For those struggling with student loan debt, the idea of loan forgiveness can sound like a dream come true. Thanks to the American Rescue Plan Act of 2021, students could qualify for loan forgiveness without worrying about surprise tax bills — the act made all federal student loan forgiveness programs tax-free. However, that provision is set to expire at the end of this year. Loans forgiven on or after Jan. 1, 2026, may be taxable as income. Which borrowers are affected by the expiration of tax-free lo ...

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. The U.S. Department of Education has announced that federal student loan forgiveness will resume after a recent pause, opening the door for millions of eligible borrowers to finally receive relief. Earlier this year, the department paused student loan forgiveness under certain income-driven repayment plans, such as the income-based repayment, income‑contingent repayment, the public service loan forgiveness ...

Core Points - The U.S. has suspended the income-driven repayment plan (IDR) for student loan forgiveness, impacting borrowers who rely on this program for debt relief [1] Group 1 - The suspension of the IDR plan is expected to affect millions of borrowers who were anticipating loan forgiveness [1] - This decision may lead to increased financial strain on borrowers, as they will continue to accrue interest on their loans without the benefit of forgiveness [1] - The move has sparked criticism from various advocacy groups who argue that it undermines efforts to alleviate student debt burdens [1]