I am at a point where I can have my loans forgiven. However, I have 2 options I qualify for PSLF and IDR waiver... Is there any advantage (Taxes, etc) to choosing one over the other?
Congrats on being done!
PSLF already has legislation that makes the forgiveness tax free. IDR, I don't think they have done this yet. But they did pass that until 2025 forgiveness (the forgiven amount) will not be taxable. So I'm not sure it makes a difference either way. Hope this helps.
i have a friend who received the IDR waiver and, as of yesterday, their account now shows paid in full. in addition, they were told that they are receiving a refund. in the letter, it stated that the payoff was non-taxable for federal taxes but to check with state/local tax authority.