Student Loan Forgiveness Now Taxable: How the 2026 'Tax Bomb' Could Cost Borrowers Thousands
The federal tax exemption on student loan forgiveness expired January 1, 2026. Here's how much it could cost borrowers and what you can do to prepare.
18 articles found for "tax"
The Student Loan Tax Bomb Has Detonated: What 800,000 Borrowers in Backlog Need to Know
Student loan forgiveness is now taxable again as of January 1, 2026, while over 800,000 borrowers remain stuck in a backlog for repayment plans and forgiveness programs.
Student Loan Forgiveness Is Now Taxable Again: What Borrowers Need to Know
The temporary exemption making student loan forgiveness tax-free has expired. Borrowers qualifying for income-driven repayment forgiveness in 2026 could face tax bills of $10,000 or more.
Student Loan Forgiveness Is Taxable Again: The 'Tax Bomb' That Could Cost Borrowers Thousands
A key tax exemption for forgiven student debt expired on December 31, 2025. Borrowers who qualify for forgiveness could now face tax bills exceeding $12,000.
The Student Loan 'Tax Bomb' Has Arrived: What Borrowers Need to Know About 2026's New Reality
As of January 1, 2026, student loan forgiveness through income-driven repayment plans is taxable again. Borrowers with $57,000 in forgiven debt could face a $12,000 tax bill.
The Student Loan Tax Bomb Starts Today: What Borrowers Need to Know About 2026's Biggest Financial Trap
As of January 1, 2026, student loan forgiveness through income-driven repayment plans is once again taxable income. Here's how to prepare for the financial hit.
Student Loan Collections Return in 2026: Wage Garnishment Resumes After Years of Pause
After years of pandemic-era pauses, federal student loan collections will resume in early 2026. Wage garnishment and tax refund offsets will affect millions of borrowers in default.
Student Loan Wage Garnishments Resume This Month as 800,000 Borrowers Remain Stuck in Backlog
The Education Department is resuming wage garnishments for defaulted student loan borrowers while 800,000 remain stuck in a processing backlog for affordable repayment plans and forgiveness.
5.5 Million Student Loan Borrowers Face Wage Garnishment as Default Collections Resume in January
The Trump administration will resume garnishing wages from 5.5 million defaulted student loan borrowers starting January 2026, ending a years-long pandemic pause.
America's $38 Trillion Warning: Why Janet Yellen Says the Debt Is Nearing a Red Line
Former Fed Chair Janet Yellen warns the U.S. is nearing 'fiscal dominance' as federal debt hits $38 trillion and the debt-to-GDP ratio approaches 120%. What it means for investors.
Student Loan Wage Garnishment Returns: What 12 Million Borrowers Need to Know
For the first time since 2020, the federal government is resuming wage garnishments on defaulted student loans. Over 12 million borrowers are delinquent or in default.
America's $1.23 Trillion Credit Card Debt: Inside the Political Battle Over Consumer Finance
Credit card balances have reached record highs while delinquencies stabilize near decade peaks. Trump's rate cap proposal has ignited a debate over affordability vs. access.