And we are already getting
some great questions here,
coming in for Betsy Mayodan with
free studentloanadvice.org.
One of the questions I think
is really interesting,
says my grandson will graduate next year.
Does he qualify for loan forgiveness?
Maybe, uh, this broad forgiveness
applies to loans that that were
dispersed or to the school on
or after June 30th of 2022.
So if he has loans from before
that they potentially qualify.
With that said, however,
the income criteria for him,
assuming that he's considered
a dependent by the school,
is actually going to be based on
his parents income rather than his,
but for future students,
there's no plans for them.
To give them like $10,000 towards college?
No, no, and I just want to say
nobody should be borrowing now,
anticipating forgiveness of the future.
This was a one time scenario
where the stars aligned and just
the way they needed to align.
I don't ever expect to see
something like this again.
Is the loan forgiveness just for primary
borrowers or for Co borrowers too?
Most federal student loans
don't have Co borrowers.
There is a very small population
of people that were able to
consolidate their loans as a
married couple back before 2006.
Some of those will be eligible,
but most federal student loans don't.
Other than that,
don't have Co borrowers.
A cute cat wants to help
answer questions too.
Yeah, that's Alice, the student loan cat.
She can't stay away from a TV camera. Well,
I'll ask Alice and you both this.
Do you have to pay taxes on the
amount of loan that's forgiven?
Oh, that's a great question.
There are some states that are
going to tax the forgiveness.
There are other states that as
of right now they'll tax it,
but they're looking to change that.
It will not be taxed on the federal
level and my understanding is that
there will not be a 1099 going out,
so if the if your state.
Is what it's gonna tax it and
you're pursuing another forgiveness
program such as public service
loan forgiveness, for example.
You may want to opt out of this.
Let's talk about public
service loan forgiveness.
That is a different program, correct,
separate and distinct and unrelated.
What do we need to know about that?
What are the highlights of that program?
Well, that program has been around since
2007 and essentially what it does is,
again, this is federal student loans
and if you're working full time.
For a government employer,
that could be any government employer,
federal, state, local, tribal,
any 501C3 nonprofit, or there's also
some other nonprofits that qualify.
If you work for them for 10
years while making pay beds,
the government's going to
forgive the balance of your loan.
There's actually a temporary waiver in
place that ends on October 31st that
actually expands the eligibility for
this a little bit for people that maybe
didn't have the right type of load.
Or word on the right payment plan.
You can find out more about that either
on our website freestudentloanadvice.org
or on the Department of Education's
website whichisstudentaid.gov.
Someone wants to know my student
loans were garnished and I had
not been paying for 10 years.
Am I still eligible for forgiveness?
Defaulted loans are eligible for the broad
debt relief that was announced in August.
They are potentially still eligible
for public service loan forgiveness.
Unfortunately, periods while
you were in default don't count,
even under the temporary waiver towards PSLF.
Now, I will tell you this.
There is another program called
Fresh Start that will allow you to
get out of default pretty quickly,
and it'll also help prepare your credit.
You could contact the the current
collection agency to find out more
about that fresh start program,
and I want to give people at
home a chance to get pins and.
Paper or your phone? Ready?
Because in a second I'm gonna ask
you to say the website again.
You have such great information on there.
We're all having trouble
figuring all this out.
So where can people go for that resource?
So to access information or to
ask questions to my organization,
which is the Institute of
Student Loan Advisors or Tesla,
you could go to freestudentloanadvice.org.
And the Department of Education is
another great resource for information
about all the programs I've talked about.
And their website is student aid Gov.
And you can always call your
loan servicer, too, correct?
Absolutely. I will say and I by no
means discouraging people from calling
their loan servicers, they should.
But be aware that because of this debt
relief and because of the various waivers
that I've mentioned in the past few minutes,
the call volume but all of the
servicers is very, very high.
So be prepared, you know,
have your cup of coffee ready
and your patience pants on when
you go to make that phone call.
Well, thank you so much for being here.
We appreciate it.
We also have a whole lot of resources
about loan forgiveness up on WFY
news two.com check out that.
Two wants to know section.