Have You Received Student-Loan Forgiveness? Plan Now to Avoid a Tax Bomb
- Miguel Virgen, PhD Student in Business
- Apr 3, 2025
- 3 min read
April (Doctors In Business Journal) - If you are one of the many borrowers who had their student loans canceled or reduced under the Biden administration in 2024, congratulations! This relief can significantly ease your financial burden. However, while federal law currently exempts forgiven student loans from taxation, you may still face a hefty tax bill at the state level. In fact, 19 states could tax your forgiven debt as income, creating a potential tax bomb that you need to prepare for now.
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