Democratic senators say a provision in the $1.9 trillion stimulus package signed by President Joe Biden last week paves the way for him to cancel student debt for a broad swath of borrowers.
As part of the law, borrowers who have any student debt cancelled through the end of 2025 wont face a tax bill over the discharged debt. Previously, cancelled student loan debt (with a few exceptions, including debt discharged through Public Service Loan Forgiveness) was typically considered income for tax purposes.
That tax treatment has been one of the major arguments critics have leveled against proposals urging Biden to cancel student debt. Senator Chuck Schumer, the majority leader, told reporters Monday that with the provision now law, that argu…
Read the full article at: https://www.marketwatch.com/story/schumer-with-relief-bill-major-argument-against-student-debt-cancellation-vanishes-11615903993
