(04-29-2022 09:56 AM)OptimisticOwl Wrote:  If we private citizens forgive debt, we have to issue a 1099 and the person whose debt was forgiven has to pay taxes on the amount forgiven. Will the people who have loans canceled have to pay income tax on their windfall?

I believe the answer to this is yes. But I'm sure people will whine about that too.

The only thing that needs to be corrected about student loans is the unfortunate circumstance where people worked in professions for X years with the agreement that their loans would be forgiven by the fed govt and then they got to the end of their service and found out the fed govt had deceived them. That's not fair.

What's also not fair is expecting the taxpayer to pay for the mistakes that people made when choosing to go to a college / what to study.

I also love the rationale as to why student loan interest continues to be frozen; that is, people are still reeling from the economic effects of a pandemic that started over two years ago. At some point, you can't blame a two-year old pandemic for not being able to right your personal finance ship at least to some degree.