The prospect of student debt relief greeted by the ‘sandwich generation’ as their children head to college – WCCO
MINNEAPOLIS (WCCO) – On Thursday in Washington, top lawmakers, including Minnesota Congressman Ilhan Omar, tabled a proposal to address university debt.
This would write off up to $ 50,000 in student debt for many Americans. This is the high end of a number of proposals, but for those who find themselves paying off their own debts and worrying about their children, any help would be welcome.
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Matt Muenchow, 40, is an auditor from South St. Paul. He still has to repay his undergraduate and master’s degrees.
“I just had to watch [up what I owe], $ 93,516.30, ”Muenchow said.
He says he’s worried his high school student is racking up college debt.
“As I was in college, even then we were reaching the tipping point,” Muenchow said.
It is part of a new “sandwich generation”.
“The repayment plan I’m on has provided me with paying off my student loans the year I retire,” he said. “How can I, as a parent, overlap him with the same debt?” “
President Joe Biden offered to forgive most of the students $ 10,000. The top Democratic senators, along with Representative Omar, are asking for up to $ 50,000 to be forgiven.
“Almost 45 million Americans are struggling with student loan debt,” Omar said.
But with Washington DC stuck in partisan paralysis, parents are on their own.
College Inside Track consultant Chris Wills said the changes to the 2023/2024 FAFSA – the federal demand for student aid – would start to affect families now, as they are based on tax returns from two previous years. . Families with two or more children in university will likely be eligible for less assistance due to the calculation changes. Changes for divorced parents could also result in reduced assistance.
But you might get more help because cash gifts to the student won’t count towards a student’s income.
“[It] could be an uncle, aunt, friend, distant relative, grandparent, whatever, ”Wills said.
But right now, for families like the Muenchow, finding a distant relative to participate seems as far-fetched as asking Congress for help.