Consumers just got some good news about a student loan forgiveness extension and about protections on credit card late payment charges, resulting from a Supreme Court ruling on the Consumer Financial Protection Bureau. Here’s what you need to know:The deadline for applications for student loan forgiveness has been extended to June 30, 2024.
Once you consolidate, you’ll get a new monthly payment, based on your income. But even if you currently have a high income, if you have been paying for all those years, you might soon be eligible for forgiveness of the remaining balance, including all the interest that accrued. And if your loan is forgiven by 2026, all of the amount erased is tax-free.
Yes, this is complicated. You can get details and worksheets at StudentAid.gov. But if there’s a lot of money involved and a short deadline, it may be worth paying for professional assistance. Attorney Rae Kaplan has already succeeded in getting $19 million of loan balances forgiven for her clients — a number that will grow now that the deadline for completing the filing has been extended to June 30.
The financial services industry, which collects roughly $10 billion in late fees, filed suit against the CFPB. Not only did they challenge the agency’s authority to impose the cap, but they warned the difference would be made up in other ways, such as higher interest rates on balances.