to work together over time to grow wealth for you.

What does this mean? It means that you need to invest. Why? Because the average inflation-adjusted return for the S&P500 for the last 60 years has been over 7%. 

Have you heard the story about whether it's better to have a penny double everyday or $1 million? Well, it's better to have a penny double everyday - because of the power of compound interest.

You need your money to grow and earn you more money. You need to start building income streams with your money. The goal is that your hard work up front can help you build passive income streams for the future.

Do you want to earn $50,000 per year without working? Here's a simple breakdown of how to make your money work to do it for you. It's all about making your money work for you, not against you.

Related: The Rule Of 72 For Investing

Rule #5 - You Need To Marry Smart

The fifth rule for building wealth is to marry smart. Why? Because a great spouse can be a huge force multiplier when it comes to building wealth, while at the same time the biggest destroyer of wealth is divorce. In fact, a recent study found that divorce destroys 75% of personal net worth.

On the building wealth front, a great duo can earn together, accumulate together, and watch their double-earnings compound over time. That's a huge force multiplier for building wealth. The interest on $2 is always higher than the interest on $1.

However, divorce has the potential to ruin financial lives if you didn't marry smart. Beyond dividing things 50/50, there can be lawyer fees and more. Plus, compound interest now only has a small amount to work with - so it just grows slower.

The fact is, though, that according to the American Psychological Association, 40-50% of marriages end in divorce in the United States. That doesn't mean that divorce has to be a financial disaster. If you married smart to begin with, hopefully your ex-spouse will also be financially savvy when it comes to divorce and you can work things out as amicably as possible.

Rule #6 - You Always Need To Minimize Your Taxes

The sixth rule for getting rich is always be minimizing your tax liability. No matter your income level, you always need to be thinking about how to minimize your taxes. Taxes can prevent you realizing wealth over time because they consistently eat away at your income and investment returns.

For example, the S&P 500 posted an average annual nominal return over the last 30 years of 11.09%. However, after taking into account taxes, fees, and inflation, the real return an investor would have seen would have only been about 7%. That's 46% of your return eliminated by taxes, fees, and inflation.

However, there are many actions you can take to minimize your taxes. First, take advantage of tax deferred investment accounts. Max out your 401k or 403b, take advantage of an Individual Retirement Account (IRA), leverage a Health Spending Account (HSA).

If you don't want to give up your wealth to the government, then taxes should be near the top of your mind when making any money decision.

Rule #7 - Insure Yourself And Protect Your Family

The seventh rule for getting rich and building wealth is that you need to insure yourself to protect your wealth and your family. I'm not even talking about life insurance here - I'm talking about making sure that you have health insurance and disability insurance.

In the last year, I've had two coaching clients that have been impacted by health issues they weren't prepared for, and they've become financially jeopardized by them because they didn't prepare. I've also had another several instances of people becoming disabled to the point they or their family member couldn't work any longer. The result? Financial peril.

The time to insure yourself is when everything is going well. Every person who wants to build wealth and get rich needs to have, at a minimum:

• Health Insurance
• Life Insurance
• Short Term and Long Term Disability

Don't watch all of the money you have accrued go away in a moment.

Related: The Essential Estate Planning Documents Every Family Needs

Rule #8 - You Need To Take Care Of Yourself First

The eighth rule of building wealth is to take care of yourself first. This isn't as much of a money rule as a life rule.

When you fly on an airplane, the flight attendant always does their safety speech where they remind you to put your oxygen mask on first before helping someone else? There's a reason for that - if you're unconscious, you can't help anyone else.

When it comes to building wealth, you have to take care of yourself first - even when dealing with family. This can be really hard for some people, especially those that didn't have much, and now have something that they could share. And others may realize it and ask.

If you want to help others, make sure you've put yourself on solid ground first and have followed all the rules. I've seen it too many times when generosity leads to financial ruin.

Rule #9 - Surround Yourself With People Better Than You

The ninth rule to get rich is to surround yourself with people better than you in all aspects of your life. On the family front - if they are holding you back, distance yourself. Married upward. Don't let family be the reason you aren't achieving your dreams.

Friends? Find ones that are making you a better person. Drop the moochers. Drop the haters. Drop the lazy ones.

Work? Find a mentor that is doing what you want to do and is killing it. If they don't have the bandwidth to meet you, just watch them and see what they do. You can learn a lot from a distance.

Just like Rule #1, you have to earn it. Find people that will help you with that. You don't have to settle for the life you were born into if that's not what you want.

Rule #10 - It's Okay To Go Slow

Finally, the last rule for building wealth is, remember it's okay to go slow. This is especially true for millennials.

I feel like everyone under 30 today wants the next thing, the next job, the next milestone, the next big paycheck. But they haven't even done this thing, learned this job, achieved the current milestone.

Building wealth takes time. It's about earning today, and leveraging time tomorrow. That's how wealth is made. Even if you landed a $150,000 per year job today, you're not any wealthier. Your first paycheck at this great new salary might be $5,000 take home. That's not wealth. That's a starting point. That's something to build on.

According to The Spectrum Group, the average millionaire in the United States is 62 years old. Just 1% of all millionaires are under 35. Keep that in mind on your wealth building journey.

What financial rules do you live by?

One of the biggest questions I've been seeing this year are what the various reference codes mean on the IRS Refund Status Tool (previously known as "Where's My Refund") - or on the IRS2Go app.  A lot of tax filers are getting IRS Reference Codes back, but don't know what they mean and don't know if they are in trouble. 

That is closely followed by what do the various codes on the IRS tax transcript mean (for those that diligently check their transcript daily during tax season).

For more information on when to expect your tax refund if you don't want to worry about transcript codes, check out When To Expect My Tax Refund Tax Calendar.

Also, if you're concerned about a generic message that says "Refer to Tax Topic 152", all that means is check out these tips about getting your refund. Here is a link to Tax Topic 152.

We put together a list of common errors and issues, you can check it out here: IRS Where's My Refund Common Questions.

What Is A Tax Transcript And Why Does It Matter?

The IRS tax transcript is the readout of your personal IRS Master File account where your tax return is processed. Every tax filer has an account at the IRS tied to your Social Security or Tax Payer ID number, and you can pull the transcript of everything happening to your file.

Transcript Codes show what actions are being performed on your tax file. Savvy filers know that they can pull their tax transcript and potentially see when they will be getting their tax refund early. It will also show any errors or issues.

Common things you can see in your tax transcript:

• When your tax refund is set to be issued
• If your tax refund is subject to offset
• Any adjustments to your tax refund
• And issues or IRS notices

Here's an example transcript:

The transaction list is in the lower half of your tax transcript and you can see the codes and dates of transactions.

Important IRS Transcript Codes

Now that you know what to look for, what codes should you be checking? Here are the "most important" IRS transcript codes that you should know.

The main code everyone looks for is 846, which means your tax refund will be issued!

Full List IRS Transaction Codes

There are a LOT of transaction codes that can appear on your tax transcript. Some of these apply to personal returns, and other codes may only apply to entity (business) returns. 

IRS WMR Error And Reference Codes

Here are the IRS Where's My Refund Tool Reference codes. This is slightly different than your tax transcript. These error codes are specific to the WMR app (Where's My Refund app).

You read this chart by first looking for your code, then seeing what the error is. Each error has a specific set of steps that the IRS will follow, called Inquiry Response Procedure.  Here is the list of what the IRM Codes mean.

These are the IRS Reference Codes we've been able to source for the IRS internal documentation. If you're seeing new codes or something different, please drop a comment below so we can research it.

1001 - Refund paper check mailed more than 4 weeks ago

1021 -  BFS part offset, check mailed more than 4 weeks ago (contact BFS at 1-800-304-3107)

1061 -  BFS part offset, direct deposit more than 1 week ago (contact BFS at 1-800-304-3107)

1081 - IRS full or partial offset, paper check mailed more than 4 weeks ago

1091 - IRS full or partial offset, direct deposit more than one week ago

1101 -  No data, taxpayer filed paper return more than 6 weeks ago

1102 -  No data, taxpayer filed electronic return more than 3 weeks ago

1121 -  Problem identified; P-Freeze (We've discovered that this is typically a typo on the return)

1141 - Refund delayed liability on another account (this means you owe a government entity money)

1161 -  Refund delayed, bankruptcy on account

1181 - Refund delayed, pulled for review, not within 7 cycles conduct account analysis

1201 -  All other conditions not covered by a status code conduct account analysis

1221 - Refund delayed, pulled for review, within 7 cycles conduct account analysis

1241 - Paper return received more than 6 weeks ago; in review, notice for additional information will be received

1242 - Electronic return received more than 3 weeks ago; –E Freeze; in review, notice for additional information will be received

1261 - Paper return received more than 6 weeks ago; –Q Freeze; in review, notice for additional information will be received

1262 - Electronic return received more than 3 weeks ago; -Q Freeze; in review, notice for additional information will be received

1301 - Fact of Filing Electronic return received more than 3 weeks ago; no other information See IRM 21.4.1.3.1.2, Return Found/Not Processed

1341 - Refund delayed, liability on another account

1361 - Refund withheld for part/full payment of another tax liability

1381 - Refund withheld for part/full payment of another tax liability

1401 - Refund withheld for part/full payment of another tax liability

1421 - Refund delayed bankruptcy on account; -V Freeze; more than 8 weeks

1441 - Refund delayed, SSN, ITIN or Name mismatch with SSA/IRS; return posted to Invalid Segment

1461 - Taxpayer is advised their refund check was mailed undelivered by the Postal Service. Taxpayer is provided the option to update their address online. Check account to determine if the taxpayer changed their address online. If address is changed, advise taxpayer their request is being processed. If taxpayer did not change their address, follow instructions in IRM 21.4.3.4.3, Undeliverable Refund Checks.

1481 - Refund delayed, return Unpostable

1501 - Direct Deposit between 1 and 2 weeks ago, check with bank, file check claim

1502 - Direct Deposit more than 2 weeks ago, check with bank, file check claim

1521 - No data, paper return taxpayer filed more than 6 weeks ago; TIN not validated

1522 - No data, taxpayer filed electronic return more than 3 weeks ago; TIN not validated

1541 - Offset Overflow freeze set when offset storage within IDRS is not large enough to hold all generated transactions, or credit balance has been completely offset and two or more debit modules still exist

1551 - Frivolous Return Program freeze

1561 - Excess credit freeze set when the taxpayer claims fewer credits than are available

1571 -  Erroneous refund freeze initiated

1581 - Manual refund freeze with no TC 150, or, return is Coded CCC "O" and TC 150 posted without TC 840

2007/2008 - Taxpayer’s check returned undelivered by the Postal Service and taxpayer does not meet Internet Refund Fact of Filing (IRFOF) eligibility. For example account may have an additional liability, or a freeze code other than S-. Analyze account and take appropriate action.

2009 - Taxpayer’s check returned undelivered by the Postal Service and taxpayer does not meet IRFOF eligibility. Taxpayer does not pass disclosure through IRFOF due to lack of data on IRFOF.

2015 - Savings bond request denied - partial offset - more than 3 weeks from refund date

2016 - Savings bond request denied - total offset

2017 - Savings bond request allowed - more than 3 weeks from refund date

5501 - Split direct deposit - partial offset - more than 2 weeks from refund date

5510 - Split direct deposit - returned by the bank - check mailed - with partial offset

5511 - Split direct deposit - returned by the bank - check mailed

8001 - Paper return taxpayer filed more than 6 weeks ago, failed authentication

8002 - Electronic return taxpayer filed more than 3 weeks ago, failed authentication

8028 - A security condition is preventing you from accessing the system.

9001 - Where's My Refund System Error. Before you freak out and leave a comment, read our full article on IRS Code 9001 and What It Really Means?

9021 - Reference Code for all math error conditions Analyze account and follow appropriate IRM

9022 - Math error on return. Direct deposit more than 1 week ago Analyze account and follow appropriate IRM

9023 - Math error on return. Refund paper check mailed more than 4 weeks ago Analyze account and follow appropriate IRM

9024 - Math error on return. Balance due more than $50 Analyze account and follow appropriate IRM

If You Get a Reference Code on Your WMR

If you check Where's My Refund (WMR) and see you have a reference code, you should identify the code and see if any action is required.

In many cases, no action is required on your part.  One of the most common codes is 9001, which, as you can see, just means you accessed WMR using a different SSN or TIN.  Once the IRS analyzes to ensure no fraud has taken place, you will get your return like normal.

If there is an issue, the IRS will typically send you a letter to your mailing address within 90 days stating what the issue was, and any additional information required.

If you have any questions, you can contact the IRS directly at 800-829-1040.

Key statistics released by the IRS for the week ending February 2, 2024, reveal notable shifts in tax return filings, processing, and refunds. The 2024 tax season opened on January 29, about a week later than last year, and as a result, less taxpayers have been able to file their tax return.

The reduction in filings is shedding light on potential shifts in taxpayer behavior, economic factors, or the implications of tax policy changes. The IRS's readiness to handle the season effectively, despite fewer returns, indicates a well-prepared system, yet the lower volume of filings and lower tax refund amounts raise questions about the broader tax filing landscape.

Related: When To Expect My Tax Refund In 2024

Decrease In Tax Returns Filed

Even though tax season officially started on January 29, 2024, many early filers typically start preparing their returns in early January. So even with the late start, the almost 20% decline is troubling.

In 2023, by February 3, Americans had filed 18,946,000 tax returns. This year, by February 2, Americans had only filed 15,318,000 returns. That 19.1% decrease is likely a combination of the late start to tax season, and concerns about potential changes.

This is highlighted in the returns filed by tax preparers. Many tax preparers have noted they are waiting on Congress to resolve the outstanding issues around the potential retroactive tax changes (including the Child Tax Credit). As a result, many professional tax preparers are waiting to file their clients' returns. 

Lower Refunds For Taxpayers

The substantial decline in the total amount refunded and the average refund amount is a critical point of interest. This shift could impact individual financial planning and spending, reflecting broader economic conditions and tax policy changes.

So far in 2024, the average tax refund amount is down to $1,395, versus $1,963 this time last year. That's a 28.9% decline. We expected tax refunds to be smaller this year due to many tax credits expiring, but this is significantly more than expected. Furthermore, the total number of refunds is down 67.3% overall.

This reduction could have wider implications for individual financial planning and economic activity, as refunds often contribute to consumer spending.

Looking Ahead

As the 2024 tax season unfolds, this early data from the IRS serves as a crucial indicator of the season's trajectory and the evolving tax filing environment.

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Another loan forgiveness program available to engineers is the Higher Education Opportunity Act of 2008. This program allows debt forgiveness of up to $2,000 per year with a maximum of $10,000. 

From the acec.org website, “Under the law, an individual will be eligible for up to $2,000 in student loan forgiveness for each of five years of work in engineering or other designated fields.

The maximum amount of loan forgiveness available to an individual will be $10,000. Only years of work completed after August 14, 2008, will count toward the student loan forgiveness requirements.”

Public Service Loan Forgiveness

If you're an engineer that works in public service, you could qualify for Public Service Loan Forgiveness. This program provides complete loan forgiveness after 120 qualifying payments (10 years).

What type of employment counts? Public service - but that's very broad. You can be employed by the federal government, military, state government, or local government. Non-profits qualify too. 

A lot of engineers are employed by qualifying public organizations, so check it out!

Employer-Based Student Loan Repayment Assistance

While there are foundations and state-based debt forgiveness programs, don’t rule out employers who will pay all or a portion of your student loans. 

These employers don’t work with foundation or state debt forgiveness programs. They are basically putting their own program together, which can make it easier to qualify for.

Employers will have certain restrictions that you must meet before debt forgiveness kicks in. The most common is that the employee must work a certain number of years before their loans are paid down.

Another approach is that certain amounts are paid each year and can start as soon as the first year. Both incentives are meant to keep employees at the company longer.

In some cases, a company may provide a lump sum immediately or after the first year, which can be used to pay off student loan debt. However, if the employee leaves before a certain number of years, they must pay back a percentage of the award.

Check out this list of companies that offer student loan repayment assistance.

Federal Student Loan Forgiveness Programs

If you don't qualify for any of the programs listed above, there are still options that may help.

First, there are "secret" student loan forgiveness programs that are attached to income-driven repayment plans. Not only do these programs lower your monthly payment, but they offer loan forgiveness on any remaining balance at the end of your loan term. This includes repayments under the new SAVE student loan repayment plan.

Second, if you are employed in public service (like a government job), you can potentially qualify for Public Service Loan Forgiveness. This program allows for student loan forgiveness at the end of 120 payments (or 10 years). While that may seem like a long time, if you get started at 22, you can be debt free by 32!

Plan Your Degree Ahead Of Time

Many debt forgiveness programs require specific degrees, possibly schools and employers to be eligible.

While you might not know where you’ll be after graduation, planning ahead can give you a higher chance of success in being awarded money for debt forgiveness. Here’s a few tips on how to do it.

Start by researching engineering and STEM debt forgiveness programs that are available in some of the states you might want to move to after graduation.

Don’t focus just on “engineering” programs. Many programs are STEM-oriented, which also includes engineering. It’s important to search for both types of programs.

Enlist your school in the search. Schools that you target can be great resources when it comes to helping you find debt forgiveness programs. Keep in mind that they are likely to be biased toward programs within their state.

Once you’ve identified a large number of programs, search which companies in your target states participate. Debt forgiveness programs are often linked with companies. It’s important that program and company are linked.

Otherwise, you might find a great debt forgiveness program that you are eligible for only to find out that your employer isn’t participating.

Final Thoughts

Engineers have a few great options when it comes to student loan debt forgiveness. While it’s unlikely any one program will pay off all of your student loan debt, the programs mentioned in this article can certainly help in paying down your debt burden.

Keep in mind that you’ll want to make sure your degree and employer all align for any program that you are choosing.

Although, it isn’t uncommon for employees to have their own student loan forgiveness program. Just be aware of their restrictions.

Are you considering student loan forgiveness if you qualify?