Somewhat "ironic"?

[CYCLE_MONKEY]

http://gma.yahoo.com/jersey-womans-student-loan-debt-creates-tax-nightmare-134134842--abc-news-topstories.html

On one hand I feel sorry for her, on the other she got off light ($26k vs. $91k).

Regardless, I never knew our greedy gov't would consider things like a cancellation of debt as "income". THAT, sux.

[Ghosty]

Wow, I never knew about CODI either! Crazy. Poor girl. The laws definitely need to be revised for disabled people like her:


Not all cancelled student loan debt is taxable. If Thompson's debt had been forgiven because she worked in a job that qualified her to have some or all of her debt wiped out (certain medical, teaching or law enforcement positions, for example) she wouldn't now owe the IRS some $26,000. In addition, she owes $5,000 to the state of New Jersey for cancellation of debt income.

But there is no tax break for student loan debt that has been cancelled due to disability, despite the fact that borrowers who qualify for cancellation are considered totally and permanently disabled, and may never work again...