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Student Loan Forgiveness

Updated: Aug 22, 2022

From the Desk of Robert Simpton, CFP

Redfish Capital

As you may have read the Biden administration is about get a “win” regarding student loan forgiveness. This legislation could affect as many as 43 million federal student loan borrowers. Currently, the program in its current form has already approved more than $26 billion for approximately 1.3 million people.

New Amounts Being Discussed

As of this writing, it appears that $10,000 of student loan debt can be wiped off balance sheets but there is mounting rumors that the figure could jump to $50,000. There are still a lot of details to be worked out but as of now it appears that the following could be happening:

Income Caps

For those of you who currently have incomes more than $125,000 as individual filers or $250,000 as joint filers you would not qualify. Rumors are circulating that these limits could jump to $150,000 for individuals and $300,000 for joint filers.

Graduate Students

This is still surrounded by quite a bit of fog on whether graduate students would receive any help. At first this was a no go but the news out of DC is stating that graduate student debt may be included.

Private Loans

If you one of the 6 million people who utilized private debt to help pay for college expenses as of now you will NOT be included in the new legislation. Only debt subsidized by the government is being considered.

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