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Loan Forgiveness non-VA rating

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Loan Forgiveness non-VA rating

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.   


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Established Contributor

Re: Loan Forgiveness non-VA rating

Thats amazing, congratulations on that!

12/18/19






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Message 2 of 7
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Valued Contributor

Re: Loan Forgiveness non-VA rating

Great - happy that worked out for you. Hope Hubby is doing well and has a full recovery!
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Re: Loan Forgiveness non-VA rating

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.



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Regular Contributor

Re: Loan Forgiveness non-VA rating

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?


@Sabii wrote:
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.

 


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Re: Loan Forgiveness non-VA rating

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."
https://studentaid.gov/manage-loans/forgiveness-cancellation/disability-discharge#is-discharged-amou...

If you don't mind, how long did it take, from application to forgiveness?



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Regular Contributor

Re: Loan Forgiveness non-VA rating


@Sabii wrote:
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."
https://studentaid.gov/manage-loans/forgiveness-cancellation/disability-discharge#is-discharged-amou...

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.  


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