Michael P. Lux, Esq., Author at The Student Loan Sherpa

Biden Changes His Mind on Student Loan Forgiveness

The President’s request for a memo on cancellation is a big deal. It signals a major position change on student loan forgiveness for Biden.

When payments go almost entirely towards interest, lenders profit and debt lingers. Fortunately, there are ways to improve this situation.

The clear trend shows that the student loan tax bomb probably won’t happen for the borrowers on IDR Plans like IBR, PAYE, and SAVE

Student loan payments from parents or grandparents can trigger an IRS gift tax, but exceptions exist to avoid having to pay any taxes.

If your child isn’t making the Parent PLUS Loan payments they promised, things can get ugly. Responsibility for paying the bill is complicated.

The student loan tax bomb may or may not happen. My plan uses a Roth IRA to save for retirement and prepare for big tax bill.

There are several explanations for why a student loan balance would go up even though the borrower has made payments.

Student loan borrowers are supposed to get loan forgiveness after 20-25 years. Servicers messed up. Cancelation is the only fair solution.

Not all student loans are created equal. In some cases, a good student loan is better than an expensive retirement account withdrawal.