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Oh yeah! Oh no... | MY $10,000 STUDENT LOAN DEBT IS FORGIVEN; I HAVE TO PAY TAXES TO IRS FOR $10K OF "FORGIVEN" LOAN AS TAXABLE INCOME | image tagged in oh yeah oh no | made w/ Imgflip meme maker
241 views 17 upvotes Made by ToneDef 3 years ago in politics
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4 Comments
0 ups, 3y,
1 reply
if student loan debts are forgiven, those students will get a free lesson in tax accounting with a large dose of reality.
0 ups, 3y,
1 reply
The taxes on it are still a pittance compared to paying off the whole loan. They are still coming out way ahead. The amount of taxes on that additional "income" will depend on how much other income they have in the year it's forgiven. If they are truly "struggling", perhaps unemployed and living with their parents, they could even end up paying no taxes on it.
0 ups, 3y,
1 reply
I wouldn't say "pittance", but certainly the taxes on $10K may be as little as a few $100 but up to $2k-$3k. The matter of taxes is more a dose of reality for these students, who willingly took a personal loan to pay for their tuition plus their living expenses and now are asking the rest of the country to pay for their personal student loan.

The real imposition is that from a legal standpoint, if taxpayers can be forced to pay for other people's personal loan, there's a valid argument that taxpayers can be forced to pay for other types of personal loans, such as home mortgages, car loans, etc.
0 ups, 3y
I agree. Many of us make take on financial obligations that we aren't up to. We usually think we are, but we stretch our finances too thin.
A simpler, and fairer solution would be to make student loans eligible for bankruptcy, like most other debt. It's still not "fair" but would force the actual need of the individual to be assessed in court, and would cary other repercussions that they would have to consider before bailing on paying it off.
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MY $10,000 STUDENT LOAN DEBT IS FORGIVEN; I HAVE TO PAY TAXES TO IRS FOR $10K OF "FORGIVEN" LOAN AS TAXABLE INCOME