Student Loan Forgiveness Plans Could Be A Victim Of Their Own Success

Student Loan Forgiveness Plans Could Be A Victim Of Their Own Success

Student loan debt in the U.S. currently totals more than $1 trillion, with some predicting it will only get worse as tuition increases continue to outpace inflation. Recently launched federal student loan forgiveness programs were intended to provide relief to some of these borrowers, but the plans’ unexpected popularity has created a new set of concerns. [More]

Loan Co-Signers Should Not Be On The Hook With The IRS If The Debt Is Forgiven

We’ve written numerous stories over the years about parents who co-signed student loans for their children and then were stuck with the payments when their child passed away or could not find employment. Sometimes lenders will choose to forgive that debt, but even then some are making a mistake that could continue to hurt the co-signer at tax time. [More]

Banks Want To Forgive Credit Card Debt — But The Government Says No

The next wave of the credit crisis — the skyrocketing defaults on credit cards — is coming in and odd alliances are being formed. The Consumer Federation of America, along with the Financial Services Roundtable ( a self-described “major player on Capitol Hill and with the regulators” which represents the securities, investment, insurance and banking industries) has requested a “special program that would allow as much as 40 percent of credit card debt to be forgiven for consumers who don’t qualify for existing repayment plans.”