I know a few people who have slowed their payments in anticipation of the forgiveness possibility
The question is since the forgiveness is income, then they will have to pay tax on it... how are they going to pay the tax when they default in the first place?
That’s one of the details of this loan forgiveness idea which the liberals haven’t thought through. Debt relief, or forgiveness of a debt, is considered taxable income under our tax laws.
Some might think it’s great to get their loans wiped out, until they find out that they get a 1099 form with that debt relief amount as income.
I’m thinking that all of this would require an act of Congress, as opposed to Biden having a pen and a phone and doing an executive order to forgive student loans. The tax impact is just one detail which people haven’t thought through.