Tax penalty hits student loan borrowers in income-driven repayment plans for the first time
This post originally appeared on TICAS.org.
By: Diane Cheng | April 12, 2018
Tax penalty hits student loan borrowers in income-driven repayment plans for the first time
As Americans across the country scramble to finish their taxes this month, some federal student loan borrowers are facing a new obstacle for the first time – a larger tax bill due to student debt that was forgiven through income-driven repayment (IDR). Long recognized as a policy design flaw and looming threat for borrowers in IDR, this unfair tax penalty will become a growing problem for struggling borrowers in the years ahead and policymakers need to act quickly to address it because borrowers should not be hit with a potentially unaffordable tax bill after making responsible loan payments for 20 or 25 years.
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Read the full post on The Institute for College Access & Success (TICAS) website here.
Diane Cheng is the Associate Research Director at The Institute for College Access & Success.
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The Institute for College Access & SuccessPosted on 19 April 2018 |
| An independent, nonprofit organization, the Institute for College Access & Success (TICAS) works to make higher education more available and affordable for people of all backgrounds. By conducting and supporting nonpartisan research, analysis, and advocacy, TICAS aims to improve the processes and public policies that can pave the way to successful educational outcomes for students… | |
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