A pair of Democratic lawmakers have introduced a bill that would provide tax relief to student loan borrowers who have been granted debt relief after consistently repaying their student loan debt for at least 20 years, giving them an exemption from being taxed on the amount forgiven on the loans.
Rep. Mark Pocan, D-Wis., and Frederica Wilson, D-Fla. introduced the Relief for Underwater Student Borrowers Act on Tuesday. “Student loan debt is weighing down our economy and holding back a generation of Americans as total student loan debt has grown to more than $1.2 trillion—more than total U.S. credit card debt,” Pocan said in a statement. “This legislation closes a major gap in our tax code which penalizes some borrowers who have been granted debt relief after at least 20 years of consistent repayment towards their student loan debt.”
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