Nathan Richardson, MBA’s Post

Millions of federal student loan borrowers have resumed repayment during the last few months after the Covid-19 forbearance came to an end after more than three years. Borrowers must now navigate a diverse collection of repayment plan options, including some new programs that didn’t exist before the student loan pause. Borrowers who are married and repaying their student loans under an income-driven repayment plan may be able to reduce their payments by changing their marital tax filing status. The SAVE plan, President Biden’s new IDR option, provides much more flexibility for this tax strategy than the predecessor plan that SAVE is replacing. But this approach won’t work for everyone. Here’s what borrowers should know: https://trib.al/c5e7rZc

Student debt relief is here for nearly 153,000 borrowers! Today, the Biden administration announced $1.2 billion in student debt cancellation for almost 153,000 borrowers enrolled in the SAVE Plan, helping community college and other borrowers with smaller loans and putting many on track to being free of student debt faster than ever before! 7.5 million borrowers are already enrolled in a #SAVEPlan, today’s announcement is the latest example of borrowers getting the relief they need. #SAVEOnStudentDebt

Rising student loan debt and concerns over unaffordable payments provide a rationale for the broad class of income-driven repayment (IDR) plans for student loan borrowers. These plans are designed to protect borrowers from financial distress by linking payments to income and providing forgiveness after a period of repayment. In a new study, Consumer Finance Institute researchers find that waiving payment requirements provides short-term insurance for first-time applicants, but in the longer run, this may increase the risk of financial distress. Read the report. https://bit.ly/3TJ5u4b #StudentLoans #StudentDebt #IncomeDrivenRepayment

Some student loan borrowers have until the end of today, Tuesday, April 30, 2024, to take advantage of a special offer to have their debt forgiven sooner than they would otherwise. On average, it takes less than 15 minutes to apply. Consolidating before May 1 might result in them fast qualifying for forgiveness on all of those debts, according to experts, even though they would ordinarily have to wait at least another 14 years for full relief. Many borrowers, particularly those who have been paying for more than 20 years, will have their debts completely canceled. All federal student loans — including Federal Family Education Loans, Parent Plus loans, and Perkins Loans — are eligible for consolidation. You can apply for a Direct Consolidation Loan at StudentAid.gov or with your loan servicer. https://lnkd.in/etXacRvs #PersonalFinance #StudentLoans #StudentLoanForgiveness #Perkins #FFEL #BidenAdministration

Of note: "The new plan will expand federal student loan relief to several categories of borrowers. It will eliminate up to $20,000 in accrued interest for borrowers who owe far more than they originally borrowed because of unpaid interest. Borrowers could get all of their interest wiped away if they are enrolled in an income-driven repayment plan and have an annual income under $120,000 for an individual or under $240,000 for couples. The White House estimates that 25 million people will benefit from this feature of the new plan, including 23 million who could have their unpaid interest completely forgiven. Once the plan is finalized, another 2 million borrowers could automatically have their loans canceled because they’re eligible for existing forgiveness programs, such as Public Service Loan Forgiveness, but never applied. The proposed plan will also automatically cancel the loans of people who have been in repayment on undergraduate loans for at least 20 years, and graduate loans for 25 years or more. It would also forgive the debt of borrowers who attended career training programs that led to high debt loads or low earnings. A fifth category of borrowers would receive debt relief if they are facing hardships, such as high medical debt or child-care expenses, that prevent them from repaying their student loans. The specific terms of each category will be fleshed out in the formal rule due out soon." https://lnkd.in/eD-nuxX5 #studentloans #financialwellness #financialhealth

Millions of borrowers who have experienced accrued or capitalized interest may get student loan forgiveness starting this fall under a proposed Biden administration plan. Borrowers who make $120,000 or less would see the most significant relief. The plan, if enacted, is part of a broader Biden initiative designed to enact loan forgiveness for millions of borrowers who meet certain criteria. The plan targets certain groups of borrowers for relief. And those who have watched their student loan balances increase over time due to runaway interest are at the forefront of this proposal. With federal student loan interest rates set to reach record highs this summer, debt relief based on interest accrual would be welcome news for many borrowers. Here’s a breakdown: https://trib.al/UYGPtwv

🌟 Exciting News! 🌟 The proposed expansion of federal student loan relief brings hope to millions of borrowers nationwide. Here's why it's a game-changer: 💰 Up to $20,000 in accrued interest wiped away for eligible borrowers. 🔄 Automatic loan cancellation after specified repayment periods. 👩🎓 Debt relief for career training program attendees facing financial challenges. 🤝 Targeted relief for borrowers experiencing hardships like medical debt or child-care expenses. This comprehensive plan aims to provide much-needed relief and pave the way for a fairer, more equitable student loan system. Let's advocate for its swift implementation! #StudentLoanRelief #DebtForgiveness #FinancialEquity 🎓💼

Breakups and broken hearts… it just seemed like the right tagline. However, it might just be the “fine” time for student loan forgiveness despite one’s view and feelings about the concept. Last December, the Biden White House approved another $4.8 billion in student loan debt cancellation. Joseph Politano of Apricitas Economics writes that the end of student loan forbearance has affected spending from this group. Still, that effect has been quite muted due to all forms of student loan disposal, including student loan forgiveness. Politano supports and concludes that former students are and have missed their minimum payments and, unfortunately, with the forbearance over, at a rate higher than pre-pandemic. This is the heart of the issue for that cohort and, to some extent, the growth of the economy. Read Sowell's Week Ahead: https://hubs.la/Q02fCv4P0

Breakups and broken hearts… it just seemed like the right tagline. However, it might just be the “fine” time for student loan forgiveness despite one’s view and feelings about the concept. Last December, the Biden White House approved another $4.8 billion in student loan debt cancellation. Joseph Politano of Apricitas Economics writes that the end of student loan forbearance has affected spending from this group. Still, that effect has been quite muted due to all forms of student loan disposal, including student loan forgiveness. Politano supports and concludes that former students are and have missed their minimum payments and, unfortunately, with the forbearance over, at a rate higher than pre-pandemic. This is the heart of the issue for that cohort and, to some extent, the growth of the economy. Read Sowell's Week Ahead: https://hubs.la/Q02fCgWQ0

Breakups and broken hearts… it just seemed like the right tagline. However, it might just be the “fine” time for student loan forgiveness despite one’s view and feelings about the concept. Last December, the Biden White House approved another $4.8 billion in student loan debt cancellation. Joseph Politano of Apricitas Economics writes that the end of student loan forbearance has affected spending from this group. Still, that effect has been quite muted due to all forms of student loan disposal, including student loan forgiveness. Politano supports and concludes that former students are and have missed their minimum payments and, unfortunately, with the forbearance over, at a rate higher than pre-pandemic. This is the heart of the issue for that cohort and, to some extent, the growth of the economy. Read Sowell's Week Ahead: https://hubs.la/Q02fCl6K0