Hello,
I carried two loans with Discover Student Loans and they chose to discharge my loans when they decided to get out of the student loan business. Some people were transferred to another lender, but mine was not. I was sent two letters that explained that my loans had been discharged and reported to the IRS as paid in full. They also notified me that I would receive a 1099-c for both loans I had with them, which I did. I know under ARPA, all student loans that are discharged between December 2020 and December 31, 2025 are tax empt from being considered taxable income through January 1, 2026. My dilemma is that I don’t know how or where to report/file these 1099s on my taxes this year. I’ve never had a debt discharged before this. I also received a 1099-MISC from them because they had found they somehow undercharged me for something related to those loans and I had a remaining balance floating around somewhere that also needed to be reported as discharge (or at least I assume that’s what it’s for). Can you please explain the difference between the 1099-c and 1099-MISC forms and how I should go about reporting them on my 1040?
