Boston Student Loan Lawyer

Law Office of Adam S. Minsky

7 Student Loan Tax Tips for 2018

| Articles Current Events Income-Based Repayment Income-Driven Repayment Loan Forgiveness Pay-As-You-Earn Policy & Reform Student Loans 101 Taxes

What’s more stressful than student loans and taxes? Not much. But don’t get paralyzed. Here are some tips to guide you as we enter the height of tax season.

Student Loan Interest Is Still Tax Deductible

For many years, the tax code permitted many borrowers to claim a portion of their student loan interest paid as a deduction on their tax return. This deduction was threatened during the congressional battle over the tax bill last year. However, the final version of the tax bill preserved this tax deduction. So if you received a 1098-E statement issued by your student loan lender (which would show the amount of interest that you paid during 2017), you may still be able to claim some of that as a deduction. Remember that the deduction is capped, however, and is also phased out for higher income earners.Read More

Government Shutdown: What Student Loan Borrowers Should Expect

| Articles Current Events Income-Driven Repayment Taxes

At midnight on Friday, January 19, 2018, the federal government officially shut down after congressional Democrats and Republicans, and President Trump, could not agree on a compromise to continue funding the government. When the government shuts down, it means that nonessential employees are sent home without pay, and federal agencies cease most nonessential operations, until the impasse is resolved.

With $1.4 trillion in outstanding student loan debt – much of it held by the federal government – many student loan borrowers are feeling nervous about how this shutdown may impact their student loans. The good news is that I expect any direct impacts to be fairly minimal for most student loan borrowers. However, certain people will definitely experience some disruption. Here’s my take on what to expect. Read More

Student Loan Law End-of-Year Review

| Articles Current Events For-Profit Colleges Income-Based Repayment Income-Driven Repayment Loan Forgiveness Pay-As-You-Earn Policy & Reform Private Student Loans Taxes

Well, 2017 has been quite an explosive year, hasn’t it? And there’s been a lot going on in the world of student loan law – so much, in fact, that it can be a bit overwhelming to keep everything straight. So as we wrap up this year, here’s an overview of what went down for student loan borrowers, and some hints of what’s to come in 2018.Read More

BREAKING: Tax Bill Targets Student Loan Borrowers

| Articles Current Events Policy & Reform Taxes

Late this week, the House GOP unveiled its much-anticipated tax reform bill. The bill makes a lot of reforms to the tax code for both individual and corporate taxpayers. There are some major changes proposed for student loan borrowers.

First, the bill eliminates the student loan interest deduction. Currently, individuals earning an income of up to $80,000 per year (or $160,000 for married couples filing jointly) can deduct up to $2,500 per year in interest paid on their student loans, although the benefit begins to get phased out once an individual hits $65,000 per year in income. There are over 44 million student loan borrowers in the United States, and an estimated 12 million of them claim this deduction. Read More

Student Loan Tax Season Tips

| Articles Default Income-Based Repayment Income-Driven Repayment Pay-As-You-Earn Taxes

Tax time is a stressful time, I know. And if you have student loans, there’s even more to think about. Here are are some tax-related tips to help guide you.

Deduct Your Student Loan Interest

Some of the student loan interest that you paid during 2016 may be tax deductible, which could lower your tax bill. Watch for a 1098-E statement issued by your student loan lenders, which will show the total amount of interest payments during 2016. Just keep in mind that the amount of this deduction is capped, and it is phased out entirely for higher income earners. Be sure to talk to your accountant to see if you’re eligible for this deduction.Read More

7 Reasons Why This Election Matters for Student Loan Borrowers

| Articles Current Events Default For-Profit Colleges Income-Based Repayment Income-Driven Repayment Loan Forgiveness Pay-As-You-Earn Policy & Reform Private Student Loans Taxes

DT and HCThe presidential party conventions are over, and what seems like the “election that never ends” will actually be over in less than 100 days.

A lot is being said about this election – that it’s the most important in a generation; that it could fundamentally change the United States and its place in the world; that our core national values are at stake. All of this may be true, and there’s plenty of analysis out there about how big and important it is.

But as a student loan attorney, I can tell you without hesitation that this presidential election is going to have a real, tangible impact on millions of student loan borrowers. It’s going to have significant, lasting consequences. What these impacts and consequences look like, however, will depend primarily on who wins this November. If you have student loans, you should be paying attention. Here’s why:Read More

7 Student Loan Tips for Tax Season

| Articles Income-Driven Repayment Loan Forgiveness Taxes

The holidays are over, and we’re already tired of winter. You know what that means: It’s tax season!

As your W-2’s, 1099’s, and other tax forms start arriving in the mail this month, it’s a good time to discuss how your student loans can affect your taxes, and how your taxes can affect your student loans.Read More

Senator Introduces Bill to Waive Taxability of Loan Forgiveness

| Articles Current Events Income-Driven Repayment Policy & Reform Taxes

Federal income-driven repayment plan programs such as Income-Based Repayment (IBR) and Pay As You Earn (PAYE) are imperfect but much-needed plans that allow many student loan borrowers to repay their loans using formulas based on their income and family size. For many student loan borrowers, they are the only affordable repayment plans available, and they help prevent default, which can be disastrous.

These programs also have an important safety net: after completing the plan’s repayment term (25 years under IBR, and 20 years for PAYE), borrowers can get any remaining balance on their student loans forgiven. Most borrowers are expected to repay their loans in full before they reach the end of their repayment term. But if a borrower’s income is insufficient to repay their loans in full, loan forgiveness means they won’t have to spend the rest of their life pouring a percentage of their income into a black hole. There is an eventual light at the end of the tunnel.

But of course, there’s a caveat. Read More