Student loan forgiveness is taxable again: Start planning for the 'tax bomb,' CFP says

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Why This Matters

The expiration of a law protecting student loan forgiveness from taxes may lead to a 'tax bomb' for some borrowers in 2026, prompting the need for planning and potential financial adjustments.

Market Impact

Market impact analysis based on bearish sentiment with 80% confidence.

Sentiment
Bearish
AI Confidence
80%
Time Horizon
Short Term

Article Context

Note: This is a brief excerpt for context. Click below to read the full article on the original source.

Some student loan borrowers who get their debt canceled in 2026 may be hit with a tax bill now that a law protecting the relief from levies has expired.

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Original article published by CNBC on January 1, 2026.
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