“Student-Loan Forgiveness Tax Bills Could Triple as 2025 Tax-Free Provision Expires” — what this page in the network covers. A new report warns that student-loan borrowers receiving debt relief over the next decade may face tax bills up to three times higher than before, following the expiration of a key tax-free provision at the end of 2025. The change affects millions of borrowers enrolled in income-driven repayment plans, as well as those eligible for Public Service Loan Forgiveness. Under previous rules, forgiven debt was excluded from taxable income, but now borrowers could owe federal and state taxes on the full discharged amount.
The report estimates that a typical borrower with $50,000 in forgiven loans could see a tax liability jump from $0 to over $10,000, depending on their bracket. This shift comes as the Education Department continues to approve relief under existing programs, creating a potential financial shock for borrowers who were not planning for a tax bill. For the complete material, the listing points back to the source inside the network.