AFT Files Suit To Stop Delay on Loan Forgiveness

(from NPR) In a new court filing, the American Federation of Teachers (AFT) is asking a federal judge to force the U.S. Department of Education to follow the law and cancel the debts of borrowers who have met longstanding requirements for loan forgiveness. With the American Rescue Plan, Congress temporarily stopped treating loan cancellation as taxable income until Jan. 1, 2026. Soon, many borrowers will again be expected to pay taxes on those cancelled debts.

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