71M10 Posted May 8, 2013 Share Posted May 8, 2013 As I explained to my Representative, the VA thinks there isn't any downside to stalling and delaying on SC and compensation for veterans. I pointed out to him that when my 100% was awarded the student loans I have had to take out for my son to attend colleger would be going bye bye and then the VA would be back paying him for school attendance. Sending in the paperwork to cancel out 13K in loans soon, actually I think I am getting a better interest rate For my back pay than what was being paid on the loan. I wonder how much the VA costs the department of education on loans that were issued and then forgiven. How many of those loans wouldn't have been necessary if they just did the right thing, the first time and didn't drag this stuff out? Link to comment Share on other sites More sharing options...
rebelranger Posted May 8, 2013 Share Posted May 8, 2013 Did this make the loan forgiveness not taxable income? Link to comment Share on other sites More sharing options...
AFButch Posted May 9, 2013 Share Posted May 9, 2013 Be informed. Talk to your tax preparer. This "forgiveness of debt" MAY be taxable income to you. Not a pleasant surprise to receive a 1099 come January 2014 for the 2013 tax year adding the amount of this loan forgiveness as ordinary income to you. I am NOT a tax preparer but I did work for one. Saw even where folks did some negotiation on credit card debt only to be charged with it as income for their taxable reporting. (I assume because the credit card company writes off the loss of income, the income will be directed to the source of the loss.) I have now lost track with the laws but last I heard even foreclosures where going to fall into this where people would have an income impact in foreclosure process. Hoping that it is not but as I said, BE INFORMED, you do not want this surprise. Link to comment Share on other sites More sharing options...
meghp0405 Posted May 12, 2013 Share Posted May 12, 2013 always refreshing to hear a success story. About the credit report, submit a letter to the agency that you contest an entry. They will then send an inquiry to the agency that had placed the account on your credit report. They then have 30 days to respond back to the credit bureau. If they miss the 30 days, the credit agency will automatically remove the item from your account. Good luck! Link to comment Share on other sites More sharing options...
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