4 ms·

Sure, it might be hard. But my point is that it can't be harder than paying the debt itself. Debt forgiveness does not leave you in a worse position unless your

Sure, it might be hard. But my point is that it can't be harder than paying the debt itself. Debt forgiveness does not leave you in a worse position unless your marginal tax rate is more than 100%, which is vanishingly rare.

gigatexal 8y ago
What? If I make 80k a year having the IRS think I made an extra 50k puts me in a new tax bracket
- kalleboo 8y ago
  But it's only a new marginal rate, so it still only applies to those extra 50k
  - gigatexal 8y ago
    The average American doesn’t have the savings to pay that extra amount is what I’m getting at. And I’m average.
    - darkarmani 8y ago
      Would you rather owe the entire amount of the loan?
    - gigatexal 8y ago
      No I wouldn’t want to owe the entire amount of the loan but if I can’t pay off the loan or the forgiven amount I’m screwed either way. Just in the latter situation I’m relatively less screwed.
      - mercutio2 8y ago
        You appear to be pretty attached to the idea that IRS liabilities are worse somehow than student loan liabilities. Other people seem to be trying in good faith to understand why you think this. IRS liabilities can easily be repaid over long time scales, usually at much lower interest rates than you can get on unsecured loans such as a student loan. A $50k non-dischargeable loan, at a relatively high interest rate, with a flexible repayment timeline does not appear, to me, to compare favorably with a $15k IRS liability, dischargeable in bankruptcy, at relatively low interest rates with a similarly flexible repayment timeline.
        gigatexal 8y ago
        Back to the point: Lambda school and schools like it are the for profit schools we needed. And I hope the model scales to other industries and that education is flipped on its head because of it.
    - thedufer 8y ago
      Why would you have to pay it all immediately? The IRS is very helpful with payment plans (this is obviously better for them than demanding full payment and then watching you wipe away the debt in bankruptcy). Here are some details [1] - fees to move your owed taxes to a long-term payment plan (essentially a loan) range from $31 to $225. And if they aren't, personal loans are possible. Or even bankruptcy! The common thread between these options is that they're better than being $50k in non-dischargeable debt. [1] https://www.irs.gov/payments/payment-plans-installment-agreements https://www.irs.gov/payments/payment-plans-installment-agree...
- thedufer 8y ago
  The difference in your tax bill between $80k of income and $130k of income is $15k. This is much, much less than $50k. In this case the loan forgiveness has increased your net worth by $35k. That's a lot of free money that you're insisting is actually a curse.

gigatexal 8y ago

What? If I make 80k a year having the IRS think I made an extra 50k puts me in a new tax bracket

kalleboo 8y ago
But it's only a new marginal rate, so it still only applies to those extra 50k
- gigatexal 8y ago
  The average American doesn’t have the savings to pay that extra amount is what I’m getting at. And I’m average.
  - darkarmani 8y ago
    Would you rather owe the entire amount of the loan?
  - gigatexal 8y ago
    No I wouldn’t want to owe the entire amount of the loan but if I can’t pay off the loan or the forgiven amount I’m screwed either way. Just in the latter situation I’m relatively less screwed.
    - mercutio2 8y ago
      You appear to be pretty attached to the idea that IRS liabilities are worse somehow than student loan liabilities. Other people seem to be trying in good faith to understand why you think this. IRS liabilities can easily be repaid over long time scales, usually at much lower interest rates than you can get on unsecured loans such as a student loan. A $50k non-dischargeable loan, at a relatively high interest rate, with a flexible repayment timeline does not appear, to me, to compare favorably with a $15k IRS liability, dischargeable in bankruptcy, at relatively low interest rates with a similarly flexible repayment timeline.
      - gigatexal 8y ago
        Back to the point: Lambda school and schools like it are the for profit schools we needed. And I hope the model scales to other industries and that education is flipped on its head because of it.
  - thedufer 8y ago
    Why would you have to pay it all immediately? The IRS is very helpful with payment plans (this is obviously better for them than demanding full payment and then watching you wipe away the debt in bankruptcy). Here are some details [1] - fees to move your owed taxes to a long-term payment plan (essentially a loan) range from $31 to $225. And if they aren't, personal loans are possible. Or even bankruptcy! The common thread between these options is that they're better than being $50k in non-dischargeable debt. [1] https://www.irs.gov/payments/payment-plans-installment-agreements https://www.irs.gov/payments/payment-plans-installment-agree...
thedufer 8y ago
The difference in your tax bill between $80k of income and $130k of income is $15k. This is much, much less than $50k. In this case the loan forgiveness has increased your net worth by $35k. That's a lot of free money that you're insisting is actually a curse.