Those breathing a sigh of relief that their student loan debt is now in line with their income may want to re-evaluate the guidelines that set the income based payment in the first place. There could be a tax time bomb looming, slowly ticking away. And with America’s focus on student loan debt and job security, defusing it is not a big part of the policy discussion in Washington at the moment… but we have been keeping a watchful eye and our projections might shock you…
Should You Have to Pay Taxes on Forgiven Student Loan Debt?
If you’re enrolled in the income-based repayment program, should you have to pay income taxes on the loan balance that the government dismisses?
This potential tax bill is a byproduct of federal efforts, including the newly expanded income-based repayment program, that allow you to limit the monthly payments on most federal loans to … Read More