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According to the Washington Post, who sources Senate staffers, the Treasury Department refuses to stop forcing permanently disabled people to pay taxes on student loans that have been canceled, leaving a vulnerable population susceptible to thousands of dollars in charges.

1. What is the financial problem associated with each dollar forgiven?
2. What is the compliance burden that Treasury has avoided?
3. Explain garnishment of Social security. Then, discuss this concept within the context of this “loan bomb” issue.
4. Why doesn’t Congress act to fix this problem? Explain.
5. What percentage of these disabled individuals with student debt are insolvent to begin with?

Douglas-Gabriel, D. (2016).Feds refuse to stop taxing the canceled student debt of severely disabled people. The Washington Post, Dec. 23 (Retrievable online at