Current Events > Biden cancels $10,000 in federal student loan debt for most borrowers

(+) Yeah! (+)

https://www.cnbc.com/2022/08/24/biden-expected-to-cancel-10000-in-federal-student-loan-debt-for-most-borrowers.html

President Joe Biden announced on Wednesday that he will forgive $10,000 in federal student debt for most borrowers, fulfilling a campaign pledge and delivering financial relief to tens of millions of Americans. Biden will also cancel up to $20,000 for recipients of Pell Grants, he said in a tweet on Wednesday. The relief will be limited to Americans earning under $125,000 per year. The President will also extend the payment pause on most federal student loans one final time through Dec. 31, 2022, according to the tweet. The unprecedented action by the White House of wiping out hundreds of billions of dollars in consumer debt follows years of advocacy pressure and recent months of heated debate among Biden administration officials. Those discussions centered on how student loan forgiveness might impact the high inflation hitting Americans wallets, the amount of student debt that should be canceled and if the president even had the power to reduce peoples balances without the legislative branch.

About time.

20% of the goal is better than 0% of the goal at least

I received pell grants, does this mean I will get 20k wiped?

So I still have about 7k left that was on pause since the pandemic. Does this mean I'm debt free?

Kombucha posted...

I received pell grants, does this mean I will get 20k wiped?

https://gamefaqs.gamespot.com/boards/400-current-events/80140982

SauI_Goodman posted...

https://gamefaqs.gamespot.com/boards/400-current-events/80140982

Awesome

Doesnt matter to me either way. I didnt go go school. Still got a good job tho.

Hooray! I had $9,700 left in student loan debt.

What if you had some Pell grants and mostly other kinds and then you consolidated them all?

Or if you had Pell grants but already paid those off? Only $10k or 20k still?

Please tell me this applies to consolidated loans. I have like 8k still but I refinanced a few years ago for a lower rate.

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I have purposely been holding onto my payments in another account while waiting for something to be announced so I didn't end up like this during the payment freeze.

https://gamefaqs.gamespot.com/a/user_image/0/0/3/AADgb_AADmOb.jpg

Lets fucking go!!

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If you'd listened to CE, you would have known to pay it down to 10k and then wait.

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Should be 250k if married

theAteam posted...

Please tell me this applies to consolidated loans. I have like 8k still but I refinanced a few years ago for a lower rate.

I figure it probably will unless you consolidated your student debt with non student debt.

Hey chuds?

This is what "promises made, promises kept" actually looks like.

WizardPowers posted...

What if you had some Pell grants and mostly other kinds and then you consolidated them all?

Or if you had Pell grants but already paid those off? Only $10k or 20k still?

Pell grants are not paid back. They're grants.

Fuck. I literally just finished paying my loan.

But I'm not a shitty asshole, so I support this being done. We shouldn't never change things just because we can't time travel and fix it earlier.

hockeybub89 posted...

Fuck. I literally just finished paying my loan.

But I'm not a shitty asshole, so I support this being done. We shouldn't never change things just because we can't time travel and fix it earlier.

They should do a thing where if you paid off your loan between 2020-2022 you can claim an extra 10k on the standard deductible for your 2023 taxes.

I still have about $3-4k left after this. Should I just pay it off now and not hold out for more cancelations?

MabinogiFan posted...

Should I just pay it off now

If you can, may as well.

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I paid mine off too in 2021. I had thought the $600 checks would be the last stimulus we'd receive. Wish I had waiting longer and have saved 10k but at least this helps others.

Already paid all mine off back in 2019, but it wouldn't have applied to me anyway since there's an income limit

I thought pell grants were money that you didn't have to pay back

are some pell grants also loans?

Used my first round of Trump Bucks to pay off what was left of mine in 2020 lol

AlCalavicci posted...

I thought pell grants were money that you didn't have to pay back

are some pell grants also loans?

yeah this part confuses me, I remember after high school my friend got a pell grant and I had to go with student loans and he said he didn't have to pay anything back but maybe he was mistaken

Sooo not that Im not happy for people but is this going to negatively affect those of us who never had loans in the first place in any way?

Because if thisll lead to more many taken out of my paycheck from taxes or anything Im.. obviously not going to be too thrilled with that

rexcrk posted...

Sooo not that Im not happy for people but is this going to negatively affect those of us who never had loans in the first place in any way?

Because if thisll lead to more many taken out of my paycheck from taxes or anything Im.. obviously not going to be too thrilled with that

Just more fuel for the inflation fire for those of us who dont benefit. Expect housing and car prices to remain high since 10k is down payment money.

rexcrk posted...

Sooo not that Im not happy for people but is this going to negatively affect those of us who never had loans in the first place in any way?

Because if thisll lead to more many taken out of my paycheck from taxes or anything Im.. obviously not going to be too thrilled with that

sucks to suck

AlCalavicci posted...

I thought pell grants were money that you didn't have to pay back

are some pell grants also loans?

Yeah, I'm not understanding the pell grant stuff either.

Pitlord_Special posted...

Just more fuel for the inflation fire for those of us who dont benefit. Expect housing and car prices to remain high since 10k is down payment money.

This isn't a 10k windfall. It's 10k less people will have to pay over years and years

emblem-man posted...

Yeah, I'm not understanding the pell grant stuff either.

I'm pretty sure it's just an indicator variable for relative need.

emblem-man posted...

Yeah, I'm not understanding the pell grant stuff either.

It's just a measurement. Pell grants were given to low income students. They're saying if you qualified for that, you'll get 20k off whatever loans you took on top of the pell grants because you probably also needed more loans than other students.

littlebro07 posted...

yeah this part confuses me, I remember after high school my friend got a pell grant and I had to go with student loans and he said he didn't have to pay anything back but maybe he was mistaken

They only have to be paid back if you were found to not have qualified for the amount. Otherwise, it's a grant.

The reason Pell recipients are getting more is because Pell recipients have more debt.

I was a pell recipient during my time at college, but it is still a question-mark due to the program I was part of. I'll have to see what this means for my debt. It dropping from 47 to 27k would be really nice, though.

My friend's girlfriend has $5800 of student loans in collections

How the hell does that work

COVxy posted...

I'm pretty sure it's just an indicator variable for relative need.

berlyman101 posted...

It's just a measurement. Pell grants were given to low income students. They're saying if you qualified for that, you'll get 20k off whatever loans you took on top of the pell grants because you probably also needed more loans than other students.

Ahh, got it. Thanks

I have no clue if I ever received a pell grant.

The FSA website is experiencing heavy traffic it seems and I can't log in to check.

• 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 paymentseven when that monthly payment is $0 because their income is low.

This seems like a big W. It's not as good as interest-free, but this will help many out with savings, if the 5% works like I'm hoping. I make about 61k right now, so 5% of that is approximately 3k a year, or 250 a month (125 a paycheck). I can definitely focus on paying the loans with higher payments first and then save up and beat up the remaining 27k.

I think this is a useful visualization
https://twitter.com/MattDoyle76/status/1562478774142132224

Doesn't even cover the cost of interest on my loans. :/

Still grateful for any relief this administration provides though.

The college market has been such a financial scam for far too long.

Antifar posted...

I think this is a useful visualization
https://twitter.com/MattDoyle76/status/1562478774142132224

Yep.

https://gamefaqs.gamespot.com/a/user_image/7/9/9/AADgb_AADkd3.jpg

This completely forgives or cuts in half the loans of over 50% of those who have loans. All the insane talk on Twitter from people saying this isn't helping the most in need

Plus the amount forgiven is NOT taxable plus the income based repayment changes!

Some reason I read this as him cancelling cancelling it lol. Good to see Im just having comprehension problems. Doesn't effect me,but Im happy for everyone stressin from debt

This is legit great for the people it helps. I'm very happy for them.