Millennials, in particular, are facing a tougher uphill climb as they face a tougher job market and
big student loan bills.
Taking a vacation from paying your loans sounds nice in theory, but is just an invitation for
a bigger student loan bill down the road
Whether you've racked up
a big student loan bill or mountains of credit card debt there is a way out.
Not exact matches
So be prepared to get hit with a
big tax
bill if you qualify for forgiveness (
student loan debt forgiven after 10 years under the Public Service Loan Forgiveness program is not taxab
loan debt forgiven after 10 years under the Public Service
Loan Forgiveness program is not taxab
Loan Forgiveness program is not taxable).
Democratic leaders tried to get a much
bigger version of that program into a
bill to overhaul the
student loan program, but it was stripped out.
The entire system is rigged against the borrower and those who earn «too much», as I did, will not even be able to deduct any of that
big student loan interest
bill on their taxes.
Hopefully the
bill wasn't too
big, and at least the interest on the
student loans are tax deductible
It may not be a
big deal to you if you skip paying a
student loan or credit card
bill, but it might be a
big deal to a company looking at hiring you.
Even if a borrower can reach the point of forgiveness, they might get blindsided by a
big tax
bill as forgiven
student loan balances via IDR plans are taxed as income.
However, the
biggest impact of getting rid of the
student loan deduction may be the impact on a borrower's overall tax
bill.
Needless to say, a more readily available
student loan discharge option, the major goal of this
bill, could be too
big a price to pay for taxpayers.
So be prepared to get hit with a
big tax
bill if you qualify for forgiveness (
student loan debt forgiven after 10 years under the Public Service Loan Forgiveness program is not taxab
loan debt forgiven after 10 years under the Public Service
Loan Forgiveness program is not taxab
Loan Forgiveness program is not taxable).
You're likely bringing home a significant paycheck for the first time in your life, but also have
big - time monthly
bills to pay, including
student loans.