Student Loans Discharged!

[Guest]

35 minutes ago, foreveryoung said:

Pete992

I co-signed a large Student Choice Education Line of Credit Loan with my daughter for her 4 year degree. When she graduated, I had to refinance it to manage the payments to start paying it off. Chapter 35 helped out a lot, but not the full amount. Unless I'm missing something. She is still paying Federal Direct Stafford Loans and Federal Work Study loans the school allied her for.

Foreveryoung, I am just trying to pass on what I found out in my own little experience.  With that said, you never know unless you try.  Since you refinanced the loan your situation maybe very different than mine so I can only say contact them and tell them your situation and see what they say about it. 

https://www.disabilitydischarge.com/home/

Hope the best

[foreveryoung]

Thanks Pete992, I just called them and its only for the Veteran.

Thanks again.

[Vync]

Well, it was worth a shot to find out

[justrluk]

At what rate was the discharged taxed? If considered income, did the IRS allow the tax debt to be spread out over time?

[seejeremy]

Hello again everyone. I still haven't received any tax documentation for the discharged loans.  I've checked the servicer's website and nothing is there either. Will they eventually show up or should I count my blessings here and think it won't be counted as taxable income?  

Thank you all.

[broncovet]

I also had a student loan discharged about 5 years ago.  And, as Berta said, I am using that documentation as evidence for IU.  My discharge application was detailed, and 7 pages long.  VA only had 2 of the 7 pages in my RBA.  Im weighing whether I will be filing a 3.156 new and material evidence, MFR, regular CAVC appeal.  

As far as the taxes, it depends on your income, and the amount of the student loans.  For example, if you had 10,000 dollars student loans cancelled, and had no other income (except VA), you probably would still pay no taxes, but you want to check with your bookeeper/accountant on that.  I have a great one, that I can/do ask these kinds of questions, and she always has excellent answers.  I pay her about 100 per year to do my taxes and it saves me much more than that in taxes, as she helps me "tax plan" things like IRA withdrawals.  (IRS says you can withdraw at 59.5, but you must withdraw from your IRA by your age 70.  So, I withdraw from the IRA around 14,000 earch year, which means that 14,000 is "taxable", but the tax is zero, because people who make only 14,000 or so per year owe no taxes.)  

In this way, by withdrawing the amount that will "zero" out my taxes, it spread the IRA contribution out and I probably wont be taxed on it.  She helps me figure out that each year.)