A personal loan can be a useful tool for paying off credit card debt once and for all. Rather than juggling multiple credit cards with variable interest rates, you can just make one fixed monthly payment. Here is what you should know about applying for a personal loan.

For the past two and a half years, most borrowers with federal student loans have not needed to make any payments. And a lot has changed over that time: people have moved across the country, started families, bought houses, and changed careers. Resuming payments in January 2022 will be an unwelcome headache, especially for those who have not reserved space in their budgets for a student loan payment.

There is a good chance that at least some of your employees will be affected by this: about 20% of Americans have student loans.

While $10,000-$20,000 in federal student loan cancellation is welcome news for many borrowers, those with larger balances—particularly approaching or exceeding six figures—may feel underwhelmed by the assistance. Fortunately, the Biden administration’s announcement on student loans included provisions that have the potential to significantly ease the burden on borrowers with large amounts of federal student loan debt.

We frequently see clients who want to repay their student loans, but their high balances and unsustainable payments make it feel impossible.

This week, President Joe Biden announced that his administration will cancel $10,000 of federal students for low-to-middle-income borrowers and up to $20,000 for Pell grant recipients. Naturally, borrowers (including Financial Trainers and TFG clients) are anxious to find out whether they will qualify for the cancellation and what they need to do to get it.

Federal student loan borrowers who earn less than $125,000 or $250,000 for couples will qualify for up to $10,000 in student loan cancellation. Pell grant recipients (lower-income students) are eligible for up to $20,000 in federal student loan cancellation as long as their income is below the threshold. Pell grant recipients who exceed the income limits will still be eligible for $10,000 of cancellation.

Last year, in an effort to help student loan borrowers through the financial crisis that COVID-19 brought upon us, the Federal Government suspended payments and interest accrual on most Federal student loans. At first, this administrative forbearance was slated to last until October of 2021. Since then, the student loan pause has been extended twice, but we have been promised that this is the last time. Federal student loans will go back into repayment as of January 31, 2022.