zephyrmacabee
Have a party with your kitties; this calls for at least that!
I did give them the special fancy wet food this morning :D
brilliant-starlight
Holy fuck, Sam. You're the only person I "know" that I've ever seen actually get sucessfully forgiven via this program. Congratulations!!
It certainly wasn’t easy! I started this process in SEPTEMBER. And even previous to that I’d had certification paperwork rejected for reasons such as “the seven has a line through it”, “I don’t think that woman’s signature is clear enough”, “The date is correct but someone read it incorrectly” and “When we called them to verify we got voicemail”.
skipthedemon
What's the impact on your income tax next year? I know that, at some point, a concern for loan forgiveness?
In this specific case, zero impact! PSLF forgiveness is explicitly the only forgiveness plan that is not taxed. (As far as I know it’s the only one. I know for sure it’s not taxed, because that’s a very common question when I talk to people about it.)
If you are paying off your student loans under an alternative plan such as ICR/IBR, where your payments are based on what you earn rather than on what will get you paid off in 10 years, then after 25 years your remaining debt is forgiven because you’ve made good-faith payments for TWENTY FIVE YEARS.
In that case, when your loan is forgiven the amount forgiven is treated as taxable income, and you will be expected to pay income tax on it the next time you file. This seems cruel to me, because if you’re so underpaid it takes you 25 years to pay off your loans you probably don’t have the capital to pay a huge tax bill, but I don’t make tax law.
Anyway, because PSLF involves actively making a choice to work in a specific (vastly underpaid) field, you’re being forgiven not because it’s an undue financial burden but because you chose to make a deal with the US government. For lack of a better way to put it, it’s a reward for service, similar to something like the GI Bill.
