If you're years into an income-driven repayment plan and working toward student loan forgiveness, there is an important number you may not have been tracking: The potential tax bill at the end.

For five years, most student loan forgiveness received favorable federal tax treatment. The American Rescue Plan temporarily excluded qualifying student loan debt forgiven from 2021 through the end of 2025 from federal taxable income.

That temporary protection has now expired. For qualifying income-driven repayment forgiveness that occurs on or after January 1, 2026, the amount discharged is generally included in taxable income for federal purposes.

From just $107.88 $24.99 for Kiplinger Personal Finance

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