Student loan forgiveness

[Beersheba]

I don't feel sorry for adults still paying off their student loans.

I'm glad you weren't with me a couple years ago. A new client - a couple 61 and 60 years old. As we discussed finances, they were upside down on everything they had. Two cars (hers was an Audi, his was an Infiniti). Had very little equity, if any in the cars. Upscale house was HELOCed to the max.

"The real reason we called on you is because we want to file separate returns." I told them it would cost them an extra $2000 - $2500. "Oh that's OK, If we file combined income, we will have to pay more on our student loans."

Ages 61 and 60. Go figure. And one more thing - two incomes with scarcely over half of the withholding necessary to meet their tax liability.

My daughter borrowed $75,000, and paid it off totally by age 29.

[Lion]

Yes, our kids (except for daughter-in-law) paid off their loans, pay down credit cards monthly, didn't overborrow for their houses, save up before spending. But we all have those clients who are under-withheld, lots of debt, just a paycheck or illness away from being in serious financial trouble, won't be able to retire.

[Twin Turbo Z]

Why not give those who have already paid off student debt a $10,000 to $20,000 tax credit against tax liability ? Let the credit carry forward till its all used. But then that puts more burden on us tax preparers. My apologies if its been mentioned before.

[Gretel]

I bet anyone paying off their student loans fast have used the funds 100% for their education. The problem lies in the "freedom" of using the funds as you please. To not support those that have used funds otherwise one would need to dig a lot deeper and that, of course, is impossible. The whole system stinks with all the options to use debt as you please and still have a possible tax deduction. I am glad they did away with the HELOC for non-housing purposes.