I do think though, IF AND ONLY IF, students have fulfilled the terms of their loan and then if there is anything remaining left that is forgiven due to the terms of their loan (yes I know that wasn't what Biden was doing, I am talking about fulfilling the terms of your loan to the bitter end where what is then left is forgiven after paying 20 or 25 years worth of payments) they shouldn't get a 1099-C and have to pay income taxes on that money as if it was ordinary income. This was the case and still will be the case (it wasn't during the pandemic pause and that ends 12/31/25).I'm in this camp of anger about that . #2 Trying to forgive $1.7 trillion of student debt . Thats insanity . 10's of millions paid there own collage then he wants to forgive the ones that didn't . That angered a ton of people
Unless it got removed at the last minute the bill had in there that students who had their loans forgiven because of disability (and in the case of death as well) then what is written off isn't taxed (eg no 1099-C). That was already the case for anyone who received care at the VA even if the reason for the disability wasn't service related and now that will be true for everyone. I do think that is fair. EDIT - I finally found this in the bill that was signed and it was NOT removed.
I also think changing the terms of loans that people have already signed for shouldn't be changed. That doesn't happen with any other kind of loan and it shouldn't happen with student loans either. In my opinion changing all the repayment plans that people have signed legal documents to enroll in I don't think is right either. If they want to change it for the future fine. People will know what the deal is before they have even taken out a loan and signed the legal paperwork. Changing it after the fact though I think is wrong.
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