Tax Implications of Federal Loan Forgiveness

Lindsay Taylor Pyfrom

The importance of understanding the tax implications applicable to student loan forgiveness programs and discharge options is more crucial than ever.

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Currently, federal student loan debt has reached an excess of $1.5 trillion. More than 7.3 million former students are on various payment plans. There are limited circumstances in which student loan debt can be discharged or forgiven without tax implications. The importance of understanding the tax implications applicable to student loan forgiveness programs and discharge options is more crucial than ever.