Applicants will not need to log in with a federal student aid ID, nor upload any documents, but they will have to accurately and honestly provide information about their monetary earnings. Depending on their income and whether or not they received a Pell Grant during their college career (a grant being money awarded to students that does not need to be paid back, unlike a loan), applicants can be eligible to receive up to $10,000 or $20,000 in debt relief forgiveness.

Since the pandemic began, student loan payments have been frozen in an effort to provide some kind of relief for those in debt. The application form is not live yet, but is expected to release sometime in October; federal officials have suggested that many should file the form by November 15^th in order to apply the debt cancellation to their current balances, although applications will continue until the end of 2023. If an applicant has $20,000 or lower left on their balance, they may be able to completely wipe out their remaining debt before the federal pause on loan payments ends on December 31^st of this year.

Already, there has been much debate over whether Biden has the authority to do this, and whether states would lose out on the money to be had by being repaid. Others have said that the plan benefits people of color more than others, which would violate the constitution’s right to equal protection of the laws—although cases like this were dismissed on the basis of having no standing.

According to NPR, loan forgiveness would raise the standard of living for millions, if not tens of millions, of people—although the subsequent increase in spending might increase inflation. Some also call the forgiveness unfair to those who saved and worked through college, or those who have managed to pay off their debt; on the other hand, there are many individuals who feel that their own suffering through debt should not mean that others have to suffer through debt as well.

How do you feel about debt forgiveness? Please let us know by leaving a comment down below.

The US government just passed a coronavirus stimulus package, which includes protections for small businesses. One of these protections is the Paycheck Protection Program for Small Businesses. According to the latest news from the Treasury Secretary, the program will become available on Friday 4/3/20. This program will essentially provide loans to small business so that they can continue to cover payroll, health benefits, rent, and other costs. The following list provides more details; please click here for even more information.

• Amount: 2.5x the average monthly payroll from 2019
• Interest Rate: may not exceed 4%
• Eligible Uses of Loan:
  • payroll costs
  • costs related to group health care benefits during periods of paid sick, medical or family leave, and insurance premiums
  • employee salaries, commissions, or similar compensations
  • mortgage interest payments (but not any prepayment of or payment of principal on a mortgage obligation)
  • rent
  • utilities
  • interest on any other debt obligations that were incurred before the Covered Period.
• Forgiveness: Borrower may be eligible for forgiveness and cancellation of indebtedness for up to the full principal amount. Forgiveness amount is based on:
  • total costs incurred and payments made during the Forgiveness Period for (1) payroll, (2) mortgage interest, (3) rent and (4) utilities
  • forgiveness period – the 8-week period beginning on the date a Paycheck Protection Loan is funded
• Qualifications:
  • your business must have fewer than 500 employees
  • less than $7.5 million revenue on average each year for the past three years
  • your net income must be under $5 million (after taxes and not counting carry-over losses)

A small note on loan forgiveness: it essentially means that if you meet certain criteria, you do not have to pay back the loan. This is often seen in student loans, but in an emergency situation like the COVID-19 pandemic, it will certainly be an option for many people.

The federal government has also postponed the date that federal taxes are due; Tax Day is now July 15. This is an effort to support businesses and people alike. At a time when people are having trouble making money, it helps to not have to use their limited supply of money on taxes. Most states have postponed their state filing deadlines as well. However, not every state is following the same schedule for all forms of taxes. Please make sure to research your own state’s regulations!