It is in the fine print. The note says: Taxability of discharged student loan debt due to borrower defense may vary. ITT students who had their debt discharged do not have to pay federal, state, or state/local income taxes (IRS Rev. Proc. 2020-11). In addition, loans discharged pursuant to the settlement in Sweet v. Cardona will not be required to be added back in determining Indiana adjusted gross income.
In English, If you are ITT student, the college is defunct and the loan is not taxable. If you fall under the lawsuit mentioned, it is not taxable. Otherwise, it is taxable.
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