@Anonymous wrote:On December 30, 2017, President Trump signed into law the "Stop Taxing Death and Disability Act." What this does is eliminate the tax liability for discharged student loans due to death or disability. So, if you're a parent on the hook for your deceased child's student loans and have them successfully discharged, you will no longer be financially liable for the tax burden that comes along with the discharge. In most cases with regard to disability, you need to either be deemed a disabled veteran with a 100% permanent and total (P&T) disability rating from the Department of Veterans Affairs, OR be receiving Social Security Disability Insurance (SSDI) or Social Security Income (SSI) for the previous 60 months to apply for the discharge. If approved for the student loan discharge, again, you will no longer be liable for the federal tax with regard to the cancelled debt. This information just came out so if you're eligible, I would recommend waiting until the government works out the details before applying. You may apply for the student loan discharge at www.disabilitydischarge.com. If you have any questions, please hit me up.
Just as a minor correction: As a stand-alone Bill HR 1659 has not been passed, however, basic provisions of Stop Taxing Death and Disability Act were included in HR 1 the Tax Cuts and Jobs Act of 2017 which became Public Law No: 115-97 on December 22, 017.
Supplemental Security Income (SSI) "benefits" are about $730 a month (2017, w/slight cola for 2018) and one can have no more than $2000 in "assets" nor additional income from employment - while SSDI can offer a livable income and allows for limited supplemental employment , SSI will not by any means provide an even basic income. The reason I point this out is someone on SSI would never be able or required to pay student loans, nor would they have any federal tax obligation.
From the SS site: Supplemental Security Income
Supplemental Security Income (SSI) is a Federal income supplement program funded by general tax revenues (not Social Security taxes):
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As far as "parents" being obligated to pay defaulted student loans when they cosigned or signed shared obligation student loans, specifically private student loans rather than government-backed loans, they don't usually go away that easy.