LAS VEGAS (KLAS) — It’s the largest forgiveness for individual student debt ever, however, there is still a lot of uncertainty about what’s next.
President Joe Biden’s announcement on Wednesday about the student loan forgiveness plan has been a relief for many people.
Elaine Rubin is a financial educator and believes the president’s plan has many scrambling for quick answers, including how much an individual qualifies for.
“Right now the way it’s stated in your income during the pandemic. Under 125,000 for individuals, 250k for Married couples and heads of household. So we really have to see how they’re going to be looking at that and the true dates they’re measuring to see who is qualified,” Rubin said.
On Wednesday, President Biden also announced a student loan pause extension, which means payments are expected to resume January 2023.
The best way to determine if you are a pell grant recipient is on Studentaid.gov.
President Biden has announced that any student loan forgiveness is not taxable income when filing for taxes. If questions arise during tax season on the matter it is recommended to contact a tax preparer.