Well, this was unexpected! The Biden-Harris Administration has revised their plan to tackle student debt, effective today! Continue reading to see if you will benefit!
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How Did This Happen?
- Starting today, The Department of Education will begin notifying more than 804,000 borrowers that they have a total of $39 billion in Federal student loans that will be automatically discharged in the coming weeks!
- “But how did this happen?” I wondered the same! It appears as though the administriation revised their plan for loan forgiveness despite the Supreme Court ruling, by revising requirements for borrowers on repayment plans.
- Currently, borrowers get any remaining debt canceled by the government after they have made payments for 20 years or 25 years. Those that are close to this threshold, have seen their final payments not count towards loan forgiveness, which is extremely frustrating.
- To bring people over the line for forgiveness, the Biden administration has counted payments for borrowers who’d paused their payments in certain deferments and forbearances and those who’d made partial or late payments!
Do you Qualify?
- Borrowers receiving notifications in the coming days include those with Direct Loans or Federal Family Education Loans held by the Department (including Parent PLUS loans of either type) who have reached the necessary forgiveness threshold as a result of receiving credit toward IDR forgiveness for any of the following periods:
- Any month in which a borrower was in a repayment status, regardless of whether payments were partial or late, the type of loan, or the repayment plan;
- Any period in which a borrower spent 12 or more consecutive months in forbearance;
- Any month in forbearance for borrowers who spent 36 or more cumulative months in forbearance;
- Any month spent in deferment (except for in-school deferment) prior to 2013; and
- Any month spent in economic hardship or military deferments on or after January 1, 2013.
I believe personally, that this administration knows that the current student loan debt, borrowing and repayment system is unsustainable. As a result, there may be even more changes ahead. Keep an eye on your email!
anxiety authors betterlife blackhistory book boss Breezideezi business career cash college confidence debt development earnmoneyonline earnonline encourage entrepreneur entrepreneurship fear forgiveness growth help loan loanforgiveness makemoneyonline mentalhealth money motivation onlineincome onlineincometips persistence personaldevelopment philosophy poem poetry quote school sidehustle sidehustlesaturday sidehustlesaturdays strength studentdebt studentloans supremecourt
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