Student loan forgiveness may come with a tax bomb. How lawmakers might fix it

Student loan forgiveness may come with a tax bomb. How lawmakers might fix it

There’s also the “insolvency exception” that’s already written into the tax code. … “The insolvency exception from cancellation of debt income likely applies to many taxpayers with heavy outstanding loans from college and graduate school,” said Joshua Blank, professor of law at the University of California, Irvine School of Law.