Is student loan forgiveness taxable in 2026?
Is student loan forgiveness taxable again in 2026? For most federal borrowers, yes. The temporary student loan forgiveness exclusion added by the American Rescue Plan Act sunset on December 31, 2025. Discharges in 2026 are generally includible in income under Internal Revenue Code §108, unless Public Service Loan Forgiveness, insolvency, or another specific exclusion applies….