I just dropped a special bonus Podcast Flash, where I give a brief explanation about the new Federal Student Forgiveness program and what you should do now. Also just go to this link https://studentaid.gov/debt-relief-announcement/ for a more detailed explanation The debt forgiveness applies to undergraduate, graduate and Parent Plus loans. Current students can also qualify, for any loans taken out before July 1, 2022, but students who were claimed as dependents will be eligible based on their parent's income rather than their own Also know if you are upset because you paid off or down your federal student loans by making payments during March 13, 2020, and August 31, 2022 you can ask for a refund of those payments to get your balance back up to $10,000 And Student loan forgiveness won't trigger a federal tax bill. That's because the American Rescue Plan of 2021 made student loan forgiveness tax-free through 2025 However there are states that you may have to pay state taxes. Check with your CPA in Alabama Arkansas Mississippi and New Jersey For those undergraduates with original loan balances of $12,000 or less and are on income based repayment now your loan payment will only be 5 percent of your discretionary income rather than 10 percent and will be forgiven in ten years not 20 and you balance will not grow. Also just know if anyone opposes this bill and sues it can stall everything. So let’s see if this bill holds or not .
Posted by Suze at 2022-08-24 18:56:04 UTC