Report Warns US Student Loan Forgiveness Could Lead to $6,000-$12,000 Tax Bill in 2026

A new report from Protect Borrowers indicates that federal taxes on canceled student debt could increase household costs by thousands of dollars in 2026, with modeled outcomes showing additional burdens of approximately $6,000 to $12,000. This concern has intensified following the expiration of a temporary tax exemption in 2025.