After the decision to cancel some debt for those making under $125,000, experts say current and prospective students are unlikely to see the same loan forgiveness.
AUSTIN, Texas – The Department of Education’s recent decision to grant various student loan debt cancellations is promising for graduate students. However, current and prospective students are not likely to see the same relief in debt obligations and should not expect the same loan forgiveness.
Jennifer Finetti, ScholarshipOwl’s director of student advocacy, said current students who already have loans they took out before July 1 will be eligible for loan forgiveness. But they must be below the income limit that has been set. Finetti said that if a student has an income below $125,000, or if their family income is below $250,000, any loans they took out before July 1 of this year will qualify for a loan forgiveness. But any new loans taken out after July 1 would not qualify for loan forgiveness.
Experts recommend the best way to keep the amount of debt you have down is to work part-time during the school year, full-time during the holidays, and do a side hustle if you can, like driving for Uber or running some errands. distribution of meals. Also, applying for multiple scholarships is an option.
“I recommend that students begin applying for scholarships in junior high school and that they continue to do so throughout the year until they complete their college education,” Finetti said.
If students must take out a loan, it is suggested that they take out only the minimum you need to complete your education. According to Finetti, a freshman can receive up to $5,500 in federal student loans, sophomores can receive up to $6,500, juniors and seniors can receive up to $7,500.
“The maximum debt that one should probably take on should not exceed those federal limits. If you are finding that you will need to take out private student loans to complete your education, then I recommend looking into more affordable options of education and there are a lot of affordable options out there,” Finetti said.
Some affordable options include starting at a community college for the first two years where tuition can be low-cost or completely free, depending on the state you live in, then transferring in the last two years to go to a public university state.
“Or if you’re really strong academically, you might be able to go to a private school and get a lot of merit scholarships from the university, as well as outside private scholarships that can make private university more affordable,” Finetti said.
Students seeking scholarships can apply for all three types of scholarships. They can apply for local scholarships in their community, apply for college scholarships from the universities they are applying to, or the current university they are attending. Lastly, you can apply for private outside scholarships that can be used at any number of schools across the US
“Right now, we have about $800,000 in scholarships on our platform just waiting for students to apply to claim those dollars. So I highly recommend that students start applying for scholarships now if they haven’t already and apply for year-round scholarships integrated into your life so you have the best chance to reduce your reliance on loans and possibly even graduate debt-free,” Finetti said.
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