If you were bummed that the Supreme Court struck down Biden's plans for student loan forgiveness, I want you to know there's still some good news!
Before we get that good news, I want to share with you my FREE 5 Days to Financial Freedom Challenge. In 5 Days, I want you to: attract abundance, increase worth, grow money, build security and break money blocks. I'm going to share with you a lot of what I share with my paid clients and members, so sign up below!
Now back to that good news... The U.S. Department of Education is sending out notifications to over 800,000 people that their loans, totaling $39 billion, will be automatically forgiven in the coming weeks!
Can you imagine getting that letter? What a relief, right?
Well, the good news is that if you have Direct Loans or Federal Family Education Loans held by the Department, including Parent PLUS loans, and you've been making payments for a while, you might be one of the lucky ones to have your loans forgiven. This can happen if you were in repayment, forbearance, deferment, or faced economic hardship.
If you're one of the lucky borrowers who qualifies for forgiveness, you'll get an email about it. You don't need to do anything else! Your loan debt will be automatically forgiven 30 days after they send the email.
One of the members of my Financial Freedom for Creatives Club just let me know last week that she already got a letter, and $162,000 is going to be forgiven in one month, with no tax liabilities! She says, she literally CRIED when she got this letter!!!
The Department will continue to check and notify eligible borrowers every two months until next year. So if you don't hear anything now, you might still get the good news later.
So, what has been going on? In the past, there were problems with keeping track of borrowers' progress towards loan forgiveness. Many people made the right payments, but their progress wasn't properly counted. But now, the Department is fixing these issues to make sure everyone gets the forgiveness they deserve.
U.S. Secretary of Education Miguel Cardona said,
"For far too long, borrowers fell through the cracks of a broken system that failed to keep accurate track of their progress towards forgiveness."
So, the Biden Administration says it's determined to fix this and make things more fair.
This action is a result of changes made in April 2022 to accurately count qualifying payments for loan forgiveness under income-driven repayment plans. Normally, after making 240 or 300 monthly payments (which is around 20 or 25 years), borrowers can qualify for forgiveness. But because of mistakes in counting payments, many lost their progress towards loan forgiveness.
The Department is also addressing concerns about loan servicers putting borrowers into forbearance when they shouldn't have. They've already forgiven loans for borrowers who qualified for the Public Service Loan Forgiveness (PSLF) program through these changes.
Besides this, the Department has introduced a plan called the Saving on a Valuable Education (SAVE) plan to help borrowers in the future. It will make payments more affordable by cutting undergraduate loan payments in half compared to other plans. That's great news for future borrowers!
With Love & Gratitude,
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