Public Service Loan Forgiveness

[BMBiology]

Think the government will forget about your tax bill because you are disabled? This crippled guy still got the tax bill:

"That was in 2009, in the depths of the recession, and finding a new job was difficult. Two years later, after struggling to pay medical bills not covered by insurance and other debts, Frank filed for bankruptcy. But that did not erase the giant pile of federal Parent Plus loans that he had taken out to help put his three children through college. Since he could no longer work, Sallie Mae, the loan servicer, ultimately suggested applying for a disability discharge, which would cancel the debts.

He qualified, and last July, his loans, which had ballooned to $150,000 in forbearance, were wiped away. “I felt like a Buick had been lifted off my shoulders,” said Frank, who lives in upstate New York.

But much to his surprise, he received another bill. In January, the Internal Revenue Service sent him a tax form, known as a 1099-C, which said that the loan amount had to be treated as income. According to his calculations on TurboTax, his tax bill for this year is about $59,000."

http://www.nytimes.com/2014/03/28/y...de-loan-debt-for-a-tax-bill-from-the-irs.html

---

Members don't see this ad.

 

[confettiflyer]

Again, the fallacy here is that you're applying future laws and regulation changes that don't exist yet to current situations, and current laws to future situations/events that will occur 20 years from now, both to bolster your opinion.

 

[BMBiology]

Again, the fallacy here is that you're applying future laws and regulation changes that don't exist yet to current situations, and current laws to future situations/events that will occur 20 years from now, both to bolster your opinion.

If that's your argument then that's the point of planning ahead? If anything things will be more strict. If you are not planning for the worse scenario then you shouldn't be doing PAYE/IBR/PSLF in the first place.

There's nothing that would prevent the government from changing the rule in the middle of the game. NOTHING. This recent proposal from the Obama administration proves it (cap PSLF at 57.5 k, can't exclude your spouse income when calculating your repayment). Remember the republicians have not gotten their hands on this proposal yet. Just wait and you will see things are going to be even less favorable.

Opening PAYE to everybody is bad for high income earners. Now the governement needs to compensate for it by making high income earners pay even more money.

 

[confettiflyer]

But my point is planning for the worst case scenario is as similarly detrimental as sticking your head in the sand should such a doomsday scenario not come to pass.

Unfortunately there's really no middle ground.

I still think there's enough of a critical mass of indebtedness that history has shown the need to extinguish/resolve it in an extrajudicial manner. That, or we will inflate our way out of it. Or, more likely, there will be a lucky few that sneak in and the rules are changed going forward (your Obama proposal).

 

[BMBiology]

You are on the bolder line of wishful thinking. The fallacy in your argument is the government going to forgive everyone's debt. The artist with 60 k in debt might get a break but not you, not your doctor friend, not your dentist friend.

Remember subsidized graduate stafford loans? Whatever happened to that? Look at Obama latest proposals. The writing is already on the wall. If you don't see it you are going to be in this debt for the next 35 years. The government is going to let you pay the minimum every month but it will squeeze as much interest out of you as possible because it needs you to pay for that artist's mistake.


Posted using SDN Mobile

 

[pharmasaur]

sorry to revive this old thread but I have another question

- if I work at a nonprofit hospital for 10 years full-time but also work per diem at a for-profit retail pharmacy, does that disqualify me from being eligible?

 

[BMBiology]

^ nope! You should have borrowed to the max because regardless if you had borrowed 200 k or 400 k, all will be forgiven by the government. Uncle Sam got your back!


Sent from my iPhone using SDN mobile app

 

[Monsterdaddy]

sorry to revive this old thread but I have another question

- if I work at a nonprofit hospital for 10 years full-time but also work per diem at a for-profit retail pharmacy, does that disqualify me from being eligible?

The minimum requirement is 30 hrs/week at one or more qualifying public or non-profit entities. Any employment on top of that is perfectly fine, it will just increase your loan payments by 10-15 cents/year per dollar earned.