Should come out of university endowments first.
Apply for student loan debt forgiveness
31–40 of 130 posts
Re: Apply for student loan debt forgiveness
#32There are tax implications to debt forgiveness in some states, unless those states change their laws, so be careful about rushing to file. The filing deadline is not until Dec. 31, 2023. https://taxfoundation.org/student-loan-debt-cancelation-tax-...
In what cases would it be better to not take the forgiveness to avoid the taxes? Would you not take the forgiveness and borrow to pay the taxes if you had to? You’re coming out ahead regardless.
If you can't borrow or afford to pay the taxes would be one situation, then you can save up in 2023.
Weird situation for sure but you always want to look before you leap with these things.
Re: Apply for student loan debt forgiveness
#33There are tax implications to debt forgiveness in some states, unless those states change their laws, so be careful about rushing to file. The filing deadline is not until Dec. 31, 2023. https://taxfoundation.org/student-loan-debt-cancelation-tax-...
In what cases would it be better to not take the forgiveness to avoid the taxes? Would you not take the forgiveness and borrow to pay the taxes if you had to? You’re coming out ahead regardless.
The question is not if but rather when. Hopefully some of the states will change their laws to not count student loan debt forgiveness as income, but they haven't had time to do so yet.
Re: Apply for student loan debt forgiveness
#34Earlier quoted context omitted.
In what cases would it be better to not take the forgiveness to avoid the taxes? Would you not take the forgiveness and borrow to pay the taxes if you had to? You’re coming out ahead regardless.
If you don’t have liquidity to cover the taxes on the imputed income.
Even at an extortionate 30% APR and assuming a worst case 10% state income tax rate, that puts payments at ~$100/month to save ~$17k assuming $2k in tax on $20k forgiven (plus interest).
I cannot speak to all states, but some will offer a payment plan at prime plus some basis points if you can’t afford your tax due at tax time. That’s cheap money to retire a chunk of debt.
My concern would be those folks trying to block debt forgiveness efforts, and their chances of success. Better to get it done sooner and pay some tax versus holding out and possibly getting nothing.
(educational purposes only, not financial advice)
Re: Apply for student loan debt forgiveness
#35As someone whose partner is bogged by student debt — unable to find a job in their industry due to the recession — this is such a relief. Those arguing this is a debt transfer, have some sympathy. Things are difficult out there, especially for new grads in this economic environment.
My wife’s siblings all avoided college to avoid taking on debt that they didn’t think they could pay off. They worked low wage jobs during the years their peers attended university on borrowed money.
This blatantly unfair debt forgiveness is nothing but a transparent bid to make friends of a subset of the population perceived as more valuable than the subset of which it will make enemies.
Why would you expect other’s sympathies to lie with your partner when this policy takes away from people who have families of their own?
Re: Apply for student loan debt forgiveness
#36There is no such thing as forgiveness for loans - its always paid by someone. This is, in essence, transferring the debt from people who graduated college to people who - on average - did not go to college. The most regressive invisible tax hike we have ever had but sure. . . yay.
It's truly something when I come to this website and folks are arguing against the government providing assistance to folks burdened by inescapable debt where making payments for decades and paying taxes can land you with even more debt than you started with because of the interest rates. What's supposed to happen? We just throw our hands up and say that the system is irreparably broken and there's nothing to be done?
And if this is a tax hike, then where has the 5-15% APR on many of those loans been going this whole time?
Re: Apply for student loan debt forgiveness
#37to be very honest, if this is all it takes, it's the easiest gov form i've ever filled out. i'm loving it
Re: Apply for student loan debt forgiveness
#38Earlier quoted context omitted.
I am probably going to get 10K forgiven. Unshackling people from debt is awesome. Hopefully they figure out how to do this regularly. Sucks if you don't like it! Hopefully I can redirect the money to more fruitful enterprises... like anything else. The massive increase in college tuition is totally out of proportion based on wage growth and honestly it's not healthy for the middle class to be forced into an infinite…
All you've done is put the shackles on someone else.
Show me..
Re: Apply for student loan debt forgiveness
#39There is no such thing as forgiveness for loans - its always paid by someone. This is, in essence, transferring the debt from people who graduated college to people who - on average - did not go to college. The most regressive invisible tax hike we have ever had but sure. . . yay.
> This is, in essence, transferring the debt from people who graduated college to people who - on average - did not go to college.
There's an easy solution to fix this - tax the rich or super-rich more.
Re: Apply for student loan debt forgiveness
#40There is no such thing as forgiveness for loans - its always paid by someone. This is, in essence, transferring the debt from people who graduated college to people who - on average - did not go to college. The most regressive invisible tax hike we have ever had but sure. . . yay.
Heaven forbid a country invest in the education of its people. What a terrible no good idea, we should definitely be putting that money into pumping business or other interests.
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