President Joe Biden recently announced a widespread student debt relief program that will cancel up to $20,000 in federal student loans for single borrowers who earn less than $125,000 annually and married borrowers who file taxes jointly and earn less than $250,000 annually.
Now that the program has been announced, borrowers have questions about what the legal and tax implications will be of this loan forgiveness. One specific question that has been asked is whether the amount forgiven is considered taxable income?