Question. I recently got back approx 10k in student loan payments I had made. I won a case against my college and they had to repay me for what I had paid in. This also concluded in the removal of my debts. Now, I know that typically when debt is forgiven there’s a tax issue. I’m just not sure if it will apply to me and google is kind of vague for this situation. Anyone know if I’ll be hit with a tax bomb?
TLDR:
– won a case against my school
– student loans forgiven
– repayment made to me for payments previously made
Will I have an unexpected tax bomb?
Question about loan forgiveness/repayment
byu/becomingstranger inStudentLoans
Posted by becomingstranger
1 Comment
No, that is not income; it is your own money being returned to you