WHoever put this post together is wrong on the tax issue. You do pay income tax> I consolidated my student loans and got a rebate for doing so. Ity was accompanied by a year end 1099 as I expected. This would be not different. It is miscellaneous income. Just as ther is mortgage fraud ther is tax fraud aswell. If you get a rebate expect to pay tax. Be happy you are paying it becasue many people are not getting that wame rebate so you are way ahead of the game.
