Biden Cancels $10k – What You Need to Know
by Matt Elliott, Pulse Financial Planning
President Biden announced major changes to student loans 8/24/22. There is much more than just widespread student loan cancellation to consider here. Here is what you need to know:
- $10,000 student loan cancellation for federal student loan borrowers
- Income must be below $125,000 if single, $250,000 if married filing jointly to qualify
- Income will be based on 2020 or 2021
- It is unclear at this time how income will be counted or verified (AGI, Taxable Income, will 2020 or 2021 be used)
Understanding Student Loan Forgiveness
On August 24th, the Biden administration announced a series of changes to student loans and forgiveness of up to $20,000. There is a lot in what they have announced, so let’s look at how it can help you.
Forgiveness of up to $20,000 in student loans (for people who received Pell Grants) and $10,000 for others.
Is The Bear Market Over?
2022 has been a challenging year for investors and economists alike. As inflation emerged from its 40 year hibernation, stocks dropped into bear market territory in the first half of the year. Fears of a recession arose. However, in the last few weeks, recession fears have eased and stocks have rebounded. Are investors out of the woods now? In this week’s post we examine where the economy and stock markets are and how bear markets play out. Is the bear market over?
Didn’t get Public Service Loan Forgiveness? Try Again!
Federal student loan programs have had forgiveness built-in for a while now, but forgiveness takes a long time. The standard period for most loans to receive forgiveness is 20-25 years. Standard payoff plans for federal student loans are 10-year paybacks, so these would obviously not be helpful. However, there are a several “Income-Driven Repayment” (IDR) plans available that can extend payments for a much longer period.
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