Buffalo, NY (WBEN) As a new college school year begins, the student loan debt forgiveness program announced this week by President Biden is presenting questions about eligibility and more.
Esther Gulyas of EG Tax says eligibility will be based on recent tax returns. "They are going to base it on your 2020 or 2021 tax return," says Gulyas. She says because of the stimulus money in 2020, many children filed on their own. "So even though parents might have income over $250,000, if in that year, your child filed on their own, then they would qualify for the $10,000 or $20,000. of forgiveness," says Gulyas.
Gulyas says the forgiveness will not be automatic if you're eligible. "they're going to be sending out Forms application forms," explains Gulyas. She says because of the fact students filed on their own because of stimulus money, they may be eligible so she notes the important thing is to make sure that you apply to see if you qualify.
Gulyas says if you do qualify, you don't have to report it on the next round of tax returns.
Gulyas does note a bit of concern regarding the forgiveness plan and inflation. "In my world, I pay my bills. And I always work hard to modify my lifestyle so I can pay my bills. Unfortunately, what's happening is, if you don't pay your bills, there's all these handouts," says Gulyas. She says while it feels good now, it won't feel good when you see higher prices at the store and the gas pump.
