Q&A: Student loan waiver
I am the father of a graduate student who completed her masters program in 2016. She is currently working as a psychological counselor for Partners Health Care in Boston. She has taken out loans (95% federally subsidized, 5% Perkins) for her tuition and is currently enrolled in the PAYE program.
The partners informed her that since they are a non-profit organization (Mass. General with Brigham Women’s Hospital) with a 403b plan, they can give her a loan discount if she works there for 10 years.
Do they meet the necessary qualifications so that she doesn’t worry about continuing to pay after she turns 10, assuming she stays there? Additionally, you should mention that while someone like her may be able to write off the balance, there are still tax ramifications. As far as I know, the IRS considers this type of loan forgiveness as earned income and will be taxed accordingly.
I am looking forward to your answer.