The Downside of Student Loan Forgiveness Programs

Borrowers participating in Federal Loan forgiveness programs have a big tax liability waiting at the end of the term, any remaining balance would be forgiven but taxable. Under federal tax rules, that disappearing debt is considered part of a borrower’s income for that given year, and taxed as such.

Student-Debt Forgiveness Is a Wonderful Boon, Until the IRS Comes Calling

%d bloggers like this: