Remember, any private or federal student loan debt that is forgiven before December 31, 2025 is not subject to federal tax. Due to the American Rescue Plan Act of 2021 loans that are forgiven are not considered taxable income for federal income tax purposes. Since state and local tax implications…
Finally! Relief for Joint Spousal Consolidation Federal Student Loans Did you know that married couples were allowed to consolidate their debt under a program that existed from 1993 to 2006 which allowed a single monthly payment and often a lower interest rate. But it meant that each spouse was 100%…
Good news: the Administration announced last week that in February, it will begin early implementing the SAVE provisions that provide cancellation of borrowers’ remaining balance in as few as 10 years of qualifying payments depending on the total amount originally borrowed. Borrowers enrolled in SAVE will have their remaining balance…
Lots of confusion out there regarding the three year monitoring. The wage monitoring part of the three year monitoring went away, but NOT the three year monitoring as a whole. What does that mean? Well, if the borrower returns to school and takes out federal loans, that could reinstate the…
I read an article today by the Ascent, that among all Americans, the average amount of time spent on financial management per day is 1.8 minutes. That may include things like defining a goal, budgeting, saving for retirement, managing debt, planning for taxes, planning for emergencies etc. I guess I’m…
If you’ve decided it’s time to take back your life, we can help devise a debt escape plan with you. This may involve making decisions about what to pay, what not to pay, how to settle and create a plan to get out of debt. This includes student loan debt…
FTX wants to pay customers back but based on crypto prices at the time of its bear market bankruptcy. So, not good. In paperwork filed on December 27, FTX proposed prices for around 500 crypto assets. This includes: Bitcoin at $16,871 Ethereum at $1,258 BNB at $286 Any objections must…
Despite lots of changes in the landscape allowing the discharge of both federal and private student loan debt under the right circumstances, many people still believe that student debt survives a bankruptcy. Private loans follow very different rules then federal as you probably know. One thing I haven’t written much…
Most people I speak with about the disability discharge of federal student loans are concerned that the test is similar to the Social Security Disability analysis. It’s not. You don’t have to deal with a scale of whether you can feed or dress yourself. You don’t have to be approved…
Are you having trouble with your federal student loan servicer who is asking for income documentation? You can avoid all that for now, by simply self-certifying your income. You can self certify through February 29, 2024 and here is how: https://studentaid.gov/help-center/answers/article/report-income-in-the-income-driven-repayment-application https://studentaid.gov/help-center/answers/article/report-income-in-the-income-driven-repayment-application Once you self certify your income, that is…