Well it’s that time of year again, Merry Christmas and Prosperous New Year! For those of you who are in college or have dependents, remember to submit the Free Application for Federal Student Aid (FAFSA). The FAFSA application was made available October 1st and the submission deadline is June 30th.
In Other News:
There have been current rumblings surrounding issues of: 1) Graduate Student Tuition Waivers, 2) Student loan interest and 3) Student Loan forgiveness.
I will do my best to stay out of politics, since I have a difficult time managing my 1 year old. In short, law makers as represented by the U.S. House of Representatives and the Senate considered taxing graduate tuition waivers as income. Understandably, students were unhappy and protested. Thankfully, their voices were heard. College students don’t make much and I speak from experience. Click here for more from NPR.
Hard Times Were Fun Times:
During my college days, I worked 3 jobs and enrolled as a full-time student. Money earned was spent attempting to cover tuition. My usual meals were Chef Boyardee, Ramen, Ensure, and 99 cent double cheeseburgers from McDonald’s.
However, I was blessed to have some meals provided for by a loving elderly couple. Also, 3 meals a week were provided at the cafeteria through a job as a Resident Assistant. Man, college sure was fun.
Paying the Tax Man:
Next, lawmakers considered removing the $2,500 student loan interest deduction. By what I understand, the deduction is not guaranteed. In fact, the amount a tax bill is reduced is based on the tax payer’s income. So the higher your salary, the less interest deduction can be used; the lower your salary, the better your chances to use the full deduction. This is the best I can do to explain this, for more information click here. This interest deduction greatly reduced my tax bill for calendar year 2012, as my career was in its fledgling stages. To hear more from the IRS click here.
I work in education and student loan debt is a concern for young and old. To my surprise, “seasoned” coworkers disclose more than the 20 somethings about financial issues. What I hear mostly is the shame of still paying school debt while having a child in college.
The recent graduates I work with are really hoping for student loan forgiveness. Unfortunately, not many of them are taking advantage of the Income-Based Repayment programs. Although I am currently enrolled in an IBR program, I’m prepared to pay off every penny of debt should loan forgiveness is denied. Here, CNN gives insight on the current plight of the first group of borrowers who are eligible for loan forgiveness.
Help Is On The Way:
I am grateful for my talks with coworkers as they have been very supportive. Below is an update on my loan balance.
Speaking of college, I am excited to announce there is help out there. It is called the Dallas County Promise. It is a last dollar tuition scholarship for students in attendance of any Dallas County Community College District campus or participating university. So far, The University of North Texas-Dallas (UNT-D) and Southern Methodist University (SMU) are participants in this scholarship program. Follow the link for details and spread the news!