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,...
The Biden administration has forgiven $7.4 billion in student debt for 277,000 borrowers. This is possible through improved oversight of income-driven repayment plans and the Public Service Loan Forgiveness program. Over 4.3 million people have had their federal education loans cleared, totaling $153 billion in aid, since Biden took office.
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.
More students are dropping out of college, with 40 million currently unenrolled. Financial concerns are a major factor, especially for first-generation, minority, and low-income students. Over 26% of current undergrads consider leaving or face dismissal. Experts highlight the importance of financial planning and support for these vulnerable students.
Women carry the majority of the country's student debt, with factors such as caretaking responsibilities and gender pay gaps contributing to the burden. Experts recommend exploring options like income-driven repayment plans, loan deferments, and hybrid financial planning to manage debt. However, prioritizing retirement savings and children's education should be balanced with personal financial needs.
The Biden administration's updated bankruptcy policy makes it easier for borrowers to discharge student loan debt. Borrowers can now apply for a discharge by completing a form outlining their financial hardships. Although bankruptcy can be beneficial for individuals in extreme financial distress, most should explore other options like income-based repayment plans and loan forgiveness programs. The government may also announce a revised student debt forgiveness package soon, so waiting to see what relief is available is advisable.
The Biden administration is shifting to forgive student debt for borrowers with small balances and those enrolled in the decade-long SAVE repayment plan. This move comes despite setbacks with the broader student loan forgiveness program, highlighting the administration's commitment to addressing the student debt crisis. As a borrower, you should be aware of your eligibility for forgiveness and its potential impact on your financial situation.
