1 00:00:32,940 --> 00:00:39,880 Suze: August 28, 2022. Welcome to another edition of Suze School. Now. 2 00:00:39,880 --> 00:00:40,710 Suze: I know, I know 3 00:00:41,400 --> 00:00:45,310 Suze: I'm really not here because you know on August 26th 4 00:00:45,320 --> 00:00:48,230 Suze: I had my gallbladder out, but I just wanted to 5 00:00:48,229 --> 00:00:52,180 Suze: do a very short Suze School on the student loan 6 00:00:52,180 --> 00:00:56,970 Suze: forgiveness because it's caused so much confusion. I've gotten so 7 00:00:56,970 --> 00:01:00,710 Suze: many questions from all of you and even though on 8 00:01:00,710 --> 00:01:03,730 Suze: the Women and Money app, if you look at my post, 9 00:01:03,730 --> 00:01:06,600 Suze: you would see everything that you need to know. 10 00:01:06,990 --> 00:01:09,060 Suze: But just in case you don't have the Women and 11 00:01:09,060 --> 00:01:12,210 Suze: Money app, you're not using it for some reason I 12 00:01:12,209 --> 00:01:15,120 Suze: don't understand why you're not, you should just be going 13 00:01:15,120 --> 00:01:20,069 Suze: to Apple Apps or Google Play and download it. But again, 14 00:01:20,080 --> 00:01:23,930 Suze: not my problem, right? But some of you are writing 15 00:01:23,930 --> 00:01:26,869 Suze: and you're just so confused about this. So I just 16 00:01:26,870 --> 00:01:29,770 Suze: want to give you a few things that you need 17 00:01:29,780 --> 00:01:30,590 Suze: to know. 18 00:01:31,209 --> 00:01:33,370 Suze: First, I want to make a statement. 19 00:01:33,950 --> 00:01:36,130 Suze: There are so many of you as well who are 20 00:01:36,130 --> 00:01:40,570 Suze: so upset about this. You feel like you did what 21 00:01:40,569 --> 00:01:44,000 Suze: was right, You paid off your student loan, You suffered, 22 00:01:44,010 --> 00:01:46,669 Suze: you did and on and on and on and boy 23 00:01:46,670 --> 00:01:49,630 Suze: I get that I get that. 24 00:01:50,190 --> 00:01:53,260 Suze: And then there are many of you who are thrilled 25 00:01:53,260 --> 00:01:54,580 Suze: that this is happening 26 00:01:55,330 --> 00:01:59,520 Suze: because you haven't paid your student loan forever. It's been there, 27 00:01:59,520 --> 00:02:01,150 Suze: it's been growing and 28 00:02:01,710 --> 00:02:04,730 Suze: it's great that some money or maybe all of your 29 00:02:04,730 --> 00:02:05,230 Suze: money 30 00:02:05,870 --> 00:02:10,010 Suze: has been absolutely forgiven in terms of the loan, 31 00:02:11,150 --> 00:02:11,620 Suze: but 32 00:02:12,220 --> 00:02:14,750 Suze: however you feel about it. 33 00:02:15,669 --> 00:02:20,600 Suze: It's not my job here to take sides. It's not 34 00:02:20,600 --> 00:02:23,750 Suze: my job to say this should have happened, That should 35 00:02:23,750 --> 00:02:27,359 Suze: have happened. It's my job to simply educate you. Now, 36 00:02:27,360 --> 00:02:29,500 Suze: I have my own feelings about it, 37 00:02:30,190 --> 00:02:32,950 Suze: but I'm not gonna get let my own feelings get 38 00:02:32,950 --> 00:02:36,880 Suze: in the way of educating you and telling you what 39 00:02:36,889 --> 00:02:38,520 Suze: you need to know. 40 00:02:39,340 --> 00:02:44,040 Suze: Also, I just have to say, don't be so sure 41 00:02:44,210 --> 00:02:47,970 Suze: that everything that I'm about to tell you is going 42 00:02:47,970 --> 00:02:52,270 Suze: to stay and be in play. And that is because 43 00:02:52,430 --> 00:02:57,370 Suze: there are many politicians actually on both sides that do 44 00:02:57,370 --> 00:02:59,839 Suze: not like what just happened. 45 00:03:00,490 --> 00:03:05,299 Suze: And if any of those politicians decide to sue or 46 00:03:05,310 --> 00:03:08,980 Suze: object to it in whatever way they can, it can 47 00:03:08,980 --> 00:03:13,730 Suze: stall this entire process for quite a while. So just 48 00:03:13,730 --> 00:03:18,220 Suze: know that is a good possibility that that could happen 49 00:03:18,830 --> 00:03:23,080 Suze: and what will make the decision while politics will the 50 00:03:23,080 --> 00:03:25,889 Suze: republicans be seen in a certain way that they don't 51 00:03:25,889 --> 00:03:29,000 Suze: want to be seen if they object to this? What 52 00:03:29,000 --> 00:03:31,930 Suze: will happen if some of the democrats, it's a mess. 53 00:03:31,930 --> 00:03:33,590 Suze: Let me just say that, 54 00:03:34,300 --> 00:03:39,040 Suze: But nothing is sealed yet. This is not definitely going 55 00:03:39,040 --> 00:03:44,790 Suze: to happen until time passes and we see that no 56 00:03:44,790 --> 00:03:50,450 Suze: politician has objected to it. However, the only thing that 57 00:03:50,450 --> 00:03:54,600 Suze: is not in question is that the payment pause will 58 00:03:54,600 --> 00:03:58,290 Suze: be extended one last time, this is it everybody to 59 00:03:58,290 --> 00:04:02,650 Suze: December 31, 2022. 60 00:04:03,280 --> 00:04:05,130 Suze: But with that in mind, 61 00:04:05,730 --> 00:04:09,800 Suze: let's just assume that it stays like it is. So 62 00:04:09,800 --> 00:04:12,840 Suze: then what are the things that you need to know? 63 00:04:13,560 --> 00:04:17,150 Suze: Obviously you already know that it has to be a 64 00:04:17,150 --> 00:04:22,830 Suze: federal student loan. It cannot be a private student loan. 65 00:04:23,130 --> 00:04:27,350 Suze: It can be for anybody who has a federal student loan, 66 00:04:27,360 --> 00:04:29,300 Suze: who is an undergraduate, 67 00:04:29,589 --> 00:04:34,919 Suze: a graduate and parent plus loans. So many parents are 68 00:04:34,920 --> 00:04:38,120 Suze: writing me and go, but Suze, does this apply to 69 00:04:38,120 --> 00:04:41,940 Suze: parent plus loans? And the answer to that question is 70 00:04:41,950 --> 00:04:44,230 Suze: it absolutely does. 71 00:04:45,210 --> 00:04:49,909 Suze: Again, the income limitations and I believe it will be 72 00:04:49,910 --> 00:04:52,350 Suze: based on adjusted gross income, 73 00:04:52,880 --> 00:04:57,830 Suze: Whether it's for a federal student loan or a pell grant, 74 00:04:58,060 --> 00:05:02,780 Suze: which will forgive up to $20,000. Again, it's up to 75 00:05:02,779 --> 00:05:07,250 Suze: $10,000 for a federal student loan. And why do I 76 00:05:07,250 --> 00:05:11,210 Suze: say up to because of all you still owe on 77 00:05:11,210 --> 00:05:15,370 Suze: the Pell grant or a federal student loan is, let's 78 00:05:15,370 --> 00:05:20,790 Suze: just say $5,000. That's all the forgiveness you are going 79 00:05:20,790 --> 00:05:21,550 Suze: to get. 80 00:05:21,760 --> 00:05:25,469 Suze: So don't think you get more than what you currently owe. 81 00:05:26,450 --> 00:05:31,560 Suze: Again, you only qualify for the forgiveness of the student loans, 82 00:05:32,140 --> 00:05:38,880 Suze: if your adjusted gross income is under $125,000, if you 83 00:05:38,880 --> 00:05:39,839 Suze: are single 84 00:05:40,450 --> 00:05:45,370 Suze: Under $250,000, if you are married finally jointly. 85 00:05:46,420 --> 00:05:50,850 Suze: So now that we know that here are other questions 86 00:05:50,860 --> 00:05:52,180 Suze: that many of you have, 87 00:05:52,770 --> 00:05:55,490 Suze: what happens if I'm a current student, 88 00:05:56,290 --> 00:06:01,339 Suze: can I get this student loan relief? Yes, but you 89 00:06:01,339 --> 00:06:06,110 Suze: have to be careful here because students, if you are 90 00:06:06,110 --> 00:06:12,279 Suze: claimed as a dependent on your parents taxes then guess what? 91 00:06:13,230 --> 00:06:16,010 Suze: It will be based... the income will be based on 92 00:06:16,010 --> 00:06:20,700 Suze: your parents income and not yours. So just be careful 93 00:06:20,700 --> 00:06:25,480 Suze: about that. What if you're currently taking out loans now? 94 00:06:25,480 --> 00:06:28,530 Suze: Do they qualify? That's what you want to know. 95 00:06:29,170 --> 00:06:34,420 Suze: Only loans taken out before July 1, 2022 will be 96 00:06:34,420 --> 00:06:37,940 Suze: the ones that qualify for this. This is what has 97 00:06:37,940 --> 00:06:43,380 Suze: upset many of you Suze, I've paid off my loan. 98 00:06:43,790 --> 00:06:48,029 Suze: Does that mean I missed out on this? $10,000? 99 00:06:48,650 --> 00:06:53,930 Suze: Well it depends. So listen to me closely, if you 100 00:06:53,930 --> 00:07:00,589 Suze: made any federal student loan payments between March 13th 2020 101 00:07:00,600 --> 00:07:06,870 Suze: to August 31st 2022 you are eligible for a Department of 102 00:07:06,880 --> 00:07:13,460 Suze: Education refund. Now, what does that mean? That means because 103 00:07:13,460 --> 00:07:15,360 Suze: you were responsible 104 00:07:15,780 --> 00:07:20,190 Suze: and you were paying that student loan during the moratorium, 105 00:07:20,410 --> 00:07:26,240 Suze: you can apply for a refund with the Department of Education. 106 00:07:26,250 --> 00:07:29,750 Suze: So what do you need to get that refund first, 107 00:07:29,750 --> 00:07:32,500 Suze: you have to get everything in order. 108 00:07:33,140 --> 00:07:35,780 Suze: You need to know all the details of the payments 109 00:07:35,960 --> 00:07:38,830 Suze: you have to show that you have then payments. And 110 00:07:38,830 --> 00:07:42,750 Suze: once you have all that in order then you are 111 00:07:42,750 --> 00:07:47,110 Suze: to reach out to your service loan provider and tell 112 00:07:47,110 --> 00:07:49,620 Suze: them you want a loan refund. 113 00:07:50,260 --> 00:07:54,700 Suze: Now they're gonna need proof of payment and all of 114 00:07:54,700 --> 00:07:58,030 Suze: you need to remember once again this is only for 115 00:07:58,030 --> 00:08:06,869 Suze: payments that you made from March 13, till August 31, 2022. 116 00:08:06,880 --> 00:08:13,240 Suze: And again up to the max of that $10,000. Okay everybody, 117 00:08:13,440 --> 00:08:16,890 Suze: next thing you want to know will these loans be 118 00:08:16,890 --> 00:08:17,920 Suze: tax free? 119 00:08:18,780 --> 00:08:23,710 Suze: Yes they're gonna be tax free on the federal level 120 00:08:24,350 --> 00:08:29,340 Suze: on the state level that just might be something different 121 00:08:29,370 --> 00:08:34,350 Suze: because not all states conform tax wise to what the 122 00:08:34,350 --> 00:08:39,130 Suze: feds want. So there's certain states like Alabama, Arkansas, Mississippi, 123 00:08:39,130 --> 00:08:42,070 Suze: New Jersey, that you best check with. 124 00:08:42,710 --> 00:08:46,990 Suze: There could be more states. So just ask your C. P. A. 125 00:08:47,000 --> 00:08:50,809 Suze: If this comes to be through, I owe income tax 126 00:08:50,809 --> 00:08:53,660 Suze: on the state level. Alright 127 00:08:54,400 --> 00:08:55,220 Suze: now 128 00:08:55,840 --> 00:08:59,079 Suze: how's this gonna work? How do I know I'm going 129 00:08:59,080 --> 00:09:03,949 Suze: to get this relief. So if the U. S. Department 130 00:09:03,950 --> 00:09:09,290 Suze: of Education has your income data and many of you 131 00:09:09,300 --> 00:09:13,570 Suze: have your income data with the Department of Education then 132 00:09:13,570 --> 00:09:18,170 Suze: you will receive the relief automatically. You don't have to 133 00:09:18,170 --> 00:09:21,600 Suze: do anything. However what happens 134 00:09:21,800 --> 00:09:25,470 Suze: if the Department of Education doesn't have your income data 135 00:09:25,480 --> 00:09:28,900 Suze: or if you don't know if the Department of Education 136 00:09:28,900 --> 00:09:33,500 Suze: has your income data. Don't worry because the administration is 137 00:09:33,500 --> 00:09:37,710 Suze: going to launch a simple application in the coming weeks 138 00:09:37,720 --> 00:09:42,189 Suze: for you to fill out. Now for those of you 139 00:09:42,200 --> 00:09:45,810 Suze: who want to be notified by the Department of Education 140 00:09:45,820 --> 00:09:48,790 Suze: when this application process is open, 141 00:09:48,980 --> 00:09:52,420 Suze: then sign up with the Department of Education on their 142 00:09:52,420 --> 00:09:58,660 Suze: subscription page. Just that simple, you know, part of this 143 00:09:58,670 --> 00:10:02,250 Suze: is also for those of you who are on income 144 00:10:02,250 --> 00:10:04,280 Suze: based repayment programs. 145 00:10:04,830 --> 00:10:08,760 Suze: Now they want to refigure how much you actually owe 146 00:10:08,760 --> 00:10:13,079 Suze: every month. And if this passes, if this really does 147 00:10:13,080 --> 00:10:15,930 Suze: come to be, it's going to help you a lot 148 00:10:15,940 --> 00:10:21,160 Suze: because rather than 10% of your discretionary income having to 149 00:10:21,160 --> 00:10:25,470 Suze: go to the student loan, only 5% will go to it. 150 00:10:26,040 --> 00:10:29,420 Suze: And if you make those payments on time every month 151 00:10:29,429 --> 00:10:32,429 Suze: then your balance of your student loan will stay the 152 00:10:32,429 --> 00:10:37,040 Suze: same rather than growing and hopefully they're going to reduce 153 00:10:37,040 --> 00:10:40,760 Suze: it and forgive it in 10 years rather than 20. 154 00:10:41,040 --> 00:10:43,720 Suze: If you have any other questions you can always write 155 00:10:43,730 --> 00:10:47,900 Suze: in to ask suze podcasts at gmail dot com. But 156 00:10:47,900 --> 00:10:52,000 Suze: this was a very brief Suze School just to bring 157 00:10:52,000 --> 00:10:53,360 Suze: you up to date 158 00:10:53,620 --> 00:10:58,189 Suze: as to what's happening with the student loan relief. Now, 159 00:10:58,190 --> 00:11:01,310 Suze: you know, you also know that there's only one thing 160 00:11:01,309 --> 00:11:04,070 Suze: that matters when it comes to your money and that's 161 00:11:04,070 --> 00:11:06,160 Suze: I want every single one of you 162 00:11:06,900 --> 00:11:13,410 Suze: to be safe. Strong, smart and secure. See you soon. 163 00:11:13,420 --> 00:11:14,140 Suze: Bye bye.