KUAR | By Antoinette Grajeda / Arkansas Advocate

Nearly four months after the delayed rollout of an updated federal financial aid form, Arkansas colleges and universities continue to face challenges in accessing accurate information needed to award funding to students.

Although implementation of the new Free Application for Federal Student Aid (FAFSA) form has been less than ideal, college officials agreed difficulties were to be expected and the changes will create an easier application process once the system is working efficiently.

The FAFSA form, which is being updated as a result of congressional action, is used to award federal aid like Pell Grants, as well as state scholarships, like the Arkansas Academic Challenge Scholarship. Arkansas education officials announced in January they would grant conditional approval of state scholarship applications as the federal government addressed issues associated with the FAFSA revamp.

Federal financial aid stress continues for Arkansas universities, students

*Elissa Nadworny/NPR*
Schools and students are coping with challenges from the delayed rollout of FAFSA.

by Jeff Della Rosa (JDellaRosa@nwabj.com)

Arkansas is one of seven states in which canceled student loan debt may be treated as taxable income, but whether it is, student loan forgiveness is expected to create a tax burden shift from the borrowers.

Recently, President Joe Biden announced plans to cancel up to $20,000 in student loan debt, depending on borrowers’ income. Pell Grant recipients qualify for up to the total amount in relief, while other borrowers can cancel up to $10,000 in student loan debt. Eligible borrowers must have an annual income of less than $125,000 or $250,000 for married couples or heads of households.

According to Federal Student Aid, an office of the U.S. Department of Education, nearly 8 million borrowers may be eligible for relief automatically because the agency already has relevant income data. By early October, an online application is expected to become available at studentaid.gov, allowing borrowers to apply for the relief. The application deadline will be Dec. 31, 2023.

https://talkbusiness.net/2022/09/state-might-tax-canceled-student-loan-debt/