You’ve probably heard the options for student loan forgiveness. They sound great, right? Be aware, though. According to a recent article by CNBC.com, the public service loan forgiveness program could come with a crippling tax debt.
“The public service route is tax-free while debt canceled by income-based repayment plans is taxed. That potential tax liability could be crippling to lower-income borrowers.”
This doesn’t necessarily mean that the program is not for you. Just do your research, and know all the details before you sign up for it.
For more information, you can read the full article here.
Leave a Reply
You must be logged in to post a comment.