Minnesota To Tax Loan Cancellations

President Biden’s plan to cancel student loans for some students comes with a catch in Minnesota. The state’s Department of Revenue yesterday said the 10 thousand or 20 thousand-dollars in canceled student loans will be taxable. There was a plan in the state legislature to make those canceled student loans tax-free, but lawmakers never passed it. The president wants to cancel 10 thousand-dollars worth of student loans for people making under 125 thousand-dollars a year, and 20 thousand-dollars of loans for people who got Pell Grants.