How did Biden's studen loan announcment effect Law Students Forum

[humanoidNY]

Let's say as a pure hypothetical... Someone had $20k in undergrad debt, just graduated from Georgetown with $200k in law school debt.

This person figured that their options were: BigLaw to make enough money to pay their debt back, or utilizing LRAP and PSLF to had their loans paid for and then forgiven after 10 years. But that any job in the middle was not an option because they wouldn't make enough to pay back the loans and wouldn't qualify to have them forgiven.

Is anything different for this hypothetical person today than it was two days ago?

[talons2250]

Let's say as a pure hypothetical... Someone had $20k in undergrad debt, just graduated from Georgetown with $200k in law school debt.

This person figured that their options were: BigLaw to make enough money to pay their debt back, or utilizing LRAP and PSLF to had their loans paid for and then forgiven after 10 years. But that any job in the middle was not an option because they wouldn't make enough to pay back the loans and wouldn't qualify to have them forgiven.

Is anything different for this hypothetical person today than it was two days ago?

The only difference is you now have an option to get a small amount of the total debt forgiven if you take a job where you earn less than $125K. If your loans are held by the Department of Education (i.e., you didn't refinance with a private lender), you take a law job (or any job) where you make less than $125K in that job individually (and you don't file taxes jointly with a spouse who increases your household income to over $250K annually), then you get $10K forgiven, and $20K forgiven if you received Pell Grants. This would not have been an option two days ago.

[polareagle]

Actually, I believe you should be able to get the $10k (or $20k) no matter what job you take now. Every article I've seen references 2020 and 2021 tax returns as being used to evaluate eligibility, and if you just graduated from Georgetown, then you surely made less than $125k last year/the year prior.

[talons2250]

Actually, I believe you should be able to get the $10k (or $20k) no matter what job you take now. Every article I've seen references 2020 and 2021 tax returns as being used to evaluate eligibility, and if you just graduated from Georgetown, then you surely made less than $125k less year/the year prior.

Oh, yes, I think that's right actually!