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IBR:  Debt Forgiven after 20 years

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Total Posts: 3

Joined 2011-11-03

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Is having the debt forgiven after 20 years automatic or do you have to apply for it?  With Obama’s new plan, will the forgiven amount still be considered income for which we’ll be taxed?  If so, people will get slaughtered when they suddenly have to pay income tax on hundreds of thousands of dollars in the forgiveness year.