With inflation the way it is, anyone with a fixed interest rate loan is going to be paying it back in cheaper dollars. They already are— that in itself is a form of forgiveness.
Of course, the lenders practically begged borrowers to refinance into variable loans in recent years, with the promise of lower payments… which is great, until rates go up.
It’s a very dim glimmer of hope that the coming crisis will educate a couple of generations the way the Great Depression did, but I’m not holding my breath.
All of this talk about student loan forgiveness is amusing. I hate to mention that the IRS will consider the âÂÂForgive Loan Amountâ as taxable income that will be needed to be reported on your income tax. Congratulations, you now have tax due on your âÂÂforgiven loan amountâ due on April 15ish. And I bet the amount due will incur penalties because you did not submit quarterly withholding. Also The IRS does not have a since of humor about money owed them. Say what you will about the IRS but they are amazingly good at collecting money. And all that is due has to be paid when due or else interest and penalties accrue unbelievably fast. It's my first post, I could not resist replying.