Student Loan Borrowers in Illinois Could Face Federal, State ‘Tax Bomb’ in 2026

Source WTTW
Original Load Date Jan. 30, 2026, 6:01 p.m.
Last Updated Jan. 30, 2026, 6:01 p.m.
Original URL https://news.wttw.com/2026/01/30/student-loan-borrowers-illinois-could-face-federal-state-tax-bomb-2026

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_by Sam Freeman and Medill Illinois News Bureau, Capitol News Illinois_ * * * SPRINGFIELD — For the first time in five years, certain forms of student loan forgiveness will be taxable following a change in federal tax policy this year. This comes after a provision of the [ American Rescue Plan Ac...