Comment on Thousands of student-loan borrowers celebrating Biden's latest debt relief might have to pay taxes on it in these 5 states

Thousands of student-loan borrowers celebrating Biden's latest debt relief might have to pay taxes on it in these 5 states

Getty Images Biden recently announced student-debt relief for over 800,000 borrowers on income-driven repayment. The American Rescue Plan said debt relief will not be subject to federal taxes through 2025. While most states adopted the same guidance, some states could tax the latest relief. Student-loan forgiveness is starting to hit thousands of borrowers' accounts — but it might be subject to a state tax.On Monday, President Joe Biden's Education Department announced it was beginning to discharge student loans for 804,000 borrowers as a result of a one-time account adjustment for borrowers on income-driven repayment plans.

 

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