Indiana will tax student debt relief as income, reflecting similar policies in other U.S. states following the Biden administration's announcement of a forgiveness plan last month.
The Indiana Department of Revenue said Tuesday that residents will be required to include their forgiven loans as taxable income.
More than 40 million Americans could see their student loan debt cut or eliminated under President Joe Biden’s plan, which is erasing $10,000 in federal student loan debt for individuals with incomes below $125,000 a year or for households that earn less than $250,000 annually.
Federal Pell Grant recipients could receive an additional $10,000 in federal forgiveness under the plan.