Education analysts, student advocates warn of impending crisis from one-time tax bills individuals may not be prepared to pay off… Students seeking relief on their college and graduate-school debt could be sitting on a hidden tax bomb: Billions of dollars in one-time bills from the Internal Revenue Service for any debt they get forgiven. The tax bills are a feature of the “income-driven repayment plans” that have been offered by the Education Department since 2007. One version of these plans allows borrowers to set their monthly student-loan payments at 10% of their discretionary income. The balances often grow over time because the payments aren’t big…

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by Josh Mitchell, The Wall Street Journal.

Posted: June 24th, 2018, by: admin. Categories: . Awaiting Comments.