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New bill caps PAYE forgiveness at $57.5K
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Date: July 18th, 2014 6:41 PM Author: Razzle-dazzle boltzmann space Figured this was coming.
All federal loan borrowers would be enrolled in an income-based program where they paid 10 percent of their earnings each month, with a $10,000 annual exemption. Meanwhile, the government would collect the money directly from workers’ paychecks, just like tax withholding. One potentially controversial part: It would forgive up to $57,500 worth of loans after 20 years, but anything above that amount wouldn’t be forgiven for 30 years. |
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Date: July 18th, 2014 6:46 PM Author: Titillating Bronze Parlor Dingle Berry wait does this mean that student loans would be pre-tax now?
if so it's about god damn time.
boomers bought houses they couldn't afford but got tax deductions and were able to escape the crushing debt when the bubble burst. millenials took out student loans and get neither of these benefits. |
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Date: July 18th, 2014 6:58 PM Author: carmine home cuckold except wasn't the 10% calculated off your post tax earnings before? Seems like this will be more of a hit then a benefit if now the 10% is calculated off pre-tax earnings. (http://www.autoadmit.com/thread.php?thread_id=2622517&forum_id=2#25960210) |
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Date: July 18th, 2014 7:16 PM Author: Titillating Bronze Parlor Dingle Berry this seems to me to suggest that you get a tax deduction. there is currently no tax deduction for student loans unless you make something under 70k (someone confirm?).
ive never personally qualified for the benefit so i have no idea.
but if the money is pre-tax deduction, then that means your tax basis is lowered. which means it will work like a 401k contribution. that'd be a serious benefit. |
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Date: July 18th, 2014 7:42 PM Author: shimmering native no i think it works just like paye - off AGI. the difference is that paye is 10% of AGI - 150% * poverty guideline (which gets adjusted) and this is 10% of AGI - $10,000 (adjusted by CPI each year). the up to $2500 student loan interest deduction for MAGI under $75000 single is separate and I dont think this bill addresses it (http://www.autoadmit.com/thread.php?thread_id=2622517&forum_id=2#25960430) |
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Date: July 18th, 2014 7:49 PM Author: Titillating Bronze Parlor Dingle Berry well that sucks. this moderate bro has not be swayed in vote.
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Date: July 18th, 2014 7:52 PM Author: shimmering native it's clearly a worse deal than current paye for the borrower, but it's a better deal than ibr, and i think paye will be repealed or severely limited (in amount of forgiveness) eventually. locking up bipartisan support for this now might be a safer bet planning-wise than relying on paye to last 20 years. (http://www.autoadmit.com/thread.php?thread_id=2622517&forum_id=2#25960489) |
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Date: July 18th, 2014 7:56 PM Author: Titillating Bronze Parlor Dingle Berry the boomers have really fucked are generation (http://www.autoadmit.com/thread.php?thread_id=2622517&forum_id=2#25960523) |
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Date: July 18th, 2014 7:58 PM Author: shimmering native the boomers have fucked us for the last 25 years, but in 2012 we had a chance to phase out medicare and get rid of obamacare but house millennials decided to help fuck themselves (http://www.autoadmit.com/thread.php?thread_id=2622517&forum_id=2#25960536) |
Date: July 18th, 2014 6:43 PM Author: Sienna Theater Boiling Water so it's not really capped, you just have to pay on it for ten more years (http://www.autoadmit.com/thread.php?thread_id=2622517&forum_id=2#25960130) |
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Date: July 18th, 2014 6:46 PM Author: histrionic turquoise quadroon What (http://www.autoadmit.com/thread.php?thread_id=2622517&forum_id=2#25960145) |
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Date: July 18th, 2014 6:57 PM Author: carmine home cuckold "It would forgive up to $57,500 worth of loans after 20 years, but anything above that amount wouldn’t be forgiven for 30 years." (http://www.autoadmit.com/thread.php?thread_id=2622517&forum_id=2#25960199) |
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Date: July 18th, 2014 7:02 PM Author: histrionic turquoise quadroon Oh bake me a treat :( mr scholarly sweet.
But that might not be retroactive |
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Date: July 18th, 2014 7:38 PM Author: shimmering native no, it's not ultimately capped, which is a major flaw in this proposal (http://www.autoadmit.com/thread.php?thread_id=2622517&forum_id=2#25960407) |
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Date: July 18th, 2014 6:49 PM Author: Bull headed forum who would vote for this? (http://www.autoadmit.com/thread.php?thread_id=2622517&forum_id=2#25960154) |
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Date: July 18th, 2014 7:02 PM Author: comical maize church Johnsmeyer needs to tweet Capitol Hill on this (http://www.autoadmit.com/thread.php?thread_id=2622517&forum_id=2#25960224) |
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Date: July 18th, 2014 7:03 PM Author: histrionic turquoise quadroon (http://www.autoadmit.com/thread.php?thread_id=2622517&forum_id=2#25960227) |
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Date: July 18th, 2014 7:02 PM Author: histrionic turquoise quadroon Just give me the bankruptcy option (http://www.autoadmit.com/thread.php?thread_id=2622517&forum_id=2#25960226) |
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Date: July 18th, 2014 7:40 PM Author: Violet well-lubricated shrine elastic band does this stuff just change every other day? also, just lol at anyone who tries to plan around this shit and counts on actually satisfying the time limits. (http://www.autoadmit.com/thread.php?thread_id=2622517&forum_id=2#25960418) |
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Date: July 18th, 2014 7:46 PM Author: cracking cyan cruise ship none of these bills will pass, but it means forgiveness will eventually be eliminated at some point. (http://www.autoadmit.com/thread.php?thread_id=2622517&forum_id=2#25960457) |
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Date: July 18th, 2014 7:53 PM Author: Claret Codepig but existing borrowers will be grandfathered in to existing plans, right? because if not that's bullshit. (http://www.autoadmit.com/thread.php?thread_id=2622517&forum_id=2#25960495) |
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Date: July 18th, 2014 7:55 PM Author: shimmering native if tax reform has been any indicator - i wouldn't count on that. (http://www.autoadmit.com/thread.php?thread_id=2622517&forum_id=2#25960513) |
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Date: July 18th, 2014 8:02 PM Author: bright dopamine Can you give me an example of tax reforms that are analogous? (http://www.autoadmit.com/thread.php?thread_id=2622517&forum_id=2#25960557) |
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Date: July 18th, 2014 8:04 PM Author: shimmering native many people relied to their detriment on certain pre-1986 tax planning regimes and weren't grandfathered in post 1986.
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Date: July 18th, 2014 8:05 PM Author: bright dopamine Can you give me a specific example? I dont doubt your right I'm just curious. (http://www.autoadmit.com/thread.php?thread_id=2622517&forum_id=2#25960577) |
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Date: July 18th, 2014 8:13 PM Author: shimmering native 1986 was a huge reform... off the top of my head, guys would set up limited partnerships and make a capital contribution as an LP. the limited partnership could hold an asset like real estate that generates passive income and take losses on it, and each LP would take a loss proportionate to their ownership in the limited partnership that would ultimately exceed their own contribution and could be used to offset active income. Having this perfectly legal shelter would then inform their non-tax related business decisions, contracts they entered into, etc. and all that became severely restricted in '86 with at risk and PAL rules. (http://www.autoadmit.com/thread.php?thread_id=2622517&forum_id=2#25960622) |
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Date: July 18th, 2014 8:24 PM Author: bright dopamine Thank you. (http://www.autoadmit.com/thread.php?thread_id=2622517&forum_id=2#25960669) |
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Date: July 18th, 2014 8:18 PM Author: appetizing nursing home generalized bond If passed, currently indebted grads could choose to consolidate into the new system or stay under the old one. (http://www.autoadmit.com/thread.php?thread_id=2622517&forum_id=2#25960635) |
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Date: July 18th, 2014 8:20 PM Author: shimmering native i think he means if paye get repealed (which this, if passed, will likely replace along with ibr), do they get the 2014 paye plans theyre on now. I suspect the bill will allow people opt-out for standard non-income based repayment plans but if going the income based route, this will be the only game in town. (http://www.autoadmit.com/thread.php?thread_id=2622517&forum_id=2#25960644) |
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Date: July 18th, 2014 8:23 PM Author: appetizing nursing home generalized bond The bill is designed to change how loans work going forward (it also does stuff like merge the three loan types into a single one), so I'm almost certain existing loans have the OPTION at least to stay on their current plan. (http://www.autoadmit.com/thread.php?thread_id=2622517&forum_id=2#25960660) |
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Date: July 18th, 2014 8:24 PM Author: shimmering native yeah i dont know, maybe, havent read the actual bill and wont until it actually goes somewhere. these things are dime a dozen (http://www.autoadmit.com/thread.php?thread_id=2622517&forum_id=2#25960667) |
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Date: July 18th, 2014 8:25 PM Author: appetizing nursing home generalized bond This one is bipartisan so it has more hoap...politically, though, most Dems would rather use student loans as a weapon against Republicans and pass a more purely Democratic plan later. (http://www.autoadmit.com/thread.php?thread_id=2622517&forum_id=2#25960671) |
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Date: July 18th, 2014 8:27 PM Author: shimmering native yeah agreed (http://www.autoadmit.com/thread.php?thread_id=2622517&forum_id=2#25960677) |
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Date: July 18th, 2014 9:14 PM Author: anal set incel Maybe. MPN notes have (or used to have) IBR written into the contract. I believe before you sign up for PAYE you must also "sign" another contract.
Things are more complicated because some of the contracts are between the debtor and the federal government (loan agreement) and some between the debtor and the student loan servicer (repayment contract). That said the fed. gov. has waived immunity re: contract claims in the Tucker Act but I'm not entirely sure how and if it applies to student loan contracts. I also imagine the government may have separate contracts with the servicers that are not known to the public that would be at issue should they try to shirk on PAYE. |
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Date: July 18th, 2014 8:20 PM Author: Jet out-of-control nowag :( (http://www.autoadmit.com/thread.php?thread_id=2622517&forum_id=2#25960648) |