Wow. Talk about putting your money where your mouth is.
Can I ask a stupid question??
If someone is paying your debt for you, in this manner, isn’t that considered as a type of debt forgiveness, and thus, taxable income?
Put another way, if a student in this class has $30,000 in student loan debt paid off, is he/she going to get a 1099 indicating that he/she had $30,000 of income? And then have to pay tax on that money which he/she never saw?
Will this billionaire have to pay gift tax on giving these huge gifts to the class?
Just saying, the way our tax laws are structured, and I admit to being no expert, but know that debt forgiveness is generally considered to be taxable income.