Will I be taxed on student loan forgiveness?

Some federal student loan borrowers can qualify for forgiveness through programs such as Public Service Loan Forgiveness (PSLF), Teacher Loan Forgiveness (TLF), or after making years of payments under an income-driven repayment (IDR) plan. These programs provide significant relief. As of September 2025, PSLF forgiveness eliminated $87.6 billion in combined outstanding loans for over 1.1 million borrowers. However, student loan forgiveness isn't always a clean break. Depending on the program and the year ...