Comment Not 100% good. (Score 0) 406
From TFA:
Eligible borrowers who do decide to take advantage of the discharge option should be aware that the forgiven debt may be considered taxable income. The Obama administration asked Congress in its 2017 budget proposal to get rid of the tax penalties for disability discharges, but meanwhile borrowers may find themselves paying taxes on the forgiven loans.
So if you owe $100,000 on your loans and it is "forgiven" then you've just made $100,000 and need to pay taxes on it.
And the IRS is not so forgiving.
Not to mention what that may do to any disability payments you may be receiving.