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University of La Verne IBR bro laments his situation
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Date: March 27th, 2017 3:38 PM Author: swashbuckling orchestra pit sweet tailpipe http://www.nbcnews.com/better/money/ex-students-income-based-loan-payments-face-crushing-tax-bill-n517566
Michael Hulshof left the University of La Verne in 2012 with his law degree and $145,000 in student debt. Today, that figure is about $220,000 and, by the time he's 55, he figures it will be around $400,000. That's when his real problems could begin.
Hulshof, a 33-year-old attorney in Antioch, California, entered into a payment plan for graduates who took out federal student loans and who have low income-to-debt ratios. The plan, known as "income-driven repayment," is intended to help graduates who can't afford to pay off their loans within 10 years.
On his income of $90,000 a year, Hulshof pays about $575 per month toward his student loans. It's an affordable payment, but it doesn't come close to covering the $1,500 a month the loans accrue in interest at rates ranging between 6.5 and 8.5 percent.
Under the repayment plan, Hulshof's remaining debt will be forgiven after 25 years. But there's a catch: That forgiven debt is considered income by the Internal Revenue Service, which means he and his wife will face a big tax bill when they finally get out from under the debt cloud.
"Me and my wife talk about it all the time, how we'll deal with it at that point," Hulshof said, estimating that he could owe upward of $175,000 in taxes. "It's incredibly depressing to think about, that bankruptcy may be your only option … to start over at 55 when you worked so hard to get an education to better yourself and society." |
Date: March 27th, 2017 3:44 PM Author: big turquoise brethren dingle berry 90k a year after LaVerne is like the top 1% of outcomes. (http://www.autoadmit.com/thread.php?thread_id=3565758&forum_id=2#32930396) |
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Date: March 27th, 2017 3:45 PM Author: Self-centered glittery lodge (http://www.autoadmit.com/thread.php?thread_id=3565758&forum_id=2#32930400) |
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Date: March 27th, 2017 3:45 PM Author: Vibrant frum puppy range I've been trolling the tax bomb for a decade. AFAIK bankruptcy does not make IRS debt go poof. (http://www.autoadmit.com/thread.php?thread_id=3565758&forum_id=2#32930401) |
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Date: March 27th, 2017 3:48 PM Author: balding affirmative action crackhouse He needs to change his name and move out of the country. Or retire at 55 and go live in a cabin with no possessions. there is no way to "manage" a tax bill of $175,000 for a TTTT grad. (http://www.autoadmit.com/thread.php?thread_id=3565758&forum_id=2#32930416) |
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Date: March 27th, 2017 3:50 PM Author: trip church building Didn't know there was a school named after Verne Lundquist (http://www.autoadmit.com/thread.php?thread_id=3565758&forum_id=2#32930424) |
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Date: March 27th, 2017 3:50 PM Author: stirring purple market This guy makes 90 four years into shitlaw. That ain't bad (http://www.autoadmit.com/thread.php?thread_id=3565758&forum_id=2#32930429) |
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Date: March 27th, 2017 4:02 PM Author: trip church building The rest of the article is pretty LJL too, with the "student debt" lawyer basically advising clients "The IRS can't possibly have the manpower to enforce this. Don't worry about it!" (http://www.autoadmit.com/thread.php?thread_id=3565758&forum_id=2#32930533) |
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Date: March 27th, 2017 4:06 PM Author: Vibrant frum puppy range $175K will be enforced believe me. (http://www.autoadmit.com/thread.php?thread_id=3565758&forum_id=2#32930567) |
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Date: March 27th, 2017 4:08 PM Author: swashbuckling orchestra pit sweet tailpipe Agreed, only way it won't be enforced is if you literally have $0 NW. But if you have anything, even 401K, it will be taken from you. (http://www.autoadmit.com/thread.php?thread_id=3565758&forum_id=2#32930586) |
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Date: March 27th, 2017 4:14 PM Author: Stimulating sapphire indirect expression chapel what if u transfer ur assets to ur wife (http://www.autoadmit.com/thread.php?thread_id=3565758&forum_id=2#32930654) |
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Date: March 27th, 2017 4:15 PM Author: swashbuckling orchestra pit sweet tailpipe The IRS isn't stupid, bro. (http://www.autoadmit.com/thread.php?thread_id=3565758&forum_id=2#32930657) |
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Date: March 27th, 2017 4:15 PM Author: trip church building No doubt. The Temple professor tried to compare it to the IRS not recovering taxes on airline miles (http://www.autoadmit.com/thread.php?thread_id=3565758&forum_id=2#32930659) |
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Date: March 27th, 2017 4:19 PM Author: swashbuckling orchestra pit sweet tailpipe This is my favorite part:
Joshua Cohen, a lawyer specializing in student debt, said that the high number of students in the program and the likelihood that few will be able to pay taxes suggests the IRS may just look the other way.
"How (is the IRS) going to get the manpower to collect on all this?" he said.
...
Cohen, the student-debt attorney, is himself is on an income-driven repayment plan and currently owes about $200,000 on a loan at a 6.3 percent interest rate. |
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Date: March 27th, 2017 4:52 PM Author: Vibrant frum puppy range The optics of giving away $$ to white graduate degree holders is not going to go over well with the Democratic base. (http://www.autoadmit.com/thread.php?thread_id=3565758&forum_id=2#32930945) |
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Date: March 27th, 2017 4:55 PM Author: Vibrant frum puppy range I hear commercials on the radio about wage garnishment over $10K. (http://www.autoadmit.com/thread.php?thread_id=3565758&forum_id=2#32930979) |
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Date: March 27th, 2017 4:08 PM Author: plum haunted graveyard Lol (http://www.autoadmit.com/thread.php?thread_id=3565758&forum_id=2#32930585) |
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Date: March 27th, 2017 4:26 PM Author: flushed violent sneaky criminal stag film If he invests $5,000/year for the next 20 years, so $100K, and he averages 5% gains, he'll have $175K saved for the tax bomb.
So that's $420/month in tax bomb savings plus $575 he's already paying in student loans, so like $1,000/month. Cheaper than paying $1,500/month, which is what he's supposed to be paying. |
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Date: March 27th, 2017 4:38 PM Author: swashbuckling orchestra pit sweet tailpipe Yeah, still save substantial moneys with the tax BOMB, which will provide a justification for keeping it around. (http://www.autoadmit.com/thread.php?thread_id=3565758&forum_id=2#32930852) |
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Date: March 27th, 2017 4:40 PM Author: Concupiscible mentally impaired halford locale There's no way this won't be resolved by then. At the very worst he can cop a pslf jerb for the last 10 years to avoid (http://www.autoadmit.com/thread.php?thread_id=3565758&forum_id=2#32930859) |