Student loan borrowers across the country could soon see up to $20,000 of their student loan debt wiped out, but, it may come at a cost: state tax.
per year may have $10,000 of student loan debt forgiven and may owe an additional $500 in taxes.
Pell Grants are typically given to borrowers who need more help financially. These borrowers are eligible for $20,000 in student loan forgiveness and may owe an additional $1,000 in taxes. Seven states have confirmed they plan to tax student loan handout funds. So far, Mississippi, Minnesota, Wisconsin, Massachusetts, Arkansas, Indiana and North Carolina have announced plans to tax the student loan handout funds. But if you file in Virginia, Idaho, New York, West Virginia, Pennsylvania and Kentucky, don't expect to be taxed.Rhode pointed out that the amount taxed would be small compared to the thousands of dollars being forgiven.
"If you had to pay $1,000 of income tax in Mississippi or $20,000 plus interest over time, you know what the thousand dollar tax bill is a blessing," Rhode said.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Today's deals: $99 AirPods, $20 Fire Stick, $0.99 Echo Dot, Bose speakers, moreAmazon's best deals on Wednesday include Apple AirPods, Fire TV Sticks, the Echo Dot for just $0.99, Bose speakers, and plenty more.
Read more »
This Hulu Live TV Deal Gets You $20 Off Ahead of the NFL SeasonHulu is offering a $20 discount off their Hulu + Live TV Bundle for three months ahead of the NFL season. The limited time deal, which runs through Oct. 19, brings the cost of the bundle to only $4…
Read more »
This New $20 Mascara Is A Game Changer For Straight LashesClean beauty brand Tower 28 just launched your new favorite lengthening mascara.
Read more »
Ricky Martin Files $20 Million Lawsuit Against Nephew Who Accused Him of Sexual AbuseRicky Martin says he's been 'persecuted, besieged, harassed, stalked and extorted by a maladjusted person' -- AKA his nephew -- and he's now suing the guy who made wild accusations against him.
Read more »
Ricky Martin Sues His Nephew For $20 Million Over False Sexual Abuse AllegationsMartin’s lawyers said the claim by the nephew, which he has since recanted, has cost the singer millions of dollars in lost income.
Read more »
Ricky Martin files $20 million lawsuit against nephewThe singer has filed a $20 million lawsuit against his nephew, claiming that he lost several million-dollar deals due to what he calls false sexual assault allegations.
Read more »