Let's talk about Student Loans, Debt Forgiveness and their best friend TAX.

College and Graduate debt holders have long been aware of of "income driven repayment plans," such plans allow the newly minted educated to reduce their monthly student payment to only 10% of discretionary income. More importantly, borrowers that withstand to wait 20-25 years will get the remaining balance forgiven entirely.  Savvy wealth managers have been aiding in this type of "savings" plan for a while now. However many are unaware of the #tax.

Forgiveness of debt (with certain exceptions) is a taxable event. This is fancy talk for it is considered good ole' INCOME. Debt holders are often unaware of this fact and are shocked to learn that they incur a large IRS debt in place of their Student Debt. 

Savvy Students then need to contact even savvier money managers, (and of course #taxpros) to find ways to hedge the fallout. #dontbeataxpuppet.  

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