Student Loan Tax Relief Act

HR 3967, the Student Loan Tax Relief Act, changes tax rules to exempt certain forgiven student loans from being counted as taxable income. It directly affects borrowers whose loans were forgiven through federal programs, state initiatives, institutions of higher education, or qualifying private lenders (as defined under the Truth in Lending Act). The key provision removes the tax burden on forgiven amounts for loans used for postsecondary education, including those from government entities, schools, or specific private lenders. This change applies to loan discharges occurring after January 31, 2022.