Some Student Loan Borrowers Are Going To Be Taxed On Their Forgiveness

Contributing sentiments towards policy:

55% : Borrowers rejoiced following news that President Joe Biden was planning to live up to a campaign promise of canceling up to $10,000 of student loan debt for all holders of federal loans in August, but for those who live in certain states, that aid won't come without some extra strings attached.
47% : In North Carolina, where the state tax rate is 4.99%, those numbers go up to $499 and $998, while Mississippi's 5% rate means $500 or $1,000 in taxes.
47% : Wisconsin's 7.65% tax rate would mean either $765 or $1,530 in taxes.
39% : The states that do plan to levy taxes are Mississippi, North Carolina and Indiana, while Wisconsin, West Virginia, Minnesota, California and Arkansas are all still considering those decisions.
39% : However, while some borrowers may be forced to pay taxes on the forgiveness, the amounts they pay will be significantly smaller than the amounts that are being forgiven.

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