So Money - Episode 1404

Ask Farnoosh

Farnoosh Torabi

Alex Gailey, writer and student loan expert for NextAdvisor and Peter Dunn, Founder of YourMoneyLine and host of the Pete the Planner radio show, join to answer the biggest questions surrounding the new student debt relief program. President Joe Biden announced he will eliminate $10,000 worth of student loan debt for qualifying borrowers, and up to $20,000 in debt to those who borrowed money under the Pell Grant program. He also said he would extend the federal student loan payment pause through December 31st. Who will this mostly benefit? What will be the tax or credit score impacts? How does it address the racial wealth gap? What might this program encourage private lenders to do?

Articles references in this article:

Your Student Loan Forgiveness Questions, Answered

Student Loan Forgiveness, How and When to Apply

Sign up for Farnoosh’s So Money newsletter here.

Join thousands of ambitious people like you.

Take part in Farnoosh’s thriving personal finance community and receive her ebook, SO MONEY SECRETS, for free.