<p>If you don’t work, then your 10% of your income is zero. You could marry a rich person and never be required to pay back your loan. You could hide income other ways including self employment, etc. Basically, this 10% limit could save someone from paying all or most of your student loan.</p>
<p>People can deploy all the sophisticated ways of hiding income to avoid taxes. It amounts to reducing taxes by 10%. You have to do that only 20 years and the loans will be forgiven. That’s well before their responsible peers finish paying up their mortgages.</p>
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<p>Uh, no. Depending on the plan, income can include family income. </p>
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<p>Of course, you may be subject to taxes on the forgiven loans…</p>
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<p>From the earlier NYT article.</p>
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<p>It turns out that if you are in that second category (10 years…) the forgiven amount is not taxable.</p>
<p>Uh, no. Depending on the plan, income can include family income. </p>
<p>Ok. You could live with a rich person, never marry them, and never pay off your loan since your income is zero. It creates loop holes that people can take advantage of. Many people live together of all ages with the intention of never getting married for various reasons including that it is not beneficial financially. If not getting married saves you repayment of a $250,000 loan, then people won’t do it. A lot of older people do this so they don’t lose their pensions from a deceased spouse and/or social security payment. Not getting married to a person with a high income could also get you very cheap obamacare also. Just another loophole. </p>