INDIANAPOLIS — Last week's student loan foregiveness announcement came on the heels of Indiana residents beginning to see the state tax refunds the General Assembly approved during their special session.
Cherie Lowe, the Queen of Free, said on 13Sunrise that the windfalls these two events provide may help you turn the tides of your finances if you utilize them prudently.
In her weekly blog, Lowe outlines some of the steps to take to make maximum use of the money to improve your financial position.
Getting ready to receive your money
You may not be among those who qualify for student loan foregiveness, so check your status first. You can find details on the new student loan forgiveness program here. Lowe recommends another great bullet point explanation of the new program here.
Once you know you qualify, you still have to apply to receive your money, unlike some Indiana residents who saw the state deposit their tax refunds straight into their bank account based on their tax filing status. The student loan forgiveness program has not posted an application form yet. So check the Department of Education website and subscribe so will be notified when it becomes available. Check back on the website frequently.
To be ready to apply, gather the appropriate documentation in advance and keep your login information handy. Use the contact form and phone numbers to ask questions.
What to do when you get your money
"Getting a tax refund is awesome or receiving an unexpected gift is fantastic," Lowe sad. "But if you let it sit in your checking account, it will disappear."
She advises that you do several things with a windfall:
- Put the money toward an emergency fund, debt repayment, or a savings goal.
- Make a plan to repay your entire loan using your debt foregiveness as a starting point if you will still owe more than the $10,000 or $20,000 you receive.
- Set goals now. Retire debt or plan a vacation if you can, using your windfall as a catalyst.
Watch the Queen's full Sunrise segment in the video player.