tag:blogger.com,1999:blog-3660083024919144793.post3379911268833936241..comments2024-03-28T10:56:31.720-06:00Comments on Outside the Law School Scam: IBR: The Tax Time Bomb At The End Of The RainbowUnknownnoreply@blogger.comBlogger14125tag:blogger.com,1999:blog-3660083024919144793.post-49764079602741789682013-09-26T07:10:52.846-06:002013-09-26T07:10:52.846-06:00The proposal was in Obama's 2014 budget propos...The proposal was in Obama's 2014 budget proposal, but since Congress hasn't passed a budget since 2009, it's effectively tabled for now. Haystacknoreply@blogger.comtag:blogger.com,1999:blog-3660083024919144793.post-15525740683871950782013-05-30T00:36:41.762-06:002013-05-30T00:36:41.762-06:00Agreed. The federal reserve is printing 80 billion...Agreed. The federal reserve is printing 80 billion dollars per month laundered through primary dealer banks to the federal government for spending money. The clocks running; this can't got on forever, and it certainly cannot go on for a 25-year repayment period. The jigs up soon enough. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3660083024919144793.post-17782216195572295492013-05-28T06:47:41.495-06:002013-05-28T06:47:41.495-06:00The real problem with IBR is the fact that it impo...The real problem with IBR is the fact that it imposes a period of 25 years of servitude. To a 22-year old person maybe that does not sound so terrible. But it is terrible to be in debt in your 30s when things like marriage, home-ownership, elder-care for parents, and children are banging on your door. Let's not even discuss the unmentionable horror of student loan debt in your 40s and 50s when your children need you to help pay them for their education.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3660083024919144793.post-70419168488901927682013-05-27T18:31:48.348-06:002013-05-27T18:31:48.348-06:001:07PM:
Per this document, if you miss payments, ...1:07PM:<br /><br />Per <a href="http://studentaid.ed.gov/sites/default/files/income-based-repayment-common-questions.pdf" rel="nofollow">this document</a>, if you miss payments, you are not automatically terminated from IBR. But, the lender may be able to report the missed payment to the credit bureaus.<br /><br />As far as I have seen, IBR is a 25 year program. I have not seen any mention of a 20 year repayment period.<br /><br />For PSLF, the forgiven balance is <a href="http://www.finaid.org/loans/publicservice.phtml" rel="nofollow">not taxable</a>, which makes it a much more attractive program.MAhttp://www.thelawschoolscam.comnoreply@blogger.comtag:blogger.com,1999:blog-3660083024919144793.post-11776378930542580932013-05-27T18:24:23.966-06:002013-05-27T18:24:23.966-06:00Unfortunately, you are correct. This program is on...Unfortunately, you are correct. This program is only for recent grads.MAhttp://www.thelawschoolscam.comnoreply@blogger.comtag:blogger.com,1999:blog-3660083024919144793.post-87711411884615953992013-05-27T10:42:51.270-06:002013-05-27T10:42:51.270-06:00^ Pffft, with the way things are going, $60,000 wi...^ Pffft, with the way things are going, $60,000 will probably be the hourly minimum wage in 2034.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3660083024919144793.post-59258091232882829192013-05-27T05:52:22.425-06:002013-05-27T05:52:22.425-06:00Another question - this is all for future law grad...Another question - this is all for future law grads, right? Those of us who were really caught in the scam (2000-2010 grads) get nothing.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3660083024919144793.post-38766540879404969432013-05-27T05:51:34.703-06:002013-05-27T05:51:34.703-06:00Just had a $2500 tax bomb on my recent 1040. The ...Just had a $2500 tax bomb on my recent 1040. The IRS does not fuck around. They will collect those taxes with fury.<br /><br />A $60000 tax bomb is a killer, especially at that age, just when you think you're getting settled for retirement.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3660083024919144793.post-24117634181294309422013-05-27T02:05:56.563-06:002013-05-27T02:05:56.563-06:00Someone please answer this. I bet this is true. Wi...Someone please answer this. I bet this is true. Without this tax-fix, IBR/public service for law grads is a horrible idea. This same tax fix was given temporarily to homeowners who got their mortgage cancelled (I believe that it expired). Talk about special interest giveaways.<br /><br />--JimAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-3660083024919144793.post-14113267900058096292013-05-27T01:58:33.185-06:002013-05-27T01:58:33.185-06:00I would think that the idea of - or the risk of- 2...I would think that the idea of - or the risk of- 25 years of debt followed by an insidious tax bomb at age 50 would scare off the young lemmings in droves. <br /><br />As for the nontraditional students: In the not too distant future are there going to be a lot people in their 70's walking around with either student loan debt or the tax (time bomb) bill from their discharged sl debt?<br /><br />BTW, this post is probably one of the most important and thanks. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3660083024919144793.post-56970911309643152522013-05-26T23:18:41.732-06:002013-05-26T23:18:41.732-06:00if a student graduates college at 21, plus 3 years...if a student graduates college at 21, plus 3 years of law school, the earliest he can start working is 24, which in reality is probably closer to 25 or 26. Then we add 25 years, so the earliest present is a tax bomb at 50.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3660083024919144793.post-18104133831953625322013-05-26T15:51:38.852-06:002013-05-26T15:51:38.852-06:00How does one dispatch a herring?How does one dispatch a herring?Albert Rossnoreply@blogger.comtag:blogger.com,1999:blog-3660083024919144793.post-10524875931409026692013-05-26T14:07:16.124-06:002013-05-26T14:07:16.124-06:00Assuming the IBR term is 25 years, and if IBR came...Assuming the IBR term is 25 years, and if IBR came about in 2009, then when will the very first person become eligible for a discharge along with the tax bill? In 2034?<br /><br />I say assuming 25 years because I have heard of 20 year periods under IBR. It is all so confusing.<br /><br />Also another question: Is there also a tax bill at the end of 10 years of Public Service Loan Forgiveness?<br /><br />And a final question:<br /><br />Does one missed payment negate the whole IBR or PSLF arrangement or "deal"?<br /><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3660083024919144793.post-7504750579724800322013-05-26T12:33:32.818-06:002013-05-26T12:33:32.818-06:00My understanding is that there is a proposal to ch...My understanding is that there is a proposal to change this tax liability for IBR made by the Obama administration, but please correct me if it is someone's else proposal. This may be part of the budget bill, but please comment if you know more.Anonymousnoreply@blogger.com