Forgiveness sounds like such a nice concept. Some loan programs are banking on this aura when they offer loan “forgiveness” if you work in the public sector or pay some percentage of your income. It sounds so nice.
Ah, but there’s a hidden price. You’ll owe taxes on the forgiven loan and they’re often 30-50% of the amount itself. So even if you can’t pay back $100,000, you’ll still owe $30k-$50k if you get it “forgiven.”
Gotta love America.
Related posts:
- Bad news for loan forgiveness programs
- A New Plan to Cap Student Loan Payments– but not Debt
- Making sense of the new loan forgiveness
- Forgive student loans? One man dreams.
- U.S. Government to Nationalize Loan Biz
If you liked my post, feel free to subscribe to my rss feeds
BlogoSquare