Remember back in August of 2022 when we were all stoked to hear about the Biden Administration’s plan to forgive federal student loan debt? Yeah. Things have changed.
I’m here to update you on the status of federal student loan forgiveness. Shit’s complicated though, so if you didn’t read our FAQ about the program when it was first announced, you might want to get that background before reading any more. Go ahead, we’ll wait.
Now that you have the background, I’ll give you the latest on where federal student loan debt forgiveness stands, along with some guidance on what student loan borrowers can do from here. Spoiler alert: there’s Bitch-on-Bitch drama at the end.
***BREAKING NEWS UPDATE! The federal student loan forgiveness application is now LIVE! You can fill it out here. Ok now here’s the article.***
When I heard that President Biden was pushing through a massive federal student loan forgiveness initiative, I knew exactly what I had to do. I dropped what I was working on and immediately grabbed my phone.
I texted Piggy, my coblogger, to let her know what truly mattered in this situation: thatI was right, and she was wrong, neener neener neener.
You see, back in March of 2021, I wrote a case study dissecting an IRL friend’s financial situation. In editing my article, a disagreement surfaced between Piggy and I over the likelihood of student loan forgiveness. She considered the possibility of $10K in student loan debt cancellation so remote that she strongly pushed me to remove it from the article altogether. We settled for explaining both our stances in editorial notes, which you can still read here. (Piggy: In my defense, I’ve heard this campaign promise since I was a starry-eyed 17-year-old college applicant at a John Kerry for President event.)
But I was right. As I always am! I’m a seer, a sage, a prophetess. If I had letters tattooed across my knuckles, they would say TOLD and YASO. I am Samuel Gerard, United States Marshall, ruff ruff ruff!
Okay, okay, gloating aside… A big chunk of federal student loan debt is indeed being canceled. At long last, Cancel Culture is ASCENDENT!
I know our readers have a ton of questions about how this student loan forgiveness package works. Follow me, dear children, and I will answer all of your questions in a rapid-fire FAQ.
You’ve passed the trials. You’ve fought hard and won your place among the champions. At long last, it is time to be inducted into the Secret Society. Which secret society, you ask? It’s a secret.
As you take your place among the robed and hooded figures in this subterranean chamber, you know not what to expect. They are lit only by the flames of an ancient fire.
One by one, the hooded figures raise their arms to the stalactites above and intone:
Let us pay off debt, brothers and sisters!
Darling readers, debt fucking happens. Having debt doesn’t mean you’re a bad person, nor that you’re lazy or stupid. But it is something you’ll have to work hard to get past. So here is our collected advice on the subject of how to pay off debt.
Go forth and conquer, for you are soon to be debt-free!
Hi, it’s me again—your Good With Money Friend! It’s time for another case study. This time we’re talking about how to recover from past financial mistakes.
You guys really enjoyed our first case study. It tackled problems related to student loan debt, employment instability, and paying through the nose for rent in a high cost of living area. I’ve been hoping to do another one, but all of my friends’ most recent money issues have been too specific to their situations to be helpful to a broader audience.
A friend reached out, asking for help repairing her damaged credit score. So she scheduled a 30 minute call with me to discuss her options, because I’m literally that bitch.
Obviously it turned into a ninety-minute call, mostly because I love the sound of my own voice. (Vocal fry ’til I die!) But really because the more we talked, the clearer it became that her credit score wasn’t her main enemy on the battlefield for financial stability. It was like a machine gun a mile away: an easy threat to identify, making a huge racket and scaring the shit out of everyone, but not actually that threatening in her present circumstances.
If you’ve struggled with debt, or you want to hone your Good With Money Friend skills, read on. Hopefully hearing about her situation will help some other folks!
Our Patreon donors have been so wise with choosing quality topics in the past. So this month, I invited our supporters to pitch article topics directly to us.
Sounds great, right? WRONG. This was a huge mistake because all of our supporters’ ideas are fucking great! Now I have no choice: I simply must write them all. When am I supposed to do my life’s most important work: incorrectly cutting the wood for my woodworking project, then driving to Lowe’s to buy more wood???
One question stood out as being particularly time-sensitive, so today I’m answering this question from our patron Rachel, who we all know to be so glitteringly beautiful that she’s regularly mistaken for an ice sculpture of herself:
I’d love to know your thoughts on U.S. federal student loans currently being deferred with no interest. Is it smart to continue to make my regular loan repayment? Or should I stop making student loan payments and use that money to invest in other things?
– Patreon Donor Rachel
An excellent question! Today we’ll address the basics of student loan forbearance, including how it pertains to the CARES Act. (That’s the $2 trillion stimulus package we explained here.)
Luckily there’s a fairly definitive answer, which I am just barely capable of explaining in human speech. Let’s get into it!