I read here about loan forgiveness for non-VA rating but can't find it. My husband was injured on the job (traumatic brain and electrical injury} in 2017. In 2019 his worker's compensation physician completed the documents for loan forgiveness. Today, we received a letter from Nelnet informing us that his loans were forgiven and he will be on a three year monitoring period and he has to complete a form every year about his employment and pay. The best news was that his loans will show as paid and zeroed out on the CRAs.
I called the TPD office and was told it would take 4-6 months before it shows on the credit reports that they were paid. Is there a chance that the IRS will consider the forgiveness taxable?
Congrats on getting the approval. I also believe the forgiven amount is no longer taxable.
Your story will give others in a similar situation hope. Thank you both for sharing.
No, new legislation was passed in 2018. It's no longer taxable.
"If you received a TPD discharge of a loan during the period from Jan. 1, 2018 to Dec. 31, 2025, the discharged loan amount won’t be considered income for federal tax purposes."
If you don't mind, how long did it take, from application to forgiveness?
Submitted paperwork in late November. Received a response and approval January 7th.