Biden’s Student Loan Debt Cancellation 2.0| Episode 122

Acquania Escarne 0:00

Hey, what's up, y'all if you've been confused about all these student loan plans coming from the Biden administration, listen up, we're about to dive into the latest plan on cancellation 2.0. And what it can mean for you. You are listening to the purpose of money podcast, a podcast where we talk about ways to build wealth, and create more freedom in your life. Today. I am your host, Acquania Escarne.

Acquania Escarne 0:26

Hey, y'all, my name is Acquania Escarne a, I'm the creator and founder of The Purpose Of Money, a platform that teaches you how to build generational wealth $1 at a time, and today, we're gonna talk about student loan debt, because the Biden administration is all about forgiveness. And they are coming up with ways to forgive debt left and right. But it is not going to benefit everyone. So let's tap into what it's going to cost, who was going to benefit and whether or not you should even care. So first and foremost, the latest version of Biden administration's plan is probably gonna cost about $100 billion. That's what a lot of estimates say, based on the fact that he's trying to erase debt for primarily those who are strapped under the debt, a lot of interests or they are on income driven plans. And they really, really, really need to get out of debt. Right. So the latest version of this plan, the two biggest benefits, if it does get passed, is the fact that borrowers of all income levels, all income levels, this is key, would get up to $20,000 of their debt cancelled, if their balance is bigger than when they first started paying after school, meaning the interest has killed them. And it's totally increased what they owe by 1000s. Right? This is going to give them an ability to take a huge chunk of money off the top. But the second group of people that it's definitely going to help our borrowers on any income driven plan repayment plan that will give them unlimited accrued interest, as long as their income is below $120,000, as an individual are $240,000 as a couple. So this is going to really allow those who are trying to build wealth, have an opportunity to do so and not be strapped by their student loan debt. So tell me, what do you guys think about this, because we're not sure if it's going to pass, it's probably going to be challenged. And the Supreme Court is still trying to figure out what they're going to do about all these things.

Acquania Escarne 2:29

But if this happens, this could be a game changer for some of you, especially the fact that all income levels can potentially benefit from this $20,000 removal of interest, like that's going to be huge. And that's definitely something that got my attention. Now, to be honest and transparent. I don't have any more student loans, I got rid of my student loans in 2016. Because in my effort to qualify for a home, my lender wanted me to improve my debt to income ratio, and I had to pay off my car, and my student loans before we could close. And my husband benefited from the last iteration of cancellation. He'd been paying for loans, apparently at least 20 years and making consistent payments. So his final payments, were poof, be gone. So we are very fortunate, but I realised not everybody is in the same predicament.

Acquania Escarne 3:22

Let's talk about who else is going to benefit, right? So we talked about those who borrowed and they have accumulated interest, they're going to benefit from this if it's passed, right? Because they're going to get to wait at least 20,000. That's huge. But anyone who's not enrolled in a forgiveness programme is also going to potentially qualify or benefit from this because now they will qualify for existing student loan forgiveness programmes that are income driven payment plans or Public Service Loan Forgiveness programmes, but they weren't enrolled before or they hadn't applied before. Now they can slip right in, right. And then a lot of people just haven't been applying or checking their eligibility. And that's a huge thing. Like why aren't you trying to see if you qualify for the free money? Let's get it together guys. But long term borrowers people who are projected to be paying student debt forever, okay, you have undergraduate student loans, you've been paying them 20 years plus, and you have graduate student loans that have been in repayment for 25 years plus, you could potentially benefit from Biden's 2.0 plan as well. And then we kind of talked about this a little bit but victims of low financial value programmes. So let's say you are a student of a programme that either shut down or losses eligibility to participate in a federal student aid programme, and you had a degree and debt or no degree and debt. Now you could potentially qualify for real because now they're going to forgive it right if it's past and then last but not least borrowers with hardship so if you're borrowing you're facing a hardship If you're experiencing financial or personal hardship in your life, you may be able to express that and be prevented from having to fully pay back your student loans now or in the future.

Acquania Escarne 5:11

So this is really exciting. But y'all need to keep your ear to the ground. Stay tuned to the channel and check back for updates. Because we really don't know what's going to happen with this between those who are forward and against it. It might be battled out and never actually come to pass, we are closely watching to see what happens. But if you are someone who has six figures or more in student debt, and you need help, or have less than six figures, but still want a second opinion, I'm gonna drop my link in the chat for the student loan planner. They're an awesome organisation that I love who helps you navigate the student loan repayment process and provides you a few options on what's best for you when it comes to paying for student loan debt. So definitely check out the link and set up a free appointment. If you are interested. I think this would help you really pan out what are your options and understand what you need to do. Until next time, keep building generational wealth. We're going to stay tuned to the ground to see what's happening in the student loan front and keep you posted on all things money. For more information, make sure you follow like and subscribe to this channel so that we can continue to get the word out about all things money, and I can't wait to see you next time on The Purpose of Money. Bye bye.

Acquania Escarne 6:32

Thank you for listening to The Purpose of Money podcast. For more resources and information, check out my website, thepurposeofmoney.com and while you're there, please sign up for our newsletter, so you'll have all the latest information on new episodes and blog posts. Until next time, keep building generational wealth

Transcribed by https://otter.ai