KEY POINTS
  • The American Rescue Plan Act of 2021 made student loan forgiveness tax-free until Dec. 31, 2025.
  • President Joe Biden wants to make that provision permanent.
  • Student loan forgiveness first became tax-free at the federal level in March 2021 due to a provision included in the $1.9 trillion federal Covid-19 stimulus package that Biden signed into law.
U.S. President Joe Biden speaks at the Pieper-Hillside Boys & Girls Club in Milwaukee, Wisconsin, on March 13, 2024.

The American Rescue Plan Act of 2021 made student loan forgiveness tax-free at the federal level through the end of 2025.

President Joe Biden wants to extend that policy indefinitely.