The IRS has stated that loans discharged through the Borrower Defense to Repayment program are not taxable income. This is because the program eliminates federal student loans for borrowers who were misled by their college or whose school violated state laws or engaged in misconduct. See: Income from discharge of indebtedness
One should be aware that currently as written here: Borrower Defense Updates there is an injunction in place for the regulations that are above.
Prior to the injunction only five states were on track to tax forgiven student loans: Arkansas, Indiana, North Carolina, Mississippi, and Wisconsin.
Just for visibility, since your follow up question was about Minnesota, you can look here as well: Cancellation of Education Loans Minnesota Department of Revenue
Minnesota specifically states: If your discharged education loans were not taxable federally, they are not taxable on your Minnesota return.
I hope this was helpful and thank you for the follow up question @Cdmarshall6411
All the best,
Marc T.
TurboTax Live Tax Expert
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