Student Loan Debt

Student loan debt is unlike any other kind of debt, especially if you have federal loans and are taking advantage of federal repayment programs. It’s entirely possible that you have been making payments for months or years, but you could now owe even more than when you started. The joys of income-driven repayment plans, where your monthly payment doesn’t even cover the interest.

You may be thinking no big deal, the amount will be forgiven in 20-25 years, think again. That forgiven amount (unless you are PSLF) is considered taxable income. So you can work hard to pay off that debt or work hard to prepare for that tax bomb that will drop at the end of your repayment period. Either way is fine, just make sure you have a plan one way or the other.