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Sat Mar 6, 2021, 09:46 AM

Senate Bill Clears Hurdle to Forgive Student Loans

https://politicalwire.com/2021/03/06/senate-bill-clears-hurdle-to-forgive-student-loans/

Senate Bill Clears Hurdle to Forgive Student Loans
March 6, 2021 at 7:15 am EST By Taegan Goddard


Wall Street Journal: “The provision, added by Senate Democrats this week, would remove any tax consequences for households whose student debt is forgiven through 2025, saving them thousands of dollars. Federal law typically treats any forgiven debt as taxable income.”

“The provision would make it easier for President Biden to forgive student debt through executive action, as congressional Democrats have pressed him to do.”

14 replies, 2508 views

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Response to babylonsister (Original post)

Sat Mar 6, 2021, 09:56 AM

1. WOW . .. .

that sounds wonderful.

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Response to babylonsister (Original post)

Sat Mar 6, 2021, 10:24 AM

2. That headline (not yours) is misleading. It really has nothing to do with forgiving debt, but....

....in the event that some day debt is forgiven there would be no income tax consequences.

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Response to George II (Reply #2)

Sat Mar 6, 2021, 10:54 AM

4. Forgiving the tax burden is indeed huge although the headline could use clarification

Having the income tax burden relieved for someone that has had their student loan debt forgiven would be a great relief. A family member of mine had her student loan debt forgiven due to being disabled and has been harassed by the IRS since then, paying out of pocket for third party legal assistance to have the tax burden reduced. As a result of the money owed, she doesn't receive a dime of the end of year tax benefits that other low income people receive. I only hope that if the legislation is not retroactive , that it cancels current obligations.

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Response to George II (Reply #2)

Sat Mar 6, 2021, 12:03 PM

8. You're right. It IS misleading. I didn't catch that at first.

Here’s hoping it clears the path for Biden to pass an EO for student loan forgiveness. 🤞🏼

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Response to George II (Reply #2)

Sat Mar 6, 2021, 12:44 PM

10. Correct and helpful observation

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Response to babylonsister (Original post)

Sat Mar 6, 2021, 10:27 AM

3. Every time we do something to help people out

We see more people voting Democrat.

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Response to babylonsister (Original post)

Sat Mar 6, 2021, 11:00 AM

5. did they ever take a nap break last night?

i was watching cspan until 4 o'clock eastern time and it was live.
i just woke up and turned the tv back on. so it's almost 10 o'clock (am) eastern time and they are in the middle of voting on mike lee's amendment.

just curious if they napped or are they on the verge of hallucinating yet
i know mcconnell did a motion to adjourn at ten thirty last night and that didn't happen

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Response to babylonsister (Original post)


Response to babylonsister (Original post)

Sat Mar 6, 2021, 11:58 AM

7. Not clear...so did the bill pass in the Senate? If so, fantastic!

IF Biden deicides to forgive student debt, is that all outstanding government education loans, even ones some people are still paying off from years ago?

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Response to Fla Dem (Reply #7)

Sat Mar 6, 2021, 12:55 PM

11. It would apply to all student loan debts

President Biden himself would only forgive $10,000 of each debt. But it sounded like he was a bit misinformed, so maybe he can be persuaded to go higher.

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Response to babylonsister (Original post)

Sat Mar 6, 2021, 12:05 PM

9. 5% pay as you earn please!

On Biden’s campaign website it detailed a plan to change the pay as you earn from 10% to 5% of adjusted income. This would be life changing and halve the payments of the worst off borrowers.

Please do this!!!

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Response to babylonsister (Original post)

Sat Mar 6, 2021, 01:51 PM

12. I have a little ambivalence about this issue.

Don't get me wrong. I agree completely that debt so crippling that the person is literally never able to own a house because they already have a house-sized debt load is ridiculous. To turn every facet of society into a profit center seems peculiarly American to me, although I readily admit I might be wrong about that. It just seems to fit so much of the uber-capitalist messaging.

The facet of this issue I can't quite get my head around is what about the people that somehow managed to push through to the other side of their student load debt? They may well have lived in penury for years either through a very reduced lifestyle forced upon them by the numbers game.

But some might have just put their heads down and lived a virtual pauper's life in order to pay it down as fast as possible. How fairly are these people being treated when, a year after they finally get their heads above water and can start thinking about a reasonably prosperous life, those following are give a much easier path? I'd feel like a chump for living the straight and narrow within what is often predatory debt collection.

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Response to BobTheSubgenius (Reply #12)

Sat Mar 6, 2021, 02:29 PM

13. Societal interest

Some people lived as paupers and postponed having children until it was too late. The fact that this happened does not mean it should continue to happen. The cost to the society as a whole has been horrible.

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Response to Sanity Claws (Reply #13)

Sat Mar 6, 2021, 10:14 PM

14. Yes, I am aware of the arguments and agree with all of them. OK, maybe not ALL,

but I can't think of one I object to right now. If it wasn't a benefit, most European countries wouldn't have gone with free, or quite low-cost education. In Canada, it's not free, by any means, but our overall university tuition is still roughly 1/3 of the US cost at state schools. Obviously, a larger differential at the more prestigious private schools. Nothing says "Harvard" on a CV than does Harvard.

My point was that I can't get my head around whether there should be some kind of redress for people that delayed or even drastically altered their life plans because of load debt. I can't seem to find a position to take that lets me go "There! That'll do nicely."

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