I understand. I had thought they could contribute some amount, but now I see that they cannot.
I think following some of the wise advice of the other posters will get you where you want to be in the end.
Good luck!
The 120 payments do not have to be continuous. And while many of the loan forgiveness programs are taxable, PSLF is not for federal income tax purposes. The amount may be for state taxes.
Only true thru Dec 31, 2025–which won’t help the OP.
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I’m not a fan of BS/DO(BSMD) programs. You never want to commit to a life-altering decision like that out of high school. Of all of the “premed” hopefuls coming out of high school, very few of them actually go to medical school. College is a maturation process where you discover passions as you explore.
Give yourself time to explore and discover what you REALLY want to do before making a commitment. I was one of those “doctor” hopefuls too. I program computers for a living and I love doing it.
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This point should be given serious consideration if the full ride nursing school option is still available to you.
OP: How do you know that a significant number of students fail out of the NYIT joint degree program ? If true, then NYIT is admitting students with the expectation that many will be weeded out. This suggests that it is too much of a financial risk; better to go to nursing school for free.
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PSLF (public service loan forgiveness) may or may not result in a “tax bomb” when the remainder loan amount is forgiven. Under current law, it will result in a tax bomb, but the Biden administration is working hard to eliminate the tax bomb effect (forgiven loan amount is taxable in year of forgiveness). Those whose student loans are forgiven will receive an IRS Form 1099-C (cancellation of debt).
Student loan forgiveness and student loan forgiveness tax issues have become polemic political issues.
P.S. When approaching time for loan forgiveness and a possible tax bomb (Form 1099-C) effect, consult with a CPA or other professional who has significant knowledge of, and experience with, handling tax bomb cases. Some 529 plans may offer a very significant offset.
No, PSLF is not a tax bomb. Other forms of forgiveness are, but PSLF was set up to be non taxable (federal) on the amount forgiven. I always told students that a subsequent administration could choose to change that, but to date, it is tax free at the federal level (some states might choose to tax it).
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PSLF forgiven loan amounts may be taxed at the state level–which is why 529 plans may come into play.
Those on income based loan repayment plans is likely to cause a tax bomb effect regarding the forgiven amount at both the state & federal levels after 2025.
Yes, income based repayment can be costly - a caveat I always warned borrowers of, but even so, I suspect most will be surprised if they get a huge tax bill someday. When it comes to the way loans work, too many borrowers just tune out.
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However, student loan forgiveness is a political issue. Is it safe to assume that PSLF loan forgiveness will remain non-taxable at the federal level given the current political climate ?
Keep in mind that if you go to community college for even one semester, you are then considered a transfer student. Transfer scholarships are not as good as freshman scholarships.
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This is school dependent. Some schools allow 16-26 credits taken after hs graduation to still qualify as a freshman admit, and still eligible for freshman scholarships and housing.
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