College; four years devoted to having fun, making friends, finding yourself, and racking up thousands of dollars in debt. Many take 10+ years to pay off their burdensome loans while others default. The latter placing themselves in troubles including damaged credit rating and/or issues with the IRS such as garnished wages. All of these can have detrimental effects on the graduate gaining a job or finding a home. If you are a current college student or a parent with children in or heading to college, there is great news on the horizon.
With greatest empathy for the college bound and graduates, on June 9, 2014, President Barack Obama issued an executive order to make it easier for young adults to avoid the troubles that may come with repaying student loans. The order will go into effect 2015 and directs the secretary of education to allow more students who borrow federal direct loans the ability to cap their payments at 10% of their monthly incomes.
While Federal law already allows most students to do this, the action will extend this goodwill to those who borrowed before October 2007 or those who have not borrowed since October 2011. Although the order does not decrease the hefty loans needed for college or end the threat of IRS troubles down the line, it will hopefully decrease the number of those who may face default and make it easier overall to pay the loans back.
If you are currently facing tax issues regarding your student loans, feel free to contact one of our personable tax attorneys at any time. We are available 24/7 to answer any questions you may have. Tax resolution is right around the corner and only a phone call away! (248) 329-1160