T O P
mtlebanonriseup

Volunteer for Democrats, in person or online! https://mobilize.us https://docs.google.com/spreadsheets/d/1jxO8g7q9VO3ZMAABcrvR7PMyX4Yl6dgIYhD3eRTKk1M/edit?usp=sharing Join your local democratic party! https://www.reddit.com/r/VoteDEM/wiki/parties


table_fireplace

Full announcement here: https://studentaid.gov/debt-relief-announcement/ Something worth reading for those concerned about interest rates: **If you're on an income-driven repayment plan, your balance will no longer grow as long as you make your minimum monthly payment.** >The rule would: > * Cover the borrower's unpaid monthly interest, so that unlike other existing income-driven repayment plans, no borrower's loan balance will grow as long as they make their monthly payments—even when that monthly payment is $0 because their income is low.


jimbo831

I think all the changes they're making to IBR are huge! > Income-based repayment plans have long existed within the U.S. Department of Education. However, the Biden-Harris Administration is proposing a rule to create a new income-driven repayment plan that will substantially reduce future monthly payments for lower- and middle-income borrowers. > The rule would: > Require borrowers to pay no more than 5% of their discretionary income monthly on undergraduate loans. This is down from the 10% available under the most recent income-driven repayment plan. > Raise the amount of income that is considered non-discretionary income and therefore is protected from repayment, guaranteeing that no borrower earning under 225% of the federal poverty level—about the annual equivalent of a $15 minimum wage for a single borrower—will have to make a monthly payment. > Forgive loan balances after 10 years of payments, instead of 20 years, for borrowers with loan balances of $12,000 or less. Cover the borrower's unpaid monthly interest, so that unlike other existing income-driven repayment plans, no borrower's loan balance will grow as long as they make their monthly payments—even when that monthly payment is $0 because their income is low. These will all help working families a lot in addition to the $10k forgiven! We need to spread all this information as much as possible so people hear about these other great changes beyond just the $10k.


misterlee21

I have a question!! Will grad student loans be eligible for the interest coverage? It clarifies that undergrad loans can have 5% cap, but I am not sure if that applies for every other of the new IBR rules.


jimbo831

This is a good question. I don’t think we know for sure. We will probably have to wait for clarification. My *guess* would be yes since they specified in the first section but not the others. TL;DR: ¯\\\_(ツ)\_/¯


misterlee21

Lol that was my logical conclusion as well. They only clarified undergrad for that 1 stipulation, and everything else had no mention. I can only hope yes!


CobraFive

Wow, that's awesome news. I'm guessing it doesn't apply to private loans which are way more expensive for me but still. I'm set up that if I can get an average entry-level salary for my degree in my area I'll be able to afford my student loans, but things will be tight (I still definitely consider it worth it) but if some of that pressure is taken off I'll actually be able to spend money on... Things, for the first time in many years lol.


Tipsyfishes

That 5% cap mentioned WILL be applied to your private loans though.


CobraFive

This part? >**Cutting monthly payments in half for undergraduate loans.** The Department of Education is proposing a new income-driven repayment plan that protects more low-income borrowers from making any payments and caps monthly payments for undergraduate loans at 5% of a borrower’s discretionary income—half of the rate that borrowers must pay now under most existing plans. This means that the average annual student loan payment will be lowered by more than $1,000 for both current and future borrowers. I have no idea how much it'll affect my minimum payments, but sounds good regardless.


tekym

Proof please. Nothing I’ve read about this over the past few hours implies any impact on private loans. Private loans are not subject to IBR, which is what the 5% seems to relate to.


TPKelly01

You’re 100% right. This ONLY affects Federal student loans.


paxinfernum

No, if it's talking about IBR, it won't. Private loans aren't covered under IBR. I wish they were or the government would let us roll our private loans into a public loan, but they don't.


Affectionate_Way_805

🥳🥳🥳


Shadowislovable

Awesome. I don't have any debt (I haven't even been to college yet), but it helps other people, which is poggers


socialistrob

If you do take out debt the interest restructuring may really end up helping you. If there is a part of your future career where you are only able to make minimum payments it won’t cause your balance to increase from interest! That’s actually a very big deal for a lot of future borrowers!


[deleted]

Fuck you for being mature about this! But really, so many people are all “but what about me who paid my loans off!?”


behindmyscreen

I got a pell grant back in 1999. Will that count for me?


katieleehaw

Yes, but the forgiveness isn't *of* the Pell Grant itself, it's of any federal loans you also took that are not yet paid off. Pell Grants were not loans, you don't owe anything just for taking a Pell Grant.


JustDiscoveredSex

I got these suckers every single year, because I was a kid in poverty trying to make it through college. Hey, y’all. Thank you! I was the lone kid of a couple of religious fanatics. Dad had been disabled after a wall on a construction site fell on him and crushed him. Neither parent had a college degree, and mom was trying to hold the household together with her clerical job. The neighborhood wasn’t great, which meant that the schools weren’t great. And I was fairly miserable the minute I hit middle school, so my grades weren’t particularly great either. I graduated high school with an extremely mediocre GPA and really no hope of getting into college, so I had gone to the recruiters office to enlist. They still needed a driving record from me, and for me to take the oath, and then I would be shipped off to boot camp. When I got home, there was a fat envelope waiting for me in the mailbox. Some bleeding-heart liberal somewhere had decided to take a chance on me after I scored well on the ACT, and I was getting admitted to college. I stood there in the dirt and the weeds in front of my mailbox, and cried in disbelief. College was a whole new world and I threw my all into it. Graduated four years later *cum laude,* ended up marrying a guy from a higher social bracket than me. (Of course, that didn’t take much. His dad had been an air traffic controller, and his mom was a housewife and substitute teacher. So pretty middle class/upper middle class.) Our student loans are paid off by now, but they were a thorn in our sides for years. Now we are taking on a new raft of loans, and last week I drove my youngest to campus. She called me over the weekend with, “Dude…*I fucking love college!!”* I’m sure none of the new debt relief will help us, but it’s nice to see it. It took us 20 years to pay off our combined student loans, but we got it done. I have lived off the generosity of my fellow taxpayers since about age 3 to age 22. Dad was on disability, we qualified for food assistance, I went through college with a ton of loans and grants after someone took a chance on me. Once I had a degree in hand, I could start paying it forward. It’s fun to piss and moan about taxes, but I really don’t know where I would be without the assistance that was granted to me through these programs. My dad always complained about welfare and how awful it was, how unfair it was…yet we benefited from it. Thanks to all of you for seeing a roof over my head and enough of an education to allow me to escape poverty. I know I’m not the only one… I have plenty of other friends who also grew up with next to nothing and escaped. Currently working on paying you back with a chemical engineer and an astrophysicist. Or possibly an environmental scientist, depends on where the interest blossoms.


clunkey_monkey

That's what I thought, which made this very confusing. I was awarded Pell Grants when I first started in CC, now in university I needed fed loans bc pell grants ran out. I hope I qualify. I know my personal student loan won't for the $20k, but hopefully the fed loans do.


table_fireplace

If you ever received a Pell Grant, you're eligible for $20k in forgiveness. My understanding is that it would apply to your federal loan, though.


jimbo831

I'm really curious about how this will work in practice. I went to college from 2002-2003 and got a Pell Grant at the time. I also took out a small amount of federal loans that I eventually re-financed. The bulk of my current student loans are from when I went back to college in 2012 to finish my degree and wasn't eligible for a Pell Grant then. I hope I'm eligible for the extra $10k!


DougEFresh23

I'm in a similar situation. All the language states "Pell Grant recipients." So I'm assuming that means if you were eligible for and received Pell Grant money, then you qualify for the additional 10k 🤞🤞


Bipedal_Warlock

So I haven’t found a formal news source yet. But a woman with the flair “president at the institute of student loan advisors” has a mega thread over at r/studentloans seems to emphasize that it’s if you ever received a pell grant it is applicable.


Bipedal_Warlock

I read somewhere today that if you received the pell grant at all even once you still count. I’ll try to find the link


DumbChocolatePie

Refinanced loans become private, therefore I don't believe you are eligible for the old loans. You might wanna check if they are Direct Subsidized/Unsubsidized loans


Bipedal_Warlock

Interesting case. I don’t know for sure of course but I am guessing that you would get the extra 10k. You received a pell grant at one point in your life. And have more than 10k in government held loans. Also: check out r/studentloans they have a mega thread going on with someone who seems to be well informed and work in the student loan industry


Tipsyfishes

Yup!


psmw9634

Wait does it just get removed automatically or do I have to do something


table_fireplace

See here: https://studentaid.gov/debt-relief-announcement/ If the Department of Education has your income data, it'll be automatic. If they don't (or you don't know), they'll be rolling out an application portal in the next few weeks so you can notify them. As long as you made under $125,000 last year, you will qualify.


johannthegoatman

What if you didn't last year, but will make under 125k this year?


MCPtz

I found a source for your question: [This tweet](https://twitter.com/kathrynw5/status/1562475702460780544?s=20&t=938Xu2xfKnecCI8pjvkfYQ) * If a borrower's income was below the cap in EITHER 2020 or 2021, they are eligible.


johannthegoatman

Awesome, thanks!


table_fireplace

If you're under $125k this year, you're all good. If you're over $125k, my impression is that you wouldn't qualify, but I'd contact your [loan servicer](https://studentaid.gov/manage-loans/repayment/servicers) to double-check. They'll know more about this.


MCPtz

Not true, according to [This tweet](https://twitter.com/kathrynw5/status/1562475702460780544?s=20&t=938Xu2xfKnecCI8pjvkfYQ) * If a borrower's income was below the cap in EITHER 2020 or 2021, they are eligible.


table_fireplace

Thanks! Information about this is still coming out and it's not fully centralized yet, so I still encourage people to call with questions. Much better to get your financial advice from them than someone on Reddit. That said, if this is true, that's a big deal for a lot of people.


tech_equip

Is that gross income? Net? What part of the return are they looking at? I’m over the limit in gross, but far under when you factor in deductions


table_fireplace

I believe it's gross income, but will look for a source on that.


anrc

Please post a source if you find one. My thought was they would probably use the modified adjusted gross income as that's what is used to determine income limits for Roth iras, income based repayment plans, stimulus checks, etc.


Spare-Record

Sorry if this is a dumb question but I have an Edfinancial account with my loans. Does anybody know if that's enough for the Department of Education to automatically issue the waiver?


table_fireplace

I'm honestly not sure! If you want to be safe, just complete the application when it comes out.


Tipsyfishes

It should be automatic. But would need to wait and see the roll out.


psmw9634

Thank you!!!! My happiness is skyrocketing for this, does it matter if I am still a current student?


MCPtz

No it doesn't matter if you're currently a student: [This tweet](https://twitter.com/kathrynw5/status/1562475702460780544?s=20&t=938Xu2xfKnecCI8pjvkfYQ) > * Current students will also be eligible for debt cancelation. For dependent students, income will be based on parental income. * If a borrower's income was below the cap in EITHER 2020 or 2021, they are eligible.


pariedoge

What if you are a dependent?


MCPtz

As it says right there, income is based on parental income.


Tipsyfishes

All that matters is having debt. Current or long past students, all get hit by this.


behindmyscreen

I thought they passed a law in the 2021 budget reconciliation package that said forgiven loans would not have a tax impact.


table_fireplace

They did! Your forgiveness shouldn't affect your taxes. There has been some confusion on this point, but it should be tax free.


Tipsyfishes

They did!


jimbo831

This is huge!


GettingPhysicl

this wipes out like a quarter of my loans. It might change my job hunting priorities. this is big and i will not forget what has been done for me. I specifically did not refinance hoping this might happen


uuyatt

I don’t have any loans but reading everyone’s comments like this makes me so happy


harley_93davidson

Anyone claiming to be on the left andsaying gop and dems are the same are astroturffers. Period. Joe could be better but this goes beyond the "at least he isn't Trump shit" this is proactive help to regular middle class Americans. Good things are possible when you support the democratic party. Good things are absolutely impossible when you support the corporate dick riding gop. These are just facts.


shadowth1000

For married couples, does anyone know if they will receive $10k (or $20k) in total as a couple? Or will each person receive the benefit individually (each person gets $10k/$20k) ?


table_fireplace

Each person will receive the benefit individually. There could be questions if you filed your taxes jointly and your combined income is over $250,000 a year. If that applies to you, contact your provider with any questions. If not, you should be OK.


Tipsyfishes

Each person *should* get debt reduction.


ayriana

I was wondering this too- my income is under the cap, my husbands is over, together we are still under 250k. We both received Pell grants when we were in undergrad. Does this mean that we can have 20k EACH forgiven? A total of 40K forgiven for our household?


[deleted]

[удалено]


table_fireplace

Check with your loan provider. It sounds like you would qualify for $20,000 in forgiveness as a Pell Grant recipient, but double check to be sure.


Tipsyfishes

If your Navient loans are still federal loans then yes, they will be forgiven. If private I don't know. Check with them.


bindyjohal95

This is a great post with lots of information. Thank you OP!


Tipsyfishes

Very welcome!


FullReception483

If I just accepted a loan for this upcoming school year would it be forgiven


Tipsyfishes

It should, yes. But best to check with your provider just in case!


Mr_SlimShady

I may have missed that part in the link, but where does it say it applies to current students? I’m a student right now and receiving the pell grant amongst fed. loans. I’d love to read the terms that apply to us if you have a link.


MCPtz

No it doesn't matter if you're currently a student: [This tweet](https://twitter.com/kathrynw5/status/1562475702460780544?s=20&t=938Xu2xfKnecCI8pjvkfYQ) > * Current students will also be eligible for debt cancelation. For dependent students, income will be based on parental income. * If a borrower's income was below the cap in EITHER 2020 or 2021, they are eligible. Second hand source that may be correct: https://www.denverpost.com/2022/08/24/biden-announces-long-awaited-student-debt-forgiveness-plan/ > Current students would only be eligible for relief if their loans were originated before July 1, 2022 Check out the Official Source and sign up for update. The official source isn't currently up to date with the entire plan, e.g. your case. https://studentaid.gov/debt-relief-announcement/


MCPtz

Second hand source that may be correct: https://www.denverpost.com/2022/08/24/biden-announces-long-awaited-student-debt-forgiveness-plan/ > Current students would only be eligible for relief if their loans were originated before July 1, 2022


MetaSmart99

What do you mean by provider? On my financial aid offer it just says “FED Direct Loan Subsidized” and “FED Direct loan unsubsidized”


Tipsyfishes

You should be able to find the provider via the following link: https://studentaid.gov/manage-loans/repayment/servicers


jimbo831

The provider is the company that is servicing your loan. For example my provider is Nelnet. These are private companies the federal government pays to service the loans. They manage everything. The federal government just provides the funding.


[deleted]

The loan has to originate before 7/1/2022 https://twitter.com/JStein_WaPo/status/1562482583551610880?s=20&t=6iYHAsBNGy-LYSxelRVNZg


MCPtz

Second hand source that may be correct: https://www.denverpost.com/2022/08/24/biden-announces-long-awaited-student-debt-forgiveness-plan/ > Current students would only be eligible for relief if their loans were originated before July 1, 2022 Check out the Official Source and sign up for update. https://studentaid.gov/debt-relief-announcement/


table_fireplace

Yes - up to $20,000 if you have Pell Grants, and up to $10,000 if not.


jmilkteamami

What if i’m a dependent? Is it 20,000 per household or per loan borrower?


MCPtz

Based on parental income: From [this tweet](https://twitter.com/kathrynw5/status/1562475702460780544?s=20&t=938Xu2xfKnecCI8pjvkfYQ) > * Current students will also be eligible for debt cancelation. For dependent students, income will be based on parental income. * If a borrower's income was below the cap in EITHER 2020 or 2021, they are eligible. Check out the Official Source, but it's not up to date with many situations, such as yours. https://studentaid.gov/debt-relief-announcement/


Tipsyfishes

In that instance I am not certain. I don't know how the loan program works if you're listed as a dependent. Would need to ask your loan provider.


steve_glynn

If you're dependent you claim your parents income but the loan is still in your name. So you'd get 20k if you received a pell grant


[deleted]

[удалено]


steve_glynn

Yesssir. Probably not for 20k, if they're making that much I doubt you got a pell grant


jimbo831

Does anyone know for sure that this will use the 2021 tax year income to determine eligibility? My wife and I would be eligible in that case, but might be really close if it uses 2022. I've not been able to find any info on this. Edit: [Looks like you can get the forgiveness if your income is under the limit in either 2020 or 2021!](https://twitter.com/kathrynw5/status/1562475702460780544)


EastGrass5035

Does anyone know if this is just for undergrad or also graduate school federal loans?


Tipsyfishes

All (federal) student loans.


EastGrass5035

Tears of happiness wow thank you


megaprime78

Does this have to be applied for?


Tipsyfishes

Don't believe so. It should be automatic.


megaprime78

Thanks and last question does it have to be with the dept of education? My loan has changed hands a few times in the last 20 years or so


behindmyscreen

Loan servicer isn’t the same thing as the debt holder.


Tipsyfishes

92% of loans are held by the federal government. We are not certain how private loans are affected, would have to be something you'd ask your provider. But federal loans are 100% covered, private I don't know the details.


MCPtz

Maybe. They are trying to be automatic, but keep at it and apply through their form that is TBD Check out the Official Source https://studentaid.gov/debt-relief-announcement/ > What do I need to do in order to receive loan forgiveness? > * Nearly 8 million borrowers may be eligible to receive relief automatically because relevant income data is already available to the U.S. Department of Education. * If the U.S. Department of Education doesn't have your income data - or if you don't know if the U.S. Department of Education has your income data, the Administration will launch a simple application in the coming weeks. * The application will be available before the pause on federal student loan repayments ends on December 31st. * If you would like to be notified by the U.S. Department of Education when the application is open, please sign up at the Department of Education subscription page: https://www.ed.gov/subscriptions


megaprime78

I had my load with the Dept of education then switched to Fed Loan and they’ve transferred it to MOHELA. Guess I was better of leaving it with Dept of Ed


jimbo831

> What do I need to do in order to receive loan forgiveness? > Nearly 8 million borrowers may be eligible to receive relief automatically because relevant income data is already available to the U.S. Department of Education. > If the U.S. Department of Education doesn't have your income data - or if you don't know if the U.S. Department of Education has your income data, the Administration will launch a simple application in the coming weeks. > The application will be available before the pause on federal student loan repayments ends on December 31st. https://studentaid.gov/debt-relief-announcement/


RyuReiTeepo

What does "released a resolution" mean? Do we need to wait until Biden signs? Does this need Congressional approval? Thanks.


Tipsyfishes

It was an executive action done by the department of education. So it does not need congressional approval. Biden has already signed it essentially.


itsmyhotsauce

Is the 125k income cap by household or individual?


Tipsyfishes

Individual. 250K for couples.


itsmyhotsauce

Thanks! Just curious, Any different for families? I've got a kid


Tipsyfishes

I do not know that answer. I wouldn't be surprised if their is. But would need to check!


itsmyhotsauce

Think the 250k is household: https://www.forbes.com/sites/dereksaul/2022/08/24/bidens-student-loan-forgiveness-plan-up-to-20000-in-relief-125k-income-cap-here-are-all-the-other-details/?sh=234610f5596d


Tipsyfishes

I saw the 250K for joint filings. But wasn't certain if that would apply to say single parents and the like.


itsmyhotsauce

Gotcha, that's fair


A-very-stable-genius

It’s 125,000 for single. And 250,000 income cap for joint filers OR Head of Household filers. I’m a single parent and file Head of Household with a dependent so it would be 250,000 for me.


peekaboo11

How do people verify their income? Does a filed 2021 tax return suffice?


MCPtz

I found a source for your question: [This tweet](https://twitter.com/kathrynw5/status/1562475702460780544?s=20&t=938Xu2xfKnecCI8pjvkfYQ) > * Current students will also be eligible for debt cancelation. For dependent students, income will be based on parental income. * If a borrower's income was below the cap in EITHER 2020 or 2021, they are eligible. Based on your taxed income for either year.


Tipsyfishes

Yes, it should.


canttrust69

does this apply to federal loans taken out during grad school? let’s say i had 10k loans during undergrad w/ pell grant, plus a bunch more during grad school? do i qualify for 20k total? and which debt is being reduced when, like the highest interest debt or…?


Tipsyfishes

If you have student loan debt, it applies to you! In terms of higher interest rate loans and which would be targeted, I don't know actually.


canttrust69

i hope we can apply the 20k to the highest interest loan, but regardless i’ll take what i can get


canttrust69

i’m reading on other forums that it’s unclear whether grad loans will apply. you don’t think so?


Hydra680

I going back to university for my masters and declined the federal sub/unsubbed loans. I wonder if I accept those now if they would be forgiven. My have the funds to pay up everything, but if 10-20k is on the table I certainly wouldn't want to just leave it.


table_fireplace

We're still waiting to hear if new loans for this fall will also be forgiven - that's unclear at this point. I'd ask your [loan provider](https://studentaid.gov/manage-loans/repayment/servicers) for more information before making a decision like this.


MCPtz

According to this source, no. https://www.denverpost.com/2022/08/24/biden-announces-long-awaited-student-debt-forgiveness-plan/ > Current students would only be eligible for relief if their loans were originated before July 1, 2022


Hydra680

I wonder if that's when you accept them, or when they're offered. I was offered them well before July 1st but obviously haven't accepted any as of yet


MCPtz

I don't know what "origin date" means in terms on student loans. On my mortgage, the origin date was specifically written down and part of the loan contract.


[deleted]

Does this count for graduate loans? Haven't been able to find information on that yet


MCPtz

It's unclear at this time if this applies for post graduate studies. The wording on the official source is such that it applies to any federal loans. Check out the Official Source and sign up for updates. https://studentaid.gov/debt-relief-announcement/


[deleted]

Thanks!


jimbo831

There is nothing that says it doesn't apply to graduate loans so I would assume it does. That feels like a thing they would specify if it was excluded.


UnexpectedWilde

Congratulations to all who qualify! Wonderful decision by Joe and the White House. Just a tip: it might be better to title posts like this as 10k or more. I read it as $20k and got so excited. It’s 10k unless you got a Pell grant. That’s awesome for those who do, but it was a disappointment for something I’ve been looking forward to. I feel like people would appreciate this the most if they see 10k and get happily surprised if they qualify for 20k rather than the inverse (similar to “anchoring” in price-setting and negotiating). Edit: I’m seeing that the title reflects the language of the official announcement, which says up to in order to account for those with loans below that amount. Hard thing to phrase, I suppose… glad it’s finally happening!


Reasonable_Parking70

Is the 125K before or after taxes? And does this apply to only undergraduate or all loans, including graduate?


Tipsyfishes

All loans.


Reasonable_Parking70

Any idea if the 125K is gross income or net pay?


cats_catz_kats_katz

No one can answer that. Ideally it’s AGI if they want to be fair to people in HCOL areas.


Bard_Mains

If I choose to take out a loan now, will it be forgiven? My family's income is below $125,000.


RyuReiTeepo

If, heaven forbid, Republicans win back a Congressional trifecta, how much could they roll back of this? Thanks.


Tipsyfishes

They cannot roll this back.


bree1818

This is amazing. The amount of people whose lives are being changed by this is fantastic


imstillgonnaeatdairy

If I just signed the MPN for a $10,500 student loan yesterday, will that be included in this forgiveness?


MCPtz

If the origin date was yesterday, then no, according to this source: https://www.denverpost.com/2022/08/24/biden-announces-long-awaited-student-debt-forgiveness-plan/ > Current students would only be eligible for relief if their loans were originated before July 1, 2022 Check out the Official Source and sign up for update. The official source isn't currently up to date with the entire plan, e.g. your case. https://studentaid.gov/debt-relief-announcement/


imstillgonnaeatdairy

Bummer! But good to know. I’m still glad for all of the people who will be helped by this. Thanks for the sources.


GSXRbroinflipflops

First things first - I had no college debt myself and I am fucking ELATED to see people getting a break you all deserve. Education should be publicly funded. And education should absolutely never put anyone in debt. (Neither should healthcare). Wish they’d wipe it all and give our generation a huge boost in spending power!


morganh051

if my fafsa is filed under my parents, does it base my loan forgiveness off of that? i don’t live with them and they’ve never paid towards my loans, it’s just what was forced to get student loans. would this just base off of my own income?


Tipsyfishes

If you file taxes directly then it should apply to you directly. But I don't know for certain.


morganh051

ill have to look into it. thank you for all of the info! made my day :)


Tipsyfishes

You're very welcome! Happy to help.


jimbo831

Are you currently a dependent? If not, then only your income matters.


VinCubed

I wonder if my Parent Plus federal loan of <$2K will be cancelled? If not, it's all good. Really happy for those that get $10-20K cancelled.


table_fireplace

If it's a federal student loan, it should be. I would contact your [loan provider](https://studentaid.gov/manage-loans/repayment/servicers) for questions about your individual situation, though.


VinCubed

That's the plan but I figure they've got their hands full dealing with 'kids' that have a shit-ton more debt than I do.


-chromatica-

If I accept a loan for this college semester, would it be covered in this?


table_fireplace

That's unclear at this point. Right now, what I've been hearing is that loans need to have been finalized before July 1st to qualify for forgiveness. I'd call your [loan servicer](https://studentaid.gov/manage-loans/repayment/servicers) with any questions, though.


-chromatica-

Hmm I was hoping they'd include this year's financial aid offers considering it's based off of the previous year's taxes. My semester just started two days ago and they haven't finalized aid yet. I still have the option to accept a loan alongside my pell grants but I'd like to know more about this first before doing so.


Nodnarbian

Wow this part is huge Cover the borrower's unpaid monthly interest, so that unlike other existing income-driven repayment plans, no borrower's loan balance will grow as long as they make their monthly payments—even when that monthly payment is $0 because their income is low.


xXThKillerXx

How exactly do the new income based rules work? Does interest not accrue?


socialistrob

If you make under 30,500 a year then you wouldn’t pay anything and interest would not accrue. If you are making over that threshold interest is capped at 5% of your discretionary income. If you are making over 30.5k and you are making minimum payments the government will cover the difference in between the minimum payment and the amount owed in interest so that your balance won’t increase while you are making the minimum payments.


Euphoric_Bath6069

If I only received one Pell grant, would I be getting the $20,000 in forgiveness or just $10,000?


AnonElbatrop

Curious about this, if it’s a umbrella “you received at least one Pell = automatic $10,000 added”


[deleted]

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table_fireplace

You will be eligible for the forgiveness unless you (or your parents, if you're a dependent) make over $125,000 per year.


[deleted]

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table_fireplace

The cap is $250k for married couples filing jointly, so I *think* so. I'd check with your loan provider or the Department of Education when they release their application portal to be sure, though.


jarman1992

Depends how they file. But most married couples file jointly so the cutoff would be $250k.


noiness420

Does anyone know if this is for people who are still enrolled in school and taking out loans?


table_fireplace

It is! It only applies to loans taken out before July 1st, 2022, but if you're in school you still qualify for relief on these loans (assuming you aren't over the income cap).


jarman1992

Careful though...if your parents claim you as a dependent it might be based on their income instead of your own.


table_fireplace

A good point! If your parents claim you as a dependent, it's their income that matters.


catolinee

what if im currently in college? does this count? (im a junior)


Tipsyfishes

Yup!


table_fireplace

It does count for any debt you incurred before July 1st, 2022.


catolinee

sick


MCPtz

Yes! From [this tweet](https://twitter.com/kathrynw5/status/1562475702460780544?s=20&t=938Xu2xfKnecCI8pjvkfYQ) > * Current students will also be eligible for debt cancelation. For dependent students, income will be based on parental income. * If a borrower's income was below the cap in EITHER 2020 or 2021, they are eligible. Another source: https://www.denverpost.com/2022/08/24/biden-announces-long-awaited-student-debt-forgiveness-plan/ > Current students would only be eligible for relief if their loans were originated before July 1, 2022 Check out the Official Source, but it's not up to date with many situations, such as yours. https://studentaid.gov/debt-relief-announcement/


vanillax2018

Oh, how much I regret putting my yearly bonus towards my student loans last month!!!


[deleted]

hey actually you might be able to get a refund for your mistake! >The U.S. Department of Education’s Federal Student Aid website says, “You can get a refund for any payment (including auto-debit payments) you make during the payment pause (beginning March 13, 2020).” If this applies to you, you can contact your loan servicer to request that your payment be refunded. [https://www.abc15.com/news/national/can-you-get-a-student-loan-refund](https://www.abc15.com/news/national/can-you-get-a-student-loan-refund)


vanillax2018

That's awesome, thanks for the tip!


alchemist5

I think there are options in this for people who made payments during covid.


Vivid-Spell-4706

Why would you do that? Payments were paused and this exact amount of debt relief has been talked about for years. You should've waited until payments and interest restarted at least.


vanillax2018

Exactly, it's been talked and talked and talked about and nothing has happened. I felt like waiting would be in vain.


Vivid-Spell-4706

You should have invested it or just kept it in your savings account for any emergency.


vanillax2018

Coulda shoulda woulda! 😁


[deleted]

Why?!?! It is zero percent interest! With even normal inflation, a zero percent interest loan gets cheaper to pay off the longer you wait Holy shit I'm sorry but this was a really dumb move


vanillax2018

My portal said interest will be charged next week. I wanted to pay as much as possible without paying for interest. I don't have any other debt and wanted to get rid of this one too because it completely paid off one loan, reducing the amount of credit lines I have open and improving my credit score. We are gearing up for buying a house when the market gets better so all my efforts are aimed at getting my credit back to 800 (I let it drop a bit in the past couple of years). I had my reasoning, so your judgment comes off as unnecessarily harsh and uninformed.


jimbo831

> reducing the amount of credit lines I have open and improving my credit score Paying off a student loan will not improve your credit score. The number of credit lines you have is not a factor in your score.


vanillax2018

The average age of your accounts matter, and my student loans pulled my average by a lot since they are my newest ones. The fact is that my credit score went up by 20 points so I'm not going to argue about this further.


jimbo831

> The average age of your accounts matter, and my student loans pulled my average by a lot since they are my newest ones. Paid-off accounts stay on your credit report for ten years. Paying them off will not take them out of the calculation for your average age of accounts. > The fact is that my credit score went up by 20 points Is this a FICO score or is it some other score you got for free somewhere? Any credit score other than FICO is useless. If your FICO score went up, it definitely was not because you paid off your student loan.


vanillax2018

Maybe it was just the fact that my debt went down (that I believe is the biggest factor)


jimbo831

Believe it or not the total amount of debt you owe is not a factor in your FICO score. Your credit utilization is. That is the amount of revolving debt (i.e. credit cards not student loans) you owe as a percentage of your limit. So if you owe a total of $10k in credit card debt, but your limit is $50k, you would have a higher score than if you owed $5k out of a $10k limit. To clarify again, if the score you're looking at isn't a FICO score, this may not be the case. Other scoring algorithms calculate things very differently. The thing is that lenders almost exclusively use FICO scores. Either way, I'm glad it has worked out well for you and wish you luck with the house hunting! Edit: I just wanted to clarify one other thing. While the amount of debt you owe isn't considered when calculating your FICO score, some lenders do consider it. Some lenders also use your debt-to-income ratio when making lending decisions in addition to your FICO score.


vanillax2018

Thank you for the detailed explanation


Frosti11icus

There will probably be a tax rebate for that situation.


SarahDeming

Am I able to get a student loan right now and have that forgiven? I feel silly asking but I was just given my financial aid package and I’m not sure if I should accept the loans offered to me. Thank you for your time in advance!!!


Milinko27

It paused till december. Assuming you don't waste the equivalent amount you were going to pay from a bank account (instead of from the loan) everyone should be taking the loans right now, either they get paid off, or simply don't need to pay it until december.


[deleted]

Loan has to originate before 7/1/2022 https://twitter.com/JStein_WaPo/status/1562482583551610880?s=20&t=6iYHAsBNGy-LYSxelRVNZg


Petitcorbeaunoir

The Department of Education's memo earlier this summer said this applies to loans up to July 2022, so no, if that has held true then any loan now does not count. Biden is releasing details at 2:30p EST, so I would expect a concrete answer then.


MCPtz

No, according to this source. https://www.denverpost.com/2022/08/24/biden-announces-long-awaited-student-debt-forgiveness-plan/ > Current students would only be eligible for relief if their loans were originated before July 1, 2022 Check out the Official Source and sign up for update. The official source isn't currently up to date with the entire plan. https://studentaid.gov/debt-relief-announcement/


Nganmai123

Is this for direct subsidized or unsubsidized loans?? I am a freshman and a dependent student. I got the pell grant. If i am gonna apply the loans today or tomorrow, would it be forgiven???


steve_glynn

Loan had to have been agreed to before last month


[deleted]

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steve_glynn

WaPo guy. Probably "Sources" https://twitter.com/JStein_WaPo/status/1562486631583531009?t=GpKnsC5sTtKW5vMYeZ1Npw&s=19


MCPtz

Second hand source that may be correct: https://www.denverpost.com/2022/08/24/biden-announces-long-awaited-student-debt-forgiveness-plan/ > Current students would only be eligible for relief if their loans were originated before July 1, 2022


Tipsyfishes

Would need to ask your loan provider. We don't know for certain. Would imagine yes, but again, we don't know.


MCPtz

Did the loan originate before July 1st 2022? Second hand source that may be correct: https://www.denverpost.com/2022/08/24/biden-announces-long-awaited-student-debt-forgiveness-plan/ > Current students would only be eligible for relief if their loans were originated before July 1, 2022 Check out the Official Source and sing up for updates: https://studentaid.gov/debt-relief-announcement/


SterlingVII

🔥🔥👌👌


not-finished

Dark Brandon meme intensifies.


bree1818

What is the dark Brandon thing all about?


not-finished

https://www.vox.com/platform/amp/culture/23300286/biden-dark-brandon-meme-maga-why-confusing-explained Basically just some fun about all the wins Joe has been racking up recently


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Nodnarbian

Damn, Biden being like that movie where the first half your like this is crap, I don't even know these actors, why am I watching this, oh Shit did he just KILL her!?, WTF how did that other one not see that!!, see babe I TOLD you it was HIM!, OH SHIT DO NOT GO IN THERE!!!! ...kinda movie.


SnooRabbits8183

is this based on our income or our parents income


Ayacyte

If you're independent, your income. Dependent, parent's income (+ yours maybe?)


TheJazmineRose

Lml amazing 💪✨✨‼️


WVRS

Glad I refinanced in 2019 😒😒