On June 30th the Supreme Court ruled against President Joe Biden's plan to wipe out student loan debt for tens of millions of Americans. The decision means that federal loan borrowers who were eligible for relief will need to prepare for student loan payments to resume in the coming weeks.1 It is important to also note that a recent law passed by Congress makes it almost certain payments will resume.
Despite ongoing discussions and potential developments, the likelihood of payments being paused again is unlikely.2 As a result, the U.S. Department of Education has officially announced that student loan payments will resume in October, ending the three-year-long pause that was implemented due to the pandemic.
Starting September 1, interest will begin accruing on student loan debt. We understand that this adjustment may have financial implications, considering that around 40 million Americans have educational debt, with the average monthly bill being approximately $350.2
Rest assured that we are closely monitoring the situation and will provide updates if any were to become available. In the meantime, please keep an eye on your student loan account details, as exact due dates may vary.
If you have any questions or concerns, please do not hesitate to reach out to us. We are here to support you, and we may be able to provide some guidance through this process.
1. USAToday.com, June 30, 2023. "I have student debt: What to know after Supreme Court strikes down loan forgiveness."
2. CNBC.com, June 20, 2023. “It’s official: Student loan payments will restart in October, Education Department says.”
- Effective July 15th, you will experience a new modern design and updated navigation when you log into "Account View". Once in effect, there will be a walk-through help option to view the changes upon your next Account View login. Please review the Navigation Update Before and After Guide for more detailed information. Please visit ConcordRiverFinancial.com and select, "Account Login" from the menu items to access your Account View.
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Can You Claim The Child Tax Credit For Other Dependents?
Even though you may not be able to claim the child tax credit, you may be able to claim the credit for other dependents under your care. The Internal Revenue Service issues a max of $500 for each dependent who meets specific conditions.
These conditions include:
- Dependents who are age 17 or older on December 31 of the tax year.
- Dependents who have individual taxpayer identification numbers.
- Dependents living with the taxpayer for more than six months of the year (remember the special rules for divorced or separated parents or parents who live apart).
The credit begins to phase out when the ptaxpayer's income exceeds $200,000. This phaseout begins for married couples filing a joint tax return at $400,000.
*This information is not intended to substitute for specific individualized tax advice. We suggest you discuss your specific tax issues with a qualified tax professional.
*Tip adapted from IRS.gov
What 8-letter word remains an English word each time you remove a letter from it until it becomes a one letter word?
Last Month's Riddle: An eccentric farmer requests that you build four pens for his nine sheep but only allow an odd number of sheep in each pen. How do you accomplish this?
Answer: Build three pens, each holding three sheep. Build a fourth pen surrounding the other pens, containing all nine sheep.