Tax Tip #315

A student loan forgiven between the years 2021 and 2025 was not federally taxable. However, in 2026, student loan forgiveness is taxable. 

Exceptions include: 

• Teacher and/or Public Service Loan Forgiveness
• Discharge due to death
• Total and permanent disability
• An insolvent borrower 

State treatment varies. 

Had student loan forgiveness and want to understand the potential tax impact? Reach out to a team member.