I hope this happens soon , im sick of seeing "high loan balances " on every paper that shows "things that are negatively impacting your credit"
Lets all hope
https://studentaid.gov/debt-relief-announcement/
expected to speak on this later today at 2:15 ET 8/24
@GatoradeZeroGuy wrote:https://studentaid.gov/debt-relief-announcement/
expected to speak on this later today at 2:15 ET 8/24
@GatoradeZeroGuy thank you for this post. It explains things, to a point. But why do I feel like the only person on the earth that does not understand the totality of these things and the if and whats involved? To piggy back on your post, I believe I am in the category of being under the income guidelines (single mom of 3 going to top out this year a hair under $82K) as well as having both a mix of subsidized & unsubsidized loans and PELL grants that I should be able to receive the full 20K in forgiveness. But all the other details really make my head hurt. I am kicking myself for not doing something back at the start of the Pandemic bc I could have already been able to count all these months towards payments but alas, I did not do anything. But I also am reading things like if one has these student loans for 20 or 25 years they will also immediately get these wiped out due tot that alone. I know this stuff will take time to implement and go live, but I am really just trying to figure it all out. These were so old that I truly forgot about them and only found out about them after applying for FHA last summer and being told I had to be cleared from CAVIRS. These 5 defaulted student loans obvi aren't on my credit reports. However, if I am on the cusp of having them forgiven by any of the above, I want to fully understand and be ready when the time comes to sign up. TY for ANY advice or knowledge you can provide, seriously.
Starting Score: 461
@IamWesty12 wrote:
@GatoradeZeroGuy wrote:https://studentaid.gov/debt-relief-announcement/
expected to speak on this later today at 2:15 ET 8/24@GatoradeZeroGuy thank you for this post. It explains things, to a point. But why do I feel like the only person on the earth that does not understand the totality of these things and the if and whats involved? To piggy back on your post, I believe I am in the category of being under the income guidelines (single mom of 3 going to top out this year a hair under $82K) as well as having both a mix of subsidized & unsubsidized loans and PELL grants that I should be able to receive the full 20K in forgiveness. But all the other details really make my head hurt. I am kicking myself for not doing something back at the start of the Pandemic bc I could have already been able to count all these months towards payments but alas, I did not do anything. But I also am reading things like if one has these student loans for 20 or 25 years they will also immediately get these wiped out due tot that alone. I know this stuff will take time to implement and go live, but I am really just trying to figure it all out. These were so old that I truly forgot about them and only found out about them after applying for FHA last summer and being told I had to be cleared from CAVIRS. These 5 defaulted student loans obvi aren't on my credit reports. However, if I am on the cusp of having them forgiven by any of the above, I want to fully understand and be ready when the time comes to sign up. TY for ANY advice or knowledge you can provide, seriously.
I would probably start at studentaid.gov to see who your current servicers are and go from there.
The studentloans reddit has a bunch of good information and datapoints from a bunch of people trying to parse this out as well.
@GatoradeZeroGuy wrote:
@IamWesty12 wrote:
@GatoradeZeroGuy wrote:https://studentaid.gov/debt-relief-announcement/
expected to speak on this later today at 2:15 ET 8/24@GatoradeZeroGuy thank you for this post. It explains things, to a point. But why do I feel like the only person on the earth that does not understand the totality of these things and the if and whats involved? To piggy back on your post, I believe I am in the category of being under the income guidelines (single mom of 3 going to top out this year a hair under $82K) as well as having both a mix of subsidized & unsubsidized loans and PELL grants that I should be able to receive the full 20K in forgiveness. But all the other details really make my head hurt. I am kicking myself for not doing something back at the start of the Pandemic bc I could have already been able to count all these months towards payments but alas, I did not do anything. But I also am reading things like if one has these student loans for 20 or 25 years they will also immediately get these wiped out due tot that alone. I know this stuff will take time to implement and go live, but I am really just trying to figure it all out. These were so old that I truly forgot about them and only found out about them after applying for FHA last summer and being told I had to be cleared from CAVIRS. These 5 defaulted student loans obvi aren't on my credit reports. However, if I am on the cusp of having them forgiven by any of the above, I want to fully understand and be ready when the time comes to sign up. TY for ANY advice or knowledge you can provide, seriously.
I would probably start at studentaid.gov to see who your current servicers are and go from there.
The studentloans reddit has a bunch of good information and datapoints from a bunch of people trying to parse this out as well.
@GatoradeZeroGuy yes, I did do this last night once home from work. I made sure all my contact info and address was correct for when they start to role out any steps they have my info. My current services is Debt Management and Collection Systems. They are holding all 5 defaulted loans. I was going to go on and consolidate the 5 into one and start to reap some of the paused payments for when they cease that then I would at least have those months to build upon to continue until forgiven but with these new initiatives announced, if I am able to wipe out the $20K all together in one swoop, it is worth me waiting this out to see how it all plays out. I am not advocating one to not pay their bills and responsibilities, but for me with them being so old and possiby on the cusp of being forgiven $20K is a huge amount of money to NOT have to pay back. Hopefully it also helps me with more options of becomming a first time home owner should the market calm down at all. Thank you again GZG!
@GatoradeZeroGuy thank you for the reddit student loan tidbit as well, I am currently persusing that site now as well!
@mfinsmi1 thank you for for OP. I was very happy to read that. I am also sorry for not making my own thread and dumping into yours. Best luck w/ all of this!
@IamWesty12 all good thats why i posted this to begin with - this stuff can be very confusing.
Before the president announced this loans get forgiven after 20-25 years of payment. Whatever is forgiven will be taxbale income when you file your returns in APRIL.
I think what this is doing is 1) 10-20k automaitcally off your total loan balance 2) going foward , monthly payments will be capped at 5% income AND interest wont accumulate - so your debt won't keep growing - which is a great thing cause i still have 50k in debt - which got so high B/C of the crazy interest. After this ill have 40k maybe a little more OR less depending on if interest is reconciled based on the new way monthly payments will be handled.
@mfinsmi1 wrote:@IamWesty12 all good thats why i posted this to begin with - this stuff can be very confusing.
Before the president announced this loans get forgiven after 20-25 years of payment. Whatever is forgiven will be taxbale income when you file your returns in APRIL.
I think what this is doing is 1) 10-20k automaitcally off your total loan balance 2) going foward , monthly payments will be capped at 5% income AND interest wont accumulate - so your debt won't keep growing - which is a great thing cause i still have 50k in debt - which got so high B/C of the crazy interest. After this ill have 40k maybe a little more OR less depending on if interest is reconciled based on the new way monthly payments will be handled.
@mfinsmi1 thank you for understanding.
I hate to ask but now I have another question from your reply. Without knowing 100% for sure yet, it sounds like my student loan debt of $23K ($19K is prinicipal, $3759 is interest) will either be forgiven at the end of the year and I will pay taxes on this amount when filing in 2023 OR the $19K principal amount will be forgiven with what was just announced yesterday. So I guess at this point, am I really seeing that I will have two options of this debt being gone? Again, these student loans were taken out in July of 2000, so I do qualify for 20+ years of having them. Does anyone see one option being better than the other?
Jeez, life is just so crazy. I mean about a year ago I felt dead in the water with these old defaulted student loans but now I may finally be done with almost all of it and have a choice of how????
I hope things work out with you bc 50K is still a LOT of student debt to have lingering over. At least the 5% will be a big help and the interest not attributing is even bigger. I know what you mean, on my 19K the additional monies in interest is almost at 4K!!! Hopefully we get more clarity in the coming months. I just don't know if I should get them switched over into the PSLF program now so that these months qualify or if I should just wait it out for a few more months??