Student Loan Forgiveness

[hsfun2019]

With all this discussion by the Whitehouse and Congress looking at Loan Forgiveness have they said who will be eligible?  I know it has to be a federal loan, but have they said if they are putting income caps on it etc?   

[barca]

it is not yet determined.

• I think Biden wants only undergraduate loans and limited income.
• It seems Chuck and others wants 50K for every student loan borrower.
• While the extremes wants all student loan forgiven.

I owe student loans myself and most of them are post graduate. 

Moreover, I might not qualify because of high income.

I am hoping Chuck Schummer idea works. (50K for all borrower )

[hsfun2019]

That was my fear that they would slap an income piece to it.   What's sad is most of mine is from a federal consolidation loan that I am responsible for with my ex-wife.   I may be having some extra funds that would allow me to pay it off but i'm going to hold off until they determine who will get what paid for.   Love to get that albatross off my balance sheet.

[calyx]

Yeah, I'm hoping they don't apply any kind of means test.

100k in the Bay Area isn't the same as 100k in Houston.
I would welcome any amount.  10k would mean I could pay it all off this year.
50k would wipe it out and I would cry with happiness and actually be able to start funding retirement.

[Impress]

While 50K would not wipe out all of my debt, it would clear a HUGE chunk of it, so I'm hoping the Dems can convice Biden to go bold.   

[onstar]

$50K would make a pretty good dent. I'll still have over $100K left, but it would help SO MUCH.

[barca]

I am praying (50k per borrower) plan work

no income limit or masters/PhD restriction.

like most of you, while it will not cancel all my student loan , it will take a big chunk from it. i have been paying it down aggressively for years.

the problem we have are those who are opposed to it .

• 'some said they work so hard to pay for their student loan while in college , would they get refund.
• 'some who did not have college degree said -- why should college holders making much more money than them get a break.
• some claim they took all their savings or sold their second home for their son college

these angry opposition is what is holding it back .

While some experts advice you should continue to pay the student loan if you can afford it, to lower the principal aggreivesly since no interest is charged.

IMHO- you should use that money and pay down other debt and wait to see what will happen.

what I suspect at a minimum will happen is :

govt will remove 10K from every borrower and reduce the rate to like 2%.

btw - I am not affiliated with any political party neither have I voted before.

[Anonymous]

I too hope there are no restrictions placed on the forgiveness. 
50k would take care of all of my loans. 

[calyx]

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@barca wrote:

While some experts advice you should continue to pay the student loan if you can afford it, to lower the principal aggreivesly since no interest is charged.

IMHO- you should use that money and pay down other debt and wait to see what will happen.

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I snipped a bunch, but the above is SO true.
I see a lot of "what should I do while the loans are paused if I still have the money to pay" articles, and almost none of them mention paying down other debt.

If you don't have other debt - put it in savings and then do a big payment if/when they return if you want, but I don't understand the "pay it down faster" when waiting to see what happens since the loans are at 0% harms/costs nothing.    After I pay off my medical/dental debt, I'll be paying towards my auto loan while I still keeping ~4months of SL payments in that line item in my budget.

[OmarR]

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@barca wrote:

the problem we have are those who are opposed to it .

• 'some said they work so hard to pay for their student loan while in college , would they get refund.
• 'some who did not have college degree said -- why should college holders making much more money than them get a break.
• some claim they took all their savings or sold their second home for their son college
• blah blah blah

these angry opposition is what is holding it back .

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There are people that have struggled & sacrificed to pay back the student loans that they owed. If the govt chooses not to credit them ($10k or whatever amount) the same as the people that still owe, than they are 100% correct. There is a difference between that group NOT wanting your loans forgiven versus wanting to be treated equal.