Student Loan Debt Relief Plan
On August 24th, 2022, the Student Loan Debt Relief Plan was announced. The headline feature of the plan was up to $10,000 of student loan forgiveness for inviduals with income under $125,000 for singles and $250,000 for married couples. Next, the Public Service Loan Forgiveness (PSLF) rules have been revised, making it easier to achieve forgiveness with 10 years of public service. In addition, there was the creation of a new Income-Driven Repayment (IDR) option the plan created. Finally, the plan solidified an end date of December 31, 2022 for the pause on student loan payments.
Despite the main announcement, many of the details are still to be worked out on exactly how the loans will be forgiven and many other details. We should have additional clarity in the next few months. There is one hard date listed in the plan and that is the previously created Public Service Loan Forgiveness (PSFL) waiver is set to expire on October 31, 2022. If you have a student loan and work in public service, we recommend reviewing the PSFL waiver paperwork prior to this date.
If you have questions about how the Student Loan Debt Relief Plan will affect your personal situation, we would be happy to answer them. We will continue to stay abreast of any upcoming changes.
If you would like an advisor-level deep dive into the plan, we recommend reading the following article from Kitces.com.