Urges Congress to amend tax code to permanently exclude all forms of discharged student loans from federal income tax.*

This New Jersey Assembly Resolution (AR 95) urges Congress to permanently change federal tax law so that all forgiven student loans become tax-free. Currently, borrowers who have student debt discharged through programs like Public Service Loan Forgiveness or death/disability (but only until 2026) do not owe income tax on the forgiven amount, but other forms of forgiveness - such as after 20 or 25 years in Income-Driven Repayment Plans - still require borrowers to pay federal income tax on the discharged debt. The resolution requests Congress make all student loan discharge tax-free permanently, directly affecting borrowers who receive loan forgiveness but face unexpected tax bills. As a non-binding resolution, it does not change law but formally requests federal action.