States face a tough choice in the year ahead: pile onto US tax bills looming for thousands of student loan borrowers whose debts are forgiven under an income-driven repayment plan, or forgo much-needed revenue.
Tax-exempt status for loan forgiveness under those plans is due to expire at the end of this year. The Republican-controlled Congress declined to extend an income-driven tax carveout created by a pandemic-era law and the Trump administration has declined so far to take executive action.
That’s turning attention to the states with legislatures returning for sessions in the coming weeks. Borrowers wouldn’t begin seeing tax bills ...