COVID-19 Update: Beaird Harris has shifted a significant number of our team members to work remotely.
We continue to serve and care for our clients, just as we always have, and are available by phone, video or email.

Beaird Harris is closed on Thursday, February 24th due to inclement weather. 
During this time our team will be fully available via phone or email should you need assistance. 

Beaird Harris will be closed on Friday, July 3rd in observance of the Independence Day holiday.

Blog

President Biden Announces Student Loan Forgiveness Plan

Ginnie Baker

President Biden announced on Wednesday that the federal government would cancel up to $20,000 worth of federal student loans for millions of people. The plan will forgive $10,000 in federal student debt for most borrowers, and up to $20,000 for Pell Grant recipients. That could wipe the slate clean for as many as 16 million of the 48 million people who took out federal loans to pay for college. The forgiveness is limited to borrowers making less than $125,000 per year, or $250,000 for married couples filing jointly and heads of households.

Many people are left wondering if this canceled debt will have an effect on their taxes come April 2023. The short answer is no, student loan forgiveness won’t trigger a federal tax bill. The American Rescue Plan of 2021 made student loan forgiveness tax-free through 2025 — and the law covers Biden’s forgiveness too, according to the White House. However, this may not be the case for state levies. If you are subject to state income tax, please contact your Tax Advisor for additional information regarding your situation.

The Biden Student Loan Forgiveness Plan was short on specifics about how and when borrowers can claim relief. The Department of Education said that details will be announced in the coming weeks, but promised specifics would come before December, 31, 2022.

The first qualification for eligibility for student loan forgiveness is that you took out a federal student loan. Private loans from banks are not eligible. If you’re already enrolled in some kind of income-driven repayment plan, and have submitted your most recent tax return to certify your income, your servicer and the Education Department know how much you earn, and you should not need to do anything else. If not, the Department of Education will be making some sort of application available to the public by the end of the year.

For more information and FAQs visit: https://studentaid.gov/debt-relief-announcement/

Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Beaird Harris Wealth Management, LLC), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Beaird Harris Wealth Management, LLC To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Beaird Harris Wealth Management, LLC is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the Beaird Harris Wealth Management, LLC’s current written disclosure statement discussing our advisory services and fees is available for review upon request.

Share This
schedule call

Schedule a complimentary call today.

We’ll help you get started and learn more about Beaird Harris.