Congrats on navigating the Loan Forgiveness process. And for those that may wonder, there are a few different avenues to have your loans forgiven , namely:
1) 25 years of income driven payments
2) 10 years of qualifying loans while working on the public sector
3) 5 consecutive years of working in low income schools as a teacher
4) loan forgiveness for nurses (working under certain conditions, and depending on the program).
5) state sponsored or military forgiveness
It’s not a blank check. Generally speaking, you have to work in less desirable positions that pay considerably less than private sector work.
EDIT:
My wife is currently about 7 months away from Her 10 years working for the state as an Attorney. Her total forgiveness will be roughly 3x of the OPs, which is what 3 years at a private law school will run you. We’ve also had to file our taxes as Married / Separate to keep her income driven payments down. Yes, that means we get screwed in taxes, but we would get even more screwed if they factored my income in to her monthly repayments.
Getting a home loan was also a bit more difficult because they see this huge $300K loan in her credit file, which impacted our DTI…
Outside of that, she has been super diligent about staying on top of the requirements (which have been purposefully vague in my opinion). We are navigating the Mohela transition as well, which means we had to reverify several years of payments. Hopefully we are in the final stretch.
Congrats again OP!
EDIT EDIT
Filing Married but Separate is NOT tax fraud. It is one of the 5 filing statuses that you can legally claim. It does not mean that you are separated from your spouse (although you might be and can use this status). It simply means that you are filing separate tax returns and each using their own income. There’s not many reasons why you would want to do this because you miss out on some of the tax credits for married couples.
Here is what pisses me off about this, and please correct me if I'm wrong here. It's not that this student had their loans forgiven. It's not that tax payers are footing the bill. It's that the damn university charged so much in the first place and they won. They got their money.
iObeyTheHivemind on January 12nd, 2023 at 03:16 UTC »
These comments will be insightful and level headed
bombayofpigs on January 12nd, 2023 at 03:37 UTC »
Congrats on navigating the Loan Forgiveness process. And for those that may wonder, there are a few different avenues to have your loans forgiven , namely:
1) 25 years of income driven payments
2) 10 years of qualifying loans while working on the public sector
3) 5 consecutive years of working in low income schools as a teacher
4) loan forgiveness for nurses (working under certain conditions, and depending on the program).
5) state sponsored or military forgiveness
It’s not a blank check. Generally speaking, you have to work in less desirable positions that pay considerably less than private sector work.
EDIT:
My wife is currently about 7 months away from Her 10 years working for the state as an Attorney. Her total forgiveness will be roughly 3x of the OPs, which is what 3 years at a private law school will run you. We’ve also had to file our taxes as Married / Separate to keep her income driven payments down. Yes, that means we get screwed in taxes, but we would get even more screwed if they factored my income in to her monthly repayments.
Getting a home loan was also a bit more difficult because they see this huge $300K loan in her credit file, which impacted our DTI…
Outside of that, she has been super diligent about staying on top of the requirements (which have been purposefully vague in my opinion). We are navigating the Mohela transition as well, which means we had to reverify several years of payments. Hopefully we are in the final stretch.
Congrats again OP!
EDIT EDIT
Filing Married but Separate is NOT tax fraud. It is one of the 5 filing statuses that you can legally claim. It does not mean that you are separated from your spouse (although you might be and can use this status). It simply means that you are filing separate tax returns and each using their own income. There’s not many reasons why you would want to do this because you miss out on some of the tax credits for married couples.
https://www.irs.gov/newsroom/how-a-taxpayers-filing-status-affects-their-tax-return
EDIT EDIT EDIT
Thank you for the gold kind stranger!
burnt_out_dev on January 12nd, 2023 at 11:16 UTC »
Here is what pisses me off about this, and please correct me if I'm wrong here. It's not that this student had their loans forgiven. It's not that tax payers are footing the bill. It's that the damn university charged so much in the first place and they won. They got their money.
We need to move to free higher education.