is the fastest-growing type of debt in the U.S. More than 43 million Americans carry federal student loan debt, with an average balance of more than $37,000., many borrowers felt a sense of relief. But they may also wonder if there will be other repercussions.
excludes federal student loan relief as taxable income through 2025. However, several states don’t fully conform to that provision and have the option of collecting taxes on the canceled debt amounts.canceled debt will be subject to state income taxes. The Tax Foundation, the nation’s leading independent tax policy nonprofit, predicts that five other states might follow suit.
Source: Education Headlines (educationheadlines.net)
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