SEPTEMBER
September "Change of Plan": When President Biden announced his student loan plan on August 24, 2022, I was somewhat stunned. Prior to the announcement, it was speculated that he would stick with his campaign promise to forgive $10K of student loan debt with certain income restrictions. However, I didn't expect that an additional $10K of forgiveness would be available for Pell Grant recipients making $125K or less AGI (Adjusted Gross Income) in 2020 or 2021. And guess what? I was eligible for $20K student loan forgiveness!
When I continued my payoff journey in 2022, student loan forgiveness wasn't a part of my plan. Sure, I kept tabs on student loan news, but my mindset was that I'm not waiting on the government, or anyone to fix this for me. However, being eligible for forgiveness made me rethink my aggressive monthly payoff plan, which consisted of sitting aside money from my bi-weekly checks as well as applying bigger payments when I received bonus pay, or other compensation.
I reasoned that I could reduce my bi-weekly check contributions, giving my monthly budget a bit of breathing room. Then, I would apply a greater percentage of my future bonus pay to eliminate the remaining balance, less the $20K student loan forgiveness. By the end of September, I paid $607 towards my debt.
OCTOBER
October Reality Check: On Saturday, October 15, I applied for student loan forgiveness through the Department of Education's beta mode website. It was surprisingly simple to complete. Even though it was submitted during the test phase, it was considered a "legit" submission, and I didn't have to resubmit when the online application was officially released.
However, less than a week later, news broke that the U.S. Court of Appeals for the 8th Circuit temporarily halted Biden's student debt relief program due to an injunction filed by a coalition of six Republican-led states. The suit claimed injury to the respective states' taxpayers and claimed that MOHELA, a student loan servicer based in Missouri, would be harmed by the debt cancellation plan because it would reduce the number of students in repayment.
Initially, I wasn't concerned, as it appeared the White House was confident in their legal standing, and I read an article that stated an update would come within a week. Perhaps that source was overly optimistic because when that week came and went, I started to wonder if I got my hopes up prematurely.
At the end of October, I only applied $500 towards my debt. I anticipate that in November, I will pay what I hope to be my final payment of $5,496, leaving exactly a $20K balance to be forgiven.
Here's to keeping hope alive!