The government plans to forgive $100 billion in student debt — but it’s not as forgiving as it sounds
- At least $108 billion of student debt will likely be forgiven by the federal government in coming years, according to a report by the Government Accountability Office.
- But because of stipulations in forgiveness plans, even those students who receive forgiveness may not be completely off the hook.
- Many still get stuck with big tax bills.
- Here’s who needs to worry about tax: If you get public service loan forgiveness — which, as the name suggests, involves you working in public service — then you don’t have to fret.
- But if you get forgiveness from what’s simply an income-driven repayment plan, or IDR, it’s a different story. Read more