On August 6, 2020, the Senate adjourned without passing a stimulus package. Senate Majority Leader Mitch McConnell (R-KY) wasn’t involved in the talks, leaving Senate Minority Leader Chuck Schumer (D-NY) and House Speaker Nancy Pelosi (D-CA) to work directly with Treasury Secretary Steve Mnuchin and White House Chief of Staff Mark Meadows. As of Friday…
The Internal Revenue Service (IRS) has issued guidance for some taxpayers who took out federal or private student loans to finance attendance at a nonprofit or for-profit school. The guidance offers relief for students whose loans have been discharged by the Department of Education and who meet specific criteria. Typically, a discharge of indebtedness is…
Lives were changed during a 2019 commencement address at Morehouse College when self-made billionaire Robert F. Smith announced that he was paying the student debt for the entire class. Shortly afterward, those students, potential donors, and tax geeks like me began to wonder whether there would be any tax consequences as a result of the windfall (you can…
As students from elementary age to grad level across the country head back to school this month, parents are grappling with how to pay tuition, buy school supplies and fit in all of those extracurricular activities. It can be difficult to figure it all out, and in an era where everyone seems to have an…
There may be tax consequences for repaying – or not repaying – what you owe. When it comes to paying back student loans, here’s what you need to know.
As the cost of a college education continues to climb, more and more students are taking on student debt. Collectively, as a country, we currently owe nearly $1.4 trillion in student loans. That balance is growing at a rate of $2,726.27 every second. Fortunately, there’s a tax break available to help ease some of the pain of paying it back.
As student loan debt continues to grow, Senators Bob Menendez (D-NJ) and Elizabeth Warren (D-MA) have introduced the Student Loan Tax Relief Act which would exempt discharged student loans from being taxed as income.
What happens when you can’t pay your student loan debt? Here’s what can happen if you can’t pay (and how to avoid it in the first place).
(UPDATE: The giveaway is now closed. We have our winner! See the comments for more info.) College students depend on their parents for a lot of things. But two that are at the top of the list? Laundry and money. Trust me on this one: as a college student, I piled my old Buick full…
It’s Back To School Week on the blog! All week long, I’ll be answering your questions about school and tax – complete with fun giveaways. Next up: what about all that student loan debt? Can you get a tax break for paying it down?