BREAKING! Loan Forgiveness is Here! What Does it Mean For You?

Hey, credit heroes. I have amazing breaking news. President Biden announced on Wednesday that Americans will have up to $10,000 of their federal student loan debt forgiven. And students that went to college on Pell Grants will have up to $20,000 forgiven. Yes, they're just wiping this debt away. It's amazing. So. So today I'm going to talk about who qualifies for these debt forgiveness programs, how many Americans will be impacted by them, and what it means for you. So you better stick around.

So the big question is this. How can we take our passion for helping people with their credit and turn it into a successful business without taking loans, without spending a fortune by bootstrapping it from nothing so we can help the most people and still become highly profitable? That is the question, and this podcast will give you the answer. My name is Daniel Rosen, and welcome to Credit Repair Business Secrets.

Okay, if this is your first time listening to my podcast, every week I cover industry news, financial tips, and entrepreneurial advice for bootstrapping your business from nothing. This show is the best how to guide for business owners, and there's no other podcast like it. So be sure to click on that subscribe button now and get ready to start changing lives. Okay, so the Biden administration's federal student loan forgiveness plan. It means that millions of Americans will have their educational debt canceled, which is going to impact their credit scores, and it's going to impact the entire economy. So today I'm going to go over the details of the plan, who qualifies for the plan, how many people will be impacted, the potential consequences of the plan, and what it means for the credit repair industry. But before we get started, this podcast is brought to you by Credit Hero Score. Credit Hero Score is the only credit monitoring service that integrates directly with credit repair Cloud. Get instant access to your credit reports and scores by signing up for a seven day trial for only $1. Sign up right now at creditheroscore.com okay, let's get into this. After years of speculation and debate about the scope of this huge program, the Biden administration said that they plan to Forgive up to $10,000 in federal student loan debt for anyone who makes less than $125,000 a year. And for borrowers who received Pell Grants, which are government provided student financial assistance, the administration is going to forgive up to $20,000. So this is amazing news. The administration also announced that the pause on federal student loan payments, which was set to expire on August 31, will actually be extended when? One final time. Now, the Pause, which began in 2020, was part of an effort to assist borrowers through the pandemic. But it's going to come to an end on December 31st of this year, and the interest rates for those loans will remain at 0% until repayments begin next year. So how does this relate to us? Well, for most Americans, crippling educational debt is has just been a fact of life. Since the 1990-91 school year, the average tuition and fees at four year colleges and universities, it more than doubled. Since 2007, federal student loan debt has tripled. And then in 2020, bachelor's degree earners from public and private nonprofit four year schools, they graduated with an average of $28,400 in student debt. And these student loan payments and their accompanying late fees, they devastated people's finances and really hurt the economy. Now, federal student loan debt forgiveness, it might be a debated political issue, but what's not debatable is how this is going to impact borrowers and your customers. For anyone struggling to pay off their educational debts for any reason, student loan forgiveness, it means fewer monthly bills, higher credit scores, more financial freedom, larger savings accounts, better rates when applying for a loan, and a whole lot more. What I'm saying is it's going to have a transformative effect on you and your clients. Here's what you need to remember. According to Federal data, about 43 million Americans have federal student loan debt. Half of them owe less than $20,000 and 1/3 of them owe less than $10,000. So this means up to 14.3 million Americans will no longer have federal student loan debt as a result of this plan. Yes, it just gets wiped away. So if you are One of those 14.3 million, this is really good news. For some people, that's going to mean immediate relief from bills. And for others, it's going to mean more money in their pockets that they can spend elsewhere. In other words, everyone's credit will be impacted differently. So this is a perfect time to explain to your clients what is happening, because many of them are going to have these student loans and you can be the one to give them this great news. Here's why this is important. Your clients will probably think their credit scores will automatically improve when their student loans are forgiven. But when it comes to credit scores, some of your clients will see no change at all. And others might actually see a short term drop. But don't worry. Revolving payments, like student loan payments, when made on time, they help to build a positive credit history. And they do ultimately benefit your score. So when you pay off a student loan and you close an account, you do reduce the length of your credit history, which can cause a dip to your score temporarily. In the short term, your clients will be losing a positive source of credit building and they might need to be coached through this. And while it seems like they may be negatively impacted by the debt forgiveness, that is definitely not the case. The financial benefits of student loan forgiveness, it far outweighs the negative. It is amazing. So here's what you need to know. Your customers will probably want immediate answers to several questions and I expect the first is going to be do I qualify for forgiveness? And the answer is, if you make less than $125,000 a year, then yes, you qualify. Another question you may get is how do I apply for forgiveness? And on that this news just broke today, so the Biden administration hasn't yet announced the details, but I expect more information in the coming days. So I'm going to put a link in the show description and the show notes and our blog once we have it, and I'll continue to update you as this story unfolds. And the last two questions you should probably expect to hear are will private loans be forgiven? And if I already paid off my loans, am I eligible for some form of relief? And the answer to both of those questions is unfortunately no. This is just a federal student loan forgiveness plan, which is an important reminder that although this is a giant step forward and it's going to help a whole lot of people, there's still a lot of work to be done. And just a reminder, this podcast is brought to you by Credit Hero Score. Credit Hero Score is the credit monitoring service that integrates directly with Credit Repair Cloud. Get instant access to your credit reports and scores by signing up for a seven day trial for only $1. Sign up right now at creditheroscore.com and now for my favorite part of the episode. Normally each week I feature one of our credit heroes inside our Credit Repair Cloud Facebook community so that you can see firsthand what real people are doing and as they launch and grow their business. But this week I received a personal message and I thought I'd share it with you. Today's spotlight is on Ed Potter and Ed messaged me saying something really cool that made me feel really good and here's what he said. Hi Daniel, I want to thank you for an honest business that over delivers with what you offer. I'm very surprised and pleased that you are more interested in helping us to start businesses rather than filling your pockets up front with the usual useless info most others do online. I've lost so much money this way, I have to convince my wife that this is real. Now I need to pick up free clients. That isn't going very well, but I'm not giving up. Thanks again for excitement and honesty. And Ed, first of all, thank you for your message and how you describe Credit Repair cloud is exactly what I hoped that I would build and exactly the service that we work really hard to provide every day. So tell your wife I said this is real. I believe in you. I've been in similar situations where things weren't going well, but you just have to keep working hard and eventually you will succeed. You will pick up those free clients and you will take the next step in your business. And thank you for making my day. And I'm going to end by saying if you don't already have a credit repair cloud account, check it out. It's the software that most credit repair businesses in America run on. Just sign up for a 30 day free trial at creditrepaircloud.com freetrial and if you'd like me to hold you by the hand as you launch your very own credit repair business, check out our Credit Hero Challenge. It's a live experience that has helped tons of credit heroes to get their first clients to get certified in disputing and to gain confidence as they launch their credit repair business on a solid foundation so they can change a whole lot of lives and make a great living in the process. We're starting again very soon, so you want to join before the doors close or you're going to have a long wait until the next one. So sign up now@creditherochallenge.com and if you're finding value in the things that I share on this podcast, be sure to click to subscribe and leave me your questions and your comments down below because I read each and every one of them. Be sure to visit my blog if you'd like to read the show notes. And if you have a question that you'd like me to answer, drop it down in the comment section and I'll be sure to answer it during a later episode. And remember, keep your customers informed and keep changing lives.

Hey everybody, it's Daniel again, and really quick. I'd like to invite you to join what I believe is the best thing we have ever created inside the Credit Repair Cloud community and it is a challenge that we call the Credit Hero Challenge. If you're just planning out your business or you're just getting it started and you dream of having a successful business of your own so you can quit your 9 to 5 and fire your boss and have financial freedom or so you can add another revenue stream to your existing business. If that's your dream, you need to get into this challenge. We created this challenge to help you to create and launch your very own credit repair business to build a proper foundation for a really successful business. This challenge is going to help you to understand the strategy, the tactics and all the things you need to be successful at credit repair. It really is the greatest thing we have ever built and it will change your life. So I recommend you do it right now. So stop everything, pause this audio, go online and go to creditherochallenge.com that's creditherochallenge.com and join the next challenge. And there's a challenge that's starting in just a few days. So go get started right now@creditherochallenge.com.