It is a daily ritual for millions of Australians, but if you have noticed the price of your morning flat white or soy latte increase, brace yourself — it is likely to get worse.
By the end of the year,...
It is a daily ritual for millions of Australians, but if you have noticed the price of your morning flat white or soy latte increase, brace yourself — it is likely to get worse.
By the end of the year,...
President Biden's plan proposes up to $20,000 in student loan forgiveness for certain groups. Loan forgiveness granted before 2026 will not result in federal tax liability. However, future forgiveness may be subject to federal taxes and potentially state taxes. Borrowers who receive forgiveness under income-driven repayment plans after 2025 may face tax consequences. It's important for borrowers to consider how tax implications could impact them.
There's a limited-time opportunity for student loan forgiveness. By April 30th, borrowers can consolidate their loans to get credit for past payments. This could result in immediate or early loan cancellation for many borrowers under income-driven repayment plans. The consolidation process combines loans and includes payments from your oldest loan. It's important to consolidate before the deadline and ensure accurate payment history to maximize forgiveness benefits.
To get student loan forgiveness, borrowers with multiple federal loans can consolidate them into one loan by April 30. This will qualify them for income-driven repayment plans, where monthly payments are based on their income. Changes in these plans have already led to debt cancellation for many borrowers. By consolidating, borrowers can combine timelines and qualify for forgiveness faster.
The Biden administration has forgiven almost $144 billion in student debt for around 4 million people. Those who don't qualify yet can check their eligibility for forgiveness programs like Public Service Loan Forgiveness, income-driven repayment plans, and over 100 other state-sponsored programs. Keep track of your progress towards meeting program requirements and take advantage of updates that make it easier to obtain forgiveness.
The Biden administration has provided student loan forgiveness to almost 4 million borrowers. Borrowers who don't yet qualify can check the Department of Education's website to see if they're eligible for other programs. Two popular options are the Public Service Loan Forgiveness program and income-driven repayment plans. The government is also working on a revised forgiveness plan that could benefit up to 10 million more people.
For 2023 tax filings, student loan borrowers may deduct up to $2,500 in interest paid due to the resumption of payments. Despite the blockage of sweeping student loan forgiveness, some borrowers have received relief. Notably, forgiven debt remains non-taxable federally until 2025, but state taxes may apply. Additionally, the Education Department is providing refunds for payments made on loans that were later forgiven, which are not taxable.
President Biden's State of the Union address emphasized the government's efforts to ease student debt burdens through Income-driven Repayment Plans and Public Service Loan Forgiveness. The Income-driven Repayment Plans have granted forgiveness to 930,000 borrowers, while Public Service Loan Forgiveness, now expanded, has benefited 790,000 public servants, resulting in a total of $138 billion in debt relief for nearly 4 million borrowers.
