Student-Loan Forgiveness: What to Know About Biden's Plan and the Supreme Court Case

Contributing sentiments towards policy:

56% : Student loan payments were due to resume Jan. 1.
49% : Under existing state laws, in as many as 13 states, student-loan forgiveness could count as taxable income on state income-tax returns, according to Jared Walczak, a state tax expert at the Tax Foundation, a tax-policy think tank based in Washington, D.C. That could mean a $500 tax bill in Massachusetts, which levies a 5% flat-rate income tax, or a $1,100 tax bill in Hawaii, which has an 11% tax on its highest earners, wrote Mr. Walczak in a blog post.
48% : Debt forgiveness is often treated as income on taxes.
44% : But fortunately for borrowers, this canceled student debt is federally tax-exempt, as seen in other federal student-debt forgiveness programs.
30% : But if that hurdle is overcome, the court could rule that Mr. Biden lacked the legal authority to cancel large amounts of debt under the Heroes Act, a 2003 law that allows an indeterminate amount of student debt to be canceled if borrowers are made worse off economically by a national emergency.

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