Saturday, January 18, 2025

Newsom calls for action to eliminate taxes on forgiven student loans

student loans forgiven

Californians who receive forgiven federal student loans will not have to pay state taxes on the amount forgiven under President Joseph Biden's program, Gov. Gavin Newsom.

On Saturday, the state official called on the Legislature to take early action to ensure that any federal student debt relief provided to Californians is not subject to state taxes. The proposal will be part of the Governor's budget to be released in January.