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Most teachers should qualify for the Public Service Loan Forgiveness (PSLF) program, meaning any federal loans (not private) should be forgiven after 120 paymen
by jonlucc 11y ago
Most teachers should qualify for the Public Service Loan Forgiveness (PSLF) program, meaning any federal loans (not private) should be forgiven after 120 payments without incurring the tax burden. As far as I understand, the 120 payments could well be "payments" of $0 if the annual income is low and the borrower is on an income-based repayment plan.
By the way, if you file taxes separately, they typically only take the borrowers income (unless you are on the REPAYE repayment plan, instead of the IBR repayment plan).
- mrestko 11y agoThe amount forgiven is counted as income for that year and is taxed as such. I believe this is what the preceding commenter was asking about.
- hodoublesy 11y agoThere are various repayment options available, some incur a tax burden and some do not. The PSLF option does NOT incur a tax burden after 120 payments. It would be smart to research each option available to see what is best for your circumstance.
- mrestko 11y agoI was not aware of that. Thanks for clarifying.