I was one of the few (I think) that was able to get a refund for my paid off student debt. Loans were paid off Oct '20 and was able to apply for debt refund for loan payments paid between March '20 till Oct when it was paid off. However, now that the Biden administration and student loan forgiveness is at war with everyone, I am assuming this money will come straight out of next yrs taxes which I will have to pay right back.

Is there anything I can do about this? What can I anticipate? Would anyone know how to prepare for this?

Thanks!

Comments

AutoModerator t1_iyb3clk wrote on November 30, 2022 at 2:01 AM

#787,723

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Werewolfdad t1_iyb3plx wrote on November 30, 2022 at 2:04 AM

#787,830

I’m not sure what you’re asking.

The student loan payment refund and taxes are unrelated

themagicalpanda t1_iyb4nkz wrote on November 30, 2022 at 2:11 AM

#788,079

refunds for loan payments made during the covid forebearance was possible because of the CARES act. the student loan forgiveness that is currently being battled in the courts is completely separate from the CARES act and has no affect on it.

you do not have to worry about taxes for refunds on loan payments via the CARES act.

AJmald OP t1_iyb4tw2 wrote on November 30, 2022 at 2:12 AM

#788,126

Replying to Werewolfdad (#787,830)

Can anyone confirm this? I would imagine this is federal aid (similar to covid stimulus checks) maybe I'm just thinking about this in the wrong context but I am wondering what would happen if the relief does not go through? Essentially the balance on my loan had to be reinstated to apply for this relief. So would my student loans just start again come next yr?

Werewolfdad t1_iyb56cp wrote on November 30, 2022 at 2:15 AM

#788,224

Replying to AJmald (#788,126)

> I would imagine this is federal aid

Its not. You're student loan balance is just back to what it was.

>but I am wondering what would happen if the relief does not go through?

You pay back your student loans like your original plan was.

>So would my student loans just start again come next yr?

yes

AJmald OP t1_iyb5f23 wrote on November 30, 2022 at 2:17 AM

#788,279

Replying to themagicalpanda (#788,079)

Thank you for this!

So essentially my loan balance should be cleared even in the student loan forgiveness ends up being denied?

My worry is that I still show a balance and am wondering what to do.

themagicalpanda t1_iyb5y2b wrote on November 30, 2022 at 2:21 AM

#788,403

Replying to AJmald (#788,279)

well if you got a refund for payments that you made, then your loan balance goes back to what it was prior to those payments.

so say you had 10k in loans, you paid 4k which brings your balance down to 6k. you then requested a 4k refund as those payments were made during the CARES act, you still owe 10k on your loans. this is obviously not taken into accounts if you made no other payments during the forebearance. this is for illustrative purposes.