In California, the situation with student loan forgiveness and taxes has changed. Previously, there was a chance it could be taxed because California law didn’t conform to a federal rule exempting it from federal taxes. However, in May 2023, California passed legislation that exempts forgiven federal student loans from state income taxes. This means Californians […]
Pros And Cons Of Student Loan Forgiveness
Here’s a breakdown of the pros and cons of student loan forgiveness, along with some important considerations: Pros Economic Stimulus: Forgiving student debt could inject billions back into the economy. Freed from this burden, borrowers would be more likely to buy homes, start businesses, and spend on goods and services. Addressing Racial Wealth Gap: Student debt disproportionately […]
When Will Student Loan Forgiveness Be Applied?
There are two main contexts to consider for student loan forgiveness: Automatic Forgiveness: Currently, there is no broad, automatic forgiveness program for federal or private student loans after a set period like 20 or 25 years. Existing Forgiveness Programs: There are existing federal loan forgiveness programs that might apply depending on your situation. These typically […]