Student Loan Planner The Tax Bomb Cliff Is Coming
We’re standing at the edge of a major financial cliff that no one is ready for. Student loan forgiveness is happening at unprecedented rates — $138 billion and counting. Right now, borrowers are enjoying tax-free forgiven student loan debt courtesy of the American Rescue Plan. However, these benefits are set to expire at the end of 2025, leaving borrowers to face a tax cliff with unknown consequences.
We’ll explore the legal skirmishes already bubbling, like the Kansas Attorney General’s case against the SAVE plan, and analyzing their impact and preparing for the potential scenarios ahead. I’ll also highlight the vital deadlines you need to know, like the expiring IDR waiver and the barrier to new entrants for the Pay As You Earn plan that’s coming up in July 2024.
In today’s episode, you'll find out:
- How the SAVE plan, IDR waiver and PSLF waiver are helping borrowers
- The possibility of court challenges to President Biden’s student loan policies
- What’s at stake with the coming student loan tax bomb due post-2025
- Potential cancelation scenarios based on political outcomes as election season heats up
- Deadlines you can’t miss and their impact on student loan repayment strategies
- How the American Rescue Plan is enabling large-scale loan forgiveness
- What President Biden’s plan is to address the tax bomb cliff in 2025
- About hardship-based forgiveness and the push for widespread cancelation
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Do you have a question about student loans? Leave us a voicemail here or email us at help@studentloanplanner.com and we might feature it in an upcoming show!