Social media posts claim Americans must pay taxes on student loans forgiven by the Biden administration. This is partly false; the White House and independent experts say a 2021 law specifically exempts such debt relief from federal taxation, although some states may enforce different policies.
The billions in student loan debt forgiveness announced by the Biden Administration will be exempt from federal taxation but could be taxable at the state level in more than a dozen states a hiccup many states are expected to quickly handle.