Millions of borrowers are set to have their tax refunds seized by the government due to outstanding defaulted federal student ...

A ‘tax bomb’ is set to detonate on New Year’s Day. The blast could throw the finances of millions of student loan borrowers ...

It’s a new year for student loans, and big changes are happening that will impact millions of borrowers across the country.

・The "Student Loan Tax Bomb" is a term that refers to the taxes owed on forgiven student loan debt in some circumstances. ・The tax bomb is set to return for many borrowers in 2026. ・Programs like PSLF ...

The first change applies to students attending less than full time. Until now, part-time students have had the same loan maximums as full-time students. Starting in the 2026-27 academic year, though, ...

Elizabeth Guevara is a personal finance reporter who explains the world of business and economics and how it impacts your finances. She joined Investopedia in 2024. ZeynepKaya / Getty Images An ...

Elizabeth Guevara is a personal finance reporter who explains the world of business and economics and how it impacts your finances. She joined Investopedia in 2024. Investopedia / Photo Composite by ...

“There are two things that student loan borrowers need to know: There are changes in the way student debt is taxed, and the other is Congress didn’t extend tax-free student loan forgiveness,” Mike ...

Federal tax bills on most student loan forgiveness will return in 2026, ending a five-year window of tax-free relief and raising the risk of a student loan tax bomb for borrowers whose balances are ...

A ‘tax bomb’ is set to detonate on New Year’s Day. The blast could throw the finances of millions of student loan borrowers off balance. The impending blast is heading for borrowers paying down their ...