Claremont, NH asked in Gov & Administrative Law and Tax Law for Vermont

Q: Can I apply stock market capital losses to my federal student loans to pay them off?

2 Lawyer Answers

A: No, that doesn't make any sense.

Bruce Alexander Minnick and Tim Akpinar agree with this answer

A: Wow. Why would anyone think that Uncle Sam would allow taxpayers to gamble after-tax money in the stock market and then declare all their losses as some sort of direct set-off against their federally guaranteed student loans? If that ridiculous scheme was allowed no one would ever have to repay their student loans--unless they won big?

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