Since 2020, it is amazing how much tax money the Federal government has return to people through the PPP Loans, Economic Impact Payments, Employee Retention Credits, and now student loan forgiveness. The snarky side of me kind of wishes the Fed would just cut our taxes and forget about these nearly annual payments. I might just be a little bitter because I’m missing out this time.
The good news for people with Federal student loans is that you will likely have a big chunk of it forgiven. The criteria seems pretty simple and wide open. You have to:
- Have Federal Student Loans: If you had a Federal student loan (Perkins, FEEL, Direct, PLUS) as of June 30, 2022, you are eligible. It looks like even if you paid off your loans during the pandemic, you may be eligible for a refund.
- Made Less than $125k Single or 250k Married: The instructions say that if your Adjusted Gross Income was less than $125,000 as a Single filer or $250,000 as a Married filer for either 2020 or 2021, you qualify.
If you are eligible, the application should be coming online in early October. You can sign up for text alerts for when it is available. In the video, I get into more details. (Note: This is my first recording in my new office so I haven’t figured out all the lighting and sound issues.)
- President’s Announcement: 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/
- Federal Student Aid’s FAQ: https://studentaid.gov/debt-relief-announcement/one-time-cancellation
- Forbes’ Related Important Dates: https://www.forbes.com/sites/adamminsky/2022/09/09/student-loan-borrowers-should-write-down-these-critical-dates-for-loan-forgiveness-and-repayment/?sh=b69dd8720d28
- Yahoo’s Legal Concerns: https://finance.yahoo.com/video/student-loan-forgiveness-faces-challenging-160251560.html