Our illustrious occupant of the White House recently issued an executive order to cancel certain student loans. Its main focus was not on those who skipped expensive college and went out and started in a trade.
Many of them had to borrow over $100,000 to buy a work truck, tools, etc. (Want to know a little secret? I prepare a lot of tax returns for college grads and tradespeople. A lot of tradespeople make more money than college grads. Hmmm.) Oh, and by the way, yes you’ve worked hard and already paid off your school debts… too bad.
But wait! If you received a federally guaranteed student loan from a trade school, this loan forgiveness program still works for you. I have to temper my assertion about this program by totally ignoring traders. But only school-related debt is potentially cancelled.
Let me interrupt this article and speak to all those high schoolers and seniors being pushed to go to college no matter what. Look around you. Find a job that you love and are good at. If it requires a college degree, then go to college, if not, don’t waste money and time going to college. Find a trade school for your chosen profession. Maybe join a union and become an apprentice, etc. Find your happiness and success.
So, if you’re one of those people with qualified student loans, here’s how you can apply for loan forgiveness.
Under this program, those with federally guaranteed student loans can get up to $20,000 off their eligible student loan debt. In fact, only those with Pell grants, which are for low-income students, can be forgiven for up to $20,000. All non-Pell Grant recipients can only have up to $10,000 in debt forgiven. In both cases, borrowers must have incomes below $125,000 ($250,000 for married couples).
There is a website where you can apply for student loan forgiveness. This is https://studentaid.gov/debt-relief/application
My general rule is, if you qualify, take it. Never leave the table with money you might have taken. Many businesses have received PPP loans in 2020. Whether they desperately need the money or not, if they qualify, I encouraged them to get the loans.
Did you hear? Leviticus 25:10 says, “And you shall consecrate the 50th year, and proclaim freedom throughout the land to all its inhabitants. It will be a jubilee for you, when each of you will return to your property and each of you will return to your clan.
Kelly Bullis is a CPA in Carson City. Contact him at 882-4459. On the web at BullisAndCo.com. Also on Facebook.