GREENSBORO, N.C. — When you think about student loan debt, you might think those payments only impact recent college graduates. Really, the age group with the most federal student loan debt is 35- to 49-year-olds and that total is enormous at $601.7 billion.
It is a small fraction of the $1.57 trillion in outstanding student loan debt in the United States.
Now that you have the numbers from the Department of Education, money expert Ja'Net Adams looks at the solutions. Adams, who wrote the book, The Money Attractor said relief is coming, but not to everyone.
"Student loan debt is a thorn in the sides of millions of Americans. Student loan debt affects new graduates as well as the grandma who co-signed for tens of thousands of dollars for a grandchild to go to college. This debt sits at $1.57 trillion dollars and it continues to grow each day," Adams said.
This week the Department of Education made an announcement that could erase billions in student loan debt. We talked with Adams about the big details you want to know.
Let's start with the big question:
Who is eligible?
People who work in the public sector including teachers, nurses, or social workers as well as people who have government jobs or work at a non-profit.
"The Department of Education is looking at all loans that have been under the Public Service Loan Forgiveness Program since 2007. They are reviewing each one to see if student loan servicers made mistakes in denying debt forgiveness. Thanks to this action, $4 billion of debt could be wiped out for 50,000 borrowers and another 550,000+ could see the length of the payments they have left decrease dramatically," Adams said.
Here's what you need to do:
"If you work in the public sector, you need to take action immediately," Adams said.
Go to the official site for this opportunity: www.studentaid.gov/pslfwaiver.
"This link will help you determine if you qualify as well as if your employer qualifies. This is also the website where you need to fill out the waiver which is temporary. The waiver expires October 31, 2022, so you have a limited time to take advantage of this opportunity," Adams said.
For people being swallowed in student loan debt, this forgiveness will provide you with new financial opportunities. So you'll want to take advantage of this help now!
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"This move by the Department of Education has never been done before and may never happen again so now is the time to make a move," Adams said.
"Those who are able to take advantage of this waiver could see thousands, maybe tens of thousands of dollars erased from their debt," Adams said. "For many people, this could be a game-changer for their financial life! If you are able to get any student loan debt relief make sure that you use it to reach your financial goals. For example, if you no longer have to make a $300 a month student loan payment use that money to build an emergency fund or fund one of your dreams like owning a home."