January 28, 2022 marked my one year anniversary of paying off my student loans . Reflecting back on choosing to pay off my student loans leaves me with several take a ways that I want to share with you! In September 2020 I decided to become debt free by utilizing the debt snowball method to pay off all my debt. Before this I had struggled to save and really understand basic financial principles. As a first-generation college student, I received a scholarship to attend undergrad for free, but the scholarship did not cover summers. During the summers I took out student loans to cover costs without paying interest rates or how much I was taking out. By the end of undergrad I had amassed a little under $17K. Fast forward to graduate school I received another scholarship that covered my education. At the time I was a teacher in a new very expensive city and I had missed the cutoff to have my paycheck last me throughout the summer. So, I decided to take out a loan for two summers to keep
Alright folks I’m back with another student loan
update! According to CNBC, Biden is set to make a decision on student loan forgiveness
by the end of August 2022. Now while I’m not entirely sold that this is actually
happening, there are several things for you to be aware of.
First things first there is still no clear information
on how much will be forgiven. While Biden did discuss student loan forgiveness
of $10K during his campaign trail other sources have reported higher amounts of
50K. Of course, none of this is set in stone and we are all waiting to hear
something.
This is a thumbnail of my latest YouTube video on “Biden to Forgive Student Loans in August?” I am looking at the camera suspiciously while seated in my office. The background is red.
There may also be income restrictions of who may
qualify for student loan forgiveness. Single folks may have a threshold of 125K-150K
while those who are married may be between 250K-300K. There is also some talk
surrounding what type of loans may be forgiven. Will student loan forgiveness include
graduate, undergraduate, and parent plus loans? Some sources have reported that
they will however, private loans will most likely not be included.
So, what should you do in light of Biden making a decision
soon? Take advantage of the pause on interest for federal student loans by
paying as much of your student loans as you can. This is literally the only
time in history that there has been a pause on student loan interest and many folks
have made serious headway.
Image of a stick figure wearing a graduation cap carrrying a large black ball with the caption "Total student loan debt in the U.S. has reached 1.5 trillion.
You should also get clear on how much you owe and
print off any important documents from your loan holder. IF student loan forgiveness
does happen you want to make sure that your balance reflects every penny!
Most importantly make a plan on how you will tackle
your student loan debt if this does not happen or if it’s not the amount that
you were hoping for. As someone who paid off their student loans earlier this year,
I know the feeling of having this weight off of your shoulders. It feels good
and I want the same for you so don’t wait and do what you can now! If you haven’t
already be sure to check out my latest YouTube
video for more information!
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