1 00:00:05,450 --> 00:00:13,100 Suze: August 24th 2022. And yes, I am dropping another Women 2 00:00:13,110 --> 00:00:15,490 Suze: and Money Podcast Flash 3 00:00:16,020 --> 00:00:19,740 Suze: because when things are really important and you need to 4 00:00:19,739 --> 00:00:22,440 Suze: know about it, I don't want to have you wait 5 00:00:22,450 --> 00:00:27,560 Suze: until Thursday or Sunday or when we drop a regular podcast. 6 00:00:27,570 --> 00:00:30,540 Suze: I want you to know about it right here and 7 00:00:30,540 --> 00:00:31,410 Suze: right now. 8 00:00:31,900 --> 00:00:35,670 Suze: How long have we been waiting for news on? What 9 00:00:35,680 --> 00:00:39,680 Suze: was President Biden going to do in regards to forgiveness 10 00:00:39,690 --> 00:00:43,769 Suze: of student loans? What was President Biden going to do 11 00:00:43,840 --> 00:00:47,630 Suze: in terms of the moratorium that's currently on student loans. 12 00:00:48,190 --> 00:00:51,540 Suze: That ends in just a few days while we finally 13 00:00:51,540 --> 00:00:53,440 Suze: have the answer to that. 14 00:00:53,900 --> 00:00:58,380 Suze: So he has announced that he will forgive $10,000 in 15 00:00:58,380 --> 00:01:04,850 Suze: federal student debt for most borrowers. Now that's a big deal. Everybody, 16 00:01:04,860 --> 00:01:10,370 Suze: he's also going to cancel up to $20,000 for recipients 17 00:01:10,380 --> 00:01:14,650 Suze: of pell grants. So this is going to affect about 18 00:01:14,660 --> 00:01:20,400 Suze: nine million borrowers all together. So now how is this 19 00:01:20,400 --> 00:01:22,069 Suze: going to work? Number one, 20 00:01:22,330 --> 00:01:27,490 Suze: the $10,000 forgiveness is for federal student debt. 21 00:01:28,180 --> 00:01:33,870 Suze: And again, that's for most powers. However, that relief is 22 00:01:33,870 --> 00:01:40,570 Suze: going to be limited to Americans earning under $125,000 per 23 00:01:40,569 --> 00:01:46,750 Suze: year or $250,000 per year for married couples and also 24 00:01:46,750 --> 00:01:51,160 Suze: heads of households. Now you can't game the system here. 25 00:01:51,170 --> 00:01:54,779 Suze: If all you happen to owe is $5,000 on a 26 00:01:54,780 --> 00:01:56,250 Suze: federal student loan. 27 00:01:56,700 --> 00:01:59,570 Suze: That's all that's going to be forgiven. You're not going 28 00:01:59,570 --> 00:02:04,720 Suze: to get the $5,000 extra back in cash. Now we 29 00:02:04,720 --> 00:02:08,180 Suze: have been talking about this for a long time 30 00:02:08,790 --> 00:02:14,050 Suze: and in regards to student loan forgiveness, we have said listen, 31 00:02:14,100 --> 00:02:18,500 Suze: if you owe $10,000 or more, 32 00:02:19,070 --> 00:02:22,139 Suze: you could pay off anything above the 10,000. And let's 33 00:02:22,139 --> 00:02:27,120 Suze: just see what President Biden does, well now we know. 34 00:02:27,190 --> 00:02:31,280 Suze: So one other thing you all need to know is 35 00:02:31,280 --> 00:02:35,090 Suze: he is going to extend the payment pause on most 36 00:02:35,090 --> 00:02:43,090 Suze: federal student loans just one final time through December 31, 2022. Now, 37 00:02:43,090 --> 00:02:45,740 Suze: what does that mean for most of you? 38 00:02:46,520 --> 00:02:50,510 Suze: Alright, we know that $10,000 for most of you is 39 00:02:50,510 --> 00:02:53,679 Suze: going to be forgiven. But for those of you who 40 00:02:53,680 --> 00:02:57,720 Suze: have more than $10,000 of federal student loans, 41 00:02:58,490 --> 00:03:02,370 Suze: we know that the payment pause is going to stop 42 00:03:02,380 --> 00:03:07,280 Suze: in just five months. We know that the current interest 43 00:03:07,280 --> 00:03:11,780 Suze: rate on those payments would be 0% right now. 44 00:03:12,320 --> 00:03:16,050 Suze: Why not? Since we know the pause is going to end, 45 00:03:16,139 --> 00:03:20,910 Suze: why not start making payments on your student loan right 46 00:03:20,910 --> 00:03:22,690 Suze: here and right now 47 00:03:23,210 --> 00:03:28,600 Suze: At that 0% rate because the more you pay at 0%, 48 00:03:28,620 --> 00:03:31,540 Suze: the more your student loan will decrease 49 00:03:32,260 --> 00:03:35,370 Suze: and now that we know the parameters of the student loan, 50 00:03:35,380 --> 00:03:38,390 Suze: you need to take advantage of it. So again, my 51 00:03:38,390 --> 00:03:43,810 Suze: advice to all of you is after that $10,000 start 52 00:03:43,820 --> 00:03:48,100 Suze: paying your student loans right now, if you have not 53 00:03:48,110 --> 00:03:53,990 Suze: been doing so. Alright, that's the Women and Money Podcast Flash. 54 00:03:54,000 --> 00:03:58,340 Suze: Hope you enjoyed it Until Thursday, there's really only one 55 00:03:58,340 --> 00:04:00,040 Suze: thing that I want for all of you 56 00:04:00,200 --> 00:04:05,220 Suze: and it's for you to be smart, strong, safe and secure. 57 00:04:05,230 --> 00:04:07,400 Suze: See you Thursday. Bye bye now.