Updated: Jan 4
So, do you have student loan debts?
Our illustrious Occupant in the White House recently issued an executive order to forgive some student loans. His main focus was not toward those who skipped expensive college education and went out and started in a trade. Many of them had to borrow over $100,000 to purchase a work truck, tools, etc. Sorry, no such tools/equipment loan forgiveness for those folks! (Want to know a little secret? I prepare a lot of tax returns for college grads and tradesfolk. Many of the tradesfolk make more money than the college grads. Hmmm.) Oh, and by the way, if you worked hard and already paid off your school debts…too bad.
But wait! If you received a federally guaranteed student loan from a trade school, this loan forgiveness program still works for you. I have to temper my claim about this program totally ignoring tradesfolk. But only school related debt is potentially forgiven.
Let me interrupt this article and speak to all those High School Juniors and Seniors being pushed to go to college no matter what. Look around. Find a profession that you like and have a knack for. If it requires a college degree, then go to college, if not, then don’t waste money and time going to college. Find a trade school for your chosen profession. Perhaps, join a union and become an apprentice, etc. Find your happiness and success.
So, if you happen to be one of the folks with qualified student loans, here’s how you can apply for your loan forgiveness.
Under the program, those with federally guaranteed student loans can have up to $20,000 of their eligible student loan debts forgiven. Actually, only those with Pell Grants, which are for lower-income students, can have up to $20,000 forgiven. All the non-Pell Grant recipients can only have up to $10,000 in debts forgiven. In both cases, the borrowers must have income under $125,000 ($250,000 for married couples).
There is a website you go to for applying for the student loan forgiveness. It is… https://studentaid.gov/debt-relief/application
My general rule is, if you qualify, take it. Never walk away from the table with money still on it that you could have taken. There were a lot of businesses who received PPP Loans in 2020. Whether they were desperate for the money or not, if they qualified, I encouraged them to get the loans.
Have you heard? Leviticus 25:10 says, “And you shall consecrate the fiftieth year, and proclaim liberty throughout the land to all its inhabitants. It shall be a jubilee for you, when each of you shall return to his property and each of you shall return to his clan.”
Kelly Bullis is a Certified Public Accountant in Carson City. Contact him at 882-4459. On the web at BullisAndCo.com Also on Facebook.