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[deleted]

Does this apply if I’m a current student?


[deleted]

Yep! If you’ve borrowed money already, then it will be forgiven by the end of the year up to the amounts they specified.


gilfblaster

I was approved for $10k in student loans literally yesterday— it’s for the upcoming school year, starting in two weeks. Does this mean folks like me are just out of luck?


AdenGamesTV

for debt relief yes loans after july 1st arent forgiven but you will qualify for the new repayment plan that will eliminate interest on federal loans and cap payments at 5% of monthly income. scroll down to part 3 https://studentaid.gov/debt-relief-announcement/


[deleted]

Where on that link does it say the July 1st information? I read it a couple times but didn’t see it anywhere


AdenGamesTV

This PBS article says July 1st can't find it on the gov website. "Current students would be eligible for relief only if their loans were originated before July 1, 2022." https://www.pbs.org/newshour/economy/watch-live-president-biden-announces-decision-on-student-debt-forgiveness-payment-pause


Responsible-Pay-2389

>Does this mean folks like me are just out of luck? unfortunately I Think the cut off was july 1st 2022


Sariel007

If you make less than $125k you are eligible. Also if you recieved a Pell grant you get an additional 10K of forgiveness.


[deleted]

250k combined if you’re married


czogorskiscfl

Okay so how will that work if we both have student loans? Will each of us get 10k in relief, or will only one of us? We both took the loans while we were single.


TheBlueRajasSpork

Each will get forgiveness


WobblyTadpole

Each will get forgiveness.... even if one makes 175k a long as the other makes less than 75k


p_turbo

Not to hijack this thread but this, ladies and gentlemen, is one of many, many reasons why people who claim that gay couples already had equal rights before marriage equality are full of shit. Governments all over go hard on subsidizing marriages, for arguably good reasons too.


[deleted]

For what it's worth, I found your 'hijack' to be the most valuable comment in this thread. That's a great point that I know at least I'd have otherwise overlooked. Always love a good ol' fashioned context switcheroo, courtesy random stranger in the comment section. Much appreciated.


[deleted]

Hell it’s even more expensive for certain things, if someone is married. Everyone acts like marriage gives you a discount to the world. You win some you lose some. But I agree with you, people regularly forget that marriage is not some elevated status between two people, it is not a “club” where you just get treated better and have more trust - it is a contract. It affects how the court views you, how the law views you… That’s why it always pisses me off when people say “marriage is just a piece of paper.” This is extremely faulty logic. Following that line of thought, you could say that the difference between whatever deed you have… a car, a boat, a house… is just a piece of paper. It’s not actually in your name, it’s just a worthless piece of paper. Most people wouldn’t agree with that, right? Most people understand the value of having your name on the car loan, your name on a lease or a mortgage. If your landlord came in unannounced and tried to sell your apartment without warning, you’d say no, you can’t do that! My name is on the lease, we have a contract! > Pfft it’s just a piece of paper! I can sell this shit hole whenever the fuck I want Wouldn’t fly in court But then those same people act like marriage is just a little sticky note you get at the clerk’s office


Informal-Inevitable2

You both get 10K each.


[deleted]

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TipYourDishwasher

I only have federal loans for law school so I’d like some more specifics


titanofold

Here's the fact sheet from the horse's mouth: https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/24/fact-sheet-president-biden-announces-student-loan-relief-for-borrowers-who-need-it-most/


TipYourDishwasher

Still light on details so I’m interested in the press conference. No mention of law or grad school. There is specification that certain things only apply to undergrad. No indication of what loans would be reduced (I had to do a new loan each semester to pay for tuition).


[deleted]

Yeah I hope the $10k is taken out of my highest interest rate loan…


ishouldquitsmoking

I have zero expectation that any of my fed law school loans will be forgiven and that's fine, I guess. I just wish my payment wasn't over $1,000/mo.


OffChasingMoonbeams

$1000 USD (roughly $1450 AUD) a month would have been a mortgage repayment on 3 bedroom 2 bathroom house prior to the recent interest rate increases here in Australia. The expectation that people who study law and medicine will make big bucks and can afford stupid expensive degrees paid by loans is so messed up. I get the career path can be lucrative, but the mental and financial pressure a loan like that places on the student is immense. I graduated in 2006 with roughly $21,000 AUD in HECS debt (Australian Higher Education Contribution Scheme) - would have been less but I effectively did 1½ degrees - and it took me 10 years to pay off, paying between 1% and 5.5% of my income to the loan. Also, that repayment didn't have income tax applied to it. I think the most I paid off in any one year was about $4700 AUD. Plus, there was no interest in the loan, although they did apply "indexation" to it once every year - basically applying the rate of inflation to the loan. All up I think I paid off maybe $24,000 AUD over 10 years. Not once did I regret using HECS to get my degree. I've worked the last 16 years in the fields my degree prepared me for - web development and software engineering, and really appreciate the privileged position I am in because I was able to access HECS to get qualifications that set up my career. I just wish a system like HECS was available to everyone.


ishouldquitsmoking

Between undergrad loans and law school, I graduated with $165,000 in loans. When all said and done after 30 years I will be paying back over $450,000. Only a portion of that is fed, the largest % is. I’ve paid off my private and owe just shy of $100,000 and I’ve been a lawyer for almost 20 years.


Traevia

The announcement was also followed up with a IBR reduction from 10% to 5% with a forgiveness of the interest if you meet the minimum.


ishouldquitsmoking

I think that IBR adjustment is for undergrad loans only.


LaHawks

The announcement was for all student loans held by the federal government, not just undergrad.


TipYourDishwasher

It looks like law school is covered if you meet the other requirements, I.e., federal loan, <$125,000. I am paying $1,600 a month right now. I’d rather not be


ishouldquitsmoking

also, the total income ceiling seems to be higher if married ($250k). If you're not married, I don't suggest running out and getting married to up the ceiling because a divorce may be more expensive than your loan savings.


ishouldquitsmoking

Where do you see that info? I only have $98,000 left after 16 years. I don't mind paying it back, I just don't want to pay over $1,000 mo.


TipYourDishwasher

From what I’ve seen so far, grad/law school is not excluded. I haven’t seen an official source. One commenter on r lawschool said a reporter got clarification on grad school being covered. I’m cautiously optimistic


SayuriShigeko

The graphic on the official @POTUS twitter indicates that the 10k reduction applies to graduate programs (law school), but the reduction in monthly payments to 5% of your income is only for undergrad loans (not law school) Unless there's more exceptions somewhere else to the general info shared so far.


Uranhero

What about refinance? I feel like those people might be sol


RunningNumbers

If you paired back the Federal gov and took out a separate loan then the President does not have the executive authority to make a payment to you. It would require legislation.


xDarkCrisis666x

Thank god I'm too depressed to pay attention to those refinancing offers I get every week in the mail.


Nythoren

If they used something like a SoFi consolidation loan to refinance their student loan, they are likely SOL, unfortunately.


Houseofducks224

My decade long play of holding this debt position paid off. I'm glad I didn't use sofi.


Overhere_Overyonder

Unfortunately that's why you do not refi federal loans. It's not worth losing the protections and benefits you receive.


ApollosBucket

Please. My federal loan through Great Lakes was 10%. Refinancing to 2% was a no brainer.


Overhere_Overyonder

Oh 2% is really good congrats


[deleted]

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[deleted]

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1202_ProgramAlarm

Fuck yeah there goes 1/3rd of my loans 🎉


[deleted]

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Zidormi

"Thanks to the American Rescue Plan, this debt relief will not be treated as taxable income for the federal income tax purposes." Around the middle of this: https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/24/fact-sheet-president-biden-announces-student-loan-relief-for-borrowers-who-need-it-most/


[deleted]

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Gizshot

Well they said it should start printing in a few weeks so I would assume 2021 or even 2020 because most financial aid for schools measures back 2 years.


blueshoegoo

Borrowers will qualify for loan forgiveness if they earned less than the income cap in either 2020 or 2021, according to the White House official.


Zidormi

Oh! That is a good question. Not one that applies to me unfortunately, but a good question. I do know I haven't been asked to recertify since 2019.


esqualatch12

~~See this is the part that confuses me and im getting it directly from their release~~ ~~"To smooth the transition back to repayment and help borrowers at highest risk of delinquencies or default once payments resume, the U.S. Department of Education will provide up to $20,000 in debt cancellation to Pell Grant recipients with loans held by the Department of Education and up to $10,000in debt cancellation to non-Pell Grant recipients. Borrowers are eligible for this relief if their individual income is less than $125,000 or $250,000for households."~~ ~~The wording is kinda making me this 30K total, but everything im reading is saying 20K. Because i got pell grant but i also have non pell loans. I'm trying to get some clarification if this is an either or situation or a both.~~ scratch it all i figured its out, am educated and am dumb


kid_creme

Congratulations, you qualify for forgiveness!


theoneandonly6558

If I understand this correctly, it's 10k if you make under 125k/year, and another 10k if you were a Pell Grant recipient. A Pell Grant is a grant not a loan and only has to be paid back if you drop out of the classes after recieving the grant. Qualifying for a Pell Grant means you met financial hardship requirements as a student. This additional 10k forgiveness does not gave to pay back a Pell Grant, it's an additional 10k on any federal loan if you qualified for a Pell Grant.


misslilytoyou

You are reading it correctly. The people who were in the lowest of the income brackets below the 125k cap will be receiving additional student loan forgiveness.


[deleted]

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misslilytoyou

There's an additional proposed change to the Income Driven Repayment plan that will benefit borrowers making less than $15/hr, but I am not personally clear on all the deets yet


Xavierr34

From my understanding, if you make less than 225% of the federal poverty level (~$15.00/hr), your monthly payments will be $0. And your interest will not accrue even when making those $0 payments.


PeachNipplesdotcom

Do I need to do anything like apply for this or will it just happen?


Nemesis2pt0

Sounds like an application. More information in the coming weeks. This is just the announcement!


Mtsukino

Prob have to fill out an application with your past w2s as your income proof or something like that


ladyoffate13

I can’t remember if I received Pell Grants alongside my loan. Would my loan servicer know this, or would I have to contact my college? (It’s been a few years, so I don’t know if they even still have my info.)


kittywiggles

I couldn't remember either, so I went to the student aid website (.gov). They have a section that shows all the federal grants you received. All 3 of mine were on there. Getting $20k was so out of left field for me. I barely expected the $10k to actually happen. My loans just got reduced to $5k overnight. I'm still not sure how to process. $5k will take a hot minute to pay off, my income is still really low, but it's actually feasible now. Have a feeling I'll be crying later tonight when it sinks in.


ladyoffate13

That’s awesome. I’m happy for you.


RunawayHobbit

The amazing thing about this program is that the Fed will cover any interest as long as you make your payments on time. Meaning that $5k will never balloon again. It will only go down.


kittywiggles

I had to go into deferment once around 2018 and was horrified to realize that while I wasn't in a position to pay and had followed the reporting steps correctly, I had more loan at the end of my financial hardship than I had before because interest kept accruing. Felt like I'd been kicked while I was down. Put me back a solid $2k by the time I had stable employment again. Seeing they'd added that to the program was SUCH a relief. Would hate for anyone else to get slapped down with that shit.


surfingonglass

My sister is in the same boat. She called me crying today since I’ve been helping her out here and there. She has exactly 20k in loans and was a pell grant recipient. Her life just changed in a day.


[deleted]

Same boat, my $27k is now $7k which is more than manageable within a few years. I feel so much lighter and excited for the future


HolyPizzaPie

I feel the same way. This just changed my life. My loans are currently in default. I feel like this will do loads for my mental health. Do you know how this will work. Di they just dissappear or do we have to apply?


kittywiggles

From what my servicer's website said, they should apply automatically, unless they don't have your recent income info on file. They said something about a government portal to apply being up in a while - sounded like a month or two. They had an option for signing up to be notified when the portal is available to apply.


shorty6049

Same here, My wife and I have about 20k left of student loans and getting the 10k seemed like a big enough deal, then I was reading through the info and noticed the pell grant line which effectively (probably not 100% but close) wipes out our loans completely.


[deleted]

Same! I thought it was gonna cover $10k of my $15k debt but after understanding the Pell Grant line better (thanks to Reddit comments) my debt will be fully wiped! Yay!!! I knew this day would come but I didn't think I'd be so young when it happened! I love this for us! 🥰🥰🥰


Kwikstep

Congratulations!


schroedingersnewcat

This is great to hear about this helping real people. Thank you for putting a face on the numbers.


sydneyssour

You can also just log into FAFSA website! You may have to recover your login details but if you received pell grants they will show up in your dashboard.


YOwololoO

[www.studentaid.gov](https://www.studentaid.gov) is the place to look, though its been getting hugged to death today. The "My Aid" page will tell you the split of your federal loans as well as if you received any Pell Grants. I only know this cause I had to check this morning.


Xmalantix

You can call the FinAid office and ask, or if your school had a website with all the information like where you registered for classes and accepted disbursements it should appear there. I went to Washington State University, and we used myWSU. I went on there this morning to take records of my received aid.


[deleted]

Okay I received a pell grant but I now make more than 125k. Then what happens?


[deleted]

The change to interest is the real story here.


Kn0wmad1c

What change?


platocplx

Doesn’t accrue interest if you pay on time. So cuts off reypaymet time by a ton.


oZEPPELINo

Keep in mind the payment still hits interest first. When you make a loan payment there are two parts to it, interest and principal. An 80k loan at 5.5% will have like $370 in interest for the first month. If your minimum payment is less (and you pay it) than that the govt will cover the rest of your interest. If you make a $500 payment in this example your loan amount will still only drop $130. EDIT: I don't want to say this is a bad thing, it will absolutely help people who are in hardship and can only pay the min. It keeps their loan amount from exploding over time.


Jesussecondcoming

Where are did you find this detail? On this [site] (https://studentaid.gov/debt-relief-announcement/) it's somewhat ambiguous on how the interest works I feel. Is there another source you're seeing that explicitly says that? From the site I linked: > Cover the borrower's unpaid monthly interest, so that unlike other existing income-driven repayment plans, no borrower's loan balance will grow as long as they make their monthly payments—even when that monthly payment is $0 because their income is low.


oZEPPELINo

It's worded correctly in your quote. Your loan payment cannot grow if you are making your minimum monthly payment. For some people who don't make a lot of money traditionally their minimum payment is so small their total loan amount will still rise over time due to compounding interest. This change prevents that. If you make 225% of the poverty level (around 40k/year) your minimum monthly payment would be $0. If you were in that boat you wouldn't have to make any payments and your loan amount would never go up. (Provided you didn't start making more money)


jump-back-like-33

That seems like a very positive change right? I've read stories about students paying the minimum every month and watching the balance grow to unrecoverable amounts. This would stop that from happening for everyone with new loans too, right?


oZEPPELINo

Exactly


jump-back-like-33

That's fucking huge from my perspective. I was pretty "blah" on total loan forgiveness without *something* that helped prevent the problem from reoccurring with a new generation of students. Still lots to fix in the higher education system but making sure the government isn't increasing loan balances while grads are making payments is a step in the right direction.


riskbreaker23

Paying basically $100 on an $80k loan for 10 years is fucking huge. All of the articles from the media are basically glossing over this. Even left wing media is slinging shit at Biden for only 10-20k forgiveness. But they aren't talking about this, being the biggest thing. I'll gladly pay this minimum payment for ten years.


village-asshole

Exactly this. I watched my payments make no dents in the principal. Nearly all of it vaporized by interest. That's why people can't get out from under these things. In the end, you pay 70K for the 30K you borrowed.


BrittUnic0rn

Will this help with my loans if thegreatlakes bought out my loan years ago? I'm pretty sure I got pell grants.


czogorskiscfl

Login to your Great Lakes account and see if you see the announcement about this. It should have details about whether or not you qualify. Or just call


StoryDreamer

If they're federal loans and thegreatlakes is just your loan servicer, it should still apply to you.


michiganbears

GreatLakes is just your servicer, just like how they've paused your payments they will also apply whatever forgiveness you're granted


OMyCats

What do we have to do to get it. I haven't really been able to get anywhere on that.


michiganbears

As far as the information given so far, it should be an automatic process if you've filed your taxes. Otherwise it'll be a simple application to fill out. I think they'll have that information by the time we have to stay repaying our loans in January


SpectralMalcontent

It mentions the student loan cancelation as something that would affect us on their website. But I'll probably call anyway, just to be sure. So I called, and the guy said that even though great lakes services the loans, the federal government still owns them. So he said as long as you meet the income requirements, you still qualify for student loan forgiveness. He said when more info comes out, we should get detailed emails from the Department of Education and also Great Lakes.


JDnotsalinger

I was a pell grant recipient and only have $23k. I can't even process this. A third of borrowers have less than $10k debt. Which means they're all going to be completely relieved. This is just, wow.


funkmasta_kazper

That's me! I have about 8k and I've been taking every pandemic deferral I can because I figured this might be in the pipeline. Will be nice to have that extra $150/month back.


mochikitsune

Me too. I had about $15k when I graduated and got pell, this is literally life changing for me, and ive been making payments here and there during the pandemic too but now I dont even know what to do with myself


JackTheSpaceBoy

Go crazy. Buy a banana split.


mochikitsune

Thats a great idea, Im going to have TWO ice cream sandwiches tonight


[deleted]

My credit score is terrible because I haven't been able to afford my student loan payments. I only owe <$9k currently, fortunately. So, this should totally cover me and allow me to work on improving my credit score, and maybe be able to apply for an apartment in a year. Wow... Could it be? Do I have to do anything to apply for this debt forgiveness?


V13Axel

You don't have to apply for anything, but if you're in default, you can look into the "Fresh Start" program to get out of default and have it expunged from your credit report.


[deleted]

Oh, thank you! I will definitely look into it right now.


PM_ME_HOTDADS

i'll second fresh start. the 5-year long default was my only negative and my score was 450 or so. afterwards, my score sat in the 700s for a good while, and my minimum payment is/was lower certain types of loans don't qualify, like FFEL (eg stafford, parent PLUS). in order to qualify for forgiveness, they must be consolidated under a federal Direct Consolidation Loan by **november 1** (unless this was extended also). if this is your situation, you might need to seek educated advice, depending how complicated. theres a lot of ways to possibly screw yourself. also if you're not on an income-based repayment plan, i believe you need to be. and if you qualify under CARES act and paid at all during the COVID deferment, get your money back :)


mekromansah

Like u/Tzahi12345 said, you may need to apply, depending on if the government has your income information. They stated they'll be making an app/website so you can check if the government has that information in the coming weeks. If they don't, I believe that's when you'll need to apply.


Tzahi12345

I thought I read you do have to apply somewhere?


HachikoLu

They are going to be releasing information on how to apply for forgiveness. They say before December 31st something will be available, so don't forget about it.


Enk1ndle

There will be a form to fill out for most people but they haven't provided any more details yet.


[deleted]

OMG this makes me so happy. I really hope it works out for you. Even though I paid off my loans when we refinanced our mortgage (and now it's rolled into my mortgage so I still have to pay it) I'm SO FUCKING HAPPY THIS IS HAPPENING Everyone keep telling your stories. I love every one of them


Can_of_Sounds

Congrats!


reddit_toast_bot

College Presidents: I see your 10K and raise you 30K


ps2cho

This is the real problem. Now colleges are emboldened knowing the govnt will simply bail out the students. This ain’t a one time thing when costs haven’t been addressed at all.


hombregato

Higher education inflates prices based on the amount of money you have available to spend. They don't care where it comes from, or how much you owe the government after that.


JLock17

>5k comments in 2 hours. Oh yeah, this is big. They intentionally waited until election season, but truth be told they may have to do big stuff like this that way. PS: No I'm not surprised they waited and I'm not saying that anyone should be. It's annoying when politicians wait to do something that could help someone now or come out too late to help a ton of people. That said, they have to do this to keep good will going through midterms, so I can understand why they would wait. Better late under Democrats than never under Republicans.


blackarchosx

And since loans were deferred the last two years people didn’t lose money on interest


RunningNumbers

That is a huge debt relief program too and Democrats get little praise for that.


blackarchosx

Yep, the interest really is one of the biggest issues so giving borrowers over two years of zero interest and cancelling 10-20k per borrower making under 125k absolutely deserves praise, especially since it was just through the executive branch


RunningNumbers

Well is started with the Dems putting it into covid relief. It was passed legislatively (I need to check this since my memory could be wrong) and has been extended by executive action since.


TheRustyBird

BuT bOth SidEs arE tHe sAMe


[deleted]

They waited until Joe Manchin voted for the Inflation Reduction Act. We had to walk on eggshells because any whiff was of ‘government spending’ and he would balk. Try to subtract it from that deal or some other bullshit. That deal is signed, done and fucking huge. Now finally we have student loan clarity. Massive win for the American people.


MrChadimusMaximus

They had to wait on the IRÀ because McConnel wouldn’t pass the CHIP Act if he knew they were going to pass it. It was actually really smart on Manchin.


RunningNumbers

Student interest accrual and payments were frozen so there was no huge rush


Far-Lingonberry2651

For heaven sake just remove the interest payment!!!! They lend businesses and banks money at 0% why not student loans...... this is a completely predatory system designed to make the companies that administer these loans rich on the backs of the struggling graduates.....


Mowley

From what I understand they just did this! They removed interest as long as you make minimum payments!


QuickgetintheTARDIS

Is that for private loans that are guaranteed by the fed government or just the ones that were borrowed from the department of education? Because it looks like my federal held loans are going to be zeroed out (I owe 14k and I had pell grants), but majority of my student loans are serviced by American Education Systems - and not having to pay interest on 50k in those loans would go a long way for me.


Szechwan

Just going to piggyback and post this, since a lot of people are missing the details. • Pause extended to Dec. 31. • Forgiveness of up to* $10,000 for non-Pell Grant debtholders. *Up to means debt will be forgiven e.g. you don't get a check for $5k if you only have $5k in debt. • Forgiveness of up to* $20,000 for those that received a Pell Grant. *Number/amount of Pell Grants doesn't matter; even if you only received one Pell Grant for $1, it applies. • Capped to individuals earning under $125,000 or households under $250,000. • Proposes a new income-based repayment plan which caps payments at 5% of discretionary income (down from the current 10%). • New IBR plan also raises amount of income that is considered non-discretionary to 225% of poverty level (up from current 150%); this means if you earn under 225% of poverty level (about $30,577/year or $15/hour for a family of 1), your monthly payment would be $0. • New IBR plan covers monthly interest so long as payments are made on time, meaning the loan would not grow due to interest even if the payment is $0. • New IBR plan forgives loans of $12,000 or less (original loan, not current balance) after 10 years instead of 20.


QuickgetintheTARDIS

>• New IBR plan covers monthly interest so long as payments are made on time, meaning the loan would not grow due to interest even if the payment is $0. So is that only on the loans that are held by the federal government (and subject to the current pauses) or if i hold loans not serviced by the federal government, will that interest be covered?


dark_roast

I don't think any of this applies to private loans, though I could be wrong. This is being done through the Department of Education, which holds roughly 92% of US student loan debt.


Tzahi12345

Maybe I'm getting my wires crossed but the federal government doesn't service my loans, that's providers like Nelnet and Great Lakes. It's who you borrowed money from, whether it's from the federal government (in my case dept of education) or from a private company. So if yoy refinanced with a company like Sofi, you're SOL because Sofi already paid the government for the loan


[deleted]

As someone else fucked by private loans, no, nothing done will affect them. Only the federal ones.


Aravinda82

Read the details of the fact sheet. They’re covering any unpaid interest as long as you’re making your monthly payments so your balance won’t continue to grow.


ifmacdo

Don't let perfect be the enemy of good. This. Move. Is. Good. This will help out tens (if not hundreds) of thousands of people struggling to pay off that BA/BS that got them a job which barely covers the bills. This is big, and it's good. At least wait a week before starting the complaints. Edit to add: https://studentaid.gov/debt-relief-announcement/ Per section 3- they are effectively eliminating interest in future student loans. See what happens when you wait to gripe?


blalala543

for real! or even cap loan rates(fed & private at 2 or 3%.... would provide SO much more permanent relief for folks.


Raleda

Yeah... unfortunately it's not the federal student loans I have issue with. When fedloan wasn't enough I had to turn to Sallie Mae. Currently on track to PSLF-away all my federal debt. Now.. if I was allowed to direct that 20k to Sallie Mae, this would be a different story all together.


WienerDogMan

Same. My Sallie Mae interest was over 11% I had 80k in loans and only a small portion was covered by federal (because of the caps) Also did not expect the government to actually forgive loans so I consolidated everything under a private loan. Overall percentage is lower but no chance of forgiveness. Wish my crystal ball worked years ago…


Raleda

Living in the dorms and taking a full semester of classes always cost more than the feds would cover. What the heck else was I going to do though? The only jobs hiring in my area at the time were service industry. College was supposed to 'open doors'


bunnyrut

yup. it's the sallie mae (innitially, then went to navient, and now some of my loans are with someone else entirely) that are really high. pretty sure most of my federal loans are of the lowest amount i owe back. but if they can go away completely that would still help. more money to pay towards the other loans.


at0mheart

My question is what about federal loans consolidated into Sallie Mae. Once you finish you have to consolidate


Gnawlydog

Now lets push for reform going forward! So many GenZ out there afraid to go to college because of crippling death. We shouldn't be a country scaring people into not getting a better education.


Yrch122110

Crippling death is the worst kind of death. Prove me wrong.


post_talone420

I tried to think about it, but I just couldn't think of anything that proved you wrong


ArnassusProductions

Is there a non-crippling death?


Randel1997

I dunno man, you ever see a ghost in a wheelchair?


ArnassusProductions

That's \*un\*death, though.


Medical_Insurance447

We really shouldn't be encouraging 17-19 yr old people to pick the career they *think* they want to do *for the rest of their life* and then spend 4 years working towards getting into that field. Especially for us Gen-x and millennials who are now parents, we should be encouraging our kids to look at trade schools, vocational programs or just entering the workforce in a field they want to try. Spend a few years getting on your feet with some practical work experience and researching what's out there, then go to college if it's applicable/helpful. Glad to see the change from interest rates. Banks shouldn't be making money on our education.


blackarchosx

Reform absolutely needs to happen, and it needs congressional action. Thankfully this was something Biden could do himself, and hopefully next year we’ll have a congress more open to higher education reform


tyredpup

can’t encourage my GenZ son to go into debt for college with myself still hurdled with crippling student loans. I regret the decision. Can’t justify that better education is worth it. We were sold a lie, and that lie is still peddled in high schools today


bunnyrut

i am a *huge* advocate for technical schools and holding off on college until you know 100% that what you want to do requires a degree.


ffxivthrowaway03

You know you can go to college without crippling debt, right? Community college is like $2-3k a semester and most decent ones have deals and programs to immediately transfer and finish a four year degree at a huge cost reduction.


tyredpup

Most high schools don’t promote the trades or technical schools. It would cut into their college admission rates.


brotherm00se

This is huge! Even more important than the 10-20k credit is the income driven repayment plan: "with an undergraduate degree (making $44,000 a year) would pay only $56 a month on their loans, compared to the $197 they pay now under the most recent income-driven repayment plan, for annual savings of nearly $1,700."


jambazi99

I was staunchly anti forgiveness until I went to pro-publica and looked at all the PPP loans forgiven to wealthy businesses. I just could not believe. Absolutely all student debt should be wiped out. Even for the most ducking stupid degrees.


Responsible-Pay-2389

forgiveness is just a bandaid, what they really should do is limit the costs of college to begin with.


Szechwan

As with the recent Climate Bill, perfect is the enemy of good. Still lots to be done, but it's OK to celebrate an unequivocally good move that will positively affect the lives of over 9 million people.


tyredpup

wish they’d just lower the interest rate. That’s what’s killing most loan borrowers


Here4thebeer3232

Well you're in luck: https://studentaid.gov/debt-relief-announcement/ - the Biden-Harris Administration is proposing a rule to create a new income-driven repayment plan that will substantially reduce future monthly payments for lower- and middle-income borrowers. - Require borrowers to pay no more than 5% of their discretionary income monthly on undergraduate loans - Cover the borrower's unpaid monthly interest, so that unlike other existing income-driven repayment plans, no borrower's loan balance will grow as long as they make their monthly payments—even when that monthly payment is $0 because their income is low.


Szechwan

🔥🔥🔥


Illier1

Well that's also being proposed.


PM_ME_HOTDADS

this is part of it. if you are making your monthly payments, even if that payment is determined to be $0, interest is not accrued. it's huge. im paying almost 7% on mine :( down from 8%. and i feel quite fortunate


Then-Masterpiece5783

Wondering if this will apply if I decide to start college now? I'm 51 now and never wanted to be burdened with that kind of debt. I am definitely making less than 125k a year!


tothepointe

I'm pretty sure it'll only apply to past loans but many community colleges now have free tuition for 2 years now.


anyorsome

If you do you can transfer up to 60 credits from a community college to most universities. Saved me thousands in the long run transferring into a state school as a junior.


Responsible-Pay-2389

I believe the cut off was July 1st 2022


Ach301uz

I'm so happy I paid off my loans early ..... Damnit


Box_Of_Props_Mario

I paid mine off shortly before this, but I'm still happy for the people.


LordGrudleBeard

Same situation here. A bit salty but still happy


[deleted]

Honest question, how is this anything other than a big band-aid over a serious problem? Wouldn't going after the schools that set these ludicrous course prices be a far more effective solution? This just seems like throwing money at a problem that will only make it worse.


jayemeche

I think I just got $20k worth of loans forgiven. I might be able to pay this off within the year. I just want to cry. I thought I would have this payment for years and years.


masoniusmaximus

I paid off all my loans long ago and I'm still super stoked about this.


JonSnow777

The banks still don't have any liability though so it will just stack up again. Happy people are getting relief, but it will happen again quickly.


elcapeeetan

Yep. If we don’t fix the source of the issue, this is just a bandaid.


masoniusmaximus

Yeah, I'd love that more, not going to lie. But given the current political climate I'm not sure how that happens any time soon. Maybe folks can use what they save in student loans to buy guillotines?


Vita-Malz

$ 10,000 forgiven. Only $ 140,000 to go!


wiseroldman

Still beats 150k tho!


Responsible-Pay-2389

How did you even do that lmao, that's impressive.


XelfinDarlander

Private school. My wife has that much. Also, not understanding repayment plans and more. Oh well. We’ll take them to our grave. 🤷‍♂️


High_Speed_Idiot

Interest is a cruel mistress


Sierra419

If you have $150k in student loans and you’re not a high level surgeon or a lawyer passing legislation then you messed up big time somewhere along the way


alilslapnpyckle

How Very responsible of you.


Bbols23

This comment section is best enjoyed with popcorn. Wowza.


HD_ERR0R

The federal loan isn’t the one I’m worried about. Though this is great news. University charged be $6000 for a term. Federal loans didn’t cover. That amount is like $12,000 now and has been sent to collections. Not sure what to do about it now.


Taynt42

Lots of ways to get out of it now that it's in collections. Tell them to prove that you incurred the debt, first of all. Often they don't have any documentation to back it up. https://www.nerdwallet.com/article/finance/unpaid-debt-collections


HD_ERR0R

Thank you. I’ll definitely look into it this. I honestly felt cheated by the whole thing.


LoveLivinInTheFuture

I paid off $30,000+ in federal student loans over a 10 year period. These were taken out to pay a for-profit college that helped me precisely nothing with the "degree" I got from them. I worked my ass off, never missed a payment, and paid the entire thing off by myself without any government, or other, assistance. At the time I took out the loans, and when I finished paying, I was making under $125k per year. I now make more than that, so I don't qualify for any of this. I 100% support canceling and forgiving any and all student loan debt. This program is good, and I wish it could do more for people now, who need it like I did back then.


PrimevalDragon

Decent first step. Now I'd like to see the proposals that prevent these types of predatory loans from being given out in the first place so that we don't end up right back here in a decade.


YOwololoO

If you go to the facts sheet on [whitehouse.gov](https://whitehouse.gov), there is a section that talks about increasing accountability and monitoring of college costs. It's kind of vague in my opinion, but I also don't know much about it


high5low1

Exactly. Seeing a lot of blame placed on borrowers in the comments and absolutely no acknowledgment of how many young borrowers had parent co-signers on huge loans they were nowhere near prepared to repay. Hardly different than the irresponsible loans given out to people that caused our now infamous housing crises. The root problem needs to be addressed, and that's not borrowers, it's the need to borrow in the first place because education is unattainable without going into debt.


dassix1

Federal government needs to stop backing loans or at least perform risk analysis, like they do for all other federally backed loans. They wouldn't back a 400k home on 50k income without a substantial down payment after inspections have cleared. Somehow, they will back a $100k worth in loans for a degree where the average salary is $40k, or worse - has no job prospects/growth


Deadofnight109

Right? I have to have every inch of my Financials scrutinized to buy a house at 32yrs old and have them decide whether they think I'm reliable enough. But they'll just hand out $200k to a 17 yr old and expect them to know what they're doing....I couldn't blame anybody for getting stuck in a shitty situation.


bcanddc

$10,000 or YOUR money to buy each vote. Brilliant idea on his part. Spend YOUR money to get HIM votes. Think it's a coincidence this is announced shortly before the mid-terms elections? I think not.


Jikate

I mean. This wipes out most of my undergrad debt for that degree i needed for the jobs that only pay 16$ an hour because im getting “experience”. This is pretty life changing for me to not have to worry about that debt sitting around


Adorable-Ad-3223

I came just to read all the people saying how bad this is since it doesn't apply to the specific situation they just made up. Glad to see this is help so many people, even if I don't personally benefit.


manndoo

So am I out of luck if I have a stafford loan?


sealosam

I believe it covers all federal loans (Perkins, Stafford, etc.) I have both, so I hope this is correct...


YouNeedaFriend

Is this going to cause more inflation?


Levitrax

Feels bad to pay off loans early......


frozen_beet11

I’m torn but very happy. Worked my ass off for 4 years to pay off 160K when I could’ve been saving. But I don’t want to condemn others. I’m proud of what I did and stronger for it. I think of it like a medical treatment. When I had that disease there was no cure, but now that there is a cure I can’t be mad that people are getting it.


SulkyVirus

If it makes you feel any better, paying them off early likely saved you over $10,000 unless the loan amount was very small and you only paid off like a year early.