When President Biden announced Student loan forgiveness plan Last month for individuals earning less than $125,000, borrowers with income just over the limit wondered if there was a way to cut back. In most cases, the answer is no.
There is one exception: Some self-employed taxpayers who requested an extension to file their 2021 tax returns were able to reduce their income just enough to receive $10,000 to be cleared. federal debt, tax experts said. Pell grant recipients are eligible for forgiveness up to $20,000. The debt forgiveness program is available to individual borrowers with adjusted gross income of less than $125,000 or less than $250,000 to married couples filing jointly, based on tax years 2020 or 2021. (It’s Line 11 on individual income tax returns 1040.)