The impacted borrowers are people enrolled in the SAVE Plan.
The Biden administration will begin automatically relieving student debt for another 153,000 people on Wednesday, bringing the total number of Americans approved for debt relief to nearly 3.9 million.
President Joe Biden will tout the new debt relief in a speech from Los Angeles, and thousands of people will receive an email from the president informing them that they now qualify for relief.
“Congratulations — all or a portion of your federal student loans will be forgiven because you qualify for early loan forgiveness under my Administration’s SAVE Plan,” the email from the president will read.
The people receiving debt relief beginning Wednesday are those who enrolled in the newest student loan payment plan, called the SAVE Plan, which the Department of Education calls the most affordable plan for the majority of borrowers.
Anyone enrolled in the SAVE Plan who took out less than $12,000 in initial loans and has been paying them down for the past 10 years or more will have them forgiven.
How much is this going to cost them in taxes later on?
What’s with all the downvotes
Lemmy.world is the largest instance with the broadest population from reddit. YMMV.
But to your question: it shouldn’t. Student loans forgiven /debts cancelled until I think 2025 are exempt from being viewed as taxable income under the American Rescue Act.
Which is suspected to be part of the reason debt forgiveness is being percieved as being intentionally slow walked.