Quote:
Originally Posted by L0LWAT
If it was possible to run up debt, then leave the US and have no problems, people would do it all the time, and corporations would profit from it too. You could convert your debt to cash and be rich AF. Why stop at leaving the US? Get a million or 2 from every country and go infinite.
https://www.studentloanplanner.com/f...student-loans/
You don't have to flee the country or escape to get away from student loans. Some student loan borrowers use forbearance for years until loan servicers start getting creative with collection methods. Others send random statements from international employers showing paystubs. The shrewdest hire a CPA to file their U.S. taxes showing Adjusted Gross Income (AGI) of $0.
Having an AGI of $0 and having your federal loans on an income-driven repayment plan (IDR) like Pay As You Earn (PAYE) can effectively mean paying nothing on your student loans.
On various Reddit channels and Facebook groups, you can find people talking about this little-known hack. Read on to learn why moving overseas to avoid student loans can be beneficial.
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Example
The biggest hack you probably don’t know about your student loans is something called the Foreign Earned Income Tax Exclusion. You can exclude over $100,000 of income earned abroad from your tax return as a U.S. citizen.
For 2023, you can exclude up to $120,000. This amount is adjusted annually for inflation.
If you’re worried about your student debt to the point where you want to flee to a new country, there’s a good chance you’d make less than this amount. If you made more than the exemption, you could exclude that hundred grand from whatever you make.
Let’s look at the case of an American-born veterinarian who is on the hook for $250,000 of student debt. She meets an Australian and they go live in Melbourne, Australia. She decides to stay there and work as a vet in Australia, making about $70,000 USD.
Those earnings would be exempt from U.S. taxation. She would have an AGI of $0. Under IDR, that $0 income would equate to $0 payments. This allows her to pay nothing while staying in good standing with her loans.
You don't have to opt for deferment, tank your credit score, or fall into default.
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Not sure why you think corporations would profit from it
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Not sure why you think you can easily get millions in unsecured loans either lol