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The Biden administration is kicking off the student loan forgiveness process. Goons who are eligible can get up to $20k in goonbucks. - If you have sent the DOE your tax returns for 2020 or 2021 for any reason (income verification, IBR, etc.) or filled out a FAFSA form in 2020 or 2021, then it should be applied automatically in the coming weeks and you don't need to do anything. - If not, then the form to verify will be going live on the DOE site in "the coming days." The form will be available from October 2022 to December 2023 (they probably won't put it up over the weekend, so Monday October 3rd or shortly after is the likely date) The form will be one-page long and does not require any supporting documents. (It is basically just a one-page thing you sign digitally swearing you really are eligible, providing your loan information, and promising not to intentionally try to defraud the government.) You can check the announcement page here for all of the details and sign up to get emailed in the next few days as soon as the page is live here: https://studentaid.gov/debt-relief-announcement/one-time-cancellation quote:“In October, the US Department of Education will launch a short online application for student debt relief. You won’t need to upload any supporting documents or use your FSA ID to submit your application,” the email said. https://twitter.com/betsy_klein/status/1575498579535310851  Important Reason to Get in Early https://twitter.com/seungminkim/status/1575509650887385089 Even in a worst case scenario Supreme Court ruling, the court won't be able to compel them to reclaim disbursed funds, even if they decide to rule against it as hard as possible, but they can prevent it from happening again and kill the new IDR loan type they also introduced with the order. That makes it important to get in as early as possible just in case the Supreme Court decides to shut it down and go as far as possible with the ruling. Other Important Information: - If you have made any payments since March 2020, you can request a full refund for them. That way, if you are getting $20k of forgiveness, your balance is $16k, and you made $2k of payments during the pause, then you can get that $2k back, raise your balance to $18k, and then get all $18k forgiven. Just call your loan servicer. They are legally required to refund and it generally takes 2-3 weeks. Frequently Asked Questions: quote:How do I know if I am eligible for debt cancellation? Other Student Loan Forgiveness FAQS quote:I refinanced my loans and they’re now held privately. Am I eligible for forgiveness? Update: FFEL Loan Changes quote:Serviced by doesn't mean the same thing as owned/held by. Update 2: FFEL Private Loans They just gave one work around and cracked a tiny door open for people with privately held FFEL loans: quote:An administration official tells NPR this change will not affect all 4 million borrowers with commercially-held FFEL loans. The official said many FFEL borrowers also have Direct Loans and so can still qualify to consolidate those FFEL loans, though that detail was not included in the department's updated guidance. quote:In a statement to NPR, a department spokesperson says, "Our goal is to provide relief to as many eligible borrowers as quickly and easily as possible, and this will allow us to achieve that goal while we continue to explore additional legally-available options to provide relief to borrowers with privately owned FFEL loans and Perkins loans, including whether FFEL borrowers could receive one-time debt relief without needing to consolidate. Borrowers with privately held federal student loans who applied to consolidate their loans into Direct Loans before September 29, 2022 will obtain one-time debt relief. The FFEL program is now defunct and only a small percentage of borrowers have FFEL loans." This was the previous FFEL guidance:  This is the new one:  If you don't have another direct loan to consolidate, then I wouldn't hold your breath. But, it's not 100% ruled out. New IDR Loan Type: Probably the stealth biggest change of the forgiveness isn't the forgiveness itself, but the new IDR loan type. If you still have federal student loans after forgiveness or get a new student loan in the future, then you will be able to enroll in a new IDR loan plan that caps your payments at 5% of your discretionary income above ~$33k. These loans can also be forgiven after 10 years if your balance is at $12k or less after 10 years of payments. The government will cover all interest that your payment does not cover, so your loan total will never go up. Graduate loans still have a cap of 10% of your discretionary income, but they also receive the new ~$33k floor for "non-discretionary income" that is exempt. If you have both graduate and undergrad loans, then the % you pay is an average between 5% and 9% depending on what the balance of your loans are. The new IDR plan will be available to everyone with a federally held student loan in the Summer of 2023. IDR Details: quote:For undergraduate loans, cut in half the amount that borrowers have to pay each month from 10% to 5% of discretionary income. quote:These reforms would simplify loan repayment and deliver significant savings to low- and middle-income borrowers. For example: quote:For each of these borrowers, their balances would not grow as long as they are making their monthly payments, and their remaining debt would be forgiven after they make the required number of qualifying payments. Leon Trotsky 2012 fucked around with this message at 23:15 on Sep 29, 2022 |
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Sep 29, 2022 18:35
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let stlyes epic post in this thread imo
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Sep 29, 2022 19:48
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https://twitter.com/mstratford/status/1575529368302292992
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Sep 29, 2022 19:52
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Thanks. Going to add it to the OP with the following context: Serviced by doesn't mean the same thing as owned/held by. FFEL loans were abolished in 2010 by Obamacare. Previous to 2010, if you got a FFEL loan, then it could be held by the DOE or issued by a private lender with private money and just guaranteed by the DOE. There's about 11 million FFEL loans, but only about 3.8 million privately held ones. Privately held FFEL loans were never eligible for forgiveness on their own. But, when they first announced the debt forgiveness, they had said that privately held FFEL loans could be consolidated into new federal loans and qualify for forgiveness. They never said when they had to be consolidated by and a lot of people thought it would be by at least the end of the year. But, the new guidance says you have to have started the consolidation process before today. If your FFEL loan was eligible for the student loan pause, then it is still good for forgiveness. If it was never eligible for the pause and you didn't start the consolidation process by yesterday, then it is not.
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Sep 29, 2022 19:54
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lol I consolidated my loans a few years ago and therefore don't qualify as my loans are now privately held. no reasonable person was expecting loan forgiveness at that time.
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Sep 29, 2022 19:57
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Lamebot posted:lol I consolidated my loans a few years ago and therefore don't qualify as my loans are now privately held. no reasonable person was expecting loan forgiveness at that time. It's been a cornerstone of the democrat platform for a while now.
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Sep 29, 2022 20:01
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it sure has but nobody believed it would happen
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Sep 29, 2022 20:03
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blameless B
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Sep 29, 2022 20:03
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leon - can we let epic post itt pls
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Sep 29, 2022 20:06
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hot cocoa on the couch posted:leon - can we let epic post itt pls I have no idea who that is and not sure why he wouldn't be allowed to post in this thread.
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Sep 29, 2022 20:07
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Leon Trotsky 2012 posted:I have no idea who that is and not sure why he wouldn't be allowed to post in this thread. oh you're a d&d mod. okay l;et me get on the horn with some gbs mods
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Sep 29, 2022 20:10
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As someone who's had 15k in debt in the back of my mind for the last decade this is pretty amazing. Just very grateful and beginning to make some workable plans for my immediate financial future. Putting a framed picture of the president in my
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Sep 29, 2022 20:11
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As much as I'd like to, I'd like to keep this thread sort of serious because it's important information for people doesn't mean you can't be GBS but we're not going to make him the main character of this thread too
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Sep 29, 2022 20:12
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Seth Pecksniff posted:As much as I'd like to, I'd like to keep this thread sort of serious because it's important information for people oh word, like epique isn't extremely serious about bidens debt relief?! smdh
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Sep 29, 2022 20:13
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I might have missed it in the thread, but will my loan servicer know that I received Pell Grants at some point? I graduated undergrad in 2007 (gently caress) and grad school in 2010 and I honestly do not remember if I had a pell grant in there somewhere. I did reconsolidate but it was under the federal program so I could get income-based loans, which leads me to my next question... Is there anything in this plan for graduate-level income-driven peeps? Before you ask why I need that, I went in to mental health. We can all have a good laugh now.
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Sep 29, 2022 20:24
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MEIN RAVEN posted:I might have missed it in the thread, but will my loan servicer know that I received Pell Grants at some point? I graduated undergrad in 2007 (gently caress) and grad school in 2010 and I honestly do not remember if I had a pell grant in there somewhere. I did reconsolidate but it was under the federal program so I could get income-based loans, which leads me to my next question... Grad loans qualify as long as they are issued and held by the Department of Education. A good shorthand is: If your student loans were eligible for the payment pause during Covid, then they are eligible for forgiveness. If they weren't, then they probably are not. The DOE will know if you received a Pell grant and will apply the enhanced amount with your student loan servicing company.
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Sep 29, 2022 20:29
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MEIN RAVEN posted:I might have missed it in the thread, but will my loan servicer know that I received Pell Grants at some point? I graduated undergrad in 2007 (gently caress) and grad school in 2010 and I honestly do not remember if I had a pell grant in there somewhere. I did reconsolidate but it was under the federal program so I could get income-based loans, which leads me to my next question... even if you consolidated, you should be able to look at full loan history through your servicer.
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Sep 29, 2022 20:31
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Seth Pecksniff posted:As much as I'd like to, I'd like to keep this thread sort of serious because it's important information for people Extremely short leash and shock collar. Honestly I just want him to acknowledge that this information is now easily available to him since Leon was kind enough to do the heavy googling.
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Sep 29, 2022 20:35
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Thanks for the quick responses! To clarify on my second point: I thought I had read that the new cap on income-driven payments might be lowered, meaning I might get to keep a few more dollars each month for the next ten years. That would probably be just as helpful as the forgiveness, honestly.
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Sep 29, 2022 20:39
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Seth Pecksniff posted:As much as I'd like to, I'd like to keep this thread sort of serious because it's important information for people Im rich bitch Not rich but it's nice that my wife's remaining student loans are pretty much cut in half Also please add the joe biden i did that sticker to the op thanks
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Sep 29, 2022 20:42
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MEIN RAVEN posted:Thanks for the quick responses! To clarify on my second point: I thought I had read that the new cap on income-driven payments might be lowered, meaning I might get to keep a few more dollars each month for the next ten years. That would probably be just as helpful as the forgiveness, honestly. There is a new IDR plan that only applies to undergrad loans that caps your payments at 5% of your disposable income and then forgives any balance left on the loan after 20 years of payments. Grad IBR loans are still capped at 10% of disposable income. BUT, Biden made big changes to how income based repayment plans (IBR, PAYE, and the new IDR plan) work that apply to all of them, including grad loans. That includes raising what counts as "non-disposable income" to 225% of the poverty line. That is about $33k for a single person. Which means your "income" will only count for each dollar you earn above that.
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Sep 29, 2022 20:47
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sorry if i'm dumb and this has been explained BUT is this only for citizens with loans held for over 10 years? my wife got 10k of sally mae loans back in 2019/2020 and she's a foreigner. sally mae's got enough loving money so it would be good to cut 10k off our poverty ledger
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Sep 29, 2022 20:51
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Lamebot posted:lol I consolidated my loans a few years ago and therefore don't qualify as my loans are now privately held. no reasonable person was expecting loan forgiveness at that time. S A M E Still glad Biden did it though
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Sep 29, 2022 21:01
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kntfkr posted:sorry if i'm dumb and this has been explained BUT is this only for citizens with loans held for over 10 years? No. You don't have to have held the loan for any specific amount of time. You had to have the loan issued before July 2022 or consolidated before today (Sept. 29, 2022). If your wife's loans were eligible for the student loan pause during Covid, then they are eligible for forgiveness. If it is a private loan and not eligible for the pause, then she most likely would not qualify for any forgiveness. Citizenship doesn't matter. The only thing that matters is whether your loan is held/issued by the Department of Education.
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Sep 29, 2022 21:05
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so if I consolidated my federal loans and now they are an ffelp consolidation, as of yesterday, no soup for me
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Sep 29, 2022 21:17
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naem posted:so if I consolidated my federal loans and now they are an ffelp consolidation, as of yesterday, no soup for me Yeah, if you consolidated them into a private loan, then you don't get anything.  None of the income driven payment plan changes or forgiveness apply to private loans.
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Sep 29, 2022 21:19
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Hence why SoFI was blasting out emails about getting student loans consolidated with them multiple times a day basically every day this year. Just so much spam from them trying to get as many people as possible locked in to their debt.
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Sep 29, 2022 21:22
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balls lol
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Sep 29, 2022 21:26
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LanceHunter posted:Hence why SoFI was blasting out emails about getting student loans consolidated with them multiple times a day basically every day this year. Just so much spam from them trying to get as many people as possible locked in to their debt. drat good thing I delete each and every one of those steaming piles.
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Sep 29, 2022 21:33
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Leon Trotsky 2012 posted:There is a new IDR plan that only applies to undergrad loans that caps your payments at 5% of your disposable income and then forgives any balance left on the loan after 20 years of payments. Regarding the second part: Hol' up. So, if someone made $40k per year, and only $7k of that was considered income, the IBR of 5% would take $350 per year, and something like that for 20 years would erase the loans? LMAO
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Sep 29, 2022 21:44
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PITY BONER posted:Does anyone know if this means that people like me with both undergrad and grad loans have to pay a combined amount, considering they are affected separately (5% + 10%)? If you have undergrad and grad loans, then sign up for the new IDR plan, you pay a "weighted average" of between 5% and 9% of your discretionary income depending on the balance of your loans. And yes, that is how the IDR thing works. Actually, I was slightly wrong because IDR gets forgiven after 10 years if you get your balance at $12k or lower and not 20. A lot of people are mad because it essentially turns college loans into funny money if you get a lot a debt, but a low-medium paying job. Someone making $50k with $200k in loans just has to pay ~$60 a month for 20 years and then all of it gets taken care of. Also, on the IDR plan, the government covers all of your interest that is not covered by your payment (so if you make $35k and have a $10 per month payment, the gov covers whatever the remaining interest is). Lots of people are upset about it for various reasons because people still have to have the debt hanging over their head for 10-20 years, but it is essentially funny money that you pay a tiny amount on each month and a lot of people will never ever pay back anywhere close to the amount they borrowed. But, it was sort of a "best we can do" situation since they had to do it all executively without a new law. Here's the overview of the new IDR plan (which is sort of stealthily the biggest part of the forgiveness plan): quote:For undergraduate loans, cut in half the amount that borrowers have to pay each month from 10% to 5% of discretionary income. quote:These reforms would simplify loan repayment and deliver significant savings to low- and middle-income borrowers. For example: quote:For each of these borrowers, their balances would not grow as long as they are making their monthly payments, and their remaining debt would be forgiven after they make the required number of qualifying payments. https://www.whitehouse.gov/briefing...o-need-it-most/ Leon Trotsky 2012 fucked around with this message at 22:09 on Sep 29, 2022 |
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Sep 29, 2022 22:01
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I didn't go to college e: but I would still like free money if that's what's happening here
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Sep 29, 2022 22:44
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This is gonna eliminate all of my student debt which is frickin epic, Dark Brandon does it yet again...
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Sep 29, 2022 22:54
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They just gave one work around and cracked a tiny door open for people with privately held FFEL loans:quote:An administration official tells NPR this change will not affect all 4 million borrowers with commercially-held FFEL loans. The official said many FFEL borrowers also have Direct Loans and so can still qualify to consolidate those FFEL loans, though that detail was not included in the department's updated guidance. quote:In a statement to NPR, a department spokesperson says, "Our goal is to provide relief to as many eligible borrowers as quickly and easily as possible, and this will allow us to achieve that goal while we continue to explore additional legally-available options to provide relief to borrowers with privately owned FFEL loans and Perkins loans, including whether FFEL borrowers could receive one-time debt relief without needing to consolidate. Borrowers with privately held federal student loans who applied to consolidate their loans into Direct Loans before September 29, 2022 will obtain one-time debt relief. The FFEL program is now defunct and only a small percentage of borrowers have FFEL loans." This was the previous FFEL guidance: This is the new one: If you don't have another direct loan to consolidate, then I wouldn't hold your breath. But, it's not 100% ruled out. Leon Trotsky 2012 fucked around with this message at 23:15 on Sep 29, 2022 |
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Sep 29, 2022 23:03
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Bump for night krew
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Sep 30, 2022 03:20
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Is there a list of what states are going to tax the federal loan forgiveness as income? I heard some are but some aren't.
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Oct 3, 2022 18:03
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Honneur et Patrie 
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The French Army posted:Is there a list of what states are going to tax the federal loan forgiveness as income? I heard some are but some aren't. lol what. taxing loan forgiveness as income. my head is spinning
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Oct 3, 2022 18:09
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hot cocoa on the couch posted:lol what. taxing loan forgiveness as income. my head is spinning Yeah a bunch of states do it for some reason
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Oct 3, 2022 18:17
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Okay guys here is the plan, imma make a new university and charge $19,999/semester, all you guys apply and I'll let you in and take out a loan and pay me and then get the loan forgiven and then I'll "close" the university and we just all split the tuition money
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Oct 3, 2022 18:37
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hot cocoa on the couch posted:lol what. taxing loan forgiveness as income. my head is spinning Get this: someone tried suing the government because their loan forgiveness would have been taxed, so they complained they would be harmed(financially) by the loan forgiveness, so Ice Cream Joe told 'em "you can opt out if it's really going to ruin your day." Just LOL if 10k is enough to put you into an unsustainable income bracket and you have to turn it down. I haven't met anyone who has that problem without them being couch surfer levels of desperate, nor anyone who would rather pay 10k monies with interest and stuff instead of whatever the tax increase would be. DoubLOL if the guy did this just to try to stick his figurative dick in the "less debt" mashed potatoes on principle, and now he chickens out of his "I'm harmed" tantrum and takes the money anyway. TripLOL if he refuses the money on principle even though he can afford to suffer the 500 extra on his taxes to cancel 10k of debt. Nooner posted:Okay guys here is the plan, imma make a new university and charge $19,999/semester, all you guys apply and I'll let you in and take out a loan and pay me and then get the loan forgiven and then I'll "close" the university and we just all split the tuition money Now that you said the plan out loud, it's illegal. Way to mess up a good thing! 
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Oct 3, 2022 18:52
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