Tiffany Gonzalez, CPA’s Post

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

Student loans are one of the largest categories of household debt in the United States, with more than $1.6 trillion in outstanding debt as of the first quarter of 2024. During the COVID-19 pandemic, an administrative loan forbearance for federally guaranteed student loans brought about a payment pause for borrowers. Repayment on these loans resumed in October 2023, after more than three years of paused payments. Additionally, during the pause, changes initiated by the U.S. Department of Education led to the cancellation of over $100 billion in student debt and the introduction of the SAVE income-driven reduced payment plan. This meant huge adjustments for many borrowers, as payments resumed amid repayment plan and loan servicing changes. This article considers the effects of the payments resumption and accompanying administrative changes on household financial health and balance sheets through the lens of the Consumer Finance Institute’s consumer surveys, highlighting several findings from a four-report series on the student loan payments resumption that we published in early 2024. Read more in the latest CFI in Focus. https://bit.ly/3WGNSq6 Learn more about the special four-report series on the student loan payments resumption at: https://bit.ly/4dwrIhe #StudentLoans #StudentDebt #ConsumerFinance

Student debt is rising by A LOT! I witnessed the pain myself. The average total debt of graduates in 2008 was around $21,000, while in 2022, it was $29,400. That's a rise of 40%. When it comes to our clients, most would be extremely happy with "just" $29,400 of student loan debt. Unfortunately, their burden from Uni days is several multiples larger. Many have $100,000+ loans dragging their finances. And too many just can't keep a handle on their debt control, expanding it from one credit card to another. Luckily, they reached out to us. We at Student Loan Tax Experts ™ had massive student loans ourselves. Think $100,000+. We know the struggle of dealing with student loan problems. It's much harder when you are doing it alone. That's why we are happy that people are reaching out to us so that we can be their safe harbor when it comes to advice. If you, or someone you know, have big student loans, and you feel like you are lost -- please reach out to us. You don't have to go through this alone. 😊 #studentloans #studentdebt #taxhelp

𝗕𝗶𝗱𝗲𝗻 𝗰𝗮𝗻𝗰𝗲𝗹𝘀 $𝟭.𝟮𝗯𝗻 𝗶𝗻 𝘀𝘁𝘂𝗱𝗲𝗻𝘁 𝗹𝗼𝗮𝗻 𝗱𝗲𝗯𝘁 𝗳𝗼𝗿 𝟭𝟱𝟯,𝟬𝟬𝟬 𝗽𝗲𝗼𝗽𝗹𝗲 What does this mean for your taxes? 👇 The initiative is part of Saving on a Valuable Education (SAVE) repayment plan, easing the financial burden and making that college degree ticket a bit less pricey. The move will forgive debts of people who borrowed $12,000 or less and have been repaying the money for at least 10 years. Just to be clear -- this is the forgiveness of a FEDERAL loan. If you borrowed a commercial lender, unfortunately, you will still have to pay it off. "Aaalriiighttt," you might ask, "but what effect will that have on MY finances?" As per the American Rescue Plan Act of 2021, any student loan forgiveness granted between January 1, 2021, and December 31, 2025, is TAX-FREE at the FEDERAL level. This means that if your student loan debt is forgiven under this new plan, you won't have to pay federal income taxes on the forgiven amount. This is a significant shift from previous rules where forgiven debt was considered taxable income. As for the STATE level, this situation varies. Some states may conform to federal tax rules and not tax forgiven student loans, while others may consider forgiven debt as taxable income. Let's hope your state has mercy on you 😉 *** If you need some help with your student loans, send a message. A chat didn't hurt no one 😁 #studentloans #studentloanforgiveness #studentloanrepayment

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

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

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

Should I Pay Off Student Loans Now or Invest for Better Returns? Answers: https://lnkd.in/g7_QAgYd #StudentLoans #Investing #FinancialDecisions Hey everyone! 😊 I’m reaching out because I'm in a bit of a pickle and could really use your insight. Here’s my situation: I’ve got $18,200 in federal student loan debt, but I recently got a small inheritance, which I stashed away in a high-yield savings account. Right now, I’m making those monthly payments of $125, thanks to my time as a public school teacher, and I've been enrolled in the SAVE plan. So, I’m at a crossroads and need some guidance. Would it be better for me to: Keep making monthly payments and just rely on my high-yield savings account? Invest the cash in an index fund while continuing my monthly payments? Pay off the loan in full and be done with it for good? I’ve done my homework, and my emergency fund is all set. My student loans have an average interest rate of about 4.5%. So, I want to make the best choice possible. Here’s where I’m struggling: Debt Anxiety: Carrying student debt can be stressful, especially when you’re not sure if making payments or paying off the balance is the r...

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

Struggling with Student Loan Debt? You Have Options! 💡 Are you one of the 43 million Americans burdened by student loans? You're not alone in this challenge. But here's the good news: there are effective repayment strategies and forgiveness programs that can help you take control of your debt and achieve financial freedom. 🌟 🎯 Income-driven SAVE repayment plan cap payments at 5% of discretionary income 🏛️ Public Service Loan Forgiveness erases debt after 10 years 💼 Some employers offer loan repayment benefits up to $5,250/year The benefits of tackling your debt: ✅ Improved cash flow ✅ Faster progress on other financial goals ✅ Greater peace of mind Student loans can feel overwhelming, but with the right strategies, you can overcome this challenge and move forward with confidence. Don't let debt hold you back any longer. Take action today and start building the financial future you deserve! How are you managing your student debt? Share your tips and successes below! 💪 #StudentLoanDebt #StudentLoanForgiveness #DebtManagement #StudentLoans **This post is general education, not financial advice**