My daughter's student loan

[bif]

Is now $107! She owed a shit ton of money after four years of college. Thank you President Joe!

[underpants]

1. Having a rough time checking on mine

New servicer. Their website sucks.

Congratulations to your daughter.

[Alhena]

2. This has to get through 6 Republican justices who just said the EPA didn't have the authority to do

much of anything to fight global warming. They aren't exactly fans of executive action by Democratic presidents.

[Nevilledog]

6. OLC memo

https://www.democraticunderground.com/100217078738

[eissa]

3. Happy for her!

What a burden lifted from a generation held hostage by predatory lenders.

[CentralMass]

4. If $10k got her down to $107 she didn't owe a shitload. But I am happy for her.

[bif]

5. When you're young, have a so-so job and living in L.A.

It doesn't let you save much money. We taught our children to be smart with their money. She just got married too.

[CentralMass]

22. I know the drill. I have 3 daughters carrying college debt and the cost of rents in

Last edited Wed Aug 24, 2022, 08:38 PM - Edit history (1)

proportion to their salaries is crazy and they have some heavy school loans. However they are working their way up the ladder to better paying jobs but the load of the college debt will probably take many years to pay off and that adds a break reality to life.

[zuul]

7. Yay for your daughter!

My daughter was conned into consolidating her loans in 2008. I have been making payments for her and have never missed a single payment. Her balance is over $47,000, without ever missing a payment! Insanity!

[Iggo]

8. Excellent news!

[panader0]

9. I called my daughter and told her the news.

She fits the requirements and the loan forgiveness will erase the 8 grand she still owes. Very happy.

[MLAA]

26. Yeah! Congrats to your daughter.

[SheltieLover]

10. Does she have to pay income tax on it?

Congrats to her!

[W_HAMILTON]

17. Not for federal.

https://www.cnbc.com/2022/08/24/heres-what-president-bidens-student-loan-forgiveness-means-to-your-taxes.html

However, borrowers could potentially owe state income taxes on the debt forgiveness, but even more reason for voters to get off their asses in November and vote in Democrats that are more inclined to pass laws to also allow this debt forgiveness to not result in state income taxes either.

[SickOfTheOnePct]

18. I'm not getting why

They shouldn’t have to pay taxes on it. I realize that’s the way it’s set up up, by why? Other loan forgiveness is taxable, and they’re being handed a (at least) $10k gift by taxpayers…they should be taxed on it.

[W_HAMILTON]

21. Because of the American Rescue Plan passed by Democrats in 2021.

From the article I linked earlier:

The American Rescue Plan of 2021 made student loan forgiveness tax-free through 2025 — and the law covers Biden’s forgiveness too, according to a fact sheet from the White House.

So, the stage has been set for this for well over a year now.

Thank you President Biden and thank you Democrats!

[SickOfTheOnePct]

24. As I said

I understand that they don’t have to pay fed taxes because of the way the law is written, I’m saying I don’t understand why it’s written that way.

[W_HAMILTON]

27. Because Congress has the power to write law...

...and it did so to do so in a way that helps these people rather than leave them with unexpected tax bills?

Why do you seemingly disapprove of this?

[SickOfTheOnePct]

30. Because they're being handed

at least $10k, and I see no reason why they shouldn’t be taxed on it.

[W_HAMILTON]

31. Because many of them could not make monthly payments of a couple hundred dollars...

...so how are they going to manage an unexpected tax bill of ~two grand or more?

Why do you seem to hate that these people are being helped? It literally costs you nothing. Not one cent out of your pocket. Do you not think that we should strive to make higher education affordable, if not outright free?

[SickOfTheOnePct]

33. My retirement

Savings and that of my ex-wife are far, far below where they could be because we scrimped and saved all that could so that our daughters would graduate without student loan debt. And we put less into our retirement than we could have while the girls were in school because savings didn’t cover it all. And we did that while paying loans that we took out knowing they would have to be repaid (mortgage, car).

I don’t think it’s a lot to ask that they pay tax on the windfall, but I understand that’s not a popular opinion

[W_HAMILTON]

37. If you are retired now, you don't know what many of these people have had to go through.

You lived during a time when a higher education was A FRACTION OF A FRACTION of what it is today. Do you ever think that it is """unfair""" that you got to live during those times when you could finance a college education with a summer job while students today have to take out tens of thousands of dollars in student loan debt to do the same?

[SickOfTheOnePct]

39. I'm not retired

and won’t be for a few more years, in large part because my retirement savings aren’t where they need to be due to doing my part to put our daughters through college.

[radicalleft]

41. Your user name belies

your attitudes about helping the average folks...

[FreeState]

32. Because it would add to their burden?

The whole point is to remove that burden so the person and the economy thrives. Taking away from that to pay taxes reduces the help.

[SheltieLover]

19. So happy to hear no Fed tax on it!

You bet people need to get out in huge numbers & vote Blue!

[mcar]

11. My son had $11,000 a few years ago

Thanks President Biden!

[Ollie Garkie]

12. Umm

Can someone help me figure something out? I did not qualify for the pause and I am told by navient that that's because my loans...that I borrowed directly from Uncle Sam are somehow not held by the Dept of Ed. Other borrowers that do have my servicer Navient though did qualify. I don't get it, I suppose I don't qualify for forgiveness either?

[Farmer-Rick]

23. Navient is under investigation by the Consumer Financial Protection Bureau

It has done some really shady crap. And frequently fraudulently directs it's victims into some very shady deals.

If I were you, I would contact my federal Senator or Congress Critter. They may be able to figure out how Navient has screwed you over. It's one of those Cons built into the student loan scam.

Here's a link to get you started:

https://www.investopedia.com/navient-student-loan-servicer-review-5070561#:~:text=Frequently%20Asked%20Questions-,Is%20Navient%20Federal%20or%20Private%3F,to%20service%20its%20federal%20loans.

I'm so sorry this has happened to you.

[Safety Dawg]

34. I'm in a similar boat

My loans are now held by Navient and are FFELP. I'll have to go back and figure out exactly what happened, but I originally had Federal Direct loans (and Pell Grants). After graduating, I had difficulty making my loan payments, and ended up consolidating them as a way to help lower the payment. I guess that's when Navient ended up owning them.

I won't lie and say that I'm not bummed out if my loan isn't included in the forgiveness program, but I've made my peace with it. Ultimately, I'm in no worse shape than I was yesterday, and many other people are significantly better off than they were yesterday, so it's hard to see that as anything but a positive.

[Ollie Garkie]

35. I consolidated as wel

So maybe that's what happened. But some people who have their loans with navient still got the pause so we're still missing something here.

[Safety Dawg]

36. I'm not certain yet, so take all of this with a grain of salt...

but what may be the problem is that some people have FFELP loans that are (or at least until recently were) serviced by Navient, but still "owned" by the Federal Government. In my case, Navient is listed as both the servicer and owner of the loan.

I don't think it's been definitively spelled out that privately held FFELP loans won't be included in the forgiveness act, but it's not looking great either. We may have to wait and see what other details come out in the next few days or weeks.

[ShazzieB]

13. I'm still waiting to hear how this will affect my daughter's loan.

I messaged her earlier but haven't heard back yet.

I believe her debt was around $20,000, and she used Pell grants, so it sounds like this should wipe out most of it. But I'm not going to believe it until I see it, if you know what I mean!

Fingers crossed. 🤞

[SheltieLover]

20. All paws xd for her, ShazzieB!

🤞🤞🤞🤞🤞🤞🤞🤞🤞🤞

[H2O Man]

14. Recommended.

[mtngirl47]

16. Their website is bogged down---

My daughter has been trying to find out all day. Fingers crossed!

[MLAA]

25. Fantastic!

[orleans]

28. i'm thinking this will wipe out my daughter's loans!

i could be wrong--but i'm hopeful.

congrats to everyone this will help.

[TlalocW]

29. Everything went into effect already?

To the point that you know she's down to $107? That's impressively fast.

[bif]

40. It was fast! I'm so happy for her!

She's been paying it back for the last ten years. I can't imagine having that kind of debt.

[central scrutinizer]

38. Thankfully, we were able to fund our daughter's education.

She had a BA, then got a BS (decided to become an engineer) and an MS and never had to take a loan. I am happy that many other students can now have the peace of mind that she has. And use their income to improve their lives. If your neighbors are helped, your neighborhood is improved.