To: President Donald Trump, The United States House of Representatives, and The United States Senate
Student Loans Taxation
Regarding Student Loans. Currently the debt forgiven through the public service loan forgiveness plan is not considered taxable. We would like to extent this privilege as well to borrowers who qualify for loan forgiveness through IBR and ICR. After 300 timely payments, borrowers should not be taxed on the amount forgiven!!!! It will likely be totally unaffordable for larger loans.
Why is this important?
My son and his wife owe $340,000 in student loans! They are both employed as optometrists. They are currently repaying their student loans through the IBR plan. Their payments are managable under this plan, but their fear is the exorbitant tax they will have to pay when the loan is forgiven in 25 years. It may be up to $70,000.
Currently the debt forgiven through PSLF is not considered taxable. We would like to give this privilege to borrowers who qualify for loan forgiveness through IBR (and Income Contingent Repayment) get the same treatment. After 300 payments, they should not be taxed!!!! It will likely be totally unaffordable.
Currently the debt forgiven through PSLF is not considered taxable. We would like to give this privilege to borrowers who qualify for loan forgiveness through IBR (and Income Contingent Repayment) get the same treatment. After 300 payments, they should not be taxed!!!! It will likely be totally unaffordable.