What about the IRS?
They consider any loan forgiven to be income....................
If the Supreme Court upholds Biden’s plan to cancel student loan debt for borrowers, any forgiven loans would be exempt from federal taxation. That’s thanks to the American Rescue Plan, Biden’s Covid-19 relief bill that Congress passed in the spring of 2021.
It allows taxpayers to exclude canceled federal student loan debt from their gross income through 2025.
Typically, any debts that are forgiven are treated as taxable income by the IRS and are subject to taxes. For example, if you owe a creditor $25,000 and the amount is forgiven, you would need to include the $25,000 when determining your taxable income. However, due to the American Rescue Plan, borrowers would not face a tax bill if the program stands.