Obama takes executive steps in SL's

Re: Obama takes executive steps in SL's

• hoffse member

  

  June 2014

  Interesting article on the tax consequences of these programs:

  
  

  http://www.nytimes.com/2012/12/15/your-money/for-student-borrowers-a-tax-time-bomb.html?pagewanted=all&_r=0
  

  
  

  I especially like the point at the very end which discusses a world in which including a bunch of forgiven debt in ordinary income might boost you to a higher tax bracket.  That's totally possible.

  
  

  This is something people need to be aware of.

  

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• vlagrl29 member

  

  June 2014

  hoffse said:

  Interesting article on the tax consequences of these programs:

  
  

  http://www.nytimes.com/2012/12/15/your-money/for-student-borrowers-a-tax-time-bomb.html?pagewanted=all&_r=0
  

  
  

  I especially like the point at the very end which discusses a world in which including a bunch of forgiven debt in ordinary income might boost you to a higher tax bracket.  That's totally possible.

  
  

  This is something people need to be aware of.

  It would for sure.  You would have to put away money and save it in preparation to pay the taxes on it at the end of the year.

  
  

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• Xstatic3333 member

  

  June 2014

  vlagrl29 said:

  
  

  hoffse said:

  
  

  Interesting article on the tax consequences of these programs:

  
  

  http://www.nytimes.com/2012/12/15/your-money/for-student-borrowers-a-tax-time-bomb.html?pagewanted=all&_r=0
  

  
  

  I especially like the point at the very end which discusses a world in which including a bunch of forgiven debt in ordinary income might boost you to a higher tax bracket.  That's totally possible.

  
  

  This is something people need to be aware of.

  
  

  It would for sure.  You would have to put away money and save it in preparation to pay the taxes on it at the end of the year.
  
  I'm glad at least one media outlet is addressing the tax components of this program! People seriously don't have any clue.
  
  I have one friend who's a public service lawyer. He mentioned he was doing PSLF, and since I'm considering it too I asked him how tricky the registration process was. It turns out he hadn't even looked into applying yet. He just said, "isn't it automatic after 10 years?" Sigh. No. Such poor information out there.
  
  

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• KatieCutie05 member

  

  June 2014

  You want to help students suffering from student loan debt - then let us refinance our high interest loans from 8 years ago to that new "high interest loan" that is really so low i could cry. Why do students get 4% now but i'm stuck with 8% all because i went to school 4  years ago. I'll pay it back-i'm not asking for forgiveness! I just want to be able to refinance at a lower rate cus this is just crazy!

  
  

  Nope they won't do that though becuase the government is in the business of making money - not helping the people. Don't you get it? IBR is helping the governement and making the people THINK its helping them because most people don't pay attention to how long they are paying it and how much more they are paying total - they just pay it. all they see is their monthly payment goes down and obama saving them. Its a political move. If you need a temporary low payment then the student loan companies would likely give that to  you - i don't need a law from obama to let me temporarily lower my payments. This move is helping the government make MORE from student loans - not less. 

  

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• uncreatedsnow member

  

  June 2014

  
  

  I'm glad at least one media outlet is addressing the tax components of this program! People seriously don't have any clue. I have one friend who's a public service lawyer. He mentioned he was doing PSLF, and since I'm considering it too I asked him how tricky the registration process was. It turns out he hadn't even looked into applying yet. He just said, "isn't it automatic after 10 years?" Sigh. No. Such poor information out there.

  Yep, my boss today thought the same thing.
  

  #GetItTogether2013

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• Xstatic3333 member

  

  June 2014

  KatieCutie05 said:

  You want to help students suffering from student loan debt - then let us refinance our high interest loans from 8 years ago to that new "high interest loan" that is really so low i could cry. Why do students get 4% now but i'm stuck with 8% all because i went to school 4  years ago. I'll pay it back-i'm not asking for forgiveness! I just want to be able to refinance at a lower rate cus this is just crazy!

  
  

  Nope they won't do that though becuase the government is in the business of making money - not helping the people. Don't you get it? IBR is helping the governement and making the people THINK its helping them because most people don't pay attention to how long they are paying it and how much more they are paying total - they just pay it. all they see is their monthly payment goes down and obama saving them. Its a political move. If you need a temporary low payment then the student loan companies would likely give that to  you - i don't need a law from obama to let me temporarily lower my payments. This move is helping the government make MORE from student loans - not less. 

  
  Though I'm not totally anti-IBR in all cases, I'm also mad that Congress won't pass the refinancing option. They're making excuses like "it doesn't solve the root of the problem." That's true, but it would help a lot of people who are responsibly making their payments. I'm pretty sure it's only being shot down for petty political reasons, which drives me bonkers. With our country and Congress so polarized, nothing good gets done.
  

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• Wulfgar member

  

  June 2014

  What gets me is how much the media twists things.  I was listening to NPR earlier this week and they were going on about how some people have student loans with interest rates over 8.5% which is the maximum legal limit for Federal Student loans without saying that those with interest rates over 8.5% are private student loans.
  
  I do know that once I consolidated my Federal Loans, they did drop the interest of all my loans to one and combined them all into one loan.  My signature loan (Private) has had it's interest rate dropped roughly in half over the years.  Not sure why but am happy.
  

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