Student loan forgiveness is a ticking tax bomb again, study warns — Live Feedhttps://www.live-feeds.com/feed/student-loan-forgiveness-is-a-ticking-tax-bomb-again-study-warnsContinuously updated, source-cited coverage. Expired Tax Exemption May Trigger Massive Bills for Student Loan Borrowershttps://www.live-feeds.com/feed/student-loan-forgiveness-is-a-ticking-tax-bomb-again-study-warnshttps://www.live-feeds.com/feed/student-loan-forgiveness-is-a-ticking-tax-bomb-again-study-warns#u132844Sun, 18 Oct 2026 18:30:56 +0000Federal student loan forgiveness is taxable income again in 2026 following the expiration of a temporary tax exemption at the end of 2025. A report from Protect Borrowers warns that 3 million borrowers could face tax penalties of $12,000, while other reports suggest some individuals could see their total tax bills triple. This shift affects borrowers receiving debt relief over the next decade, potentially creating surprise IRS bills ranging from $6,000 to $12,000 for those whose balances are wiped out.Why it mattersIn 2021, Congress exempted canceled federal student debt, including balances un