As you might imagine, I’m on a few different student loan advocacy e-mail listservs. A few days ago, the listservs sent out this message regarding taking action for real student loan forgiveness:
Take Action for Real Loan Forgiveness!
In addition to lowering monthly student loan payments, the new Income-Based Repayment (IBR) program forgives any remaining debt – including interest – after 25 years. Most borrowers will pay off their debt before then, but under current law, if there’s anything left to forgive after 25 years, the amount forgiven would be taxed as income to the borrower.
A bipartisan bill in the U.S. House of Representatives, H.R. 2492, would prevent the taxation of debt forgiven through IBR. Loan forgiveness is supposed to wipe the slate clean for responsible borrowers, not create a new financial obligation. Current law exempts some kinds of loan forgiveness from taxation, including Public Service Loan Forgiveness, but not IBR.
Please take a moment to write to your representative and urge them to support H.R. 2492 and ensure there’s really a light at the end of the tunnel for responsible borrowers.
Now granted, if I keep on keeping on, then I don’t qualify for this program, but rather I qualify for the Public Service Loan Forgiveness program. However, I did submit an automated message to my elected officials by clicking here. It only took a minute or two and hey, if enough people contact their legislators then something might happen.
Give it a shot – there are a lot of student loan borrowers who can benefit from this legislation.