Due to a temporary change in the law, student loan forgiveness is not considered federally taxable income. State tax laws vary, though.
While the Department of Education is focusing debt relief on five broad categories, the finalized details of the plan are still being ironed out.
Much attention is paid to younger borrowers, and rightfully so. But some 3.5 million Americans 60 and older hold substantial debt.
It’s part of a one-time fix by the Biden administration to the income-driven repayment program for federal student loans.
More than 800,000 U.S. borrowers should see relief.
A debt ceiling deal has been made, and student loan borrowers will have to start making payments again later this summer.
Reining in our debt amid the debt ceiling battle would require big — and painful — changes to government spending and taxation.
U.S. borrowers hold a collective $1.8 trillion in both public and private student loans.
The office will have to manage student loan forgiveness — if that clears Supreme Court challenges — and the resumption of loan payments after a pandemic pause.
A federal program used to reject most applications. But a Biden administration waiver has allowed forgiveness for $14 billion in loans.
