Do you pay taxes on private student loans like Sallie Mae?
Do you pay taxes on private student loans like Sallie Mae?No. The proceeds of a private student loan is considered debt, not income.The interest paid on a federal or private student loan is eligible for the student loan interest deduction. This is an above-the-line exclusion from income for up to $2,500 a year in interest paid on federal and private student loans.The cancellation of debt may be considered income in some circumstances. When a debt is cancelled, forgiven or discharged, it is as though you received money to pay off the debt. If the cancelled debt is treated as income, you will receive an IRS Form 1099-C corresponding to the amount of debt paid off.However, there are several circumstances in which cancelled student loan debt is not considered income.If a student loan is forgiven because of service in a specific occupation for a specified period of time as part of the terms and conditions of the loan. Examples include public service loan forgiveness and teacher loan forgiveness, both of which are available for federal student loans.If a student loan is discharged because of the death or disability of the student borrower. This was a change enacted as part of the Tax Cuts and Jobs Act of 2017.The cancellation of the remaining debt after 20 or 25 years in repayment in an income-driven repayment plan will represent taxable income to the borrower under current law.
I'm desperate, Sallie Mae won't work with me anymore...What can I do?
The 2005 amendments to the Bankruptcy Code expanded the protection of student loan lenders to include private student loans. Thus no student loan is dischargeable in bankruptcy unless the court finds, in a specially filed adversary proceeding, that repayment of the loan would impose an "undue hardship" on the debtor and the debtor's dependents. The circumstances when this happen are rare. A bankruptcy attorney could best advise of your chances based on your circumstances. You can file for a Chapter 13 bankruptcy and include your loans as secured debts (first priority), however Chapter 13 repayment plans (you will still be expected to make payments based on your income and other obligations) are typically only 5 years long at most. You will still owe the balance of the loan when your bankruptcy is discharged and Chapt.13 bankruptcy itself is a huge negative on your credit that remains for 7 years from the date you file. That's about your only recourse if Sallie Mae won't work with you, but might buy you some time until you get back on your feet. Only you can decide whether or not the ends justify the means. If you absolutely cannot afford to pay them anything, expect them to sue. If that happens and they win a judgment, they can garnish your wages and/or levy your bank accounts, attach liens and even in some cases, seize personal property to sell to satisfy the debt (state law will determine this).
What are tips on consolidating Sallie Mae loans?
You can use The Student Loan Helpers to get away from Sallie Mae and into a loan forgiveness program with the government. www.facebook.com/thestudentloanhelpers
Does Sallie Mae do home loans or student loans?
Sallie Mae focuses on student loans : Sallie Mae Student LoansIf you are looking for a home loan visit findmoneyinminutes.com and check your credit score first.
How do I find my 1098 T form through Sallie Mae?
1098T you get from your school before 1/31/2011. 1098T is your tuition and grants paid/received, this will help determine if you qualify for education credits on your taxes. Your 1098E is what you get from SallieMae and other loan lenders, this is the intrest paid on your loans for 2010.
Can Sallie Mae dip into my Roth IRA, investments, savings, cd's to pay off a student loan?
No...this country does not owe you a job. If you can't take your education and get a job. The education is not the problem. You are the problem. You are coming on YA and making excuses for your lazy behavior. You are coming here making excuses for not living up to your responsibility. For not living up to your agreement. When you took out that loan - you agreed to pay it off. Don't give me--- and the millions of others who took out student loans and worked our Fanny's off to pay them off your load of cr@p. You're not forced to go over seas. You chose to. Of course they keep taking on interest. That's what a loan is! Every time you defer the loan.. the interest adds up. According to Suze Orman's book The Road to Wealth, The Answers You Need to More than 2000 Personal Finance Questions- Q If I default (on student loan) and the Department Of Education comes after me, what can they get? A "Almost everything: your bank account, your car, and any other property and/or assets you own - as well as garnishing your wages." You can not discharge a student loan in bankruptcy. So....grow up....stop being a lazy bum and start paying back the money you owe. The longer you put it off....the more the interest accrues.... penalties get applied and the amount you own only goes up up up. And if you don't pay it.....the government can and will come after you. You borrowed it -- You owe it.
Help with Sallie Mae charge off loans as a cosigner?
I apparently consigned a student loan (can't prove I didn't) but this person I apparently cosigned for never paid his sallie loans and then they were charged off. The total for the three loans are about $15,000. Is there a way I can get this off of my credit report? Will sallie mae accept a payment to remove my name from this? I don't believe I cosigned but this was many years ago and I did do a $1,200 consignment. Been battling this for years saying I didn't know it was mine or think it was. So any advice about police reports or proving I signed is wasted time. Been there and tried that. So now my focus is to see how little I can pay to have this junk off my credit report. Any help????
What happens if I pay Sallie Mae off in full before I graduate from university? Will I still have to pay the finance charge?
Yes you will pay interest to the extent you have already accumulated interest on the loan and it has not been paid. You will have to pay off the interest accumulated during the time you took out the loan to the day you pay off the loan tonthe extent the interest was not already paid with your monthly payments.SallieMae has several options:interest deferral (no interest paid until after you graduate)…. If you chose this option you will need to pay off the interest accumlated. This amount should be part of your loan balance.Normal amortization loan… you have been paying interest every month so you have already paid most (if not all) of the interest payment in addition to some principal on the loan. This amount 9f interest (if any) should be part of your loan balance.Interest only of limited repayment… these payment options require a small minimum payment which typically does not pay off 100% of the interest each month. If you are in this program you will be paying off some residual interest. This amount should be part of your loan balance.The Finance Brain - Actionable, intelligent, and witty personal finance insights and reflections from the corner office
Should I and how do I consolidate my student loans?
wow - a lot of questions. let's start with the easy ones, first. Student loan interest IS tax-deductible. The maximum amount you can claim each year is $2500. If you paid more than that, you can not deduct anything over $2500. (Can I assume that your starting salary won't be in excess of $55,000? If you do make more than $55,000, you won't be able to take the full deduction for student loan interest.) Do you have to be employed full-time in order to consolidate? No. Should you consolidate your students loans? Ah, now that's the tough one. Here's what the Department of Education has to say about consolidation loans: Always Consider the Cost "You should keep in mind that although consolidation can simplify loan repayment and lower your monthly payment, it also can significantly increase the total cost of repaying your loans. Consolidation offers lower monthly payments by giving borrowers up to 30 years to repay their loans. So, you'll make more payments and pay more in interest. In fact, in some situations consolidation can double your total interest expense. If you don't need monthly payment relief, you should compare the cost of repaying your unconsolidated loans against the cost of repaying a consolidation loan. You also should take into account the impact of losing any borrower benefits offered under non-consolidated repayment plans. Borrower benefits, which may include interest rate discounts, principal rebates, or some loan cancellation benefits can significantly reduce the cost of repaying your loans. Once made, Federal Consolidation Loans cannot be unmade. That's because the loans that were consolidated have been paid off and no longer exist. Take the time to study your consolidation options before you submit your application. This checklist has been designed to help you determine whether and how you should consolidate your loans." I hope that helped, good luck!
Should I consolidate my student Loans?
Hello Melissa, As the other responders have said, YES, it makes complete sense fo ryou to consolidate! Especially being that you have such a large amount of student loan debt... The government offers this program to students as a way to teach people a more effective way to manage your debt.. By combining all of the loans into one loan it simplifies your finances.. Think about it, at the end of each month, do you wan tto be sending a9-10 seperate payments to 9-10 seperate lenders, or do you wnat to make one payemtn to one lender??? Imagine the checks, stamps, and envelopes you would use in just 1 year if you stayed the way you are.. Not only that but look at the more important issue.. All loans taken out before July 1st 2006 are variable rates.. In the last few years interest rates have been on the rise... If you dont consolidate into a fixed rate, your rates will rise on all of your loans.. THIS MEANS YOUR PAYEMTNS RISE AS WELL!!! By consolidating you get what is called a weighted average interest rate.. The take an average of your interest rate based on the amount of each loan... More importantly the interest rate is FIXED on the new consolidation loan.. So, it make s complete sense to consolidate your student loans!! Remember, the government offers this program FREE OF CHARGE!!!! My name is Jason Fry, i am a financial advisor for Student Aid Lending.. We are licensed nationwide and are a title IV lender administered by the Department of Education.. Take a look at my personal yahoo 360 page.. You can find alot of helpful information as well as a direct link to our website... http://360.yahoo.com/my_profile-HlUDUhMi... Feel free to call or email me at any time with questions, or curiousities.. I will take time to answer any and all questions!! Good Luck! Jason Fry Student Aid Lending 1-800-964-0642 ext. 114 email@example.com