Did a deep dive into the new #StudentLoan forgiveness program. Some things I learned 🧵
First, there are still a LOT of unknowns. The program is as follows:
$20,000 in student loan debt for Pell Grant recipients
and
$10,000 for all other federal borrowers.
You must earn under $125,000 annually ($250,000 for households)
$20,000 in student loan debt for Pell Grant recipients
and
$10,000 for all other federal borrowers.
You must earn under $125,000 annually ($250,000 for households)
In addition to forgiveness for these loans..
Biden also extended the pause on student loan payments for the last time.
Borrowers will not need to pay their monthly loan bills until January 2023.
Biden also extended the pause on student loan payments for the last time.
Borrowers will not need to pay their monthly loan bills until January 2023.
Remember that this is only for FEDERAL loans. If you refinanced, you do not get any forgiveness.
So, which ones do qualify?
Federal undergraduate, graduate, Parent PLUS, and Pell Grants all count under the forgiveness plan
So, which ones do qualify?
Federal undergraduate, graduate, Parent PLUS, and Pell Grants all count under the forgiveness plan
PARENT PLUS LOANS QUALIFY: THIS COULD BE HUGE FOR YOUR FAMILY.
Especially if you make >150k and your parents don't! They qualify.
The loans must have been disbursed before July 2022 to qualify for forgiveness.
That means those still in school can have their balances reduced.
Especially if you make >150k and your parents don't! They qualify.
The loans must have been disbursed before July 2022 to qualify for forgiveness.
That means those still in school can have their balances reduced.
Speaking of income, I've seen that Biden will likely use 2021 OR 2020 AGI number to qualify people.
If you got a raise over $150k from 2020 to 2021, pray that you can use 2020 numbers. We just don't know yet.
If you got a raise over $150k from 2020 to 2021, pray that you can use 2020 numbers. We just don't know yet.
You should submit their application before Nov. 15 so that the debt is forgiven before the payment pause ends on Dec. 31 (applications will still be processed after that date)
They will process on a rolling basis, and it will take 4 to 6 weeks for you to see balances adjusted
They will process on a rolling basis, and it will take 4 to 6 weeks for you to see balances adjusted
More details will follow in the coming months and applications will likely open in October.
I'd assume there will be many bumps in the road
Talking through this with your advisor will be critical. There are tons of blind spots here.
They will be able to help you get this relief!
I'd assume there will be many bumps in the road
Talking through this with your advisor will be critical. There are tons of blind spots here.
They will be able to help you get this relief!
If you want to talk to a licensed financial planner, fill out a contact form on getinvested.me
We have a NO MINIMUMS program that will help you navigate this #StudentLoan forgiveness and any other goals you'd like to work on.
We have a NO MINIMUMS program that will help you navigate this #StudentLoan forgiveness and any other goals you'd like to work on.
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