Student Loan Forgiveness

[Dan]

Question:  Where can I find the application for the student loan forgiveness plan that the president is talking about?  Is there such an application?  How can one go about applying for a student loan forgiveness?  Would appreciate your help.  Thanks!

[jklcpa]

It's not available yet and supposed to be by October on the Dept of Education's site.

If a person is unsure if part of his financial aid package included a Pell grant, that can be ascertained on studentaid.gov in the section "My Aid"

[schirallicpa]

You know this is somehow going to end up in the tax return and in our hands.............

[Pacun]

On 9/9/2022 at 5:16 PM, schirallicpa said:

You know this is somehow going to end up in the tax return and in our hands.............

Debt forgives from that law will not be taxable nor reportable.

[TexTaxToo]

12 hours ago, Pacun said:

Debt forgives from that law will not be taxable nor reportable.

To be specific, the American Rescue Plan Act of 2021 modified the tax code Section 108(f)(5) to exclude from income most education loans forgiven in 2021 through 2025, and the IRS issued Notice 2022-01 indicating that lenders should not file Form 1099-C for them.

[Lee B]

According to the Tax Foundation there are 7 states who don't automatically reconnect where forgiven education loans may end up being taxed.

[Catherine]

Last update from Massachusetts is that they will refrain from taxing the forgiven loans.