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Level 1
May 4, 2026
Question

Borrowers defense repayment- refund taxable?

  • May 4, 2026
  • 1 reply
  • 36 views

I received a refund in the mail for my federal loans.  It says the decision date was 16 Jan 2026.  The paperwork says non-taxable if the decision was is 2025.  Is there any update on this? My state is CO because that’s where my employers is, but I live overseas as a military spouse attached to a german/U.S. military base. Do you know if this will be considered taxable income for 2026 filing?

 

1 reply

Level 15
May 4, 2026

@sharonam you mean "loan foregiveness"?

 

as for the 2026 impact, student loan foregiveness under PSLF (Public Service Loan Foregiveness) remains non-taxable.  

 

All other student loan foregiveness is not taxable as the law that caused them to be non-taxable has expired. You should receive form 1099-C at year end from the loan servicer. 

 

does that help?