Student loan forgiveness may become
tax-free under Covid relief bill.
Here’s what that means for borrowers
CNBC,
by
Annie Nova
Original Article
Posted By: NorthernDog,
3/8/2021 1:48:12 PM
A significant provision making any student loan forgiveness tax-free has been included in the $1.9 trillion federal coronavirus stimulus package that’s working its way through Congress and will likely soon be signed into law. Currently, any student loan debt canceled by the government can be considered taxable and levied at the borrower’s normal income tax rate. For example, if someone earns $50,000 a year, and was at a 22% tax rate, and received $30,000 in student loan forgiveness, they might be slapped with a $6,600 bill from the IRS. Soon, borrowers may be off the hook from these payments. What
Reply 1 - Posted by:
Knotwyrkin 3/8/2021 1:55:26 PM (No. 718293)
I don't care - I am old. My kids' generation voted for Obama twice, and now Biden - so this is all on them.
31 people like this.
Reply 2 - Posted by:
Jerseyden 3/8/2021 2:02:11 PM (No. 718295)
What bank or financial institution will future students go to for an education loan. People are stupid to believe this is free money but I doubt loan officers are. Unless feds are going to be the sole loan administration I can’t see this ending well.
9 people like this.
Reply 3 - Posted by:
coyote 3/8/2021 2:06:52 PM (No. 718298)
They tell us what it means for borrowers; it's all good, but what does it mean for lenders? Right. Have a good retirement, or not.
7 people like this.
Reply 4 - Posted by:
SALady 3/8/2021 2:11:03 PM (No. 718302)
#2 nailed it head on!!! That is exactly what the feds want to do -- take over the whole process and dump it on the backs of those of use stupid enough to keep working and paying taxes!!!
The Demon-Rats aren't going to rest until they have a Soviet-style dictatorship in this country, with the government controlling every aspect of our lives!!!
8 people like this.
Reply 5 - Posted by:
oldmagnolia 3/8/2021 2:38:56 PM (No. 718319)
#2 Any bank will give student loans for majoring in basket weaving because the government is the one backing the loan. The government should get out of the student loan racket. Students should go to the bank, ask for a loan, and the bank should ask them how they are planning to pay it back with a major in basket weaving.
6 people like this.
Reply 6 - Posted by:
Heil Liberals 3/8/2021 2:56:42 PM (No. 718339)
FTA - "It's like they are being given money."
It's because they are... from me and you.
The clock is ticking down on our republic.
6 people like this.
Reply 7 - Posted by:
downnout 3/8/2021 3:17:10 PM (No. 718356)
God forbid that the little snowflakes be responsible for their loans.
3 people like this.
Reply 8 - Posted by:
JHHolliday 3/8/2021 3:41:03 PM (No. 718379)
We put four children through college. God knows how since we didn't have much money in our early marriage years. I had to borrow a few thousand from my bank a time or two but we got it paid back as quick as we could. The oldest daughter had to take out a small student loan her last year but paid back every penny. What does it say to those of us who struggled and paid what we owed? It says drop dead, suckers!
10 people like this.
Reply 9 - Posted by:
anniebc 3/8/2021 3:58:16 PM (No. 718389)
Why do "students" need loans going forward? There should be no applications; you shouldn't have to get good grades. Students shouldn't be forced to "commit" community service acts or any of that old outdated, male-dominated, racist stuff. First come, first serve. If you want to go to Harvard, line up and take your turn. These people are insane fools who know not what they do. Or, they just don't care.
3 people like this.
Reply 10 - Posted by:
skacmar 3/8/2021 4:52:22 PM (No. 718430)
All of the crying about student loan debt is falling on deaf ears at my house. Sorry, student and parents, but you knew when you selected your expensive college and took out the loan and how much it would cost. You knew when you signed on the dotted line how much the student loans would cost and repayment terms. You knew when you graduated that you had a certain grace period before you had to start to repay the loans. You knew all of this but you still took out way more than you claim that you can ever pay back. Maybe you should have not taken out the loans. Maybe you should have gotten a job (or two or three) while in college! People do it all the time. Maybe you should have gone to a cheaper college. Higher price college does not always translate into better education or jobs after graduation. You made the choices. You live with and pay for the consequences!
6 people like this.
Reply 11 - Posted by:
joew9 3/8/2021 6:11:24 PM (No. 718498)
I paid. I want a 20k$ refund.
2 people like this.
Reply 12 - Posted by:
RuckusTom 3/8/2021 7:38:16 PM (No. 718550)
What will be next on the list of loan forgiveness? Mortgages? Car loans? TVs? Utilities? Just in time for the mass of DACA Dreamers coming across the border. "Vote For Me ! More Free Stuff ! "
1 person likes this.
Reply 13 - Posted by:
Yepper 3/8/2021 7:50:49 PM (No. 718562)
Government funded student loans should only be granted to those who are studying to enter fields which the country has identified as necessary. For example, the STEM fields. Everyone else will have to pay their own way. Also, to get a degree, then only the course necessary for that degree should be necessary to graduate (like Canada does). If we did these two things, which is extremely unlikely, the cost of tuition would plummet and the taxpayers wouldn't have to bear the cost of things like gender studies.
2 people like this.
Reply 14 - Posted by:
M Stuart 3/8/2021 9:33:52 PM (No. 718593)
It is absolutely WRONG to make a mechanic or other laborer pay the tuition for degrees they will not get nor presumably get the higher earnings for!
This is totally corrupt! Have you seen who is qualifying for the SBA money? Totally racist!
1 person likes this.
Reply 15 - Posted by:
mifla 3/9/2021 4:11:31 AM (No. 718714)
Time to get creative on our tax returns. Keep your money so the government never gets their hands on it.
0 people like this.
Prediction: college tuition rates will skyrocket. Why attend a community college, a state school or a lesser college when you can go to an ivy league or exclusive school for nothing? What criteria is used to select those who get in to those select schools? Every college raise their tuition sky high because it doesn't matter anymore since it will ultimately be free to the student. Will rent rates also go a lot higher since rent will be free too and landlords will be reimbursed? Attending college will become a career. Free tuition, free rent, unemployment benefits, free food, free utilities, just do enough to minimally pass.
0 people like this.
Reply 17 - Posted by:
msjena 3/12/2021 12:00:07 AM (No. 721354)
#2, the Feds are the sole loan administrators. It’s all tax dollars. They can forgive the loans and still hand out new ones as long as Congress gives them the money.
0 people like this.
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Comments:
The government would essentially be giving people a $50,000 gift if they had never paid back their loans; I wonder how those who worked 2nd jobs or denied themselves buying anything beyond essentials to pay their loans will feel.