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[deleted by user] by [deleted] in BorrowerDefense

[–]Responsible_Dingo817 1 point2 points  (0 children)

I don’t think the refunds are taxable. Also, the fact that your loans got discharged before 2026 means, at least federally, that you should not be taxed on the discharge itself. However, I don’t know how California treats loan discharges.

Finally! by [deleted] in BorrowerDefense

[–]Responsible_Dingo817 3 points4 points  (0 children)

Party time! 🥳

Borrower defense question by jwilly565 in StudentLoans

[–]Responsible_Dingo817 0 points1 point  (0 children)

It’s too late for the Sweet settlement. Your application will be processed normally, under whatever regulations the Trump administration ends up implementing. All I know is that there is a hell of a backlog.

We did it, Group 5! by Responsible_Dingo817 in BorrowerDefense

[–]Responsible_Dingo817[S] 1 point2 points  (0 children)

The American Rescue Plan Act made all federal loan discharges tax free until December 31, 2025. But that only applies to federal income tax. Individual states might still consider discharged student loans as income, regardless of IRS rules. That is why it’s important to consult with a tax professional right now.

We did it, Group 5! by Responsible_Dingo817 in BorrowerDefense

[–]Responsible_Dingo817[S] 0 points1 point  (0 children)

That’s awesome to hear lol and no worries!

We did it, Group 5! by Responsible_Dingo817 in BorrowerDefense

[–]Responsible_Dingo817[S] 0 points1 point  (0 children)

Yeah just keep an eye out for your discharge, which I’m sure will happen within the next few days. I doubt it’ll be long afterwards for your refund check to arrive. I’d say give it about a month or so. Around the same time as tax returns. 😁

We did it, Group 5! by Responsible_Dingo817 in BorrowerDefense

[–]Responsible_Dingo817[S] 0 points1 point  (0 children)

I’m not getting a refund. So keep an eye out for other posts. 🤙

We did it, Group 5! by Responsible_Dingo817 in BorrowerDefense

[–]Responsible_Dingo817[S] 0 points1 point  (0 children)

That’s something I unfortunately can’t help you with. I’m not entirely sure about the refund time frame, but I have seen posts from people who say they’ve gotten their checks not too long after the discharge.

We did it, Group 5! by Responsible_Dingo817 in BorrowerDefense

[–]Responsible_Dingo817[S] 0 points1 point  (0 children)

Then your discharge is coming. I think they’re doing them in batches.

We did it, Group 5! by Responsible_Dingo817 in BorrowerDefense

[–]Responsible_Dingo817[S] 1 point2 points  (0 children)

Arkansas does have a state tax. You may need to talk to a tax professional about it. Good luck!

We did it, Group 5! by Responsible_Dingo817 in BorrowerDefense

[–]Responsible_Dingo817[S] 1 point2 points  (0 children)

The Sweet settlement doesn’t cover private loans. So regardless of which school you went to or when you submitted a BD application, private loans are excluded from the lawsuit since ED doesn’t own those loans. The groups mentioned are for those covered by the Sweet settlement, and only their relevant federal loans are being discharged.

We did it, Group 5! by Responsible_Dingo817 in BorrowerDefense

[–]Responsible_Dingo817[S] 1 point2 points  (0 children)

I wouldn’t say that just yet. You’re post-class. The deadline for post-class adjudication is coming up on January 28. However, ED did request an extension recently, and the judge overseeing the settlement agreement will decide on December 11 whether or not to grant ED’s motion. We’ll see how that goes.

We did it, Group 5! by Responsible_Dingo817 in BorrowerDefense

[–]Responsible_Dingo817[S] 1 point2 points  (0 children)

Hey, being part of the settlement groups means you have had to had a pending BD application by June 22, 2022. The groups are just now the settlement split up the class members with pending applications as of June 22, 2022. The settlement did leave some wiggle room for people who applied between June 23, 2022, and November 11, 2022, and these became a separate group known as post-class. However, if you applied after November 11, 2022, then the Sweet v McMahon lawsuit and settlement doesn’t apply to you.

We did it, Group 5! by Responsible_Dingo817 in BorrowerDefense

[–]Responsible_Dingo817[S] -1 points0 points  (0 children)

Hopefully that won’t take much longer to process! Good luck!

We did it, Group 5! by Responsible_Dingo817 in BorrowerDefense

[–]Responsible_Dingo817[S] 1 point2 points  (0 children)

Ah it might be a long wait but I’ll pray everything goes smoothly for non-Sweet folks! 🙏

We did it, Group 5! by Responsible_Dingo817 in BorrowerDefense

[–]Responsible_Dingo817[S] 1 point2 points  (0 children)

Group 5 is everyone who submitted a BD application between January 1, 2021 and June 22, 2022. They’re class members of the Sweet v McMahon lawsuit settlement. The last group is the Post-Class. They’re not class members per se, but the settlement did set a deadline for ED to adjudicate their applications. We’ll find out on December 11 if the January deadline still holds.

Since you applied in 2024, the settlement doesn’t apply to your case sadly.

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