They Said Student Loan Forgiveness Is Always Tax-Free — Not Anymore in 2026
Forgiveness isn’t always federally tax-free now – the 2021 exclusion expired after Dec. 31, 2025, but PSLF, teacher and disability discharges stay excluded.
American Rescue Plan
Student Loan Forgiveness Is Taxable Again in 2026 — What Changed and How to Avoid the Bill
Student loan forgiveness is taxable again in 2026 — but a rule most borrowers have never heard of can erase the bill entirely.
Student Loan Forgiveness Tax Bomb: What to Do
Quick Answer: Student loan forgiveness will become taxable income again after December 31, 2025, when the American Rescue Plan Act tax exclusion expires. Borrowers could owe thousands in taxes on forgiven amounts—for example, $60,000 in forgiveness could trigger a $13,200 tax bill due the following April.You’ve played by the rules. Made your payments. Believed—after 10 …
