RePAYE Proposal? Forum

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wildhaggis

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RePAYE Proposal?

Post by wildhaggis » Tue Aug 25, 2015 2:07 pm

Apologies in advance if this topic has already been addressed.

TL;DR: I am trying to decipher the DoE's RePAYE proposals to determine the veracity of a Forbes article claiming that the changes include removing taxation of federal student loan debt forgiveness.

Bear with me on this one. As everyone knows, some changes to Pay As You Earn were proposed over a year ago (dubbed RePAYE). For these changes to take place, of course, the Department of Education actually has to come up with the specifics. Well, the proposed changes were posted by the Department of Education to the Federal Register for public comment on July 9, 2015. I don't see these posted anywhere on TLS. See:

https://www.federalregister.gov/article ... d-ford#h-9

Before I started combing through the changes, I read this article on Forbes:

http://www.forbes.com/sites/robertfarri ... ally-mean/

To my surprise, the author indicates, on page 2, that the proposed changes include: "Borrowers will no longer face taxation on any student loan debt forgiven at the end of the repayment period." Thinking this was complete bullshit, I actually started to read the DoE's proposals, eager to find what scrap of text this individual could possibly have used to make this conclusion.

I'm trying to go through these now to determine whether this guy is full of shit or not. Obviously, this would be huge news. Has anyone looked through these and made such a determination? Is there any existing TLS topic on this?

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twenty

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Re: RePAYE Proposal?

Post by twenty » Tue Aug 25, 2015 4:42 pm

I'm not seeing it.

edit> checked the proposed regulation and summary of proposal, didn't get anything with the IRS.

edit 2> did you try contacting the author of the article?

wildhaggis

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Re: RePAYE Proposal?

Post by wildhaggis » Tue Aug 25, 2015 5:34 pm

twenty wrote:I'm not seeing it.

edit> checked the proposed regulation and summary of proposal, didn't get anything with the IRS.

edit 2> did you try contacting the author of the article?
The author is Robert Farrington, who runs some sort of wealth management start-up for the student loan indebted. The only contact I could find was through the website for his company, which I did use to contact him for clarification. Haven't heard back yet.

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Johann

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Re: RePAYE Proposal?

Post by Johann » Tue Aug 25, 2015 5:39 pm

I have not heard anything about the tax bomb being taken away and I'm pretty sure it'd get some good coverage. I think the author is wrong.

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