A quick overview
You may be aware that the Biden administration recently introduced a student debt relief plan. This three-part plan is designed to provide relief for low- to middle-income borrowers with student loans by:
1. Providing up to $20,000 in debt relief for borrowers with existing loans
2. Changing the student loan system for current and future borrowers
3. Reducing the cost of college for future borrowers by holding institutions accountable to large tuition raises and cohorts of students with large amounts of debt
So, why does this matter for your small business and many others?
Small business owners with student loan debt end up with less cash to invest in their business, negatively impacting their growth. In fact, in a survey of 1,200 small business owners, almost half (47%) reported that the pause in student loan repayment, interest, and collection during the COVID-19 pandemic allowed them to invest more capital into their businesses.
If you are a small business owner who’s currently paying off student loans, chances are that this forgiveness plan will help free up the cash you would put toward repayment, and use it elsewhere—like building your business.
Who is eligible?
The student debt relief is targeted at low-to-middle income borrowers with an adjusted gross income of less than $125,000 ($250,000 for married couples) in 2020 or 2021. Debt relief will be provided only for federal loans, and not private, third-party student loans.
Current students with federal loans or parents of dependents with student loans (such as the Parent Plus loan) are eligible for loan forgiveness as well.
Interested in applying, here’s the link: https://studentaid.gov/debt-relief/application
Current Status (as of NOV 2022)
Application is open, but debt discharge is paused. As a result of a court order, we are temporarily blocked from processing debt discharges. We encourage you to apply if you are eligible. We will continue to review applications. We will quickly process discharges when we are able to do so and you will not need to reapply.
Read the full information on the program here: https://studentaid.gov/debt-relief-announcement
You’ve got a lot to focus on, how can TSAT become your Trusted Advisor?
Your Trusted Advisor… At TSAT, we know that a great businesses need to operate at high levels of service, accuracy, reliability, and throughput. We also know that the only way to ensure these things are achieved is to develop a comprehensive set of accounting and finance policies and procedures and to regularly train all personnel involved in the management and control of the company’s software. Only by taking steps toward accounting, quality assurance, and finances can a small business accounting department expand its business and improve its profit margins. It takes a little work to make sure that every aspect of small business accounting is running at full capacity, and we are here to help!
Here at TSAT, we are not simply bookkeepers. We work with you to provide a 360-degree strategic financial advice, including small business operations and investment guidance. We will help you stay ahead of the curve when it small business or personal investments!
If you are a gig worker or small business owner looking to grow your business, TSAT’s AMAZING Trusted team considers much more than just your taxes!
TSAT’s is your Trusted Advisor and will let you focus on your business’s core competencies! Whether you have a small business or you need help personally, TSAT can give you HOPE! Call us today!
Phone: (417) 208-2858
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