All I can say is wow!
https://www.washingtonpost.com/life...class-s-student-loans/?utm_term=.8fad943e4065
https://www.washingtonpost.com/life...class-s-student-loans/?utm_term=.8fad943e4065
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Amazing. But help a tax dum dum out here: could this be taxable income for the students? What about gift tax implications for him?
It would not be taxable income to the students. Not sure if this fits in with a gift tax exemption, that would take some digging, but under any circumstance he can give $15,000. to each student ($30,000 if he gift splits with his wife assuming he's married), that would be exempt from gift tax. Worst case, amounts above that would be subject to gift tax.
Yes he is married to a former Playboy Playmate of the year Hope Dworaczyk. I guess she is now his playmate.After the $15k (Annual Exemption - per recipient), it would eat into his Lifetime Gift Tax Exemption ($1mil last I checked- haven’t worked in Trust and Estates in years).
Once the Lifetime Exemption used up, he would have to actually pay gift tax.
It’s a weird 2 tiered exemption system.
Yes he is married to a former Playboy Playmate of the year Hope Dworaczyk. I guess she is now his playmate.
https://l450v.alamy.com/450v/d6a2j1...ty-apprentice-celebrate-the-season-d6a2j1.jpg
Over-the-top generous. Wonder what the parents who scrimped and saved and sacrificed to pay the full tab for their offspring had to say driving home from the commencement ceremony?
But lots of parents do not save and sacrifice. Often has nothing to do with flirting with poverty. Just a different mindset about providing for their kids. Parents have different outlooks on paying for college. Those with loans here have hit the jackpot. God bless the commencement speaker for his generosity.It's generous gift nonetheless. And at the current level of college costs, parents who scrimped and saved to pay the full tab weren't exactly flirting with poverty.
It's generous gift nonetheless. And at the current level of college costs, parents who scrimped and saved to pay the full tab weren't exactly flirting with poverty.
why wouldnt it? I think it isIt would not be taxable income to the students. .
Nonsense. It rewards those parents and students who did nothing at all to help fund their education - i.e. the least responsible people - the most.
why wouldnt it? I think it is
I've been put in a psych hospitals twice form MUCH less than that...Wonder what happens if a kid says, "Thank you, sir... but I believe in working off my debts, so if you have a job for me, I would prefer that."
Yeah those graduates who busted their butts working a job and perhaps taking 5-6 years to graduate to minor minimize or eliminate the need for debt must be miffed and kicking themselves. Then again when I attended Cook it was so weed out for prepping meds/vet that there were no time for anything but studying.I think looking at it from the other way around it essentially penalizes those who did not borrow a single penny rather than the degree to which it rewards those who borrowed a single penny or more. Those who borrowed every penny are just the luckiest jackpot winners relatively speaking.
As to gift tax etc., it will be done through a foundation providing scholarships and it will be somewhat deductible by him, and not income to the recipients. No gift tax implications.
As to the gift overall, IMHO, its a silly way to give. As said above, it punishes the family who scraped together enough to pay, and the kid who worked his way through University, and benefits those who made the financially irresponsible choice of paying 100% with loans.
Nobody "works their way through university" anymore. This isn't 1972.
Are you serious? Do you actually think no students work during the school year?
Do you have any idea how many Rutgers students are working part time or attending school part-time or evenings only? Do you have any idea how many students are either partially or fully responsible for the costs of their education?
I know students "work," dude, but you said "work their way through college" which means earning the money to pay your tuition which, unless you're at community college, is completely impossible if you attend full time. It costs $25k to attend Rutgers as a residential student. Even if you commute you're not paying your own way by working at Arby's.
I know students "work," dude, but you said "work their way through college" which means earning the money to pay your tuition which, unless you're at community college, is completely impossible if you attend full time. It costs $25k to attend Rutgers as a residential student. Even if you commute you're not paying your own way by working at Arby's.
I paid my 250,000 dollar tuition off at Stanford by making sandwiches at Subway part time... 20 hours per week (yeah right) x 10 bucks an hour (maybe)=200/week. 800 per month = 9600 per year. The notion is absurd.
Good job combining the most expensive tuition you could find, with the lowest paying job you can come up with. I shouldn't need to say this, but Morehouse College and Stanford are not drawing from the same populaiton.
Per google, Morehouse costs $26k to attend per year. A college student could easily make a very significant chunk of that working part time.
"easily' seems to be doing a lot of work here. The median income for college age kids is somewhere around $22k.Good job combining the most expensive tuition you could find, with the lowest paying job you can come up with. I shouldn't need to say this, but Morehouse College and Stanford are not drawing from the same populaiton.
Per google, Morehouse costs $26k to attend per year. A college student could easily make a very significant chunk of that working part time.
No one here was 'punished', some were helped more than others.
I think it's nice that some people happened to get a bit luck. That's it's a bit more luck for some than others... I mean, that's just life.
If someone pays off my 10K student loan, and also someone else's 100K loan, I'd have to be a pretty big dick to be more concerned about that inequity than the fact that I just had 10k paid off by a generous person.
For reference, I'm in my 40s and we're still paying off my wife's student loans, that fact that these kids got some free money bothers me not at all, not even a tiny little bit.
Don't really want to get into economics or politics, but my main gripe with those tax cuts is that they are generally much less effective as juicing the economy than ones targeted at lower income folks. That said, when you're just talking about income tax, there isn't a hell of a lot left to cut for lower income folks, so you'd have to look elsewhere.I agree but please tell this to all the whiners when there is a tax cut passed that benefits everyone, yet a disproportionate amount goes to the people that pay more in taxes. All you hear about then is “tax cut for the rich”.
Per google, Morehouse costs $26k to attend per year. A college student could easily make a very significant chunk of that working part time.
Yeah, cuz college students are landing high paying jobs while working part time.
"easily' seems to be doing a lot of work here. The median income for college age kids is somewhere around $22k.
https://www.businessinsider.com/typical-salary-americans-at-every-age-2018-6
Add in taxes, car costs, literally anything that isn't school and it seems pretty unlikely that students could 'easily' pay off a large chunk of that each year.
I just disagree. My office has employed countless night students and regular day students who come from less than privileged backgrounds who are doing just that. And certainly living expenses are a part of that. A lot of students who do not work are using loans for everything. Earning $20k annually vs. earning 0 is going to make a huge difference in your repayment situation leaving a school like Morehouse.
Is “penalized” the word you intended? Did you mean “rewarded”? Parents and students who did the scrimping, saving, and sacrificing are admirable and worthy of reward.Don’t see how the people who paid their way are”penalized”, they are no better or worse off than if the offer wasn’t made.
No doubt all of that is true, but I guess there are differences in opinion about what 'easily' means and 'significant chunk.' It is, of course, possible to have to borrow less when you work. It is also fairly likely, that even if you work, you will have many years of paying off school ahead of you. As I mentioned earlier in the thread, we're still paying off my wife's student loans of 20 years ago, and she worked throughout her entire college career at RU, when it was less expensive than it is now.
Penalized was not my word, it is the word used by the poster I responded to.Is “penalized” the word you intended? Did you mean “rewarded”? Parents and students who did the scrimping, saving, and sacrificing are admirable and worthy of reward.