Tax Consequences of Student Loan Discharges for Borrowers in Income-Driven Repayment Plans

TR Number
Date
2020-07-01
Journal Title
Journal ISSN
Volume Title
Publisher
The Institute for College Access and Success
Abstract

This report illustrates that while many borrowers in IDR will repay their loans in full, those who do receive a discharge of remaining debt after 20 or 25 years of responsible payments may face an unaffordable tax liability because these discharged amounts are treated as taxable income under current law.

Description
Keywords
student loans, COVID-19, data system
Citation