Earlier this month, legislation was introduced in the U.S. Senate that would allow permanently disabled veterans or survivors of veterans who have their student debt forgiven to avoid tax penalties.
Currently, by law, forgiven student debt is counted as income by the Internal Revenue Service, resulting in veterans or their survivors incurring potential tax-related costs.
The bipartisan bill, S. 2800, was introduced by U.S. Senators Chris Coons (D-DE), Angus King (I-ME) and Rob Portman (R-OH). The bill is currently in the U.S. Senate Finance Committee.