Monthly Archives: October 2022

Student Debt Relief Details

Leave a reply

At the end of August President Biden announced a plan to forgive up to $20,000 in Federal Direct Student Loans for borrowers with income below $125,000 per year.  Shortly after that announcement, the legal challenges aiming to stop the program before it started came rolling in.  This past week a couple of those legal challenges were dismissed, which makes me think this forgiveness might actually happen (but then an appeals court blocked progress on Friday evening, so we can’t be sure).  Without any fanfare, the application for debt relief opened this past week.  And people have been submitting the application in droves!

You may be eligible to receive forgiveness of up to $10,000 if you meet the following conditions:

  • You have an outstanding federal direct loan (subsidized, unsubsidized, graduate PLUS, parent PLUS, or direct consolidation) that disbursed prior to June 30, 2022.  If you borrowed your first loan for the current academic year, you are out of luck.
  • Your adjusted gross income from your 2020 or 2021 tax return was less than $125,000 for single filers, or less than $250,000 for families.  You can use either year’s income—whichever is lower.  If you were classified as a dependent student for the 2021-22 academic year, then your family’s income will be used rather than your own to determine your eligibility.

You may be eligible to receive up to an additional $10,000 in forgiveness (for a total of up to $20,000) if you received a Pell grant as an undergraduate student.  If you don’t recall whether you received a Pell grant, you can find out by logging in at http://studentaid.gov and selecting “My Aid.”  The “Grants” tab will reveal whether you received a Pell grant.

You may not need to do anything to receive this forgiveness.  If the Department of Education already has your income information on file, your forgiveness can be processed without your having to take any action.  If you submitted a 2022-23 FAFSA, you should be all set (though the Department of Education may follow up for parent information if you were a dependent student for 2021-22).  If you submitted 2020 or 2021 income information to your loan servicer in order to be on an income driven payment plan, then you should also be all set.

If your income info is not already at hand, you will need to submit the application for debt relief before December 31, 2023 in order to receive this relief.  The form is very simple.  If you know your name, date of birth, email address, phone number, and Social Security Number you should be able to complete it in two minutes or less.  After submitting the form you should receive a confirmation email. The Department of Education will contact you if more information is needed.  Once the application is approved, you will be notified, and then your loan servicer will be in touch to let you know what your new loan balance is and what your new monthly payment amount will be.

It sounds really simple.  I hope it actually turns out to be that simple.  But it certainly can’t hurt to try.  If you  are eligible….bring on the debt relief!!

 

Investing in Yourself

Leave a reply

The stock market is all over the news lately as it continues its roller coaster ride through 2022.  It almost makes a person think twice about investing.  Luckily there is more than one way to invest.  The Cambridge Dictionary defines investment as “the act of putting money, effort, time, etc. into something to make a profit or get an advantage.”  That can mean sinking money into stocks and bonds.  But it can also mean a number of other things.

Last week I took a vacation.  I spent a week camping my way up and down the Appalachian Mountains, with a three night stop in Tennessee to listen to bluegrass music.  For me that was an investment in myself.  When I left home I was burned out and emotionally exhausted.  When I returned to work I was refreshed and rejuvenated.  Putting that time and money into some time away yielded me the advantage of restoring my mind to a better place, which ultimately makes me better at my job and many other things in my life.

Most of my readers are full-time law students.  Pursuing a degree is definitely an investment in yourself.  Earning a law degree requires an investment of three years of your life as well as a good deal of money.  It’s not a small investment.  But the idea behind investing is that what you get in return is of greater value than what you put in.  In exchange for three years, a bunch of money, and no small amount of stress, the return is a degree which can provide you with a rewarding and often lucrative career.

Another way to invest in yourself is to take good care of your physical health.  Get some exercise.  Eat some vegetables.  Go to the doctor on occasion.  Brush your teeth.  All of these things require some effort.  But the yield is a body better equipped to last you for a very long time.  I admit that I struggle with this one (the exercise part specifically), but I know this is something that will be worthwhile and a good investment for the long run.

Ongoing education is another way to invest in yourself.  This can take many forms.  Learning a new language.  Going to hear a speaker.  Attending a conference.  Using YouTube to learn a new MS Excel trick. Using YouTube to learn how to do a home repair.  Pursuing another degree later in life.  Doing continuing education to maintain a certification.  Reading a book that will teach you a useful skill.  Watching a documentary on PBS.  The important thing is to never stop learning.  Invest in yourself by investing in your brain.

The stock market is indeed scary right now.  But it’s never the wrong time to invest in yourself.  You are a thing of value.  If you add more time and effort to that, you become a thing of even greater value.  Every investment is a risk.  But an investment in yourself is always worthwhile.

 

I Have To versus I Get To

Leave a reply

This weekend one theme kept recurring in my thoughts:  You have to balance the “I have to” with the “I get to.”  If life is all about things that you HAVE to do, you will always be miserable.  So you have to find the joy in everything.  There must be at least SOMEthing that is joyful in everything, right?

This weekend I had to go visit my parents to help them with some yard work and meal preparation.  I had to do the chores for them, but I got to spend some time visiting with my parents (which I know is a luxury that I won’t have forever).  I had to spend almost four hours in my car traveling up and back to the house I grew up in, but I got to listen to a lot of my favorite music and see some beautiful foliage while I was driving.

Mondays are always the hardest day of the week.  I had to come to work after two days away.  But I get to talk with students.  I get to write the Moneywise Tip.  I get to help people.  I get to see the co-workers who have become my friends.  I get to raid the candy dishes housed in the Admissions suite.  I have a lot of “I get tos” that come with my job, and I know that makes me fortunate.  Everyone should choose a career that provides them with “I get to” opportunities.

I have to pay some bills today.  I got paid on Friday and I have some bills that are due at the end of this week.  It’s hard to find the “I get to” in paying bills, but it is in there.  I get to head into the month not having to worry about something outstanding that will come due when I’m not paying attention.  I get to watch the balance due decrease on my mortgage and my car loan.  I get to know that my utilities will stay on and my Netflix will keep running.

When my Subaru didn’t fare well at inspection this year, the bill hurt.  I had to pay it.  But I get to continue driving the car I love, knowing that it is not going to fail me at an inconvenient time.  My refrigerator (that came with my house and I have no idea how old it is) is likely not going to last more than another year.  I’ve noticed some wear on the seal, and that is the kiss of death for a fridge.  I will hate when I have to buy a major appliance.  But I will love when I get to pick out a fridge that meets my needs and makes me happy.

There is a lot of “I have to” involved in law school.  You have to read a case, go to class, go to a meeting, work on a resume, and so on and so on.  But think about the “I get tos” that go along with those things.  They won’t be the same for everyone.  Some people will love sitting in class but hate doing the readings.  For others it will be the reverse.  But it’s important to find your joy where you can.  Think about your “I get tos.”  It makes it a lot easier to manage the “I have tos.”