Breaking the Bank: Student Loan Updates for Oregon
Updated: Sep 8
Welcome to T. Mann Financial’s blog, where we delve into the recent developments shaping the financial landscape. In this edition, we will explore three significant news events: the increase in contributions for Oregon's 529 plans, the Supreme Court ruling on student debt forgiveness, and President Biden's Plan B to tackle the issue of student debt. Let's dive in!
Oregon 529 Plans: Boosting College Savings
In recent news, Oregon has taken a proactive step toward easing the financial burden of higher education. On July 1st, 2023, there was an increase to the Oregon State income tax credit for Oregon residents who contribute to 529 college savings plans. The refundable tax credit, a maximum of $170 for single filers and a maximum of $340 for joint filers, is periodically adjusted for inflation. Additionally, the passage of recent federal legislation (effective in 2024) permits 529 college savings plan account holders to rollover up $35,000 into a Roth IRA in their beneficiary’s name. Discover how these plans help Oregon families save for future educational expenses and the impact of this progressive move on students and parents alike.
Supreme Court Ruling: Biden’s Student Debt Forgiveness Struck Down
The Supreme Court's recent ruling on student debt forgiveness has sent shockwaves through the nation. The most immediate impact of this landmark decision will be that Oregon debtholders will not be forgiven the up-to-$20,000 that was promised by the Biden Administration and payments will need to be resumed in October. However, this is most likely not the end of progressive debt relief initiatives. It’s important to start planning now on how your family will address your future student loan payments.
President Biden's Plan B: A Ray of Hope for Student Debt
With the Supreme Court ruling in mind, President Biden has unveiled his alternative approach to address the student debt crisis. The key components of his Plan B include debt relief under the Higher Education Act of 1965, a temporary 12-month on-ramp repayment program, and a new income-driven repayment plan. Together, these initiatives should ease some of the concerns that borrowers may have as we move to the next phase of the student debt crisis.
As the student loan landscape continues to evolve, staying informed about the latest news is essential for borrowers, families, and policymakers alike. From Oregon's proactive steps toward college savings to the Supreme Court's ruling on debt forgiveness and President Biden's Plan B, these three developments have the potential to shape the future of student loans. Stay tuned for more updates and insights on the ever-changing financial landscape.
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