Now that school is in full swing and our college students are settled in, it might be a great time to talk about something we all still have a lot of questions about, college debt forgiveness.
AM Buffalo sat down with Katie Weibel, the owner of Haven Financial Planning to get more clarity.
Katie says she aways call it a hand up, not a hand-out and it’s to help those younger folks who are just starting out that maybe graduated during COVID and either walking into not having the job market that they used to, but yet student loans are going to be due in January.
Katie says they did extend that the payments can be waived until January and they will not be extended again after that. She says they were very clear on that but they are going to forgive between ten and twenty thousand dollars of people who earn under $120,000 individual or $250,000 as a household. She goes on to say, “we don’t know how they are going to do that yet and we don’t know what the requirements are going to be for that yet. It is on federal loans only and the nice part is some of the federal loans that were once consolidated, if they are still in there will also be considered. They were never considered for anything else before in the past so that’s really exciting, they are called self-loans. These will be forgiven before the January 1st cut-off for when payments have to start again.”
