After 25 years of payments in the ICR plan, outstanding loan balances will be forgiven. That forgiveness is considered taxable income for the amount forgiven (including both remaining principal, and any interest that has accrued on the loan). The ICR plan does not offer any interest subsidizatio...
In tandem with the IDR waiver, we are on the edge of our seats waiting for the Supreme Court's ruling on the$10,000-$20,000 Student Loan Forgivenessplan, which is expected in June. The IDR waiver is similar to thePSLF waiverin a number of ways that we will cover, but a key diffe...
While IDR plans can offer lower monthly payments and forgiveness, there are a few potential cons to consider, including: There could be a longer repayment duration—10 to 15 years, to be exact—compared to the 10-year Standard Repayment Plan. You likely will end up paying more in interest ...
In this situation, borrowers have done everything right. They signed up for a repayment plan offered by the Department of Education, followed all the necessary steps to make progress toward loan forgiveness, and now they’re being told that this time won’t count. There is certainly p...