The Biden administration's student debt relief plan will be costly and tough to administer. An early estimate pegged the price tag at north of $300 billion, easily canceling out the benefits resulting from the Inflation Reduction Act. The pause on payments for federal student loans has been extended until yearend to give the Department of Education time to put the plan in place.
Besides administrative issues, there are other hurdles. One is legal uncertainty. Expect lawsuits arguing that the administration can't do universal debt relief without Congress. Others worry about the effect on the economy.
Former Treasury Secretary Larry Summers warned on Twitter that student loan debt relief "is spending that raises demand and increases inflation."
A quick recap. Individuals. with federal student loans who meet certain income thresholds will qualify for $10,000 in debt cancellation (Parent PLUS loans are also eligible). If you have Pell grants, you may be eligible for debt cancellation of up to $20,000. You qualify if you are single and earn less than $125,000, or you're married and file your taxes jointly or are a head of household and your income is less than $250,000. Eligibility will be based on your adjusted gross income. Income figures from either 2020 or 2021 can qualify you for eligibility, but 2022 income will not.
The Department of Education has 8 million borrowers' income data. Others have to apply. Stay tuned for guidance from your student loan servicer. The department should have an application available by early October. You can sign up for e-mail updates from the Department of Education at www.ed.gov/subscriptions. The department will stop taking applications on December 31, 2023.
هذه القصة مأخوذة من طبعة November 2022 من Kiplinger's Personal Finance.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة November 2022 من Kiplinger's Personal Finance.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
MAKING A DIFFERENCE IN THE LIVES OF DISABLED VETERANS
He suffered grave injuries in the line of duty. Now he helps other veterans who have disabilities.
DO YOU NEED UMBRELLA INSURANCE?
A policy can protect you from financially devastating events.
Navigating Finances as a Blended Family
Money matters can get complicated when two families unite. Planning is key.
BREAKING UP WITH YOUR BROKER
Be aware of these challenges when you move your money to a new home.
CHOOSE A MEDICARE PLAN THAT'S RIGHT FOR YOU
Consider your health care needs over the long term as you weigh costs and coverage.
Keep Faith in These Stocks
IN 1997, I coined the phrase “faith-based investing.” It has nothing to do with religion or with picking stocks at random.
OUR ESG PICKS ARE THRIVING
Despite an ongoing backlash, our favorite stocks and funds focused on environmental, social and corporate governance issues had a good year overall.
MONEY MANNERS FOR THE MODERN AGE
The customs for splitting a restaurant check, purchasing a wedding gift, tipping and more have evolved. These guidelines can help.
ELECTION 2024: POLITICS AND YOUR PORTFOLIO
Who wins the White House matters—but only at the margins when it comes to your investments.
YOUR GUIDE TO OPEN ENROLLMENT
With health care costs on the rise, it’s critical to select a plan that fits your needs at the right price.
