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On this special bonus Podcast Flash, Suze gives a brief explanation about the new Federal Student Forgiveness program and what you should do now.

Podcast Transcript:

00:00:05

Suze: August 24th, 2022. And yes, I am dropping another Women & Money Podcast Flash

00:00:16

Suze: because when things are really important and you need to know about it, I don’t want to have you wait until Thursday, or Sunday, or when we drop a regular podcast. I want you to know about it right here, and right now.

 00:00:31

Suze: How long have we been waiting for news on, what was President Biden going to do in regards to forgiveness of student loans. What was President Biden going to do in terms of the moratorium that’s currently on student loans that ends in just a few days? Well we finally have the answer to that.

00:00:53

Suze: So he has announced that he will forgive $10,000 in federal student debt for most borrowers. Now that’s a big deal everybody. He’s also going to cancel up to $20,000 for recipients of Pell grants. So this is going to affect about nine million borrowers all together. So now how is this going to work? Number one,

00:01:22

Suze: the $10,000 forgiveness is for federal student debt.

00:01:28

Suze: And again, that’s for most borrowers. However, that relief is going to be limited to Americans earning under $125,000 per year, or $250,000 per year for married couples and also heads of households. Now you can’t game the system here. If all you happen to owe is $5,000 on a federal student loan,

00:01:56

Suze: that’s all that’s going to be forgiven. You’re not going to get the $5,000 extra back in cash. Now we have been talking about this for a long time.

00:02:08

Suze: And in regards to student loan forgiveness, we have said listen. If you owe $10,000 or more,

00:02:19

Suze: you could pay off anything above the 10,000 and let’s just see what President Biden does. Well now we know. So one other thing you all need to know, is he is going to extend the payment pause on most federal student loans just one final time, through December 31, 2022. Now, what does that mean for most of you?

00:02:46

Suze: Alright, we know that $10,000 for most of you is going to be forgiven. But for those of you who have more than $10,000 of federal student loans,

00:02:58

Suze: we know that the payment pause is going to stop in just five months, we know that the current interest rate on those payments would be 0% right now,

00:03:12

Suze: why not, since we know the pause is going to end, why not start making payments on your student loan right here and right now

00:03:23

Suze: at that 0% rate? Because the more you pay at 0%, the more your student loan will decrease.

00:03:32

Suze: And now that we know the parameters of the student loan, you need to take advantage of it. So again, my advice to all of you is after that $10,000, start paying your student loans right now, if you have not been doing so. Alright, that’s the Women & Money Podcast Flash. Hope you enjoyed it. Until Thursday, there’s really only one thing that I want for all of you,

00:04:00

Suze: and it’s for you to be smart, strong, safe and secure. See you Thursday. Bye bye now.

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