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The Department of Education Changed the rules for student loan forgiveness

 The Department of Education has "silently" changed the rules to student loan forgiveness that will affect at least 800,000 borrowers. On September 29, 2022 the Department of Education made a few changes for those who obtained the Perkin's and Federal Family Education loan.  Here is the language directly from the Dept of Education "As of September 29, 2022 borrowers with federal student loans not held by ED cannot obtain one time debt relief by consolidating those loans into direct loans". Previously individuals who did obtain theses loans were able to receive loan forgiveness. Figure 1: This is a thumbnail of my latest YouTube video "Student loan forgiveness guidelines have changed" where I am sitting in my office while looking at the camera with a suspicious look.  Many speculate that potential lawsuits could be the reason why the Dept of Ed has changed it's language recently. Long story short the banks who insured these loans will not receive an

All Things Student Loan Forgiveness

Hey Guys! I know it’s been awhile since my last post so I decided to do a recap of student loan forgiveness to get back on track ! By now we’ve all heard about student loan forgiveness and and heard out fair share of critics.  Here’s the facts:

1. Singles who make less than 125K and couples who make less than 250K are NOT eligible for loan forgiveness 

2. Pell grant recipients will receive 20K in loan forgiveness while those who did not will receive $10K

3. There is no overage. If you owe $4K you will only have $4K forgiven based on the restrictions above 

4. There is nothing you need to do if the Department of Education has your income on file. If not, an application will be available in October 2022

5. The final student loan pause needs in 12/2022



Below is a thumbnail of my YouTube video “Do I Regret Paying My Student Loans?” where I am looking away from the camera with my finger under my chin. There is a perplexed look on my face.


I recently was asked I regret paying off my student loans. My answer was NO! Being debt free is the best thing I could ask for and I definitely do not regret it . You also should know that if you made payments on your student loans during the pandemic then you can receive a refund. 



Below is a thumbnail of my YouTube video “Do I Regret Paying My Student Loans?” where I am looking away from the camera with my finger under my chin. There is a perplexed look on my face.


To receive a refund you need to call your loan servicer, ask for a refund, and wait 2 weeks - 2 months. This may differ based on your loan servicer. So if your wondering yes I did ask for a refund ! I plan to put the $14,180 I paid during the pandemic towards my emergency fund ! 

Student loan forgiveness may also be taxed according to your state . If you live in Mississippi, Wisconsin, Arkansas, or North Carolina then you may have to claim your forgiveness as income. While I am unsure of the amount you can expect to pay a few hundred bucks in taxes. This decision is typically left up to the state legislature so if you don’t agree with this write to them and let them know ! 



(Below is a thumbnail of my latest video “Student Loan Forgiveness May Be Taxed?!” where I am sitting in my office while looking at the camera with a shocked expression)


I want to know your thoughts on all of this . Be sure to drop down in the comments and let me know ! Also, don’t forget to head over to my YouTube channel to check out my latest videos on each of these topics ! 

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