As if the requirements and eligibility criteria aren’t enough put offs, your standard military loan forgiveness programs have another significant drawback. The funds you receive from the program is part of your annual taxable income. Hence, you will have to report it to the Internal Revenue Service. As a result, you’ll be paying taxes on every penny you receive as benefits from any military student loan forgiveness program.
When you consider the total sum of taxes you’ll have to pay, it’s a substantial amount. In case you receive $10,000+ for yearly benefits, it’s crucial to include the tax liabilities in the deal ahead of time. The military student loan forgiveness program attracts major tax liabilities.
