So without working for the gov't, you can't get the remaining 242.5k forgiven so that is added to your taxable income, correct? If we're assuming that the cap subtracts from the debt amount and the remaining amount is not forgiven.See my post about using a combination of options through the VA, Army Reserve, and your state programs.
True, but I'm assuming that it will be capped as there have been talks about it already. But yes, if there is no cap, I can see how that full amount is forgiven and there is no tax bomb.PSLF has not been capped ...yet (and neither has anyone's loans been forgiven yet). But you get tax bombed with IBR, not PSLF.
Hm, true. I messed that part up. Without PSLF, there is a tax bomb. But with a PSLF cap, wouldn't that mean that the rest of the debt amount is not forgiven then? Why have a cap then? I guess my mess up wasn't really a mess up?
I know this is still unknown and hypothetical since we don't know what will happen once the first batch of borrowers..