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  • $10k cancellation for those making less than $125k annually
  • $20k cancellation for Pell Grant recipients
  • Student loan pause extended until December 31st
  • 5% of monthly income cap on student loan payment (optional?)

Honestly pretty sick for me and my family. Wipes out my debt, my mom's debt, and most of my sister's. Wish we could've gotten more, since there's no good reason not to go to at least $50k, but from a selfish PoV it's hard to complain in the moment

  • CanYouFeelItMrKrabs [any, he/him]
    ·
    2 years ago

    Loans are paused and the pause is extended to December. Most people aren't making monthly payments just now. Technically even a full cancellation wouldn't affect my day to day since I'm not paying

    • HoChiMaxh [he/him]
      ·
      2 years ago

      That's interesting, I don't live i the US I assumed pausing loans was just an optional thing people could opt into if they had trouble with funds.

      • CanYouFeelItMrKrabs [any, he/him]
        ·
        2 years ago

        Has been been paused since the beginning of the Pandemic. Each time the deadline came up either Trump or Biden has delayed it. Now the Sept deadline is moved to December

        • HoChiMaxh [he/him]
          ·
          2 years ago

          Aren't most people who aren't struggling financially still making payments though?

          Edit: Oh I get it due to inflation it's better to bank that money and then put it toward payments after the freeze.

          • spectre [he/him]
            ·
            2 years ago

            Yes, and the interest is frozen too so it's basically free money as long as you don't have to pay

      • AmericaDelendeEst [any]
        ·
        2 years ago

        You can go into deferment (and only under specific conditions for a certain time) but the interest still accrues, hooray

    • jabrd [he/him]
      ·
      2 years ago

      For many Americans Joe Biden will be the reason they’re forced to make their first student loan payments

    • DrunkUncle [none/use name]
      ·
      2 years ago

      It would effect your credit score. I could maybe get a mortgage if they wiped out all of my student loans

      • CanYouFeelItMrKrabs [any, he/him]
        ·
        2 years ago

        During the pause it does not affect your credit score. I haven't been missing payments, I haven't had payments to pay.

      • WafflesTasteGood [he/him]
        ·
        2 years ago

        Funny thing, this will probably actually hurt my already shitty credit. The average age of accounts will drop significantly when my student loans are gone.