The Student Loan Debt Forum | The College Investor

Student Loans => Student Loan Forgiveness => : Hueylewisfan 21, 2020, 07:34:07

: Interest on loan considered taxable income or just principal?
: Hueylewisfan 21, 2020, 07:34:07
If loan is forgiven, what is the figure used to calculate taxable income?  Does it include the principal only, or the principal and all accrued interest as well? 
Ex: unpaid loan amount = $10,000
    Interest amount over 22 years = $10000

Would all $20,000 be considered the forgiveness amount and therefor taxable as income?
: Re: Interest on loan considered taxable income or just principal?
: TheCollegeInvestor 22, 2020, 11:25:07
Under what forgiveness program? Some are taxable, some are not.

Let's assume it's taxable. The amount is based on the total value of the loan at discharge. Principal, Interest, and any fees or collection costs on the loan.

See this: taxes and loan forgiveness (https://thecollegeinvestor.com/16568/taxes-and-student-loan-forgiveness/).